Mortgage Lender which will allow 2 lodgers in 3-bedroom house?

Kua

Yorkie1 wrote: »

Ethank means what I also asked - can you afford the mortgage on your own income, or would you need to treat the money from the lodgers as income for the purposes of having sufficient income to afford the mortgage.

I can afford without. Does anyone know if there is a mortgage provider out there who allows this?

lee111s

I'm with YBS.

~Beanie~

If you can afford the mortgage without using the income from any lodgers, then you don't need to tell your mortgage lender.

Kua

~Beanie~ wrote: »

If you can afford the mortgage without using the income from any lodgers, then you don't need to tell your mortgage lender.

What makes you say that?

holly_hobby

Your own earned income will need to be sufficient to service the mortgage, NO lender will take into account any lodger income, even if the property in question is already owned and rent already in reciept, and thats right across the board.

So, if you can't afford the mge on your own income, then no you wont get the mortgage, so worrying about lodgers is a little academic.

If you do pass the lenders affordability assessment, you don't need to obtain lenders permission for lodger, as long as there is no tenancy agreement. You can receive upto £4250 without having to declare for tax under Rent a Room scheme, and if you want to avoid any CGT exposure on later sale, the lodger(s) must have full run and share of the house, if not and they have their own private areas (apart from bedroom of course) there will be proportionate exposure to CGT on sale.

The 40% comment you make, is actually to do with regulated buy to let mortgages, where the property to be purchase is to be let to family - and is not relevant to your situation.

Hope this helps

Holly x

Kua

holly_hobby wrote: »

Your own earned income will need to be sufficient to service the mortgage, NO lender will take into account any lodger income, even if the property in question is already owned and rent already in reciept, and thats right across the board.

So, if you can't afford the mge on your own income, then no you wont get the mortgage, so worrying about lodgers is a little academic.

Just to be clear... This is really not a factor. I can afford without lodgers. I want to have lodgers because it would just be a useful extra income and help me overpay the mortgage.

holly_hobby wrote: »

...you don't need to obtain lenders permission for lodger

Sorry to hammer on about this, but where is your evidence for this?

holly_hobby wrote: »

The 40% comment you make, is actually to do with regulated buy to let mortgages, where the property to be purchase is to be let to family - and is not relevant to your situation.

Hm, I did specifically state to the HSBC customer rep that I was talking about renting out a room... But perhaps he misunderstood.

Thanks for your comments