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Struggling To Get On The Property Ladder - Check Out This Interesting Mortgage
November 2006
Many aren’t aware that there’s a useful Government sponsored tax break for property owners called The Rent a Room scheme. Basically a home owner can rent a room out in their property and receive an income up to £4,250 a year tax-free. That works out at around a maximum rent of £81 per week.
The Stroud & Swindon Offers The ‘Buy To Share Option’
The Stroud & Swindon Building Society now offers a mortgage that factors in any rental income and it’s aimed at first time buyers who are happy to let one of their rooms out rather than buy a property with friends.
- With the mortgage called ‘The Buy To Share Option’ someone earning £30,000 could take out up to £120,000 (4 times salary) PLUS an extra £17,000 when the rental income stream of £4,250 is added
- The mortgage is offered on a 5 year fix at 5.75% up to 100% of the property’s value (maximum £175,000)
- There is also a slightly cheaper version at 5.65% fixed for 5 years but only up to 97% of the property’s value
- As ever though do some research into the fees involved in relation to what competitors are charging
Summary
This looks an interesting mortgage, it seems relatively competitive and is proactive in trying to help first time buyers.
Look for more of these types of deals by other lenders.
See Also
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