Mortgage Questions...

[sa_20v]

1. If you have a mortgage on a rental property, how does this impact a mortgage application on another (say your primary residence)?
2. How are banks currently viewing income where the majority of it comes from dividends?
3. If you own properties outright, can you still use these to leverage borrowing on another property?

[Sarnie]

sa_20v said:

1. If you have a mortgage on a rental property, how does this impact a mortgage application on another (say your primary residence)?
2. How are banks currently viewing income where the majority of it comes from dividends?
3. If you own properties outright, can you still use these to leverage borrowing on another property?

1) It will potentially affect your affordability. It will depend on whether the property is self financing. It will also depend on the lender that you approach, choosing the right lender is key. Although if your income is sufficient it won't make much difference.

2) Not a major issue with dividends, most lenders will take it as primary income as long as you satisfy the other criteria such as number of years trading etc.

3) Yes.

[sa_20v]

Thanks, appreciate the quick response.