Banks do not use rental income as income. If a buy to let landlord tries to raise a mortgage in Spain, the debt of the mortgage is taken into consideration and not the rental income – this is in the main for the spanish banks and not the gibraltan ones.
Most banks are also requiring Cirbe reports and spanish experians to ensure there is no more debt undeclared.
As the criteria has changed and tightened, people who were obtaining finance are being denied. Onlt good prospects are approved, and even this with hassle and changes as you go along.
Many who were ‘guaranteed’ finance on their off plans 2 years ago are unable to compelte and are refused a loan now.
The banks are tightening and many are unable to approve in the branch – it goes to hq!
Halifax are concentrating on savers for the timebeing. Few are offering 80% and if it is its ot at 100% of purchase contract price but at 90% or less.
Quite a problem to be sure!
I assumed that as it said “I had a client who owned 2 properties outright, total value 365,000” that there was no mortgage, therefore, the rental income would be considere as income and that the equity would also be taken into consideration?