Which mortgage providers are happy for me to have one or two lodgers?

d716ag

I have a £150k deposit for a £200k house and my salary can easily cover the mortgage (£44k), I think that on this basis I should have no trouble getting a mortgage.

I have spoken to two providers soo far, both have been happy with the numbers that I have provided but are not willing to lend to me if i rent rooms out (why?). I can't see this in their T&Cs on the website but I suspect that it is in more detailed T&Cs that they send out when they agree to give you a mortgage.

Does anybody know which lenders are happy for me to have one or two lodgers?

Thanks!

somethingcorporate

d716ag wrote: »

I have a £150k deposit for a £200k house and my salary can easily cover the mortgage (£44k), I think that on this basis I should have no trouble getting a mortgage.

I have spoken to two providers soo far, both have been happy with the numbers that I have provided but are not willing to lend to me if i rent rooms out (why?). I can't see this in their T&Cs on the website but I suspect that it is in more detailed T&Cs that they send out when they agree to give you a mortgage.

Does anybody know which lenders are happy for me to have one or two lodgers?

Thanks!

Do you need the lodgers income to meet the (affordability of the) mortgage payments? Or does your salary cover it without this additional income?

d716ag

Hello - I think that the affordability will be fine (I have no debts), I'd like to clear the debt ASAP.

Leon_W

Why are you telling them this information then ?

I am not being funny, but just answer the questions on the application form. I cannot think of any lenders that ask a "do you intend to have lodgers" question.

Regards

dimbo61

You are allowed to have one lodger under the "rent a room" government approved scheme but more than one lodger and you have a guest house or B&B.
You can get paid up to £425 a month under the rent a room

d716ag

Leon_W wrote: »

Why are you telling them this information then ?

I am not being funny, but just answer the questions on the application form. I cannot think of any lenders that ask a "do you intend to have lodgers" question.

Regards

First direct have said that they will not allow me to have a lodger, the information on the application form is important but so is the terms and conditions, which for some reason only seems to be available once you have applied for the mortgage and put a footprint on your credit record thus making it harder to apply to other mortgage lenders.

getmore4less

dimbo61 wrote: »

You are allowed to have one lodger under the "rent a room" government approved scheme but more than one lodger and you have a guest house or B&B.
You can get paid up to £425 a month under the rent a room

"rent a room" is up to £4,250 a year so £354pm

I can see nothing in the tax rules that say it can be only from one lodger.

HMO specificaly exempts 2 lodger households.

payless

just because there is a tax simplication of "rent a room" does not mean the lenders are happy with it..( or insurers)

sashy

I've a similar dilemma (my post 06-06-10, sashy, .. don't mention rent a room!?)
1. It's my view if a valuer sees bedrooms with locks on doors of type where a key is reqd to open them then he/she will report this as a rented out property. This happened to me years ago when applying for additional lending on existing mortgage - although I blagged my way out saying yes I did have a student renting a room but had now left (lie).
2.My recent phoning around prospective lenders suggests they won't tolerate long term lodgers at all and one lender specifically mentioned this no keyed locks on rooms thing.
3.My own worry is - I'm now keen to extend the mortgage term with my existing lender after previously enquiring about taking out a new loan of a larger sum and indicating I had rent a room income to cover it. I know they've summary notes of my enquiry, so, can anyone tell me - if I fill in a formal app. to extend my existing mortgage without mention of this renting do you think those who read the application will still get wind of it (sorry if dumb question). Leon W earlier said .. cannot think of any lender who asks the lodger's question [on the application form]. SASHY