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Renting out flat

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New Contributor
Hi all

So my wife and I bought our flat about 6 years ago, with the intention of eventually renting it out when we buy a house. So that time has arrived and I would like to know, can we rent out the flat, and declare the rental payments as an extra income, and apply for a bond on a new house or would the bank not see the rental as extra income and will require that we will be able to afford both properties in regards to them approving a second bond?

Thanks in advance
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New Contributor

Hi,

It depends from bank to bank.  Some years ago, most banks recognised that as an income.  Over the years, a few stringes were added.  1st you need to have a rental contract of at least 6 months old.  Then they came with only a % being used as an income.  This % varies from bank to bank and can be as little as 50% of the rental income. You need to contact a few banks to get the most favorable deal.

 

Tinus

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Regular Contributor
Is this the right venue on which to air this question?
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