Rent A Room

C

CHICCO

Registered User
Messages
22
Hi folks,
when applying for a morgtage if you are prepared to rent a room or more does this increase borrowing capacity. I think you can make up to about 7k a year tax free for owner occupiers. just thinking about it haven't asked any banks yet etc,
thanks all.
 
You can take in €10k a year under the rent a room scheme and many lenders take this into account when you are applying on the application forms - I remember IIB telling me that they took it into account automatically once it was a 2 bed - best of luck.
 

As vallnett said it went up to 10k in the last budget. Lenders do take it into account, however, usually they'd only allow say €400 a month rent and if it's a three bed I don't think they take renting 2 rooms into account, just the one.
 
I was also told when I enquired with First Active that they automatically include a rental income of 400 p/m if the property has at least 2 bedrooms. You could argue your case if there was more than 2 rooms or if you were in a particular area where you would be guaranteed a higher amount but they would be reluctant to take any extra into account.
 
Be aware that banks will not give you the full €10,000 if you are not based in an area where you will be able to rent the rooms easily. If you are based in a rural area they will allow room rentals at a lower amount.
 
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