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.