Where income from property represents an applicant’s primary source of income (i.e., where 50% or more of overall income is derived from rental properties), this will be treated as self-employment.
In cases where the rental income makes up less than 50% of the customer's total income, we will include the income as long as it can be evidenced clearly by the latest 3 months’ bank statements.
Key the full amount and we will weight it at 83%.
We will require the following for each of the rental properties:
- Address of property
- Outstanding mortgage balance
- Total annual rental income
- Total annual mortgage repayment
Where there are other associated costs relating to the property, such as management fees, they must also be declared or offset against the income.