Investment Income Mortgages

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What is your Investment income mortgage qualification?

  • You are receiving some form of investment income.
  • This may be in the form of stocks and shares, or other investments which are a non-primary source of income.
  • Primary income is your main source of earning income (employed / self-employed) and secondary income is any investment revenue additional to this.

How lenders assess mortgages with investment income

  • If your investment income is secondary income, some lenders will consider all your investment income, half your investment income, and some lenders none.
  • If investment income is your sole source of income, then lenders may be more reticent to lend as this type of income is seen as risky.
  • Therefore, it so important to seek advice from specialist investment income mortgage brokers.
  • Some lenders will want to see bank statements or accounts, or if investment income is your sole source of income you may need evidence from the investment Fund Managers.
  • Affordability criteria applies, and so qualifying for a mortgage with investment income is complex.
  • A consistent track record is important.
  • We work for you to present your case to the most suitable lender for a positive outcome.

 

For mortgages with investment income how much can I borrow?

  • The short answer is, about four and a half times your income.
  • But some lenders may offer as much as five and a half times your income.

Your Borrowing = 4.5 to 5.5 x your income

A simple example:

 

Half of Investment income assessed

Investment income = £100,000

Lender includes 50% = £50,000 x 4.5 = £2250,000

 

All of Investment income assessed

Investment income = £100,000 x 4.5 = £450,000

  • You can see that how much you are able to borrow with mortgages with investment income depends on the lender and how they assess your investment income.
  • Therefore, it is essential to talk to the right lender at the outset to ensure you get the right outcome.
  • Our investment income mortgage brokers team are very skilled and experienced in dealing with this type of mortgage, so please do get in contact and we’ll ensure you get the right outcome in as stress free a way as possible.

How much do mortgages with investment income cost?

  • A mortgage based on investment income may attract higher investment income mortgage rates.
  • Check with your investment income mortgage brokers on the current investment income mortgage rates.

Essential to talk to specialist investment income mortgage brokers

  • With relatively liquid or leverageable assets, lenders are nervous about the viability of the income going forward, in addition to the concerns of variable of market performance.
  • Not all lenders take this view, but it is rarely a high street lender option.
  • We understand that without a standard monthly salary the mortgage market can be hard to navigate. This is not just in terms of borrowing level, but type of mortgage, interest rate, term, and fees.
  • We can advise you on which lender is the most appropriate for you when seeking an investment income mortgage, depending on the level of borrowing you are looking for.
  • A mortgage is such a large financial commitment. Your loan affordability is carefully scrutinised by the lender. Those with a complex income can find this quite a painful process. We ease this pain for you.
  • It is essential to talk to investment income mortgage brokers that have access to the whole market and experience of investment mortgage lending.
  • We have access to lenders, products, and underwriters that the general public simply do not.
  • We can advise you on qualifying for a mortgage with investment income.

Speak To An Expert

Our key aims are to fully understand what you are looking to achieve, create a solution tailored to your needs, deliver results through an excellent service and build a relationship for life.

Your Investment income mortgage structure

One of the first things to consider is your repayment vehicle.

Do you want to opt for?

  • a repayment loan?
  • an interest only loan?
  • part & part which is a combination of the two?

What is a Repayment mortgage?

  • You make monthly payments and at the end of the term the loan is repaid.
  • With a repayment mortgage the monthly payments are higher but with less risk.

What is an Interest Only mortgage?

  • You simply pay the interest on the mortgage loan and look to pay off the loan later with say, the sale of property, investments, or bonuses.
  • With an interest-only mortgage the monthly repayments are lower but is assessed as higher risk.

Your mortgage product

You will also need to consider which type of mortgage product is best for you as this determines your monthly payments.

  • Fixed Rate Mortgage. Your repayments are set for 2,5, 10 years.
  • Variable mortgage. This is sometimes cheaper, but the rate can go up or down depending on the market and is often penalty free if you want to remortgage.

Rather than asking how much it will cost, consider how much can you afford. Your broker will then structure your mortgage appropriately, based on your risk profile.

 

What Investment income mortgage rates can I get?

  • The actual investment income mortgage interest rate you will be offered will be dependent on your personal circumstance and deposit level.
  • Therefore, think about how much you want to spend each month on your mortgage repayments.
  • We have access to a range of lenders in the market, and we have access to exclusive mortgage rates.

How much deposit do I need for an Investment income mortgage?

  • The long answer is that it is dependent on your circumstances: purchase price, income, and property type.
  • The short answer is – about 15%
  • Lenders consider you a low-risk buyer when you put down a 25% deposit or more.


As you can see above, if you are looking for a mortgage based on investment income, your application may not be straightforward. It could require specialist help to get your mortgage approved.

We specialise in this area, so would encourage you to speak to one of the Team just to see what your options are before progressing too far with an application. This will ensure you get a smooth experience when understanding your investment income mortgage qualification.

As a top-rated London mortgage broker, we are here to guide you every step of the way.

  • Your dedicated mortgage broker will provide you with detailed, personalised advice on how much you can borrow and source exclusive mortgage deals.
  • In today’s mortgage market, each borrower is assessed on their individual affordability merits. Once we have talked through your personal circumstances, we will advise you on investment income mortgage interest rates suitable for you.
  • This means you get the right advice on the Investment income to qualify for mortgage for your circumstances.

How We Can Help

As you can see above, the more complex the income, the more help you often need to be approved for your mortgage.

We specialise in this area, so would encourage you to speak to one of The Team. We can advise you on what your options are before progressing too far with an application. This will ensure you get a smooth experience when applying for your Investment income mortgage.

 

For Investment income friendly mortgages

Rose Capital Partners takes the time to understand your mortgage goals to secure the optimal mortgage deals for you.

  • Our mortgage advice is second to none.
  • We will advise you on a mortgage based on Investment income appropriate for you.
  • Our aim is to maximise your borrowing potential, minimise your monthly payments and work with you throughout the lifecycle of the loan to manage down the mortgage.
  • You are treated as a valued client, not a transaction, and dealt with by an experienced, empathetic person, not an algorithm.
  • We have access to competitive deals and with no affiliation to third parties.
  • We will always act in the best interests of you, our clients, to give you the best mortgage advice possible to achieve the right mortgage for your life’s goals.


Your property may be repossessed if you do not keep up repayments on your mortgage.