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  • FIRST POST
    • bike saving expert
    • By bike saving expert 1st Feb 18, 11:34 PM
    • 66Posts
    • 13Thanks
    bike saving expert
    lodger income
    • #1
    • 1st Feb 18, 11:34 PM
    lodger income 1st Feb 18 at 11:34 PM
    Hi in order to get the re-mortgage + additional borrowing i want I need a lender that will take into account my lodger income. I have no other debts. My salary alone using a 5 times multiple will not get me what I need not even a 5.5 multiple. age 25. I have already spoken to my current mortgage provider.

    Im sure the answers will probably be find a good broker but in reality I don't really need that.

    I have tried so far

    santander busy appealing with FOS
    bath building society waiting to hear back on if they will consider for a re mortgage.

    If anyone is aware of any other good ones to try please let me know. Happy to accept a PM.
Page 1
    • Mr_Curious
    • By Mr_Curious 2nd Feb 18, 7:28 AM
    • 79 Posts
    • 19 Thanks
    Mr_Curious
    • #2
    • 2nd Feb 18, 7:28 AM
    • #2
    • 2nd Feb 18, 7:28 AM
    Brokers are the ones with the answers as you say
    • ACG
    • By ACG 2nd Feb 18, 8:04 AM
    • 16,316 Posts
    • 8,425 Thanks
    ACG
    • #3
    • 2nd Feb 18, 8:04 AM
    • #3
    • 2nd Feb 18, 8:04 AM
    I was about to answer, but seen as you dont need a broker.... :P

    Bath building society probably isnt a bad shout, there are possibly one or 2 other building societies who may consider it. I think you will struggle on the high street. Failing that, there are a couple of other lenders who can go up to 6x income but the rates/fees would start to go up a little.

    As others have said, you might actually need a broker.
    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.
    • Pixie5740
    • By Pixie5740 2nd Feb 18, 8:10 AM
    • 11,649 Posts
    • 16,391 Thanks
    Pixie5740
    • #4
    • 2nd Feb 18, 8:10 AM
    • #4
    • 2nd Feb 18, 8:10 AM
    I thought you were a broker?

    http://forums.moneysavingexpert.com/showthread.php?t=5361736
    • paddyandstumpy
    • By paddyandstumpy 2nd Feb 18, 8:10 AM
    • 972 Posts
    • 442 Thanks
    paddyandstumpy
    • #5
    • 2nd Feb 18, 8:10 AM
    • #5
    • 2nd Feb 18, 8:10 AM
    Why are you appealing to the FOS?
    • fewcloudy
    • By fewcloudy 2nd Feb 18, 10:59 AM
    • 189 Posts
    • 91 Thanks
    fewcloudy
    • #6
    • 2nd Feb 18, 10:59 AM
    • #6
    • 2nd Feb 18, 10:59 AM
    Originally posted by Pixie5740
    I'd be freaking out if I came on here and saw my broker asking that...
    Feb 2008, 20year tracker with Sprogget and Sylvester, 0.5% + base for 2 years, then 0.99% + base for life of mortgage. Kudos to my mortgage broker...
    • bike saving expert
    • By bike saving expert 2nd Feb 18, 7:28 PM
    • 66 Posts
    • 13 Thanks
    bike saving expert
    • #7
    • 2nd Feb 18, 7:28 PM
    • #7
    • 2nd Feb 18, 7:28 PM
    Got a new job since working as a broker. To clarify no longer in that line of work.

