SSBS Launches Innovative ‘Buy-to-Share’ Option
Stroud & Swindon, the UK’s 15th largest building society, today announces that an innovative ‘Buy-to-Share’ financing option will now be available on all its residential mortgage products. This change will mean that consumers can increase the amount they are able to borrow by taking into account income gained by renting out a spare room.
Consumers who use the ‘Buy-to-Share’ option will be allowed to add £4,250* to their annual income for the first room rented and then £2125** for the second room. This product is ideally suited to first-time buyers who are struggling to get onto the property ladder and are happy to share but don’t want to purchase a home with friends.
Example:
Ben Smith earns £30,000 p.a and is looking to purchase a two-bedroom flat and rent out one room (£4,250). He would be able to borrow £137,000 (4 x £34,250).
Stroud & Swindon believes that this is the first time that this type of financing has been available across a provider’s entire range for purchases and remortgages. The maximum and minimum amount that can be borrowed depends on the individual mortgage deal chosen.
Paul Chafer, Sales Director of Stroud & Swindon Building Society comments: “As house prices continue to rise steeply, more and more first time buyers are finding it impossible get a foot on the property ladder or are forced to purchase property with friends. Our new ‘buy-to-share’ scheme takes into account the potential income that can be gained by letting a room and increases the amount first-time buyers can borrow – in a sensible sustainable manner.
“We believe that this is the first time that this type of scheme has been available across a providers entire product range and it heralds the launch of a new portfolio of innovative mortgage products from Stroud & Swindon. In addition to the two-year deals we have just announced, consumers and brokers can expect a suite of competitive new products from the society.”
* = The amount of income you can make from renting out a room in your home without paying income tax.
** = Half of the amount of income you can make from renting out a room in your home without paying income tax.
For further information please contact:
David Greenleaf
Corporate Communications Manager
Stroud & Swindon
01453 768244
Brian Thorn/Lee Blackwell
The Wriglesworth Consultancy
020 7845 7900
Notes for Editors
About Stroud & Swindon Building Society:
Stroud & Swindon is the 15th largest building society in the UK with assets in excess of £2.5 billion. The Society operates through a dedicated team of intermediary business development managers, with a branch network of 22 offices in the South West, complemented by a direct call centre based in Stroud and website
www.stroudandswindon.co.uk.