Case Study: Buy for Uni

23rd August 2022

A recent case for a Buy for Uni mortgage, giving an idea of what this product can do for students.

A recent case where we were able to help an applicant with: 

- Gifted deposit from parents
- 2nd charge on parent’s property
- Three rooms rented out

Buy for Uni mortgages mean a student can become a landlord. This applicant was looking to buy a property near their university with help from their parents.

The applicant was in year one of their course at university, looking to purchase a property worth £318,500 and rent out three rooms. Mum and Dad gifted a deposit of £37,465 in cash, and we took a second charge of £42,160 over their property, bringing the total LTV to 75%. The term required was over 22 years on an interest-only basis.

Through renting out three rooms in the property, the student will be collecting a rental income, which will cover the mortgage repayments for the remaining time at university. At the end of their course, they will have the opportunity to sell the property and repay the mortgage, free of ERCs. Or, if affordable, they can choose to remain in the property and convert it into a standard residential mortgage.