From This is Money:
Lenders issuing mortgages are being urged by easyroommate.co.uk to take into account the income a borrower expects to generate from renting out a room.
Effectively, this ‘flatmate mortgage’ concept would reduce the initial deposit young property hopefuls need to find or extend their borrowing potential.
And if the new thinking becomes part of general lending practice, it could provide a boon to the whole housing market by reigniting the depressed first-time buyer market, some mortgage experts believe.
Why is it so tough for first-time buyers?
The situation is pretty dire for first-time buyers ? and the sort of assistance a flatmate mortgage could provide would be welcomed with open arms.
Since the credit crunch, banks and building societies have raised their home loan deposit requirements. For example, many commentators now believe that a minimum of 20% loan-to-value (LTV) is needed to persuade lenders to offer an decent borrowing rate.
And it’s hit first-time buyers particu…