Students under the age of 30, in full-time education, wishing to buy a house to live in while also renting out spare rooms for income. Applicants must have at least a year left on their university course and have a parental helper that can act as a joint borrower.
Student borrowers who want a fixed rate of interest or do not plan to live in the property.
6.09% variable, which includes a 2.01% discount from our Standard Variable Rate for 5 years.
Our Standard Variable Rate* for the remainder of the term, currently 8.10%.
7.4% APRC
100% - If over 80% LTV, then a parental helper is required to provide additional security. Please see our Buy for Uni page for details.
Arrangement fee - £599 (payable on completion, can be added to the loan providing the loan and fee does not exceed 100% of the property value)
Funds transfer fee - £20 (payable before completion)
Mortgage exit fee - £100 (payable when the mortgage is fully repaid)
Standard Valuation Fee – (Amount varies dependent on the property value)
One free valuation of the parental helper’s property included.
If the parental helper deposits cash as security, this will be invested into a 35-Day Notice Account for the period of involvement with the mortgage and will receive interest associated with this account.
No early repayment charges apply.
Purchase Only
Capital & Interest or Interest-Only
25 years
Minimum £125,000 – Maximum £400,000
This product is portable and can be transferred from the existing property to a new property.
The interest rate for this mortgage has a ‘floor’, which means that it will never fall below 2.50% during the discount period.
If you add the arrangement fee to the loan, then interest will be charged on it resulting in a greater amount payable over the term of the mortgage.
The mortgage is available on an interest-only basis providing a suitable strategy for repayment must be in place.
Property must be in England and Wales with a value of £125,000 or more.
If a legal charge is being taken over a parental helper’s property, their property value must be:
Please see our Buy for Uni page for details.
Mortgages are subject to underwriting.
This information is to help you understand the typical cost of this mortgage and is not representative of your personal circumstances.
A mortgage of £140,819.00 payable over 13 years, on an interest-only repayment basis, with an initial discounted rate of 6.09%, which includes a 2.01% discount from our Standard Variable Rate (SVR) for 5 years and then on our SVR, currently 8.10%, for the remaining 8 years. The initial term would require 60 monthly payments of £714.66, followed by 96 monthly payments of £950.53.
The total amount payable would be £276,123.48, made up of the loan amount (£140,819.00), plus interest (£134,130.48), Arrangement Fee (£599), Standard Valuation Fee (£205), Solicitor Fee (£250), Funds Transfer Fee (£20), and a Mortgage Exit Fee (£100).
The overall cost for comparison is 7.4% APRC.
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