What is the minimum income requirement for buying to let?

Asked by Steve

4 Answers

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Answered by Darren Smith, IFA in Basingstoke, HAMPSHIRE
This varies widely.

some lenders simply insist that you have an income of any amount and others will state £20000-£25000 as a minimum. Some will also impose a minimum age of 21 and wont lend to first time buyers / first time landlords.

what seems like a straightforward question, sadly doesnt have a simple answer.

you will also need a decent deposit to make the costs viable, at least 25% and most lenders will require the rent (assessed by their valuer) to be on average 125% of the mortgage ie if the mortgage is £500pcm the rent must be at least £625pcm | 12.14.10 @ 00:43
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$commenter.renderDisplayableName() — {comment} | 08.20.17 @ 20:51
Answered by Paul Ross DipPFS CII(MP&ER), IFA in Bourne, LINCOLNSHIRE
Most lenders do not judge you by the income you have, but that the rental income is at least 120% of the monthly mortgage payment

As an IFA, I would need to know many more facts, though, before I would give a comprehensive answer as there are several factors I'd need to know and that you need to be aware of, especially the tax implications on rent received and capital gains tax. | 12.14.10 @ 06:49
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$commenter.renderDisplayableName() — {comment} | 08.20.17 @ 20:51
Answered by John Stirling, IFA in Saffron Walden, ESSEX
It depends on the lender.

As a throw away generalisation, the more income the lender would like to see (either personally or from the property) the lower the risk the lender is taking, and the lower the interest rate will be.

Although even that is quite variable.

There is no specific regulatory minimum. | 12.14.10 @ 09:51
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$commenter.renderDisplayableName() — {comment} | 08.20.17 @ 20:51
Answered by D C, IFA in Bristol, DEVON
And from your point of view, the minimum income should be enough for you to be able to pay the mortgage and keep the property going indefinitely if, for some reason, you do not have a tenant in place.
| 12.14.10 @ 10:02
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$commenter.renderDisplayableName() — {comment} | 08.20.17 @ 20:51
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Answered by

Darren Smith
Darren Smith, IFA in Basingstoke, HAMPSHIRE

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