Loughborough Building Society Re-Launches Buy For Uni Mortgages
Loughborough Building Society has re-launched their Buy for Uni Mortgages as a Joint Borrower Sole Proprietor arrangement which still allows students to rent out rooms.
The COVID 19 pandemic has caused disruption to so many over the past 15 months and our student population is no exception. We’ve seen in the press that students have been stranded in highly populated accommodation, unable to go home or that they’ve been paying for accommodation that they’re unable to use because their University campus has effectively closed with lectures moving to on-line.
A Buy for Uni mortgage could be the answer for some. It’s designed to help young people get onto the property ladder and avoid costly and sometimes sub-standard or highly populated student accommodation. This solution means that they’re owners of their first home with the help of a family member who, under a Joint Borrower Sole Proprietor arrangement, will be able to support the student financially. Where appropriate, up to two rooms can be rented to help cover the mortgage payments.
There are two new products available, one up to 80% LTV where a standard deposit will be required and the other up to a maximum 100% LTV where the assisting family member (joint borrower) will be required to provide a deposit guarantee of either a collateral (second) charge on their own home, a cash guarantee deposited in a specially designed account or a mixture of both. The guarantee will be required until such time that certain conditions are met.
Available on properties in England and Wales where the student has at least one year left on their course at a University less than 10 miles from the mortgaged property and are intending to live in the property themselves.
Ashley Pearson, BDM said “We’re keen to offer mortgage solutions to borrowers with a range of different circumstances and this is an excellent opportunity for those who in most cases, never dreamed they could buy their own home while a student”.