having a lodger

Lewber

just a quick question, if you have a lodger, or recieve boards from kids etc, can that be used as income as far as the mortgage company is concerned

regards Lewb

poppysarah

lodgers don't stay forever, kids might not pay up. I'd guess not, but you'd have to ask.

m_13

From www.spareroom.co.uk:

Despite the fact that thousands of people rent out a spare room in order to generate extra cash, this generally isn’t taken into account by mortgage lenders. People are increasingly renting out a room specifically to give them a hand on their way up the property ladder but it can be almost impossible to factor this into your mortgage plans. Thankfully, all that is set to change thanks to new schemes now available.

The first of these is the Rent A Room scheme from Bradford & Bingley. It works by allowing the main applicant to add £4,250 to their annual income before the usual multiplier is applied (£4,250 being the annual amount of income you can earn by renting a room without paying tax - see our Rent a Room scheme page for further details). The scheme is available to both PAYE and self-employed buyers up to a maximum of 95% of purchase price. Currently it only applies to house purchase and is available via the company’s Standard and Horizon mortgages, available through brokers.

The second is Stroud & Swindon’s Buy To Share scheme. This works in the same way as Rent A Room in that it allows you to add £4,250 to your income before multiplying but also allows you to add £2,125 for a second room to be rented out. In addition it’s available as an option on all of Stroud & Swindon’s residential mortgage products.

Thirdly John Charcol offer a 'rent-a-room' mortgage which, again, allows you to add £4,250 onto your salary. The two options are a two-year fix at 5.99% with a fee of £599 and a two-year tracker which tracks at 0.5% above the base rate (£699 fee applies). Buyers must earn £25,000 or more and you can borrow up to 4.25 times on a single income or 3.25 on joint incomes.

However the Stroud & Swindon product isn't on their website any more and Bradford & Bingley doesn't lend any more. John Charcol might still have schemes available but their website suggests that the rental income cannot be from relatives including children.

TroJon

m_13 wrote: »

From www.spareroom.co.uk:

However the Stroud & Swindon product isn't on their website any more and Bradford & Bingley doesn't lend any more. John Charcol might still have schemes available but their website suggests that the rental income cannot be from relatives including children.

"and a two-year tracker which tracks at 0.5% above the base rate (£699 fee applies)"

That is AMAZING for what it is...