Any lenders who will accept EXISTING lodger income

pinknsparkly

Good morning everyone,

Do you know of any mortgage lenders who would accept income from a current lodger as part of the income required for a mortgage?

My partner and I rent a three bed property, with two lodgers in the other two bedrooms. We have lived here for 15 months with lodgers for the past 13 months (we took a couple of months to furnish the rooms/house). We therefore have over a year of documented (provable) income from lodgers. Our landlords have offered us the opportunity to purchase the property from them at a discount. However, I am currently unemployed (I'm a full-time student). We have a 20% deposit. There is no danger of me being unemployed long term after completing my studies though, this is a further qualification in my professional field and I already have three employers wanting to offer me a job when I finish.

Are there any lenders who would consider lending us a mortgage on my partners income plus the lodger income, or do we need to wait until I complete my studies and also have a full time job again?

Thanks very much for any thoughts/advice you may have.

lee111s

Unlikely you'll be able to claim lodger income.

pinknsparkly

Hi Lee,

Thanks for your response. I know virtually all providers won't accept lodger income, I'm just wondering if there are any out there who will.... Especially as it's an income that is already in place, and has been for over a year. I was wondering if any lenders would treat it as "extra" income, if it makes any difference, we are paying tax on the income in the usual manner rather than using the "Rent a Room" tax free option (it works out better for us financially), so it is income that we are declaring to the tax man each year.

lee111s

You'd need to speak to an experiences mortgage advisor.

Neutrinno

"Santander accepts the income from up to two lodgers providing the money has been paid and can be shown on a bank statement for the last three months."

dimbo61

You are a full time student !
Does your partner work ?
Do they earn enough to cover the income requirements with the lodgers income

minimike2

Neutrinno wrote: »

"Santander accepts the income from up to two lodgers providing the money has been paid and can be shown on a bank statement for the last three months."

As a mortgage broker you should not be suggesting specific lenders on the boards.


I suspect any lender which may consider lodger income may have a problem with the fact you are not already a home owner. You don't, in effect, have any lodgers as you don't own the property. You just sub-let two rooms. Which your landlord is crazy to allow, but that's another story. Add this to your employment situation and you are not looking like a good risk. In essence, you just want someone else to pay your mortgage for you because you can't. Sorry if it sounds harsh, I am thinking with an underwriting hat on.

Your partners situation would be key here - We know nothing of it thus far.

glosoli

I really don't see it being a plausible application at all if its based on lodger income alone, how on earth would it pass affordability checks based on two adults

csgohan4

nope,


lenders go on the now and you have no income nor employment, your potential job is a no go as lenders don't care about the future but what you earn now.


Lodgers are temporary and not permanent income. What if LL wants the house back and serves a Section 21? Compared to 'proper' work which is generally permanent.


Keep saving up for a deposit though, your almost there

Watsl3

Hi guys,
My question is similar in that I need a lender to take a lodgers income into account so I can remove my ex from my mortgage. Which she is happy enough to do.
I've done afforfdability before based on my own income but this was deemed not enough which is crazy as I've been paying the mortage myself for the 11 yrs I've owned the property.
I'm now on more income plus my lodgers income so is there any lenders even building society's that would help me with this?

Thanks Lee.

csgohan4

Watsl3 wrote: »

Hi guys,
My question is similar in that I need a lender to take a lodgers income into account so I can remove my ex from my mortgage. Which she is happy enough to do.
I've done afforfdability before based on my own income but this was deemed not enough which is crazy as I've been paying the mortage myself for the 11 yrs I've owned the property.
I'm now on more income plus my lodgers income so is there any lenders even building society's that would help me with this?

Thanks Lee.

Create your own thread as your thread is different to the op, you are not the op.


Paying a mortgage does not grant you rewards, you are supposed to as per the terms conditions