Occupancy

Additional occupants

If there will be additional occupants aged 17 and over (usually adult family members or spouse not a party to the mortgage,excluding children of the mortgagors) living in the property once the application has completed, you must select 'Yes' to the question 'Does anyone else live at the property?'.

Answering 'Yes' to this ensures that the system will drive you to capture their details on the additional occupants screen.

Completing this also ensures the Consent to Mortgage form is included in the offer pack. By signing the Consent to Mortgage form the additional occupants are waiving any legal rights over the property that they may have. Family may hold legal rights and therefore they are required to be recorded as additional occupants; if any lodger has acquired legal rights they too are required to be recorded as an additional occupant.

For Second Home Loans, family members living in the property must always be keyed as additional occupants and a Consent to Mortgage form is always required.

 

Lodgers

Income received from a lodger cannot be used in the affordability calculation. Up to two lodgers are acceptable providing that they are treated as a family member, i.e. sharing living accommodation.

Care must be taken if the lodger(s) has exclusive occupation of a self-contained part of the house (e.g. an annex) or the applicant does not intend to occupy the property on a permanent basis. In those types of situation, the lodger(s) may acquire legal rights.

 

Applicant not resident in property

It is acceptable for a borrower not to reside at the mortgaged property and be on the mortgage subject to affordability e.g. when parents buy for a child or one spouse is temporarily living abroad for their employment.

As long as one applicant will occupy the property as their main residence, this can be keyed as a mainstream mortgage application and normal lending limits apply.

Applicants who do not reside at the mortgaged property on Right to Buy applications and applications involving an ex-spouse or ex-partner, must be referred to underwriters.

 

Dependant relatives

Please refer to Second Home Loans section for further information.