Would appreciate mortgage advice re rental income inclusin

Beaumum

Hi everyone,

Many thanks in advance....am hoping someone has some expert knowledge as to whether rental income (we own a 2nd property and currently rent it out) would count towards a mortgage application as regards Loan to Income levels. We are slightly above the 3.5 Central Bank lending rules for mortgages, based on our joint salaries. We never thought to include the rental income from the other property that we rent out in our new mortgage application, until someone suggested that this might be allowed to be included. Would anyone have some professional knowledge/insight into this, as I can't find a difinitive answer and it could make the difference as to whether we can move home or not.....by the way, if it makes any difference, our mortgage on our principal private residence is with KBC and we are not in negative equity.

Many thanks for your help,

Beaumum

Trish56

Yes rental income together with mortgage repayments will be taken into consideration when assessing your application for a new mortgage. It may not be to your advantage though as your interest rate is stressed by 2% and higher if you are on a low tracker rate and your rental income is reduced so this can have a negative effect depending on the balance on the mortgage and the rate of interest you are paying.

Lenders can make exceptions to the 3.5 times income

Beaumum

Hi Trish,

Many thanks for taking the time out to get back to me. Thank you for the insight as regards rental income, and your comments make total sense as regards our mortgage application.

Thanks again,

Beaumum