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Buy for Uni mortgages for students

Did you know that students can get a mortgage with Bath Building Society? We offer mortgages to university students of up to 100% of the purchase price, where you can use expected rental income as part of your affordability calculation?

Now you can leave university not just with a degree but with a foot on the property ladder! After your course ends, you can choose to keep the property or sell it, the choice is yours.

These mortgages are offered on a Joint Borrower Sole Proprietor basis, which means the student will be the only borrower on the deeds, but parent/s will be joint borrower/s on the mortgage. This arrangement helps university students plan for their future with the help of their family, to fulfill their dreams of property ownership.

We require both the student and parent/s to have at least 3 years address history in the UK, as well as permanent right to reside in the UK. See below for the product range.

Mortgages are secured against your home. You could lose your home if you do not keep up payments on your mortgage.

Affordability calculator

Find out how much you can borrow with our affordability calculators.

Monthly payments calculator

Use the calculator to find out what your monthly payments might be based on the mortgage product and the type and term of your borrowing.

Mortgage details

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Please scroll down for monthly payments by product.

This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Variable mortgages

Our Standard Variable Rate (SVR) is currently 8.39% (variable).

There may be a limit on how low your interest rate can fall. This is called an ‘interest rate floor’. The interest rate floor applicable to your loan will be specified in your loan documentation.

Product name
100% Buy For University variable
Initial rate
Discount from SVR
Overall cost for comparison
7.6% APRC
Max LTV %
Product fee
Mortgage repayment
£XXX.xx per month
Product name
80% Buy For University variable
Initial rate
Discount from SVR
Overall cost for comparison
7.5% APRC
Max LTV %
Product fee
Mortgage repayment
£XXX.xx per month
  • Representative example

    Representative example: A mortgage of £175,000.00 taken out for a period of 12 years on an interest only basis.
    Monthly instalments: £931.88 per month for 59 months, followed by £1,231.58 per month for 84 months.
    Total amount payable: £333,533.64
    Total amount of credit: £175,000.00
    The total amount payable includes a closing fee of £100.
    The overall cost for comparison is 7.6% representative APRC.
    This example is based on our Buy for Uni, 5 year 2.00% discount mortgage. It is based on our current Standard Variable Rate of 8.39% with no fees added to the mortgage.

    Please ask for a personalised illustration for your own particular requirements.


  • Repayment type
    Interest only and repayment options available
  • Key features
    • Availability – Purchase up to 100% Loan To Value (LTV). No minimum deposit required.
    • Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in the first year and then unlimited overpayments allowed in the remaining four years.
    • Portable.
  • Early repayment

    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 year 1 and 0% in years 2, 3, 4 & 5, plus a Closing Administration Fee (currently £100).

    For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1 and 0% in years 2, 3, 4 & 5.

  • Product fees
    • Valuation Fee – a standard mortgage valuation for our purposes will be included as part of your application (this may not be a physical inspection). You will not have to pay for this. If you choose to have any additional checks on the property you will have to pay the cost.
    • There is no product fee for either of our Buy for Uni products.
  • Lending criteria

    Buy For Uni Mortgage Lending Criteria and Information

    Loan sizeSize: Minimum £50,000 Maximum £500,000.
    Term: Minimum 5 years, Maximum 40 years.
    PropertyMinimum Value: £100,000. Must be in England, Wales or mainland Scotland, suitably located with good transport links to the University.
    ApplicantAge: Minimum 18, no maximum, subject to income in retirement.
    UnderwritingThe mortgage will be in joint names of the student and parent(s) but the property can be owned solely by the student, to avoid additional stamp duty liability for the parents. Where the loan exceeds 80% of the property value, additional security can be taken against the parents home providing the total charges over the parents house do not exceed 70%. 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.  Evidence of a university place will be required.
    Collateral Valuation:All collateral valuations will be carried out by the way of desktop valuation (automated valuation model) at no cost to the customer. Where a desktop valuation is not possible, a full valuation will be carried out and normal fee scale would be charged to the customer (see product fees).

    Spare rooms can be let to other students subject to a lodger agreement / licence being in place. Maximum 3 students living in a property. HMO’s requiring licences are not acceptable.

