Mortgage Application - Calculating Loan to Income

Kigera

Hi all,

I'm currently in the process of applying for a mortgage and wondering how the income I receive from a rental property is considered by the banks with regard to calculating Loan to Income (i.e. 3.5 times the applicants income)? My query is as follows:

1) Do the banks take into account my salary + all 12 months of the rent received to calculate the LTI?

2) Do the banks take into account my salary + (all 12 months of the rent received - mortgage repayment) to calculate the LTI?

3) Do the banks take into account my salary + Net income from the rental property (i.e. 12 months of the rent received - mortgage repayment - tax deducations) to calculate the LTI?

In the above examples, I used 12 months rent, do the banks allow for 12 months or do they only consider 10 / 11 months?

TIA

Bubbaclaus

To my knowledge they dont consider rental income at all in the LTI threshold.