Rent A Room

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CHICCO

Registered User
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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.
 
CHICCO said:
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.
Click to expand...

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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