Students are being offered 100 per cent mortgages if a close family member puts up their savings or home as security.
Loughborough building society has launched a ‘Buy for Uni’ mortgage allowing students over 18 to purchase a home with the help of a parent, step-parent or grandparent.
The buyer must let out spare rooms to students and use the rent to pay the mortgage, in effect becoming a landlord. As security, a close family member must deposit 20 per cent of the value of the house into a savings account or allow Loughborough to put a charge on their own property. The building society will lend up to 100 per cent of the property value to a maximum of £300,000, depending on income expected from the rent. The home must have no more than four bedrooms and be within ten miles of the university the buyer is attending.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.