Is rental income taken into account at all?

A

Advicepls

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Hi there, looking to rent out my home and buy another. I have seen a lot of conflicting information on here saying that part of rental income is taken into account when applying for a mortgage, and other posts saying its not taken into account at all, you must be able to 100% service all loans with not allowance for rental income. Anyone any experience of applying for a mortgage lately and know the answer to this?

Many thanks
 
Rental income at a discounted level to allow for vacancies and other expenses is generally included in repayment calculations.
 
Thank you Brendan. For someone in my position, what sort of deposit are the banks generally looking for?
 
Does anyone have any recent evidence that rental income is taken into account?

AIB told us last year that once the property was rented out they would allow for a %. We did so, and rented ourselves.

We are now getting ready for an application but when I called the AIB Mortgage Centre, they said none could be allowed. Bit annoyed as we may not have bothered renting and renting and saved more.

We intend to apply through a broker or branch level and raise this issue when applying. I phoned some brokers yesterday, some said AIB would allow for rental income as the property is rented out and then some said they wouldn't. This is why I ask, does anyone know of any recent examples of where rental income was taken into account????
 
Ash21 said:
We intend to apply through a broker or branch level and raise this issue when applying. I phoned some brokers yesterday, some said AIB would allow for rental income as the property is rented out and then some said they wouldn't. This is why I ask, does anyone know of any recent examples of where rental income was taken into account????
Click to expand...

Case by case basis.
Depends on demand, location, length of time it has been occupied
without a break in tenancy.
 
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