Residential mortgage advice

[lewisf182]

I would like to move out at some point within the next few months if the following is possible:

I can either wait and save up for a buy to let and not move out, or preferably and as part of my question here is - would it be possible to get a residential mortgage, say on a 3/4 bedroom house, then rent out the other spare rooms? I understand this is classed as a resident landlord? (tax etc would obviously need to be paid)

The problem is, earning only £19k a year means I could probably only borrow for a £100k house, but if they could take into account the possible rent, I could easily afford £180k as the rent would more than cover any mortgage payments. (I could also possibly put my brother on the mortgage so essentially £40k salary a year).


So my question essentially is, is this possible and are there any lenders out there who may lend in this way?

Would be interested to hear peoples views/opinions etc

Thanks

[Sarnie]

You will be able to do it if you have your brother on the mortgage too but no lender will lend to you on the basis of you renting out some of the rooms.......

[lewisf182]

I've read on other forums around the internet (reliable source I know) and seen a few people that have managed to get permission from their mortgage company to do this when they move out (rather than switching to a BTL mortgage, and I wouldnt be moving out which may be the crucial difference). But that's once they have the mortgage, not when trying to get one. You can have a lodger as long as the income stays below a certain amount, so what's the difference if they pay over that amount with regards the mortgage as the before mentioned is only for tax purposes no?

You never seen anything similar Sarnie?

[Sarnie]

lewisf182 said:

I've read on other forums around the internet (reliable source I know) and seen a few people that have managed to get permission from their mortgage company to do this when they move out (rather than switching to a BTL mortgage, and I wouldnt be moving out which may be the crucial difference). But that's once they have the mortgage, not when trying to get one. You can have a lodger as long as the income stays below a certain amount, so what's the difference if they pay over that amount with regards the mortgage as the before mentioned is only for tax purposes no?

You never seen anything similar Sarnie?

You are talking about different things. A lender may consider giving you Consent To Let the property if you need to move and have extenuating circumstances as to why you are moving and why you are not moving the mortagge on to a BTL eg change of job forcing move and not having enough equity to convert it to a BTL mortgage.

With regards to actually getting the mortgage, no lender is going to lend you more money based on rent from lodgers. The application either stands up in it's own right, based on your details or it doesn't.

[lewisf182]

Ok, thanks for clearing it up.

Back to the drawing board I go.

Think I'm just going to have to save up for another year!

[jonny70]

lewisf182 said:

I've read on other forums around the internet (reliable source I know) and seen a few people that have managed to get permission from their mortgage company to do this when they move out (rather than switching to a BTL mortgage, and I wouldnt be moving out which may be the crucial difference). But that's once they have the mortgage, not when trying to get one. You can have a lodger as long as the income stays below a certain amount, so what's the difference if they pay over that amount with regards the mortgage as the before mentioned is only for tax purposes no?

You never seen anything similar Sarnie?

in a nut shell you asking the bank for a residential mortgage of 9 x times your income based on you are going to get a lodger if this was possible everyone would do this to borrow as much as they possible could. ,if you were the bank realistically would you lend?

[lewisf182]

jonny70 said:

in a nut shell you asking the bank for a residential mortgage of 9 x times your income based on you are going to get a lodger if this was possible everyone would do this to borrow as much as they possible could. ,if you were the bank realistically would you lend?

It would be me an my brother, so £40k salary. So yes i would lend.