I'm not an expert, but I'm pretty sure rental payments are classed as income. The reason I say this is we had a dodgy landlord (a while back) who wouldn't sign a rental agreement because it would affect her pension - the result being we couldn't get rent assistance despite both being out of work.

I did read something just recently that banks are being a LOT more caring about mortgage repayments - have you spoken to your bank manager? Ultimately it's better for the bank if you retain your house, as opposed to repossessing the house etc.

The earlier you speak to the bank, the more they can do for you. They're actually pretty helpful, as long as they know what's going on, KWIM?

HTH chicky