Mortgage taking into account rental possibilities?

jojo80_2

Good afternoon- just a quick question- I am planning on buying somewhere in the near future, and I am going to live in it and rent out one room in a houseshare arrangement (probably under that government rent a room scheme).

I have a mortgage in principle agreement, but I would like to know could this figure be further increased by taking into account potential income from renting out a room? Are there any mortgage providers who specialise in this kind of thing, or does this put me in the buy-to-let group? Or as I haven't actually rented out the room yet with a contract and everything, does it have to be ignored as it's not yet drawn up in a rental contract?

Thanks!
Jo.

simpywimpy

personally I wouldn't bank on something as an income unless you have it. The market is just too risky at the minute.

PasturesNew

John Charcoal and West Bromich were both doing a mortgage that took into consideration this income.

An example from the launch (April 2007) of the John Charcoal mortage said "Borrowers need a minimum salary of £25,000 and can borrow up to 4.25 times their income if single, or 3.25 if in a partnership. The rent-a-room allowance means a £25,000 income is counted as £29,250, allowing a single person to borrow £124,312 instead of the former £106,250."

It is highly likely these mortgages aren't available any more though.

jojo80_2

I had a suspicion these would be a thing of the past, thanks anyway

minimike2

The Stroud & Swindon B.S will accept the rent a room income and add the maximum allowed to the salary.

They do currently accept applications of this nature....its probably this lender that John Charcoal are using for it (Although I heard that they might be charging up front broker fees now......anyone else heard the same?).


As far as I know this can be applied to any of the product range, but would have to check that to make sure.