Profitable real estate investment is subject to accurate knowledge about many things.

For example:

Thorough and accurate knowledge of real estate investment best practices.

The purchase of any investment property for sale cannot be possible without a complete knowledge about the political and financial market events. You need to keep an eye on events like Brexit and the newly introduced mortgage rules. Your result definitely affects the real estate investment market and also your ROI.

• Types of mortgages.

• How to take out a mortgage?

• The type of investment property for sale for purchase.

• The type of auction events to attend based on your investment strategy.

• Financing options for real estate investments.

• How to finance or fund your real estate investment?

• How to modernize an infallible exit plan?

• What to do if your investment plans don’t work out in your favor?

You often see many real estate investment agents in London advising/guiding new investors on these issues. But there is a topic that is hardly touched by most agents. This is DTI (debt-to-income ratio).

What exactly is the debt to income ratio?

If you are likely to purchase a residential investment property for sale, you must fully understand this concept.

DTI (debt-to-income ratio) is actually the total of your monthly revolving and installment payments, further divided by your GMI (gross monthly income).

What is GMI?

Gross monthly income is the wages earned by employees before taxes and other deductions.

The importance of DTI:

According to experienced London real estate investment agents, DTI helps private lenders or financial institutions determine whether your loan application should be approved or disapproved. Below are some very important points considered by them before approving or rejecting your loan application:

• Your current monthly or yearly income.

• Your current credit score.

• Ability to pay the mortgage on time.

• Other mortgage/financial obligations.

In case any lender or financial institution denies your mortgage/loan application, then you have to blame your poor debt-to-income ratio for it.

That’s not the only thing you need to know about DTI. If you are planning to buy a residential investment property for sale, you will need to learn many more important things about it. For example:

• What types of monthly bills do lenders consider when determining your debt-to-income ratio?

• What types of monthly bills do lenders not consider when determining your DTI?

• What is a good DTI?

• What is considered Income in the debt-to-income ratio?

• Can your loan or mortgage application be approved on low DTI grounds?

• Is it really possible to lower the DTI to get better interest rates or loans/mortgages?

Now, you seem to be ready to learn about DTI (debt to income ratio) before investing in UK property. You should attend a couple of seminars and also get in touch with some experienced investors or brokers who are willing to share their knowledge and experience in this regard with you.