rented room as income

W

wheels

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Is there any bank that considers a rented room in an apartment to be a source of income? I'm looking into buying a three bedroom place and intended to rent out one of the rooms, AIB however told me they wouldn't take it into consideration in my application.
 
First Active were willing to take it into Account when I was looking for a mortgage but that was about 4 years ago, not sure it they still do.
 
Will this income be on your P60 or audited accounts? If not then it's not income and no bank is obliged to accept it as such.
 
Some lenders (e.g. Ulster Bank, First Active, IIB Homeloans and others) do take account of potential room rental income where a single person is obtaining a mortgage to buy a property with more than one bedroom. Others don't (e.g. AIB, ICS, Permanent TSB and others.) Horses for courses.

Liam D. Ferguson
www.ferga.com
 
Howitzer said:
Will this income be on your P60 or audited accounts? If not then it's not income and no bank is obliged to accept it as such.
Click to expand...

Unlikely as the OP will only be in a position to rent the room after purchasing the property.

First Active allow an additional €400 pm in addition to your earned income for room rental. EBS and IIB also take it into account.
 
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Howitzer said:
Will this income be on your P60 or audited accounts? If not then it's not income and no bank is obliged to accept it as such.
Click to expand...

Just to be pedantic, there is no such thing as audited accounts for individuals - in receipt of income or otherwise. Audits apply only to certain classes of limited companies.
 
You don't have to do audited accounts under the rent-a-room scheme, you just declare it on your tax return (unfortunately it means you have to do a tax return though).
 
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