BTL Mortgage - What income or potential income is mortgage calculated on?

[colink]

A landlord has been over generous to a very good tenant.

Last Years tax return shows an income of £8400

Landlord has just issued a Notice of Variation to increase rent to £9600pa

The property has a potential income of £10800 pa

Which income will potential mortgage providers use to calculate their mortgage offer?

Will  some BTL mortgage providers use different numbers.

[Richlist]

Well surely they will use the actual rental income being achievement at the time of the mortgage application. Why do you think they will use last year's rental income or a mythical amount that is nothing more than a guess ?

[Carryon Regardless]

A valuer would provide the expected rental return as part of the report. But if at application the figure submitted is lower, I'm guessing, that would be used instead.

A mortgage company then apply that to whatever their criteria is.

While they might want to see accounts of the applicant/s, I've never been asked for any accounts relating to a BTL property.

 

[Grampa]

If a BTL purchase was empty the potential rental income would be taken into consideration and I guess taken from local comparables on the market. If the property is tenanted surely the only figure that can be used is what is received at present. 

Now if you have served on the tenant a section 13 notice increasing the rent to start sometime in the near future I would see no reason why that figure couldn't be given as the rental amount for the purpose of a mortgage application. However, if the lender wants to see your bank statements which is likely it may raise a question or two regarding the discrepancy in amounts.