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HTB affordability - living with lodger
dhompain
Posts: 3 Newbie
Hey all,
I'm trying to purchase a new build in London with the 40% HTB equity loan. The mortgage isn't the problem, but passing the HTB affordability checks is. As I pay student loans and I have a salary sacrifice gym membership that can't be cancelled (I know, I know...), I'm just over the 45% debt to household income ratio required.
My friend is going to be living with me as a lodger, but won't be on the mortgage. Will his income be able to be counted on the HTB affordability check? Really getting desperate now - would appreciate any advice. Thanks
I'm trying to purchase a new build in London with the 40% HTB equity loan. The mortgage isn't the problem, but passing the HTB affordability checks is. As I pay student loans and I have a salary sacrifice gym membership that can't be cancelled (I know, I know...), I'm just over the 45% debt to household income ratio required.
My friend is going to be living with me as a lodger, but won't be on the mortgage. Will his income be able to be counted on the HTB affordability check? Really getting desperate now - would appreciate any advice. Thanks
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Comments
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Answer is noDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Really? Thank you for coming back to me anyway. I saw something from kingstreet saying that it was possible for 50% of their income to be counted? I understand it can't be on the mortgage, but thought it would suffice for equity loan?0
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It's now a third, not half.
See the final para of the Sustainability Calculator - Equity Loan - Guidance Note available here;-
https://www.gov.uk/government/publications/homes-england-help-to-buy-equity-loan-calculator-and-guidanceI 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 -
Thank you so much. So they don't have to be named in the mortgage application or anything? It's purely a self-reporting thing to the HTB agent? It's worded a bit confusingly in the guidance note re: the first charge mortgage.0
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Speak to your area HTB Agent for clarification.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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