Mortgages for students
16th June 2017
Are you are an undergraduate or parent trying to avoid paying a fortune for poor student accommodation? Some mortgage lenders are now looking at university students as potential customers, which could help you to get onto the property ladder and earn whilst you learn through renting out your spare rooms!
It may seem unrealistic, but with today’s high rental prices and relatively stable housing market, many are finding properties with mortgage repayments that are costing less than monthly rental rates, making it a more feasible option. Especially when it involves renting out rooms to cover the capital costs each month. Taking advantage of a buy for uni mortgage before entering full-time employment can provide stability and peace of mind to students with enough money to cover a mortgage. It's just a case of tracking down the right mortgage and mortgage lenders.
CLS is ready to help you track down appropriate mortgage payments and a suitable mortgage lender that allows you to buy instead of rent for the time you're a student.
A sound investment?
Many students choose to arrange a mortgage in partnership with their parents so that both parties can benefit from the venture. But, which mortgage is best suited to your needs?
With a Buy for Uni Mortgage, students aged 18 and over living in England and Wales, can borrow 100% of a property's value up to £300,000 to purchase a home within 10 miles of their place of study. However, if you borrow more than 80% of the value of the property, you will need to consider the following:
- A parent or close family member will have to act as Guarantor
- You will likely have to pay a higher interest rate initially. However, if you keep up your repayments, you should be able to move to a standard mortgage, once your deal comes to an end.
If your parents already own their own home, they can also save by not having to pay Stamp Duty Land Tax on the purchase of additional property, as it will be in your name!
Family buy to let mortgages
If you are a parent who either pays or is looking to cover the cost of your child’s accommodation, you could benefit from investing in a property for them to live in instead. You will need a regulated buy to let mortgage, which can be difficult to find on the high street. But, we can help you find a mortgage deal that suits your needs perfectly! - Remember, if you buy a larger property and rent it out to other students in addition to your own child, you will also need a Houses in Multiple Occupation licence!
Want to learn more?
We build our picture purely on your own circumstances, taking into account the loan amount, interest rates, assistance from a parent or legal guardian, any spare rooms collecting rent from fellow students, and the overall cost to you while you carry out your university course.
There are all kinds of considerations we can make to establish if you have enough income to cover the mortgage your property requires. There could be additional fees you may not be expecting, or you may want us to take other debts into account. Whatever it takes, we're here to listen and answer all your questions.
Our expert mortgage advisers can talk you through all of your available options and compare a range of student mortgage deals, to ensure that you get the right mortgage product for your investment plans and individual circumstances, completely free of charge and obligation. We even walk you through the application process, providing security and peace of mind as you enter home ownership. If you haven't considered those mortgage providers that deliver buy-for-uni-mortgages yet, isn't it time you did?
Expert advice when you want to buy a property
Our advisors will discuss what it takes to buy your first property, the ins and outs of buying and selling property, managing monthly payments, what constitutes your ideal mortgage provider, how your family members can help with your student property, and more.
We also offer a wide range of alternative mortgage products and services that includes discount mortgages for first-time buyers to that all-important interest-only mortgage for a first mortgage application.