Joint borrower sole proprietor – Buy for Uni

The Buy for Uni mortgage is designed specifically to enable a student to take ownership of a property while studying. The maximum term allowed under the Buy for Uni Mortgage is seven years. Once your studies come to an end, what you do next will affect the mortgage. Whether you intend; keeping the property as your personal residence without tenants, continuing to live in the property with tenants or moving out and converting the mortgage to a Buy to Let you will need to contact us to confirm your decision. The potential options available will depend on individual circumstances.

You can purchase the property up to 1 year in advance providing a place on the course has been offered and accepted. You can also live away from the property if the course requires a work placement to be undertaking in another town/city. In either case you should consult the local authority for advice on whether an additional licence would be required to allow you to rent out rooms.

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 into a joint borrower/sole proprietor arrangement and/or giving us a legal charge over cash and/or property. To avoid a conflict of interest, supporting family members can’t use the same solicitor who carrying out the conveyancing for the purchaser but it can be another solicitor from the same firm.

The maximum mortgage term allowed for this product is seven years. If you want to release the deposit guarantee commitment earlier, this can only be done if;
a) The mortgage debt is repaid in full; or
b) A formal request is made on the basis that the release conditions set out in the Agreement and repeated below have been satisfied in full;
I. The borrowers are not in breach of their mortgage terms and conditions; and
II. All monthly mortgage payments have been made in full when due in the previous six months; and
III. The amount of the mortgage debt does not exceed 75% of the open market value based on the valuation undertaken at that time by the Society’s valuer.

The Loughborough will assume power of attorney in accordance with the Security Deposit Agreement (for cash security) or the Collateral Charge document (for a collateral security). The family member’s estate has the option of paying off the security liability and providing that the remaining release conditions are met then the security may be relinquished. This will be explained to you further by your independent legal adviser.

If the property is repossessed and sold for an amount less than the balance of the mortgage account including fees and charges, the security provided will be called upon.

If a cash security deposit has been provided, the shortfall will be recovered from the Assisted Purchase Deposit Guarantee Account. If collateral security has been provided and unless the shortfall can be met through other means, we are entitled to recover the shortfall by selling the supporting family member’s residential property.

All borrowers are responsible for ensuring payments are made when due and for the full mortgage amount outstanding, plus interest, costs and expenses. The Loughborough will ensure that all borrowers receive communications relating to the mortgage account and are notified if payments are not kept up to date..

Yes.

Yes. Mortgage statements are sent out annually to all parties named on the mortgage.

This may be possible and our mortgage advice team can discuss this option with you. .