2nd mortgage

Welshie_2

Hi everyone, first time posting and am not sure if my query is too specific, but thought Id give it a go!
Last year, I bought a house with my friend, mortgage through Northern Rock, paying interest only as we were thinking it would be a short-term thing (but rather than waste money on rent, try and make a tiny bit from buying). Our early repayment charge end date is June 2007.
However, my boyfriend and I are really keen to buy together, and I would consider doing this only if I have someone rent my room thus paying my mortgage.
My question is regarding second mortgages - am I changing the conditions of the mortgage by renting my room? And am I likely to be accepted for a second mortgage? Thought I'd go for advice before ringing the actual company!
Thanks

HGLTsuperstar

You can let your room under the "Rent a Room" scheme and the first about £4800 (check exact figures) is tax-free.
As for the second mortgage, will your salary cover it aswell as the current one? Alternative thought, is your firiend willing/able to buy your share of the house?

Barney088

If you can evidence that the room is being let at more than the mortgage, depending on new lenders flexibility I'd say that you have a good del to present to a lender. Effectivly anyone with a buy to Let mortgage suffers from this situation and it doesn't cause too many problems. One thing that uys flexibility from new lenders is the size of your new deposit. If you have one the bigger the better but this will open a few more options for you.

Good luck

Welshie_2

Thanks for the advice.

Friend couldn't consider buying me out until at least June 2007 as we'd get charged for change of mortgage. Will look into it in more detail and ring around. Cheers!