Rental Income

[JanineG]

Can rental income be taken into account in calculating the amount available for a mortgage on a separate property? My partner and I live in my house, and he has his own house which is currently rented. We'd like to move to a larger house and hope to be able to raise a mortgage for the third house, whilst renting out the two properties we already have. Kind of our pension for the future. Can the rental income from these two properties be taken into account in calculating how much mortgage we can get?

Many thanks in advance for any advice....

[jennyp]

I don't know the answer to your question, but I do know that if you have a Buy to Let Mortgage - only the rent is taken into account for your rented property at I think 85% of value. We have done that, and are about to build again, and have to borrow that way. We went to a a 1/2 day talk given by
http://www.themoneycentre.co.uk/workshops.asp? type=1&email=&link=ws0107 and found it really useful.. No pressure with anything, but I gleaned a lot of information, and it put in to perspective how to borrow on what you have.
The seminar was free, and there was a free lunch!!! I know I've always said there is no such thing as a free lunch, but in this case there was. If you can get to one of the seminars, I'm sure you will learn a lot - it was certainly an eye opener for us & I shall probably go to another next year.

[EverClean]

Lenders require you to state the income from rent MINUS any mortgage and maintenence paymaents you make on the rental property. This usually means that you can't take it into account.