FTB Shared ownership

Manchester78_2

Ok, I am hoping to purchase a property on a shared ownership basis in the next few months (private as opposed to via housing association) and just have a few queries.

Firstly I earn a gross basic of £21,000 and with bonuses its likely to be £26,000 (conservative estimate)

I have loan commitments for the next 4 years of £400 a month.

Ideally I would be looking to raise around £80,000 from a mortgage as I have a 5% deposit. I just want to know if I am likely to be able to get that level of funds from a lender with all the above taken into account?

Furthermore, I would be renting out the second bedroom of the property to a friend on an ongoing basis, are there any lenders who would take rental income into account (I believe that West Brom Building Society may do)

Any advice or tips appreciated

dmg24

I can't help on the mortgage side of things, but I can say that most shared ownership properties forbid the letting of rooms, so declaring this may go against you.

The reason that it is not allowed is that the purpose of affordable housing (though whether there is such a thing anymore is arguable!) is for people to be able to afford somewhere for themselves to live, not to gain an income by letting out a room.

If this was one of the conditions of the HA then they may be entitled to repossess the property (though I've never heard of it going that far). However, if it were to be done informally, then hopefully they wouldn't find out (just be aware of nosy neighbours!).

MortgageMamma

Hi

yes you should be able to borrow the amount you need to, but as DMG says, check the HA terms and conditions to ensure it is ok to let the room. Don't try and include the rental income for your mortgage I don't think you need to.