Buy for Uni

Yes, a student can buy a house in the UK using a student mortgage, also called Buy For Uni or Joint Borrower Sole Proprietor lending arrangement. This means you can buy a house in the UK using your income from room rental as part of your affordability calculations and your parents’ income can be taken into consideration.

Yes, some Banks and Building Societies will give students a mortgage. Bath Building Society can also give students a mortgage based on a Joint Borrower Sole Proprietor agreement. This means your parents are joint borrowers, but you are the sole proprietor or owner of the house once paid for.

A student mortgage is a mortgage based on a Joint Borrower Sole Proprietor arrangement. The mortgage can be up to 100% of the purchase price of the house (conditions apply). The student can use the rent from rooms let in the house towards their affordability calculations.

The requirements for a student mortgage are as follows: You must be over 18, the house you would like to buy must have good transport links to the university, a parent must be prepared to act on a Joint Borrower Sole Proprietor basis. You can borrow up to 100% of the purchase price (subject to conditions). When borrowing over 80% loan to value we need a collateral charge on the parental residential property as additional security. You can rent out rooms in the house and the expected rental income can be used in your affordability calculations. Parent income will also be used in these calculations. You do not have to have a deposit to qualify for a student mortgage with Bath Building Society.

The criteria for a student buy to let mortgage is as follows: you can borrow up to £500,000 with no deposit required (subject to conditions). The mortgage can be taken over as little as 5 years or longer. By having the mortgage in joint names of the student and parent(s) parental income can be considered but the property can be owned solely by the student, which avoids stamp duty liability for the parents. The property must be suitably located with good transport links to the University. Fees apply.

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.

Your student bursary does not count as income for a student mortgage with Bath Building Society, however we can use the rental income from rooms let in your property towards your affordability calculations. This means you can get a student mortgage with us, though you will need parental support for the Joint Borrower Sole Proprietor agreement. You can borrow up to 100% of the purchase price (subject to conditions) and this will be lent on a Joint Borrow Sole Proprietor basis, meaning you will be the sole owner once the property is paid for, but your parents will be joint borrowers.

PhD students can get a mortgage with Bath Building Society; although your bursary does not count as part of your income for affordability calculations. You can however use income generated from renting rooms in the property as part of the affordability calculations, and with a parent acting as joint borrower, it is entirely possible that Bath Building Society can help you to buy a house whilst you do your PhD.

Stipend income cannot be used to qualify for a mortgage, however expected rental income can be used from rooms let in the property you are purchasing, as part of your affordability calculations. This means instead of renting student accommodation you can become a landlord and rent rooms in your house, using the expected rental income to qualify for the mortgage. You will need a parent to act as joint borrower and the mortgage would be lent on a Joint Borrower Sole Proprietor basis, meaning you would be on the property deeds, but your parent would not. Your parent’s income would be part of the affordability calculations.

Incomes that can be used to qualify for a student mortgage with Bath Building Society are expected rental income from rooms let in the purchased house, and parental income. This means you can borrow up to 100% of the purchase price (subject to conditions) with no deposit, and then become the landlord, renting out rooms to help pay your mortgage. Your parent/s will be joint borrowers on the mortgage, but they would not be included on the deeds of the house. You would be the sole proprietor.

The types of property you can buy with a student mortgage includes residential property with spare rooms which could be let including houses and flats. The expected rental income from these rooms counts towards your affordability calculations. The property must have good transport links to the University and be in good repair to qualify for a student mortgage.

Your student loan would not count as income for mortgage purposes, however expected rental income from your spare rooms could count as income instead. You would need a parent to act as a joint borrower (see Joint Borrower Sole Proprietor) but you could potentially borrow up to 100% of the purchase price, with no deposit (subject to conditions).

You could buy a house whilst at university with a Bath Building Society Buy for University mortgage. This would allow you to become a landlord, renting out rooms in the house to pay towards your mortgage (and a bit extra besides potentially!). The mortgage would be offered on a Joint Borrower Sole Proprietor basis, meaning you would be the only party on the deeds, but your parent would be joint borrower.

Yes, students can get up to a 100% mortgage with no deposit (subject to conditions). Parents income counts towards the affordability calculations, as does the expected rental income of spare rooms in the property. However, if your parents are retired, you may require up to a 30% deposit.

No, a student mortgage is not a guarantor mortgage. The mortgage is based on a Joint Borrower Sole Proprietor arrangement. This means your parent’s income is taken into consideration for affordability, and they become a joint borrower on the mortgage. You would however be the only person on the deeds of the property. This is called a joint borrower sole proprietor mortgage. You can borrow up to 100% of the property price without a deposit (subject to certain conditions). At Bath Building Society the joint applicant for a student mortgage must be a parent or step parent. They must live in the UK and have permanent residency. The maximum age for a joint borrower is 85 years old. If parents are retired, the affordability calculation will be different, 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.

The Buy for Uni student 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 keeping the property as your personal residence 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 and hopefully make a profit. The potential options available will depend on individual circumstances.