re mortgage question

Silver_123

My fixed term is coming to an end in February. I bought the house with my daughter. She has never lived with me since we bought the house as her job changed she never moved in with me. I have had 2 lodgers giving me an income of a couple of thousand pounds a year. My daughter now wants to come off the mortgage as she wants to buy her own place near her job. On my salary I cant go alone to satisfy the mortgage company. Will they take my tenants into consideration? I do it all properly and above board. I am in the UK. Mortgage outstanding is £105000. My salary id £20000. I'm obviously a bit worried that I want to get my daughter sorted. She won't want any money obviously ad sure never contributed. Thank you.

Thrugelmir

Unfortunately the income won't be taken into account. While it may seem a good idea at the time to circumnavigate the rules. Only leads to problems later on.

Jhoney_2

There are one or two banks that may look at the lodger income, but do you have any savings? I think your salary may not allow as high a mortgage as you may need when they look at your outgoings - which are deducted from all the income the may accept.

If you do have savings that you can overpay while in the term (check and confirm the limit) and a can pay off a lumpsum after the end of yout fixed term of e.g 10-15k, you may well be able to get it done.

You should probably use a broker though as unless you want to trawl through every lender's criteria re lodger income acceptance, mortgage calculators etc you may not apply your efforts to your best desired outcome.

Hopefully some of the more experienced contributors will be along with information that can assist in line with your circumstances.

Good luck.

Silver_123

I have only about £2k in savings. Which I plan to pay off the capital. Thank you for taking the time to reply. It's very kind of you.

AnotherJoe

Could you downsize ? Presumably this house must be far bigger than you need if you have two lodgers ( and on the face of it you seem to be charging very low rents, must be about £20 a week each? )

p.s Paying your last £2k of savings into the house would also seem to be a rash move you should always have some money aside for emergencies and £2k isn't a lot. You seem to be living on the edge financially so downsizing might be a good idea anyway.