Charging Boyfriend Rent...

vanpiggy

Thanks everyone. This is helpful. I have a 30% deposit for the price range of properties I'm looking at and noticed that hypothetically additional annual income would get me a better rate on some calculators. I suppose it's a case of getting a mortgage on my own and then his contribution as a lodger increasing my income after the fact but not being counted in the mortgage assessment.

Emmzi

30% is a great deposit these days. You should get a good deal Well done.

patman99

If you can afford to buy on your own, then go for it. If your b/f wants to contribute by paying to 'rent a room' at the tax-free amount of £65 p/w, then that's his choice. Nothing stopping you plowing the money straight back into the mortgage to reduce it's term or monthly payment.

Trackers are the best kind of mortgage, I'm glad I switched to one. I watched my monthly payments drop by £110 p/m as the BofE base-rate dropped to 0.5%.

chewmylegoff

if you charge him rent then it will have a tax implication for you. there is an allowance of £4,250 - if he pays you more than that per year then you'll have to pay income tax on the excess.

chewmylegoff

patman99 wrote: »

Trackers are the best kind of mortgage, I'm glad I switched to one. I watched my monthly payments drop by £110 p/m as the BofE base-rate dropped to 0.5%.

you're only glad because interest rates went down.

if interest rates had gone up you would be saying "fixed rate mortgages are the best kind of mortgage, i wish i hadn't switched to a tracker".

G_M

Unless you are both very confident and commited to each other, do NOT get a joint mortgage. It is more of a commitment than marriage. Thee have been recent posts on here where the relationship went sour, one party moved out , but the joint financial commitment (and obligations) continued.

As a lodger (NOT tenant if you share) he can contribute rent to you tax free under this scheme, but I doubt a mortgage lender would factor it into their loan calculations.

Sagz_2

I'm no expert, but I'd say get the mortgage on your own and make over payments with the money you get from the BF, if there is any left over then put in an ISA (or other savings) until it's time to re-mortgage and use the savings then to get a better deal.

vanpiggy

Thanks for all the helpful advice. It's difficult to know whether a tracker or a fixed rate is best, but I worry about the tracker mortgage going up.

And especially thanks re: the residential status of my boyfriend. Despite Evoke's ticking off I'm not trying to cheat any system, I just want to do things properly, fairly and for the best value!

danielley

I dont want to condemn the relationship, but would he not have a claim on the property if you were to split?

FTBFun

danielley wrote: »

I dont want to condemn the relationship, but would he not have a claim on the property if you were to split?

I suspect this would only be a problem with a joint mortgage - if he's technically a lodger that wouldn't be the case.

That may be more common sense than the law though!