Buy for Uni Mortgages for Students

Student accommodation is often expensive, and maintenance loans rarely stretch far enough to cover monthly rent. If you are on a full-time course with little capacity to earn extra income, staying on top of your finances until you graduate can be difficult. But what if you could purchase a home instead?

It may sound ambitious, and you might question whether a mortgage is even an option while studying. The encouraging news is that some lenders offer a dedicated “buy for uni mortgage” designed for this situation. Read on to see whether this route could be a sensible move for your future.

How do Buy for Uni mortgages work?

Although options are limited, a handful of lenders offer Buy for Uni (often called student mortgages). Typically provided by building societies, these niche products let a student purchase a home near their university with support from parents or close relatives—often up to 100% of the property value.

To cover the mortgage repayments, the student can let the other rooms to fellow students or compatible tenants. Unlike a standard buy-to-let mortgage, the student owner is permitted to live in the property alongside the occupants.

Because these loans are usually interest-only, the monthly cost can work out significantly lower than renting conventional student accommodation. A further advantage is getting an early step onto the property ladder while studying. After graduating, the borrower can choose to remortgage onto a capital repayment residential mortgage and keep the home, become a long-term landlord, or sell the property.

Which types of students could benefit from them?

Any full-time student aged 18 to 30 could potentially use a Buy for Uni mortgage, though it may be most attractive for those on work placements—such as PhD students or nurses—who expect to remain near their university or workplace after finishing their studies.

Medical students and others with a clear, stable career path may also find it easier to remortgage once they graduate, particularly if they already hold an offer for a junior role.

A key requirement is support from parents, grandparents or other close relatives who have the means and willingness to back your mortgage application. Most student mortgages are arranged on a joint borrower, sole proprietor (JBSP) basis—so a family member acts as guarantor while the property remains in your name. In limited cases, you might qualify without a guarantor if you hold substantial savings and a strong credit score, but this is uncommon for younger borrowers.

Only a small number of lenders offer Buy for Uni mortgages, and each has its own criteria, so speaking with a broker can help you find the most suitable option.

While details vary by lender, the typical criteria are:

• Age: Applicants must be over 18 and usually under 30.

• Course length remaining: You must have at least one year left on your course (some lenders require two years).

• Location of the property: The property must be within 10 miles of your university. Some lenders will not permit the purchase of flats or ex–local authority properties for this purpose.

• Occupancy limits: A maximum occupancy usually applies. Often this is three people in addition to the buyer, though some lenders cap occupancy at three overall.

• Tenancy agreements: Any rooms let out must be on an Assured Shorthold Tenancy (AST).

• Tenant type: Tenants can be fellow students, but they do not usually have to be.

Will student loans impact affordability?

If you’re taking out a mortgage as a student, your student loan should not affect the mortgage application at that stage. Repayments do not start until after you graduate and your income exceeds the minimum repayment threshold.

After graduation, it’s still perfectly possible to secure a mortgage while carrying a student loan. Many first-time buyers are graduates, so this is a routine form of debt. That said, lenders will factor the monthly loan repayment into their affordability checks, which can trim the amount you’re able to borrow.

If you purchase during your studies, you may be able to fold your student loans into your mortgage when you remortgage post-graduation. Always take professional advice first to ensure this route doesn’t lead to higher overall repayments than necessary.

Which lenders offer mortgages to students?

Only a handful of providers offer student mortgages, and they’re all building societies.

Bath Building Society

• Up to 100% LTV on a JBSP basis.

• Both student and parents need 3 years’ UK address history and permanent right to reside.

• Overpayments: up to 20% of the capital in year 1, then unlimited overpayments for the rest of the initial term.

Loughborough Building Society

• Buy for Uni loans up to £400,000 where at least 12 months of the course remain.

• Can purchase up to one year before the course starts with proof of acceptance.

• The buyer must be 18+, live in the property, and the property must be in England or Wales within 10 miles of the university.

• Typically a maximum of 3 rooms and 3 occupants (including the buyer).

• If borrowing over 80% LTV or if rental income won’t cover repayments, additional security (e.g. a guarantor) is required.

Vernon Building Society

• Buy for Uni up to £400,000, JBSP only.

• Additional security needed at 80% LTV and above.

• Title can be transferred to the student’s sole name once the mortgage falls below 80% LTV and they can evidence affordability alone.

• Allows up to 4 bedrooms within 10 miles of the university, with a maximum of 3 tenants.

There are also options for students purchasing with parents—such as Halifax Family Boost or other JBSP arrangements—but note that terms and conditions differ from the products above.

Frequently Asked Questions