2 investment properties .. looking to buy PPR .. Qs ??

D

dubinamerica

Guest
Hi - we're in a sortof interesting situation .Own two houses (one being built which is a section 23), neither is our PPR anymore.. If we wanted to buy a third (would be PPR) how much would our combined earnings need to be so we didn't have to sell and afford maximum 300K property?
Here's the figures:
House 1 + House 2 - Mortgage approx 230K
House 1 + House 2 - Value approx 435K
..so LTV approx 53%
Savings would be approx 30K
House 1: Current rental income 1,000 p.m.
House 2: Potential rental income 400p.m. (lets be conservative)
Also - some Qs:
How long does a house have to have been rented out for lenders to take account of that income ?
How long does someone need to be in a job for that salary to considered in loan app ?
Will lenders take into account the potential rent-a-room scheme?
If you're renting for 6mth - 1 year and paying the same amount as a mortgage does this impress lender ??
Would combined earnings of 70K work for this ?? Would it need to be split a certain way??
Any pointers/info on the above would be great . Any other pointers on 'how-to-impress' a lender would be great ; )
 
Will lenders take into account the potential rent-a-room scheme?

Presumably you know that rent a room only applies to one's owner occupied PPR and not to other rental/investment properties?
 
the lender you are dealing with at the moment is probably the best one to approach.
 
Yes - I realize it's for PPR , that's what the property would be. We've been out of the country a few years so have decided that what was previously our PPR will stay now as a rental property.. We want to then buy a PPR and not sell the others if at all possible. I'm just really wondering through what sort of salary would lenders be looking for to be able to do this ? I've been told that the affordability ratio they work with is around 35-45% .. Will some lenders be more flexible if the risk is spread out - say across three properties instead of one ? Is there a time frame that people need to be in a job before getting a mortgage (say 6 months?) ... Just trying to plan ahead before we move back , so ANY thoughts about what sortof salaries we'd need to earn, whether it's OK if it's evenly split and what things will the lender look for would be very helpful. Right now we've no credit card loans, no car loans, but have a small credit union loan.
So - working backward any idea what sort of salary would be needed for a couple to obtain a loan for a total of 500K where there is rental income of approx 15K p.a. (section23 based) and rent-a-room income ?? Any takers ??
 
I realize it's for PPR , that's what the property would be

Fair enough - it just wasn't clear which property you were referring to in the relation to rent a room income.

We want to then buy a PPR and not sell the others if at all possible.

Slightly tangential point maybe but are you happy enough to concentrate so much (I assume) of your investments in property alone rather than diversifying a bit more?
 
Dublinamerica,
On the basis of the way you outlined your case, you have no difficulty! If you want the exact maths I can show you via private message ( I am a broker)
 
You must log in or register to reply here.
Back
Top