university student

Two birds, one stone

Buy for uni mortgages work like guarantor mortgages and are essentially a way for guardians to help their child on to the property ladder while they’re at university. They allow students to borrow up to 100% of the value of a property so that they can purchase, live in and let out other rooms in the property to fellow students.


What are the rules?

Anyone over 18 who is in higher education can apply for the deal, as long as they have backing from family.

The student must:


How do they work?

The parent or guardian acts as guarantor for the mortgage payments. A student can borrow up to 100% of the property’s value, but if they have a deposit of less than 20%, the parents will need to pay savings into a special account or use their property as collateral. 


Why do they exist?

Students spend thousands of pounds each year on student accommodation and maintenance loans barely cover the cost of living in some areas. This means that parents and guardians are increasingly called upon for financial support while their child is in further academic study. 

To make the expense more worthwhile, guardians may consider investing in a property for their child. But property investment carries high costs, particularly since the introduction of the stamp duty surcharge and the reduction of mortgage interest tax relief. 

Buy for uni mortgages offer parents with an alternative to investing themselves. The mortgage belongs to their child meaning that;

The parents help support their child through university at the same time as setting them up for getting onto the property ladder later. In this way, buy for uni mortgages may be considered as killing two birds with one stone for guardians. 


What to consider


As soon as graduates begin paying off their loans, raising enough for a deposit on a first property can become a distant thought. Unless, that is, they’re homeowners already. Buy for uni mortgages are an opportunity to avoid investing ‘dead money’ into student rent and provide a means of getting your child on the property ladder that helps their friends as well as themselves. 

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