Investment mortgages look most closely at the income from the investment, as well as your income levels in some cases.
Mainstream lenders often require a minimum £25,000 personal income, although niche interest-only lenders may not have any minimum in place.
The most important eligibility criteria are:
- Loan to Value Ratio - caps are usually around 75% to 80% of the property value, with some niche lenders going as high as 85%.
- The anticipated rental or investment income and how this will cover the repayment of the lending.
- What repayment plan you have, and how reliable and stable the exit strategy is.
HMO Mortgages - eligibility criteria are relatively strict for interest-only lending, which will consider how many residents the property can accommodate, local licensing, and your landlord experience.
Holiday Let Mortgages - this interest-only lending will look at all the above criteria, as well as the location of the property.
Commercial Mortgages - business lending usually requires an experienced broker. Deposits tend to be higher, and the terms depend on the business circumstances and lending scenario.
Buy to Let Mortgages - lenders will look at how much the property is worth, how you expect to repay the balance, and what the likely rental income will be from the investment. Most lenders will need to see a minimum cover - for example; the rental income needs to be at least 125% of the monthly interest-only payments.
