Buy-for-uni mortgage has its benefits
October 11, 2007 by admin
Filed under News, News-Mortgages
Taking out a mortgage for a university residence can be beneficial for students and their parents.
According to Moneyfacts, a so-called buy-for-uni mortgage allows students a mortgage of up to 100 per cent on their property with no deposit.
This can act as a “medium term investment”, according to Darren Cook, head of mortgages, that gives students “independence” and “their own home” while at university.
Mr Cook said: “Obviously it’s going to be seen as a good investment from the parents’ side of things. If you’ve taken a student’s property [for] three or four years or whatever, they can convert it to a … student buy to let scenario and rent out rooms.
“[They can] change the actual funding of that asset or get rid of it a later stage. So it could be a short [to] medium-term investment.”
He added that some parents might not want their children going into communal housing, so aside from an investment another reason for buying might be the social aspect.
Currently, Bath Building Society is the only lender offering a specific buy-for-uni mortgage. It was introduced last April and is given only on properties with four bedrooms or less.
