With student debts soaring, the dream of owning a home must seem like a distant dream for many graduates, but help is at hand. The Loughborough Building Society’s new Buy for Uni mortgage is aimed at helping university students onto the property ladder while studying, as long as they can get a guarantor. The East […]
With student debts soaring, the dream of owning a home must seem like a distant dream for many graduates, but help is at hand.
The Loughborough Building Society’s new Buy for Uni mortgage is aimed at helping university students onto the property ladder while studying, as long as they can get a guarantor.
The East Midlands-based building society will lend up to 100% of the value of the property up to a maximum of £300,000, with each application assessed on a case-by-case basis.
With the help of a guarantor parent, step-parent or grandparent, students can buy a property, using rental income from renting to their friends to cover the mortgage payments.
The total amount available to borrow is dependent on the income that will be received from letting the extra rooms in the property.
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.”
The Buy for Uni mortgage is available to UK resident students in higher education in England and Wales aged over 18 and purchased within a 10 mile radius of the University attended.
Bath Building Society also has a mortgage for students looking to get on the property ladder which comes with similar conditions.
It will lend up to 100% of the value of the property on homes in England and Wales, subject to a maximum £300,000.
The application can be made in the sole name of the student(with the parent acting as a guarantor), or jointly between the student and their parents.
Additionally, on loans greater than 80% of the value of the property a collateral charge over the residential property of the parents is required.
