Loughborough and Bath offering Buy for Uni student mortgages
Loughborough Building Society is offering a Buy for Uni mortgage helping students onto the property ladder.
The lender’s mortgages are subject to a payment guarantee, but primarily the rent earned from the rented rooms is used to make the mortgage payment. There is also the potential to borrow more money using a Guarantor’s income.
Mortgages are available to student applicants who want to rent out rooms in their residential property to friends or fellow students. They will need a 20% deposit to qualify, and there is a choice of three- and five-year variable rates. There are no early repayment charges, and there is a £999 completion fee. There is also the option of interest-only or repayment-mortgages.
Aaron Strutt, product director at Trinity Financial, says: “Standard mortgage lenders would not normally consider this type of mortgage as it would be a buy-to-let with the applicant living in the property.
“This sort of product is a good option for students across the country, potentially enabling them to make money while they are studying.”
Loughborough’s policy says the student will need at least one year left of their course at University, and they must be intending to live in the property. They can let up to two further rooms to paying tenants.
The mortgaged property must be within a 10-mile radius of the university they are attending and in England or Wales only.
Bath Building Society also offering university product
Bath Building Society is also offering a product to help students get on the property ladder. The student must have two more years left at university and they will require a parent to guarantee the deal.
The lender can provide a mortgage of up to 100% of the purchase price capped at £300,000. The actual amount will depend on the income generated by the rooms let at the property, although a parent’s salary can be used to top up the loan.
Like Loughborough, the property must be within a 10-mile radius of the university. The property must have no more than three bedrooms, and the other tenants do not need to be students. The property will need to be let under an Assured Shorthold Tenancy for a minimum period of six months and be in England or Wales.
Call Trinity Financial on 020 7016 0790 to secure a student let mortgage
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