Rental income, does it count??

ro888

Hi,

I have a roommate living in my property and pay me rent every month. However, there is no formal agency or contract involved in the tenancy. How could I use this as my rental income for mortgage purpose???

Thanks.

Thrugelmir

No, doesn't count as income for mortgage purposes.

mildred1978

Erm, you can't.

ro888

Thanks for the advice.

However, usually, what sort of document we need to prove a proper rental income?

Thrugelmir

ro888 wrote: »

Thanks for the advice.

However, usually, what sort of document we need to prove a proper rental income?

Tenancy agreement. Though you would need your lenders permission to do so. Which may well result in an increased interest rate being charged. If permission is granted.

ro888

Thrugelmir wrote: »

Tenancy agreement. Though you would need your lenders permission to do so. Which may well result in an increased interest rate being charged. If permission is granted.

This looks like Buy to Let???

Thrugelmir

ro888 wrote: »

This looks like Buy to Let???

In essence yes.

There are fundamental differences between a BTL and residential mortgage in terms of the contract.

coldstreamalways

Sorry to resurrect this, would this still apply for the "rent a room" scheme? Can that tax free income be classed as income for mortgage purposes?