Buy for Uni

This range of mortgage products are 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 of £300,000. The actual amount 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 three 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 three 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 such circumstances 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 period of six months provided it is then occupied by the student as their main residence at the start of the next academic year.

For more information, you can download our BFU leaflet here.