New Buy to Let Mortgage

stevehouse

Hi,

I'm just wondering if anyone out there has any experience of this.

Today enquired to AIB and KBC Bank about Buy to Let mortgages and went through incoming/outgoings, repayment capacity etc.

The mortgage amount I'm currently looking for is for 20% the value of the property. I currently have a mortgage a perfect repayment history but haven't making regular savings and both banks want to see this for 6 months and said they will both approve.

My question is around disposable income and repayment capacity, neither bank are taking into consideration rental income. AIB when pushed said they would take 50% rental income into consideration which is fine, but I had to really push them on this.

Is this now the norm that when assessing repayment capacity rental income is no longer taken into consideration or are there banks out there that will take this into consideration?

whatnext

stevehouse wrote: »

Hi,

I'm just wondering if anyone out there has any experience of this.

Today enquired to AIB and KBC Bank about Buy to Let mortgages and went through incoming/outgoings, repayment capacity etc.

The mortgage amount I'm currently looking for is for 20% the value of the property. I currently have a mortgage a perfect repayment history but haven't making regular savings and both banks want to see this for 6 months and said they will both approve.

My question is around disposable income and repayment capacity, neither bank are taking into consideration rental income. AIB when pushed said they would take 50% rental income into consideration which is fine, but I had to really push them on this.

Is this now the norm that when assessing repayment capacity rental income is no longer taken into consideration or are there banks out there that will take this into consideration?

It's a bit nuts, but that's the way the banks are now. I generate more in rental income(gross) than I earn in salary, and have done so for over 7 or 8 years consistently but wet when I was assessed recently for a mortgage they looked at my salary and current repayments and said forget it. This despite all properties performing well and having very positive LTV ratios. No allowance made for the rental income whatsoever, even though it's more secure than my salary... Madness....

stevehouse

Yea, it seems a bit crazy alright considering I presume the majority of people wouldn't be getting into a investment mortgage unless there was a rental income to service part if not all of the repayments.