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#LLOYDS TSB LOAN CALC VERIFICATION#

Should the rental income be insufficient to meet the self funding calculation then the loan amount must be reduced to fit. If the requested loan is higher than that traced at the credit bureau we will either need additional documentation to confirm the current balance or the requested loan will need to be reduced to match the current balance as per credit bureau.

Letter from letting agent confirming expected rental payment (where not currently let).įor like for like remortgages the balance keyed must align to the current mortgage balance as per credit bureau.

Letter/invoice/statement from letting agent managing the property.

Tenancy agreement (current agreement required, not to be out of date/expired).

3 months bank statements (showing rental income).

Rental income for the property subject to the mortgage application will be validated by the valuers estimate, and background mortgaged properties can be evidenced by any of the following: Rental income from unencumbered properties is treated as self employed income, and therefore we will not look to evidence this and will apply an interest coverage ratio of 145% in this scenario. Whilst acknowledging costs will vary from property to property, we will apply the same deduction across the board in all instances.

£1000 gross rental equates to £827 after costs which will count towards total taxable income to establish tax banding). When considering total income to establish the applicants tax banding we will include rental income for mortgaged Buy To Let properties (including property subject to mortgage application), and will make a deduction of 17.3% from the rental income keyed to the application to cover costs (e.g. Where any applicant is self-employed or a day rate contractor we will not look to evidence any income keyed.

#LLOYDS TSB LOAN CALC VERIFICATION#

Where applicants are basic rate taxpayers, and the lending is not affordable on an interest coverage ratio of 145% at a stressed interest rate of 5.5%, we will look to evidence all taxable income keyed to the application in line with how we evidence income on mainstream applications - Income, Verification - Main Income | TSB Intermediaries Income, Verification - Other Income | TSB Intermediaries. Re-mortgages with no additional borrowing (excluding residential to BTL / Let to Buy)Īll other application types (including residential to BTL / Let to Buy)

The table below shows the stressed interest rates we apply for different application types: Application Type Where applicants are self-employed or day rate contractors the interest coverage ratio will be 145% irrespective of whether they are basic, higher, or additional rate taxpayers. In order to meet the self financing calculation for Buy to Let mortgages, the rental income is required to cover 125% of the mortgage interest for basic rate taxpayers (both applicants must be basic rate taxpayers), or 145% of the mortgage interest for higher or additional rate taxpayers.