Buy for Uni Mortgages

Where the Student becomes the Landlord...

University accommodation is a significant financial burden for parents with the average rent reported by Times Higher Education at £125 per week in 2017. Our Buy for Uni scheme offers an innovative alternative to paying rent by allowing the student to buy a home, with no deposit, renting out spare rooms in order to meet the mortgage interest payments. Parents support the arrangement by being a joint borrower on the mortgage and by providing additional security if necessary. This Student Mortgage is another step towards our vision of being the First Choice for Mortgages and Savings in Stockport!

Download our Buy for Uni important documents below:

Buy for Uni Frequently Asked Questions

Buy for Uni Important Information for Borrowers

Who is eligible?

To qualify you must be 18 or over, UK resident and in higher education with at least one year
remaining on your course.

How does it work?

With a Buy for Uni mortgage the student borrower buys suitable accommodation in their own name with a mortgage of up to 100% of the property’s value (or purchase price if lower). They rent spare rooms to friends and use the rental income to help meet the mortgage payments.

The mortgage is supported by the parents who will be joint borrower(s) and (where a deposit of at least 20% of the property value is not available) will provide additional security in the form of cash or a legal charge on property. You should note that parents are not a joint owner of the property which is in the student’s sole name.

The arrangement has the potential to allow the student to live rent free, saving parents thousands of pounds in the process. It provides certainty of tenure and good quality accommodation. Of course the arrangement does carry some risks which we have set out in our ‘Important Information for Borrowers’ and ‘FAQ’ leaflets, available from branch or by clicking the link above.

What extent of parental support is required?

In all cases we require the mortgage to be in the joint names of the student and the parent(s) which means they are individually and jointly responsible for making the monthly mortgage payments and repaying the mortgage in full.

In terms of additional security there are several options to suit different circumstances.

• If at least a 20% deposit is provided, then no additional security is required.

• If less than 20% or no deposit is available, then the mortgage can be supported by either cash deposited in a Vernon savings account in the name of the parent(s) or a legal charge over the parent’s own house.

  • If cash is provided then this needs to be equivalent to the amount of the loan that exceeds 80% of the value/price of the property being purchased.
  • If a charge over property is provided then this must be equivalent to the amount of the loan that exceeds 75% of the value/price of the property being purchased.


Property Value £200,000 £200,000 £200,000
Deposit £0 £20,000 £40,000
£200,000 £180,000 £160,000

security required

£40,000 cash
deposit or a
£50,000 charge
over property 
£20,000 cash
deposit or a
£30,000 charge
over property

When can the mortgage transfer into the sole name of the

We could transfer the mortgage into the homeowner’s sole name at a point where the mortgage is less than 80% of the property value and the borrower can demonstrate that they can afford the mortgage on their own in line with our affordability assessments at that time. An up to date valuation would be required at this time with the cost borne by the borrower.

Restrictions on the property that can be purchased

The property must be in England or Wales. The minimum property value is £125,000 and our maximum loan is £300,000.

The property must be in good proximity to the university with a maximum of 4 bedrooms. We will not lend on flats.

The maximum number of tenants is 3. We will not lend if the use of the property requires a mandatory House in Multiple Occupation (HMO) licence (see our Q&A leaflet download for further details).

Is it right for you?

The advice we give to you during the application process is limited to the mortgage. We cannot advise you on the commercial viability of your proposal. There are risks involved and we have highlighted these through our in-depth Q&As and ‘Important Information for Borrowers’ leaflets which are available from our mortgage advisers or downloaded by clicking the links at the top of this page.

To know more...

Drop in to your local branch or contact us on 0161 429 4305 for more information.

Buy for Uni Mortgages

Product Name
Initial Rate
Subsequent Rate (SVR)
The overall cost for comparison
Maximum loan to value (LTV)
Early repayment charge
BU01 - 5 Year Discount Buy for Uni Mortgage
Where the Student becomes the Landlord...
Initial Rate
Subsequent Rate (SVR)
The overall cost for comparison
5.20% APRC
Maximum loan to value (LTV)
Arrangement fee: £499 or £899 depending on circumstances
Early repayment charge
Full details

Representative example

A mortgage of £170,000 payable over 25 years on an initial rate of 4.70% which includes a 0.50% discount from our standard variable rate for 5 years followed by our standard variable rate, currently 5.20%, for the remaining 20 years would require 60 monthly payments of £665.83 and 240 monthly payments of £736.67.

The total amount payable would be £388,619.60 made up of the loan amount plus interest (£216,850.60), arrangement fee (£899), standard valuation fee (£205), Solicitors fee for the purchase (£250), Solicitor fee for collateral security (£245), funds transfer fee (£15) and a Mortgage Exit Fee (£155).

The overall cost for comparison is 5.2% APRC representative.

Your home may be repossessed if you do not keep up repayments

Need advice on mortgages?

We aim to make applying for your mortgage as stress free and easy to understand as possible by helping you with your mortgage choices and application. Start a conversation with us today...

Speak to us

Vernon Building Society
19 St Petersgate

Tel: 0161 429 6262

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

*The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.


Vernon Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (registration number 195475).  You can check this on the Financial Services Register. We are also a participant of the Financial Services Compensation Scheme (FSCS). Details of the scheme can be obtained from

Telephone calls are recorded and may be monitored for regulatory and training purposes to help maintain service quality.

For independent information about financial products and services visit