9 fun facts about student mortgages
Posted on 10th October 25
University life is exciting – for many, it’s the first chance to step out on your own, find your independence, make new friends and explore a new city – probably with a few too many kebabs along the way! What many students don’t realise is that you can have all of the above, all while investing in your future and making Uni living a whole lot cheaper for yourself.
That’s because with Bath Building Society, students can now buy their own home without a deposit – and rent rooms out to help pay the mortgage!
Keen to learn more? In this blog Ian Birch, Senior Mortgage Adviser, explores 9 fun facts to help change the way students think home ownership from a future dream to an achievable investment right now and in the future.
You Don’t Need a Deposit to Buy a Home as a Student
With Bath Building Society, students don’t require a deposit (Subject to Criteria) to access a mortgage – our Buy for Uni mortgage offers 100% lending. When you compare that to the 5-10% deposit usually required for first time buyers, a Buy for Uni mortgage can help you get on the property ladder even faster.
Your Housemates Can Help Pay Your Mortgage
When assessing if you can afford a mortgage, lenders will look at a number of factors to make sure you can afford the repayments. With our Buy for Uni mortgage, potential rental income from housemates is counted as income to help with affordability.
You could potentially live rent-free while housemates rent covers the mortgage! You might just want to cover the odd takeaway to sweeten the deal.
Parents Can Help Without Owning the Property
Bank of Mum and Dad threatening to close up shop? Parents can act as joint borrowers, meaning their assets can help with affordability checks without actually co-owning the property with you. A huge step towards building financial independence!
You Can Own a House Before You Graduate
Whilst renting works for plenty of people, you could be spending your money investing in your own property – rather than sending a chunk of your student loan towards rent. The beauty of our Buy for Uni mortgage is that it’s an investment for the future as well as the present; after Uni, you could sell, continue to rent rooms, or stay settled and continue to live there yourself. (Subject to criteria).
No Full-Time Job? No Problem!
With most mortgages, you’ll struggle to pass affordability checks without a full-time salary. Buy for Uni mortgages, however, consider rental income from housemates and any potential parental support.
You Can Make Up to £7,500 Tax-Free Renting Out Rooms
Under the rent-a-room scheme, you can earn up to £7,500 per year tax-free. That’s a lot of money to help with mortgage payments, help pay off your student loan or get on first name terms with your Deliveroo driver.
Student Mortgages Are Extremely Rare
Only a handful of lenders in the UK actually offer student mortgages – Bath Building Society is one of the only providers that offers 100% Buy for Uni mortgages! You can thank us later.
Yes, Your Credit Score Does Matter – But It Isn’t Everything!
A good credit score helps, but it isn’t the only thing that helps with affordability assessments – having a parent or guardian as a joint borrower means students can still qualify, even if building a good credit score wasn’t your priority at Sixth Form!
There’s plenty you can do to start building your credit score before applying, in order to give yourself the best chance.
Buying Could Be Cheaper Than Renting
In some University cities, mortgage payments will be lower than you (and your housemates) might pay on student rent. With a Buy for Uni mortgage, you won’t just have the security and independence of owning your property – you could be saving for the future!
Bath Building Society is one of the few providers offer 100% student mortgages. With no deposit required, the ability to rent out rooms for income, and encourage a parent to help with mortgage affordability – it’s easier for students to buy a home than ever!
