Homeowners consider taking lodgers to help with mortgage payments

By MoneyhighStreet Staff. Published on August 14, 2008 This post currently has no comments.

moving in
More than 1.5 million people struggling to meet their monthly mortgage repayments are considering renting out their spare room to help make ends meet, a new survey has revealed.

The research from by Abbey Mortgages showed that 1.6 million homeowners are currently considering renting out a room and that 388,000 have already done so.

Typically, people charge £289 per month for their spare room, with many using the extra cash to help them meet their rising mortgage costs.

"With income being squeezed in so many ways, those looking to raise some extra money may find that their spare room could provide the answer," Phil Cliff, the director of Abbey Mortgages, commented.

"Demand for rooms is likely to be fairly high too and, with the government providing tax free incentives for landlords, now is certainly a good time for those considering taking in a lodger."

However, the lender said that it was vital homeowners with mortgages checked that their provider allowed them to take a lodger before committing to the idea.

Recently, Barclays reported that some fixed-rate mortgage deals were now offering rates of below six per cent and said that this was "a sign of improving conditions" in the market.