Rent consideration for mortgage application

N

nwarren

Registered User
Messages
38
Hey all

I am applying to get a mortgage from AIB Bank for a family home but i have a buy to let property that has been rented out for the last 8 years and my wife is in the same situation also..

i was wondering are AIB taking rent into consideration for mortgage approval??

if not, does anybody know if any bank is taking rent into consideration on mortgage approval

Thanks
 
There have been reports of them taking it into account, but no where close to the full amount. I'd expect the amount to lower with all the talk of changes to how rent is taxed as well.
 
From my experience with AIB, they won't take into account any rental income, even if you can show that you have been consistently receiving rent.

For their purposes of calculating if you are suitable or not,
They take an allowance of €1,000 per adult for "living" expenses per month, & €250 per child. So if you have two adults and 3 kids in the family, they say that you will need €2750 in living expenses per month (outside of mortgage repayments). They take your joint NET income per month, deduct the Living Expenses, and then see if you can meet you current mortgage repayments, & your new proposed mortgage repayments, without the use of rental income from what is left of your NET income.
O, and they use an interest rate of 6% to stress test this, even if your current mortgage is on tracker.
This will determine if they will give you an application form, as they don't give an application form to just anyone, as they want to keep their "refusal" rate low for the statistics.
From the grapevine, AIB are currently not the most welcoming to new mortgage applicants.
 
Ulster bank take rental income into consideration. I applied to AIB<, Bank of Ireland and Ulster Bank and Ulster were the only bank to consider our rental income.
 
You must log in or register to reply here.
Back
Top