Bath Building Society has changed the criteria for its Rent a Room mortgage.

The society offers mortgages up to 100% of the purchase price where a customer can rent a spare room and have the expected income count towards their mortgage affordability calculations.

With collateral security over the parent’s home of up to 25%, Bath Building Society has three products at 100%.

These include a 100% Rent A Room variable for two years at 5.24%, 100% Rent A Room fixed for five years at 5.59% and a 100% Rent A Room fixed for two years at 5.64%.

There are another two fixed rate products at 85% LTV and one variable at 85% LTV.

The extra income from renting out a room in a new house could provide the affordability calculations boost that your customers’ need to get onto the property ladder.

In addition, those who do this can earn up to a threshold of £7,500 a year, tax free from letting out a furnished room in their home.

Bath Building Society national account manager Ben Hutchings says: “Our aim is to help first time buyers (FTB) to get onto the property ladder and our Rent a Room mortgage does just that.”

“The average age of a FTB is 34 and with mortgage products like these we hope to make the market an easier place for people to realise their dreams of owning their own home and decrease the average age of a FTB.”