Buy For University 1.2% discount for four years

Students can enjoy the security of owning their own home and rent rooms to contribute to the mortgage while they study. Take advantage of a discounted rate on this four year student mortgage. The minimum deposit you need at this rate is 30%.

Affordability for our Buy For University/Student mortgages is based on a combination of the expected rental for spare rooms and parental income.  Please contact us for more information.

Interest
rate i
SVR (standard variable rate) i Overall cost for comparison i Max %
LTV i
Payment
typei
3.7% 4.9% 4.7% APRC 70% Interest only and repayment options available
  • See example

    Representative example: A mortgage of £205,000 taken out for a period of 19 years on an interest only basis.

    Monthly instalments: £632.08 per month for 47 months, followed by £840.13 per month for 180 months.

    Total amount payable: £387,391.16

    Total amount of credit: £205,000

    The total amount payable includes administration fee £125, valuation fee £340, product fee £820, completion fee £75 and closing fee £100.

    The overall cost for comparison is 4.7% representative APRC.

    This example relates to the Buy For University 1.2% discount for four years product, is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

 

  • Availability - Purchase up to 70% Loan To Value (LTV). Minimum deposit of 30% required.
  • Flexibility - Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
  • Portable.

3% in years 1 to 3, 0% in year 4, plus Closing Administration Fee currently £100.

If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.

For full repayment, you will pay 3% of the outstanding balance in years 1, 2, 3 and 0% in year 4, plus a Closing Administration Fee (currently £100).

For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1, 2 & 3, 0% in year 4.

  • Product Fee 0.4% of advance (Minimum £599).
  • Administration Fee £125.
  • Valuation Fee (scale).
  • Collateral Valuation Fee £115.
  • Completion Fee £75.

Buy For Uni Mortgage Lending Criteria and Information

Loan size

Size: Minimum £50,000 Maximum £300,000.
Term: Minimum 5 years, Maximum 40 years.

Property

Minimum Value: £100,000. Must be in England, Wales or mainland Scotland and within a ten mile radius of the university attended.  

Applicant

Age: Minimum 18, no maximum, subject to income in retirement.

Rental Income

Combination of rent and parental income can be considered. Rent to cover interest at 125% of pay rate. Parental income can be used to cover any shortfall in rental cover.

Underwriting

The mortgage can be in the name of the parent and the student or the student on their own. Mortgages in the name of the student will require a guarantee from a parent. Evidence will be required of a university place. For loans greater than 80% loan to value, additional security will be required in the form of a collateral charge over the parental property. This means that your parents may find it more difficult to raise capital against the equity in their home and in the event of default their home may be at risk. Maximum total of charges over additional security must not exceed 70% of its value.
We will carry out a full assessment of your income and expenditure to ensure that you can afford your mortgage both now and in the future.
We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk.

Collateral Valuation:

If the collateral security is standard construction and is visible from the road, the Valuer will endeavour to carry out a drive-by valuation and this will be charged at £115. If the Valuer is unable or unwilling to carry out a drive-by valuation, or the property has a current valuation of >£500,000, we will require a standard mortgage valuation to be carried out and this will be at our usual scale fee based on the value of the property.

Tenancies must be on an assured shorthold or licence basis for no more than 12 months (renewable) and no more than 4 occupants in total.

How to apply

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