Rent a room mortgage

Flic

Has anyone got any experience/dealings with Bath Building Society’s Rent a Room Mortgage? Any restrictions on postcodes or who can apply?

I have an offer on my house and am viewing a few properties this weekend, one of which would require borrowing a large multiple of my income.

I’ve spoken to a couple of brokers but neither of them knew anything about the bath offer or were particularly interested in it.

muhandis

From BBS' website for brokers, the restrictions are -

•Single applicants only with no dependant children
•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 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.
• There needs to be a formal agreement with the tenant.
•We recommend that the borrower take tax advice.
•Maximum Loan to Value is up to 85%.

For more in depth information, might be worth checking out their broker page for this product.

https://www.bathbuildingsociety.co.uk/mortgages/mortgage-products-for-introducers/standard-residential/rent-a-room-mortgage

Flic wrote: »

Has anyone got any experience/dealings with Bath Building Society’s Rent a Room Mortgage? Any restrictions on postcodes or who can apply?

I have an offer on my house and am viewing a few properties this weekend, one of which would require borrowing a large multiple of my income.

I’ve spoken to a couple of brokers but neither of them knew anything about the bath offer or were particularly interested in it.

pinknsparkly

We applied for their Buy for Uni mortgage, which is very similar. Due to circumstances beyond our control we were unable to complete with the mortgage, but found them (BBS) to be very helpful and willing to answer questions throughout the process.

We did have one strange issue with them though - they refused to take my (then) partner's income into account since they claimed we could split up. Had we been married, they wouldn't have had the issue (despite the fact we could still split up and get divorced!). They wouldn't budge on this, even though we'd been in a provable relationship for 7 years and living together, with a joint bank account and joint finances for 3 years at that point (and are now married).