Rental income at Gen H is assessed based on the gross rental income (after any management fees), with a 17% deduction for rental voids and expenses. The full mortgage commitment must be entered.
Where there are other associated costs relating to the property, such as management fees, they must also be declared or offset against the income.
Enter the full amount, and the system will apply the appropriate weighting to the income.
Since the income figure is internally generated, all rental income is reviewed by an underwriter to ensure it is reasonable and achievable. Underwriters have the discretion to request tax returns as evidence of declared rental profit and may adjust the income figure calculated by the system if appropriate.
All rental income derived from short-term lets (under six months), holiday lets, or irregular rental income must align with the latest tax return unless a suitable explanation and, where applicable, supporting evidence is provided to justify a higher figure. It is recommended that any applications including rental income from these sources are referred to Gen H before submission.
We will require the following for each of the rental properties:
- Address of property
- Outstanding mortgage balance
- Total annual rental income
- Total annual mortgage repayment
Packaging guidance:
- Full property details as described above
- Latest 3 months bank statements showing rental income
- In certain circumstances - latest tax return and corresponding TYOs showing income from land and property