The information contained
on this page is by no means an exhaustive or comprehensive list
of criteria and is only intended to be a general indicator of generic
lender criteria.
Loan Value
Lenders typically will lend up to 85% of the value or purchase
price (whichever lower) of the property.
Lenders nowadays are prepared to lend more than 85% in some circumstances
(up to as much as 90%).
Rental Income
The rental income of the property is the figure that the surveyor
provides to the lender and is based upon his assessment of the
likely rental income achievable. Surveyors tend to be more pessimistic
than letting agents when it comes to achievable rent.
The figure provided would need to cover the monthly interest payment
by 125%. This is based upon a rate of around 6% generally.
Again lenders do change criteria and some may only require the
payment covered 100% and some may use different rates for assessment
purposes.
Personal Income
Lenders may or may not require any proof of personal income and
they may have minimum income requirements.
Credit History
Lenders will undertake credit reference searches and different
lenders will be more strict than others when it comes to any 'adverse
credit history' issues.
Your home may be repossessed if you do not keep up repayments on
your mortgage.
