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Household income for Help To Buy Equity Loan (with lodger)
moneyspending_expert
Posts: 1 Newbie
One of the requirements to qualify for the HTB Equity Loan is that Debt to household income ratio falls below a certain threshold.
I've been told by L&C (a large and well-known mortgage broker) that if I am renting out a bedroom then I am allowed to include 30% of the lodger's income as part of my household income calculation. I.e. that my household income = my salary + (0.3 x lodger's salary)
I've spoken to a few people at L&C and they have all given the same advice. However I can see no mention of this advice anywhere else. Furthermore, L&C have been unable to point me to any reference material. I'm hesitant to believe them for this reason, however L&C have a strong reputation so I suspect that the advice is legitimate.
Does anyone have any insight? tia x
I've been told by L&C (a large and well-known mortgage broker) that if I am renting out a bedroom then I am allowed to include 30% of the lodger's income as part of my household income calculation. I.e. that my household income = my salary + (0.3 x lodger's salary)
I've spoken to a few people at L&C and they have all given the same advice. However I can see no mention of this advice anywhere else. Furthermore, L&C have been unable to point me to any reference material. I'm hesitant to believe them for this reason, however L&C have a strong reputation so I suspect that the advice is legitimate.
Does anyone have any insight? tia x
0
Comments
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Can't help with your question but can say reviews about L&G are not favourable on this forum.
Speak with a decent independent, whole of market mortgage broker, for another opinion.
There are a few on this forum who specialise in H2B, see what they say.Mortgage started 2020, aiming to clear 31/12/2029.0 -
Phone your area HTB Agent and ask;-
https://www.helptobuy.gov.uk/equity-loan/find-helptobuy-agent/
As an example, a second adult occupant not party to the purchase/mortgage can have 50% of their income included in HTB affordability (IIRC!) but it won't be accepted for the mortgage.
When submitting your PIF & Reservation, you must explain why the second adult occupant will not be included and that they own no other property.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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