    FOS appeal is because initially passed affordability with santander who accept lodger income then on full credit check was turned down. Checked my credit files no missed late or missed payments in 6 years of history with. I was told the application was declined because of the overall level of risk (60% LTV). They informed the level of decline was such that could not be appealed.

    thanks ACG I will give a number of other building societies a call to see if any others will look at it. I found the lender doing 6 times multiple but seems like its 50k min salary on highest applicant? Or keep looking ?
    • YHM
    • By YHM 2nd Feb 18, 7:32 PM
    • 496 Posts
    • 182 Thanks
    YHM
    • #8
    • 2nd Feb 18, 7:32 PM
    • #8
    • 2nd Feb 18, 7:32 PM
    Why would you appeal to the FOS because they declined you? Its their money to lend to who they want...
    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
    • By bike saving expert 2nd Feb 18, 7:42 PM
    • 66 Posts
    • 13 Thanks
    bike saving expert
    • #9
    • 2nd Feb 18, 7:42 PM
    • #9
    • 2nd Feb 18, 7:42 PM
    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.

    well i complained about the reason given for the decline which i see as nonsense a computer says no kind of decision. If an underwriter had assessed the case and given me the reason I would have at least felt they had given it a fair chance and declined the risk. But to come back with a non reason and say I can't even appeal to an actual person seems unreasonable.

    It their money and they can lend to who they want, at the same time they are responsible to their shareholders who would expect that the bank would be doing what it can to increase the size of the loan book. I personally hold shares in santander for now.
    • gycraig
    • By gycraig 3rd Feb 18, 8:05 AM
    • 423 Posts
    • 310 Thanks
    gycraig
    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.
    • ACG
    • By ACG 3rd Feb 18, 9:54 AM
    • 16,316 Posts
    • 8,425 Thanks
    ACG
    I say this a lot, fitting criteria is part of the process, passing a credit check is part of the process, passing the underwriters discretion is also part of the process. While it is your right to complain, I think you are just wasting everyone's time because you are not getting your own way.

    Do they really want to lend 5x income to someone who is reliant on lodgers income? There are far more risks involved with having a tenant/lodger. Their computer is designed to filter out a lot of cases they do not want even if it fits criteria, it happens every day to hundreds of people with all different lenders.

    There is also non published criteria lenders have, which could be hidden for commercial reasons, the LTV is not the only level of risk, the last thing the lender wants is to have to repossess.


    I wasnt giving you hints to go on a treasure hunt. I was just telling you there are possibly options out there. Personally I do not think you will find them without the help of a broker (happy to be proven wrong).
    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.
    • minimike2
    • By minimike2 3rd Feb 18, 10:11 AM
    • 1,933 Posts
    • 1,441 Thanks
    minimike2
    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.
    I am a mortgage industry professional. 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
    • csgohan4
    • By csgohan4 3rd Feb 18, 6:25 PM
    • 4,267 Posts
    • 2,668 Thanks
    csgohan4
    live within your means is an option and save
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • amnblog
    • By amnblog 3rd Feb 18, 8:51 PM
    • 10,274 Posts
    • 4,047 Thanks
    amnblog
    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
    • By bike saving expert 5th Feb 18, 9:13 PM
    • 66 Posts
    • 13 Thanks
    bike saving expert
    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
    • By ACG 5th Feb 18, 9:21 PM
    • 16,316 Posts
    • 8,425 Thanks
    ACG
    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
    • By bike saving expert 5th Feb 18, 9:30 PM
    • 66 Posts
    • 13 Thanks
    bike saving expert
    live within your means is an option and save
    Originally posted by csgohan4
    well i already saved 15k but id rather borrow and keep more cash for investing.
    • Thrugelmir
    • By Thrugelmir 5th Feb 18, 10:05 PM
    • 57,409 Posts
    • 50,701 Thanks
    Thrugelmir
    well i already saved 15k but id rather borrow and keep more cash for investing.
    Originally posted by bike saving expert
    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.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • bike saving expert
    • By bike saving expert 6th Feb 18, 12:28 AM
    • 66 Posts
    • 13 Thanks
    bike saving expert
    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.
    Originally posted by gycraig
    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
    • By csgohan4 6th Feb 18, 10:15 AM
    • 4,267 Posts
    • 2,668 Thanks
    csgohan4
    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.
    Originally posted by bike saving expert

    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"
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