lodger income

2

Comments

  • minimike2
    minimike2 Posts: 2,210 Forumite
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    If you are complaining to the FoS about appealing a lending decision then there is no wonder you are no longer a broker.

    "Why would I appeal well because id like them to give me the mortgage I dont care what they want just what I want and if that helps me get there its worth trying."


    Sad reflection of your generations sense of entitlement.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    live within your means is an option and save
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • amnblog
    amnblog Posts: 12,443 Forumite
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    If I went to the FOS every time a Lender frustrated me I!!!8217;d never have time to do anything else.

    Booking is definitely not the career for our poster.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • bike_saving_expert
    bike_saving_expert Posts: 78 Forumite
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    ok so I have had some further time to research and for those interested i found an interesting affordability calculator this evening from an ipswich building society with a lot of vague sounding stuff on their website. It basically sounds like if the mortgage is a good case it will be looked at on a case by case basis almost regardless of income multiple to a certain extent. However, by the looks of it for the extra risk you pay for your nose on the payments, which kind of seems fair given the work. Anyway there it is use this at your peril I am not a mortgage advisor just an entitled young person who thinks he should have whatever he wants. :)



    https://www.ipswich-intermediaries.co.uk/tools-and-calculators/affordability-calculator

    https://www.ibs.co.uk/mortgages/mortgage-calculators/affordability-calculator
  • ACG
    ACG Posts: 23,727 Forumite
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    They "may" not work to income multiples, but it will still have to pass affordability checks.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • bike_saving_expert
    bike_saving_expert Posts: 78 Forumite
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    csgohan4 wrote: »
    live within your means is an option and save

    well i already saved 15k but id rather borrow and keep more cash for investing.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    bike_saving_expert wrote: »
    well i already saved 15k but id rather borrow and keep more cash for investing.

    That's your prerogative. Lenders unfortunately don't have the same freedom for a whole variety of reasons. Just because you want something doesn't mean that any one will be interested in conducting business with you. As a single customer you are insignificant.
  • bike_saving_expert
    bike_saving_expert Posts: 78 Forumite
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    gycraig wrote: »
    So you are appealing to the Fos because the bank chose not to lend you EXTRA money meanwhile you can only pass affordability including a lodgers income who could move out next month, because the money you want to borrow is more than 5.5x your income ?


    I can!!!8217;t see that going well to be honest.

    people could move out and then what i would't be able to pay the mortgage. It could be argued that diversified income may actually be better than having all your income from one source. Surely workers of carillion who work for a large company would be in a better position to pay their mortgage if they also had lodgers as they would be less likely to lose both incomes at once. Whereas someone with just lodgers or just a job loses everything at once, well except if you take I.P with unemployment cover.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    bike_saving_expert wrote: »
    people could move out and then what i would't be able to pay the mortgage. It could be argued that diversified income may actually be better than having all your income from one source. Surely workers of carillion who work for a large company would be in a better position to pay their mortgage if they also had lodgers as they would be less likely to lose both incomes at once. Whereas someone with just lodgers or just a job loses everything at once, well except if you take I.P with unemployment cover.


    Well not really, Lenders only take an account of how you are now, compared to someone with a permanent or long term contract and you who has to rely on lodger income and being over the usual 4.5x multiplier, that doesn't look good.


    Of course anyone in a job can lose their job at any time, but not at the time the lender assess you, obviously you have to declare any change in income at the time and to your knowledge to the lender



    As lodgers you have more to lose, jobs generally don't come and go as often as lodgers and they can and will stop paying rent and cause damage.


    Diversity really works best in investment portfolios and spreading your risk for your capital.


    You don't work as an engineer and also part time in McDonalds just in case you lose one job do you? You spend all your effort on one job so your one job earns the most


    At the end of the day, it's the lender's rules you have to go against and complaining to the FOS won't change their criteria, in fact it is confirming they are doing their job, affordable and sustainable lending unlike in the past with 100% self declaring mortgages
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Amst
    Amst Posts: 141 Forumite
    paddyandstumpy wrote: »
    Why are you appealing to the FOS?

    Because they won't give him what he wants duh! :rotfl:
This discussion has been closed.
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