Monmouthshire Building Society has now launched mortgage enabling students who are in Higher Education to purchase their own property.
The advantage of this is that your son and daughter can live rent-free with the mortgage payments being paid by the other tenants.
How Does The Scheme Work?
The property can have up to a maximum of 4 tenants. The rent from the remaining 3 tenants should cover the interest only mortgage payments by 25%. Should there be a shortfall in rental cover this can be topped up by the parents. (subject to underwriting).
E.g. Based on borrowing £100,000 the rent would have to be £624 pm
Basic Criteria
Maximum loan to value is 75%.
Rental coverage is based on a nominal interest rate of 5.99% with a 25% margin.
Postcode restrictions of NP, CF, SA, LD, WR, GL, HR and BS
Property must be within 10-mile radius of University
Maximum loan size £400,000
Discounted Rate Product
5 year discounted rate. 4.99% – 1.00% giving current rate of 3.99%
Follow on variable rate currently 4.99% (APR 4.85%)
Penalty-free
Arrangement fee £595 can be added.
Other Benefits
The mortgage can be arranged on an interest-only basis to keep mortgage payments to a minimum.
The mortgage product is penalty free, meaning the property can be sold at any time.
Can be purchased in students name only with a parental guarantee or in joint names with parents.
If you have difficulty in funding the deposit, we could look review your existing mortgage arrangements and arrange a further advance or a remortgage to cover the deposit and legal costs.
Bath Building also offers mortgage products in this area. They will advance up to 100% with a second charge on the parent’s property for security.
Contact us today for a free no obligation initial discussion or meeting to review your student mortgage options.
Why Use Neil Soundy Financial Services For Your Mortgage Advice?
- We are experts in SPV / Ltd Co lending.
- Your initial consultation is free with no obligation
How Much Will It Cost Me For Your Advice?
A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.
Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.
The Financial Conduct Authority does not regulate some forms of buy-to-lets.
We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.
Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.
