Q: We have seen a house for sale that we really want and we would at a push could get for the mortgage. Our situation in the coming years or is likely to change in that we both earn more money if we have learned through our professional exams.
Do you think it would be prudent to hire a large mortgage and maybe 3 of the rooms, which in fact would almost cover our mortgage.
A:I think you need to look at your budget without the lodgers first. If you can cover all your outgoings, then it's worth considering.
However, if you are going to be dependent on income from letting the rooms, you could be in big trouble if you have difficulty finding lodgers – as you wouldn't have enough coming in to cover your expenditure.
I don't think it's ever wise to be dependent on rental or other irregular income, as you can't be 100% certain of getting that income, 100% of the time.
A:I just wondered if anyone else had done something similar.
In the meantime I'll ponder on it and stick to my little flat.
I have and have gained substantially financially as a result over the years. I stuck to borrowing an amount that I could cover by myself if necessary though this would require a big portion of my earnings and would entail significant cutbacks elsewhere in my spending/saving habits.
Make sure there is a good demand for the rooms you would have available and bear in mind lots of people won't want to share with a couple (though this will be less of an issue if you have more than 1 lodger)
A:Bap is the voice of reason. You see I know what you're saying is the right thing to do, but I know a few people that are currently doing this and it works really well for them, which is what has got me thinking about the idea.
I just wondered if anyone else had done something similar.
In the meantime I'll ponder on it and stick to my little flat.
A:It's probably not a wise move to take on a massive debt like this. Why not wait until your exams are over and decide what to do then. To dive into such a situation just because you have found a house you like seems a little foolhardy to me. No matter how much you like the house, there are thousands more out there, which will be on sale in a year's time.
You would be relying on finding 3 different people to pay you rent. What would you do if you couldn't find anyone, or if 2 of them moved out? Could you cover the mortgage payments?
Why buy a massive house if you don't need 3 of the bedrooms? Would it not be more sensible to look for a smaller house that you can afford.
A:If you are confident of passing your exams and significantly increasing your salaries then you could manage. Getting the mortgage may be tricky as lenders don't often consider lodgers income. Some lenders do professional or graduate mortgages which may help you.
A:Depends on your mortgage conditions. Some mortgage companies are funny about rent and room.
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