Buy for Uni


This range of mortgage products are parent assisted mortgages aimed at students at University.

Who can apply for this mortgage?

The mortgage is available to students in Higher Education throughout England and Wales. An application can be made in the sole name of the student, or jointly between the student and their parents. In the case of a sole application, we will require a parental guarantee. The student must have two or more years left at University.

How much can I borrow?

We will lend up to 100% of the value of the property, subject to a maximum £300,000. The actual amount you can borrow will depend on the income that will be received from letting rooms within the property. Where this is insufficient to support the mortgage, we will consider parental income after deductions for financial commitments.

What Security is required?

We will require a first charge over the property to be purchased. Additionally, on loans greater than 80% of the value of the property, we will also require a collateral charge over the residential property of the parents.

What sort of property is acceptable?

The property must be in England or Wales and must be located within a ten mile radius of the University attended. The property must have no more than four bedrooms. There are specific properties that we will not consider, such as ex local authority flats, or flats in blocks of more than six storeys.  We will not lend on a property where the Guarantor does not live in England or Wales

Who can I let rooms to?

We will allow no more than four occupiers, to include the mortgage holder. Tenancies must be granted under a Licence Agreement. The other tenants do not have to be students. We recognise that the student letting market operates within specific time frames; students are often looking to secure accommodation in January or February for occupation at the start of the academic year in September/October. This may require a property to be bought in January or February in order to market it to sharers for the following academic year. We will allow the property to be let under an Assured Shorthold Tenancy for a minimum period of six months provided it is then occupied by the student as their main residence at the start of the next academic year.

Our Products

Product Name

The overall cost for
comparison is:

Rate structure based on
our Standard Variable
Rate

Availability

Flexibility

Fees

Early Repayment Charges

2 year Buy for Uni 0.25% Discount
UDD001

5.2% APRC

4.79% variable for 2 years followed by
Standard Variable Rate (SVR), currently 5.04%.

Purchase up to 100%
Loan To Value (LTV). No deposit required
(subject to
conditions).

Overpayments up
to 20% of the
capital balance as at
1st January are allowed in each calendar year without penalty. Portable.

  • Product Fee 0.4% of advance (Minimum £599)

  • Administration Fee £125

  • Valuation Fee (scale)

  • Collateral Valuation Fee £100/scale

  • Completion Fee £75.

3% in year 1, 2% in year 2, plus
Closing Administration Fee (currently £100).

3 year Buy for Uni
0.25% Discount

UDD002

5.2% APRC

4.79% variable for 3 years followed by
Standard Variable Rate (SVR), currently 5.04%.

3% in years 1 & 2, 2% in year 3, plus
Closing Administration Fee (currently £100).

4 year Buy for Uni 0.25% Discount
UDD003

5.2% APRC

4.79% variable for 4 years followed by
Standard Variable Rate (SVR), currently 5.04%.

3% in years 1 to 3, 2% in year 4, plus
Closing Administration Fee currently £100.

5 year Buy for Uni 0.25% Discount
UDD004

5.1% APRC

4.79% variable for 5 years followed by
Standard Variable Rate (SVR), currently 5.04%.

3% in years 1 to 4, 2% in year 5, plus
Closing Administration Fee currently £100.

 

An example: A mortgage of £161,460 taken out over a period of 12 years on an interest only basis. Monthly instalments: £644.49 per month for 23 months, followed by £678.55 per month for 120 months. Total amount payable: £259,130.11. Total amount of credit: £161,460.

The total amount payable includes product fee £645.84, valuation fee £345, administration fee £125, closing fee £100 and completion fee £75.

This example relates to product code UDD001, 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.

 

2 year Buy for Uni 0.75% Discount
UDD010

5.1% APRC

4.29% variable for 2 years followed by
Standard Variable Rate (SVR), currently 5.04%.

Purchase up to 80%
Loan To Value (LTV). Minimum deposit of 20% required.

Overpayments up
to 20% of the
capital balance as at
1st January are allowed in each calendar year without penalty. Portable.

  • Product Fee 0.4% of advance (Minimum £599)

  • Administration Fee £125

  • Valuation Fee (scale)

  • Collateral Valuation Fee £100/scale

  • Completion Fee £75.

3% in year 1, 2% in year 2, plus
Closing Administration Fee (currently £100).

3 year Buy for Uni
0.75% Discount

UDD011

5.0% APRC

4.29% variable for 3 years followed by
Standard Variable Rate (SVR), currently 5.04%.

3% in year 1 & 2, 2% in year 3, plus
Closing Administration Fee (currently £100).

4 year Buy for Uni
0.75% Discount

UDD012

5.0% APRC

4.29% variable for 4 years followed by
Standard Variable Rate (SVR), currently 5.04%.

3% in years 1 to 3, 2% in year 4, plus
Closing Administration Fee currently £100.

5 year Buy for Uni
0.75% Discount

UDD013

4.9% APRC

4.29% variable for 5 years followed by
Standard Variable Rate (SVR), currently 5.04%.

3% in years 1 to 4, 2% in year 5, plus
Closing Administration Fee currently £100.

 

An example: A mortgage of £139,000 taken out over a period of 12 years on an interest only basis. Monthly instalments: £496.33 per month for 23 months, followed by £585.76 per month for 120 months. Total amount payable: £221,994.59. Total amount of credit: £139,000.

The total amount payable includes product fee £599, valuation fee £245, administration fee £125, closing fee £100 and completion fee £75.

This example relates to product code UDD010, 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.

 

We have no current plans to withdraw these products but they may be withdrawn without notice. Ask for a personalised illustration.

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 or Wales 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 £100. 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.

Valuation Fee Scale

Property Value

Mortgage Valuation Fee Homebuyers Report Fee

up to £150,000

£220 £445

£150,001 - £200,000

£245 £480

£200,001 - £250,000

£270 £515

£250,001 - £300,000

£310 £570

£300,001 - £400,000

£365 £620

£400,001 - £500,000

£420 £680

£500,001 - £600,000

£480 £790

£600,001 - £700,000

£535 £895

£700,001 - £800,000

£595 £1,000

£800,001 - £900,000

£655 £1,105

£900,001 - £1,000,000

£725 £1,210

0ver £1m

By Negotiation

Fees Include VAT

Contact details

Please contact the Mortgage Sales team for more information on 01225 475737 or via email at mortgages@bibs.co.uk

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