Renting a room?

When applying for a mortgage many institutions will give a larger mortgage if you are prepared to rent a room in the property which you are purchasing.

But my query is what happens if you agree to do this but when the time comes you can't rent the room maybe because of lack of interest or limited oppurtunities for renting in the particular area?

Or whats to stop the individual saying that they will rent a room so that they can get a larger mortgage amount but then don't bother renting it out once they have the house ?

In reality, banks don't tend to check things like this after they give formal approval. I guess, in their eyes, you have the potential to rent the room, if you find it too difficult to pay the mortgage by yourself and are probably not too worried as long as you keep up your repayments.

nothing happens as long as you can afford to pay the mortgage payments.

Banks do not ask for proof of rent on a room. Their main concern would be that you can repay your mortgage every month on the specified date of payment.