Bath Building Society launches Rent a Room range

Bath Building Society launches Rent a Room range

Bath Building Society has launched a Rent a Room mortgage, taking into account extra rental income when assessing mortgage affordability.

Its Rent a Room Mortgage is available on the same rates and terms as its Standard Residential Mortgages and 95% Parent Assisted Mortgages.

For example:

An applicant earns £26,000pa and wants to buy a two bedroom property for £200,000. They have a 20% deposit, so need a loan of £160,000. They have approached a few lenders, but they are unwilling to lend this amount based on the £26,000pa income. The applicant has a friend who is looking for somewhere to live, and is interested in renting the second bedroom; they do not want to buy a property together as they do not want the long-term commitment. The friend is happy to pay £400 per month to rent the spare bedroom. With a Rent a Room mortgage, the rent would cover about £58,500 of the loan, leaving just £101,500 to be covered by the other income.


Dick Jenkins, Chief Executive of Bath Building Society, said:

“Increasingly people are starting to realise that rent is more expensive than having a mortgage in the current climate. Many young people are happy with sharing their home with a friend and here we have created an opportunity to use the rent of a friend sharing the property to contribute to the affordability of the mortgage. Better still, some can use this arrangement to qualify for tax relief from the government. Our Rent a Room mortgage is just one of many inventive ways that Bath Building Society is supporting first time buyers in what is still a very difficult time for them to get onto the property ladder.”

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Spencer Fortag
Spencer Fortag 30 Nov 2016

I am glad that someone listened to me!

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Tony Gimple
Tony Gimple 27 Nov 2016

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Sally Walmsley 18 Nov 2016

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Sheryl87
Sheryl87 18 Nov 2016

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Sheryl87
Sheryl87 18 Nov 2016

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AmberMorris
AmberMorris 09 Nov 2016

Fear of ghosts, really?? Ok, I get the fear of bats in the attic and mice and rats running under your nose - those are easy to deal with pest issues which are really unpleasant and can turn you off. But...

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AmberMorris
AmberMorris 08 Nov 2016

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warren
warren 08 Nov 2016

There you go buddy :)

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Agent_PeeBee
Agent_PeeBee 07 Nov 2016

Any reason why my comment to this 'article' has not been published?

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Sean Lees
Sean Lees 04 Nov 2016

I don't think anyone can say dogs or cats are better or worse; depends on the animal, its age, how long it's left inside, etc. How bad the mess is depends somewhat on whether you are renting furniture...

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daniel black
daniel black 25 Oct 2016

I've been keeping a close eye on what the effect of Brexit has been on the rental market and it's a very mixed bag. Whilst the majority of the news focuses on London's market. I think this time next year...

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Northerner
Northerner 20 Oct 2016

Any views from outside the M25? No wonder politicians can't get the housing big picture when everyone seems to think that London is the yard stick, when it absolutely is not.

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