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80% Rent A Room fixed for 5 years

Secure your mortgage for five years with this Rent A Room mortgage that allows a single person to borrow more than their salary permits by including income from renting a room out.

Use our affordability calculator to get an idea of how much you could borrow. This calculator will work out the maximum amount you could borrow, assuming the rental income received would cover at least 50% of the mortgage. Please contact the team if you have questions about your specific circumstances.

What if you find your ideal home, but your income isn’t quite enough to get the mortgage you need? Well, if the property has a spare bedroom, our Rent A Room Mortgage might be just the answer.  If you rent out a spare bedroom, we will take into account the rental when deciding whether we can offer you the mortgage you need.

This example explains how it works:

An applicant earns £28,000pa and wants to buy a two bedroom property for £200,000. The applicant has a 20% deposit, so need a loan of £160,000 but is struggling to find a lender to go to that loan amount because they only earn £28,000pa 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. The applicant would now contact Bath Building Society who calculate the rent would cover about £48,000 of the loan and the remaining £112,000 will be covered by the other income.

*Please note our current minimum loan amount is £350,000. This example is just to give an indication of how the Rent a Room product works.

The mortgage listed below moves on to our Standard Variable Rate, currently 4.9% (variable), after the initial rate period.

rate i
Overall cost for
comparison i
Max %
type i
3.49%4.0% APRC80%Repayment only
See example

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.

  • Key features
    • Availability – Purchase up to 80% Loan To Value (LTV). Minimum deposit of 20% required.
    • Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
    • Portable.
  • Early repayment

    If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.

    For full repayment, you will pay 3% of the outstanding balance in years 1, 2, 3 & 4; 2% in year 5, plus a Closing Administration Fee (currently £100).

    For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1, 2, 3 & 4, 2% in year 5.

  • Product fees
    • Administration fee £125.
    • Valuation fee (scale).
    • Product fee 0.4% of  advance (minimum £599).
    • Completion fee £75.
  • Lending criteria
    • Single applicants only, without financial dependants.
    • Rental income from only one tenant will be taken into account and the expected rental will be based on an independent assessment.
    • Minimum income of £20,000pa after deductions (excluding the rental income), employed or self-employed.
    • Up to 50% of the loan amount can be covered by the rental income from letting a room in the property. The balance of the loan must be covered by other income.
    • The amount being covered by the rent must be no more than 4 x the borrower’s income.
    • The property must be fit for purpose – for example, it must have at least two bedrooms and be suitable for occupancy immediately on completion of the mortgage.
    • We lend on properties in England, Wales and mainland Scotland.
    • There needs to be a formal agreement with the tenant.
    • We recommend that the borrower take tax advice.
    • Minimum loan of £350,000.
  • Proc fee

    We will pay a gross procuration fee of 0.35% on all introduced business. The fee is usually paid within five working days following completion. Procuration Fees may vary for our recognised Clubs & Packagers.

  • Useful stuff

    Tariff of Mortgage Fees

    Mortgage Conditions

How to apply

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This section is for use by professional Intermediaries only. If you are a customer please visit our Mortgage section.