Bath Building Society ‘Income Plus’

Bath Building Society ‘Income Plus’

Income Plus
The ‘Income Plus’ mortgage allows an individual applicant to borrow the amount they need without having to get into a long term financial commitment with a friend by renting a room to them.

What if your friend is someone you would share a house with, but not a financial commitment? What if you’ve got the deposit but your friend is not putting any money in? What happens if your friend stops being your friend?

The basic details are as follows:

  • Up to 50% of the loan amount can be covered by rental income from letting a room in the property. The balance of the loan amount must be covered by income.
  • The amount being covered by rent must be no more than 3.5 x the borrower’s income.

Example
Take an applicant earning £25,000 who wants to buy a property at £180,000 with a 20% deposit. The loan amount of £144,000 would be well outside most lenders standard multipliers so although the applicant has a fair deposit, they are still precluded from buying the property.

However, they can let a room to a friend at £50 per week. Under Income Plus, this would cover £48,000 of the loan, leaving £96,000 to be covered by income, a much more realistic proposition.

This new approach to income calculation has been launched and is available across our current residential product range.

Other product details:

  • Rental income from one tenant only
  • Minimum income £20,000, employed or self employed
  • The house must be fit for purpose ie: have at least two bedrooms
  • Tenancy under licence, borrower must take tax advice
  • 80% LTV maximum.

If you would like to know more about our Income Plus mortgage, or any other aspect of our lending policy, please contact our sales team on 01225 475702 or at mortgages@bibs.co.uk

YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

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