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.

Here are some Frequently Asked Questions about Buy For Uni mortgages.

Affordability calculator

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

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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.

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Mortgage details

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Your loan to value is i

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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 rate Buy for Uni mortgages

Our Standard Variable Rate (SVR) is currently 7.99% variable (effective from January 1st for existing customers). 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 for 5 years

Initial rate

5.99%

Discount from SVR

2.00%

Overall cost for comparison

7.2% APRC

Max LTV %

100%

Product fee

Mortgage repayment

£XXX.xx per month

Calculate

Product name

80% Buy For University variable for 5 years

Initial rate

5.79%

Discount from SVR

2.20%

Overall cost for comparison

7.1% APRC

Max LTV %

80%

Product fee

Mortgage repayment

£XXX.xx per month

Calculate

Representative example
Representative example: A mortgage of £140,000.00 taken out for a period of 12 years on an interest only basis.
Monthly instalments: £702.03 per month for 59 months, followed by £937.04 per month for 84 months.
Total amount payable: £260,231.13
Total amount of credit: £140,000.00
The total amount payable includes a valuation fee of £0.00 , a product fee of £0.00 and a closing fee of £100.
The overall cost for comparison is 7.2% 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 7.99% 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 size	Size: Minimum £50,000 Maximum £500,000. Term: Minimum 5 years, Maximum 40 years.
Property	Minimum Value: £100,000. Must be in England, Wales or Mainland Scotland, Shetland, Orkney, Arran, Bute, Skye, Harris & Lewis, Mull and Islay and suitably located with good transport links to the University.
All applicants	Must be a UK resident. Minimum age 18. No maximum age, subject to income in retirement.

Underwriting	The 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).

Underwriting

The 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.