Mortgage News
Bringing you the latest news from the Mortgage industry.
Spare Room to Rent; Home owners taking in lodgers
According to recent research by mortgage lender Santander, around a tenth of home owners are now making use of their spare room by renting it out.
Apparently the average is over £180 per month extra income for home owners with a lot of the money coming from renting to friends and relatives while others are just renting out a spare room for additional spending money.
Only around 4 percent of the above is from the east midlands area and most of the spare room rental is in the south of the country.
Although the vast majority of mortgage payers would rather struggle on if possible as they just wouldn’t want a stranger in their home, a fair point but needs must and renting a room can be a saving grace for some home owners.
Renting out a spare room can be a good way of boosting your disposable income and can be used for paying off debts or other bills that would otherwise be a struggle to satisfy.
If you do have a room and you are thinking of renting it out you should speak to your mortgage provider to make sure you are not breaking any terms of your mortgage agreement.
A Mr Matt Hutchinson of the website Spareroom.co.uk suggested it might be time for the government to raise the tax threshold on renting rooms as this has been the same since 1997.
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Base Rate probably won’t rise:
According to the Bank of England they say that the current all time low base rate is unlikely to change for the foreseeable future.
In a recent speech to the Lib Dems, the UK Business secretary said if the Bank were to increase the base rate there would be a problem, and it does seem that most of the decision makers at the Bank do not support a Rate rise.
It was said that the inflation we have in the system is largely imported and that you do not deal with imported inflation by putting up interest rates.
The Base Rate would not be increasing until 2012 according to Nationwide’s head economist.
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Home owners left Stranded:
A 15 year housing regeneration scheme to improve housing in the North has been scrapped leaving some home owners destitute.
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Overpay your Mortgage:
Most people with a mortgage accept that they are in for 25 years, however, if we simply overpay we can reduce that down quite considerably, especially now with the low interest rates.
As you mortgage is the longest running financial commitment you will ever have it really is a wise step forward in overpaying your mortgage each month.
This will decrease the number of years you will have to pay and ultimately, the amount you pay overall.
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Rent Rises:
For the ninth month in a row up to October the average rent rise was up by 4% according to LSL Property Services, the lettings agent network.
