So Challenge 1 “Pay Yourself First” is well under way. Only another 99 to organise.
Every week an automatic payment of £24 is set to come out of my current account and to be paid into the mortgage account. Over the year that adds up to 1% of my outstanding mortgage. Now I need to find the other 99% of the mortgage capital.
Here in the UK the most obvious and tax-efficient way of making a chunk towards your mortgage ever year is to let a spare room (or two) out to lodgers.
Providing you are letting rooms in your Primary Residence and providing these lodgers are sharing you house and not in self-contained “bed-sits” you can earn up to £4,250 per tax year TAX FREE. And Tax Free income is not be sniffed at.
Check out all the details here:
Now luckily I happen to have a five bedroom property and I happen to live in a town with a college and a bus ride away from a University – so I think this could be a strong possibility for us. Especially as work from home so would be here or hereabouts during the whole process.
So I feel a list coming up – of exactly what I need to do in order to get a couple of rooms ship-shape for letting (using all my frugal Make Do and Mend Skills)
After all £4250 is 3.3% of my mortgage capital ever year which is not to be sniffed at.
I will be back with my list, but in the meantime, anyone else taken in lodgers recently?