Has your client found their ideal home but their income isn’t quite enough to get the mortgage they need? A spare room can help! Our exclusive Rent A Room mortgage lets applicants use rental income from letting out a spare room to get the mortgage they want, and can help towards monthly payments. This is especially useful for first time buyers who may need that income boost to get on the property ladder.
The mortgages listed below move on to our Standard Variable Rate, currently 4.9% (variable), after the initial rate period. There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.
| Product name | Initial rate i | Discount from SVR i | Overall cost for comparison i | Max % LTV i | Product fee i | Mortgage repayment |
|---|---|---|---|---|---|---|
| 80% Rent A Room variable for 3 years See example | 2.99% | 1.91% | 4.70% APRC | 80% | 0.4% (£599 min) | £XXX.xx
per month
See details |
|
Representative example: A mortgage of £168,000 taken out for a period of 36 years on a repayment basis. Monthly instalments: £636.29 per month for 35 months, followed by £818.41 per month for 396 months. Total amount payable: £347,617.51 Total amount of credit: £168,000 The total amount payable includes administration fee £125, valuation fee £285, product fee £672, completion fee £75 and closing fee £100. The overall cost for comparison is 4.7% representative APRC. This example is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personal illustration for your own particular requirements. | ||||||
The mortgages listed below move on to our Standard Variable Rate, currently 4.9% (variable), after the initial rate period.
| Product name | Initial rate i | Overall cost for comparison i | Max % LTV i | Product fee i | Mortgage repayment |
|---|---|---|---|---|---|
| 80% Rent A Room fixed for 3 years See example | 3.29% | 4.30% APRC | 80% | 0.4% (£599 min) | £XXX.xx
per month
See details |
|
Representative example: A mortgage of £420,000.00 taken out for a period of 10 years on a repayment basis. Monthly instalments: £4,141.21 per month for 35 months, followed by £4,386.17 per month for 84 months. Total amount payable: £515,870.63 Total amount of credit: £420,000.00 The total amount payable includes administration fee £125, valuation fee £510, product fee £1,680, completion fee £75 and closing fee £100. The overall cost for comparison is 4.3% representative APRC. This example is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personal illustration for your own particular requirements. | |||||
| 80% Rent A Room fixed for 5 years See example | 3.49% | 4.0% APRC | 80% | 0.4% (£599 min) | £XXX.xx
per month
See details |
|
Representative example: A mortgage of £405,000.00 taken out for a period of 8 years on a repayment basis. Monthly instalments: £4,885.34 per month for 59 months, followed by £5,015.30 per month for 36 months. Total amount payable: £471,215.86. Total amount of credit: £405,000.00. The total amount payable includes administration fee £125, valuation fee £510, product fee £1,620, completion fee £75 and closing fee £100. The overall cost for comparison is 4.0% representative APRC. This example is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personal illustration for your own particular requirements. | |||||
This section is for use by professional Intermediaries only. If you are a customer please visit our Mortgage section.
