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FTB taking out a mortgage with aid from Rent a Room Scheme

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  • 26-02-2017 12:42am
    #1
    wherearewe45
    Registered Users Posts: 204 ✭✭


    I'm a single 27yo looking to buy my first home. I've a secure, well paid job and am living in an area that I really like and where I can see myself living long term. I've been saving for a deposit for several years. I'm still about 2 years off having 10% deposit (plus a modest yet comfortable reserve to keep myself financially secure short term) for an average priced house that I'd be happy in.

    My issue is that I know myself that I'd have an problem making ends meet long term having a mortgage to repay each month. However, I know for a fact that if I had a house, and if I had a tenant, that the mortgage repayments could be easily met each month with 2 salaries contributing. My question is, would a bank approve a mortgage for someone who has more than a 10% deposit, is financially secure but would be unable to meet long term payments on their own? For the record I'm currently living in a nice part of a city with plans to live here long term.

    I am still several years off being in a comfortable position to buy a house, and there's a chance that by then I'll be in a long term stable relationship and we apply for a mortgage together. This is more a question I'm asking out of curiosity rather than intent (at least for the time being) so I just ask that you keep that in mind.


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    #2
    Victor
    Registered Users Posts: 78,420 ✭✭✭✭Victor


    wherearewe45 wrote: »
    My question is, would a bank approve a mortgage for someone who has more than a 10% deposit, is financially secure but would be unable to meet long term payments on their own?
    At best, the would be very slow to do so. If you lost you job or your tenant moved out, you would be in a world of hurt.

    The banks are unlikely to take the rent-a-room income into account when calculating how much to offer you.


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    #3
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    No, rent a room income is not included in bank underwriting for mortgages anymore.


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