Students turned into Landlords

11:47 AM, 1st March 2017, 9 years ago

The Loughborough Building Society has launched its new ‘Buy for Uni’ mortgage targeting university students who want to get onto the property ladder while they are still studying.

This is similar in criteria to the Bath Building Society student mortgage that has been available since 2012 see >> https://www.property118.com/student-buy-to-let-mortgages/33850/

The Loughborough BS will lend up to 100% of the purchase price with a maximum loan of £300,000 and minimum loan of £90,000

This is based on needing a parent, step-parent or grandparent to guarantee the loan and using income from friends renting the property to cover the mortgage payments. Any mortgage over 80% in loan to value will require security by way of cash or a charge over the guarantor’s main residence equity allowing.

Product are available on interest only or repayment basis and are from:

3 year discount at 4.54% max 100% LTV no completion fee
5 year discount at 4.54% max 100% LTV no completion fee

The property must be in England or Wales and within a 10 mile radius of the University attended. Properties not considered are ex local authority apartments and studio apartments that don’t have a separate bedroom and bathroom.

There must be no more than four occupants, including the mortgage holder. The other tenants don’t have to be students, but tenancies must be granted under an AST.

Gary Brebner, chief executive at the Loughborough Building Society, said “with more and more reports of sky high rents and difficult landlords this new solution will mean that students can take charge of their uni life and focus on their studies without the worry of racking up thousands of pounds of debt.“Another great aspect of this offering is that unlike conventional mortgages, the supporting family members’ names will not appear on the mortgage. Instead they act as a guarantor meaning that the student will be the sole owner of the house which should help them in later life when they go on to buy their next property.”

If you need assistance with a student mortgage or any other type of property finance then just complet the contact form below and we will be happy to help.

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