  • Useful stuff

    Mortgage Conditions

    Mortgage Conditions Scotland

Here are some frequently asked questions about Buy for Uni mortgages

  • Can a student get a mortgage in the UK?

    Yes, with our Buy for Uni mortgage,  university students can get a mortgage of up to 100% of the purchase price, and use expected rental income as part of their affordability calculation.

  • What is a Buy for Uni mortgage?

    This is a niche mortgage product which enables a student to buy a house and then rent out rooms in the house to help towards the affordability calculations for their mortgage payments. The student who owns the house becomes the landlord, buying their own house instead of paying rent to another landlord for their student accommodation while completing their studies.

  • Will my student loan affect me getting a mortgage?

    Having a student loan does not affect your ability to get a mortgage, other than for the affordability calculations of your remaining income after any student loan deductions, plus any rental and parental incomes taken into consideration during the mortgage application.

  • Can I use my student loan for a house deposit if I apply for this mortgage?

    Your student finance income is not used when calculating affordability for a mortgage, however you could potentially use your student loan towards a mortgage deposit if you have the means to do so and it does not affect your ability to complete your studies. Some people do this when they have other income such as a part-time job while studying to cover their general student expenses, freeing up the student loan to put towards a mortgage deposit. We advise caution with this though, it is important not to over commit any finances that would impact your ability to complete your university studies.

  • Can Buy for Uni mortgage affordability be based solely on the rental income?

    At Bath Building Society our mortgage affordability assessment will take into account parents’ income and committed expenditure as well as rental income from the property.

  • What does Joint Borrower Sole Proprietor actually mean?

    Rising property values and stricter affordability requirements can make life challenging for first time buyers.

    The joint borrower sole proprietor feature of our Buy For University mortgages is designed to help borrowers enhance mortgage affordability by adding one or both parents to the application as joint borrowers without adding their name to the property deeds.

    The parental income is taken into account, but the applicant remains the single named owner on the property deeds. The purchaser can also benefit from tax breaks in respect of the rental income.

  • Can student income be considered?

    It’s important to note that student income cannot be considered when applying for this mortgage. This includes any form of student income including Stipend payments (eg. student loan or bursary), bank shifts or part time work. The exception to this is rental income from spare rooms in your property.

  • What type of property will you consider for this mortgage? Can I buy an HMO property?

    The type of property you could purchase with this  mortgage would be a property in a good state of repair that has rooms ready for immediate rental upon completion. The property should be within a reasonable commutable distance of the University. The rules for a house of multiple occupancy (HMO) can differ depending on where you buy. In this case, check the rules with the local authority.

  • I am an international full time student, can I apply for this mortgage?

    Unfortunately not. We require at least three years address history in the UK and a permanent right to reside for the student and the parents.

  • My parents are retired. Will I be able to apply for a Buy For Uni mortgage?

    The affordability calculation will be different in these circumstances, and you may need to have a minimum 30% deposit. It’s definitely worth speaking with one of our Mortgage Consultants in this case, to see if we can help.

  • Can I buy in Scotland?

    Yes, we will consider properties throughout England, Scotland and Wales for these mortgages.

  • Does it have to be a parent that is named on the mortgage, or can another family member assist?

    Currently we only allow parents and step-parents to assist in the Buy for University mortgage affordability.

  • Why is independent legal advice required?

    We want to be sure that all parties to the mortgage get independent legal advice to ensure they understand the commitment they are making, and the risks involved before entering a joint borrower/sole proprietor arrangement and/or giving us a legal charge over cash and/or property. To avoid a conflict of interest, parents can’t use the same solicitor who is carrying out the conveyancing for the purchaser.

  • What happens when my course ends?

    The Buy for Uni mortgage is designed specifically to enable a student to take ownership of a property while studying. Once your studies come to an end, what you do next will affect the mortgage. This could be living in the property without tenants, continuing to live in the property with tenants, moving out and converting the mortgage to a Buy to Let, or of course selling the property. The potential options available will depend on individual circumstances. Our mortgage team are here to help you so please do get in touch to discuss your mortgage plans, we will do our best to help if we can.

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