Loan applications, rental statements, income and outgoings

Hi all,

Looking at the broader range of lenders and more toward the smaller ones, do any of the lenders that you know look over statements or do they purely look at these for gross rental income weekly or monthly etc ?

I ask because I want to know is there any point at all in separating the outgoings so they are off the statements for loan application purposes.

 

They usually don't pay attention to the outgoings on the rental statements - to account for this they take 80% of the gross rental income earned and add it to your taxable income (they then apply an interest add back for deductions related to interest expenses).

For the self employed, they generally still usually verify rental income via rental statements rather than tax returns which usually has a full breakdown of deductions/expenses associated with the property (unless there is a need to use the tax return figures for rental income - e.g. full time investor).

 

They just look at gross and take 80%

Only time they'll usually flag something is if the word "vacating" pops up.