Press
Mortgage Solutions 20th Nov 2006
Stroud & Swindon launches buy-to-share option
Stroud & Swindon has launched a buy-to-share financing option that will enable borrowers to increase the amount they are able to borrow by taking into account income gained by renting out a spare room.
The option is available for house purchases on all of its residential mortgage products. The mutual said the product was ideally suited to first-time buyers (FTBs) who were struggling to get onto the property ladder and were happy to share but did not want to purchase a home with friends.
Paul Chafer, sales director at Stroud & Swindon Building Society, said the lender believed this was the first time this type of scheme had been available across a provider’s entire product range.
He said: “As house prices continue to rise steeply, more and more FTBs 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 FTBs can borrow – in a sensible sustainable manner.”
Commenting, James Carter, IFA at Virtue Financial, said some borrowers stretched themselves to purchase a two-bedroom property rather than a one-bedroom property on the premise they would rent a room out. Carter said there was therefore likely to be a demand for the buy-to-share financing option among FTBs but highlighted this would depend on factors such as the rates, loan to value and income multiples available.