Buy-for-uni mortgages ''could be useful''
Thu 11th Oct, 17:37:03 BST
Students may find that purchasing a house with the help of their parents using a buy-for-uni mortgage is a good investment, a financial expert has suggested.
Bath Building Society is currently the only lender offering the product, which allows students to use their parent''s home as security against a 100 per cent mortgage on a property with up to four bedrooms, which they can then rent out to other students.
Darren Cook, head of mortgages for money search engine Moneyfacts, suggested that such a deal could provide a good investment opportunity, commenting: "The investment in the property is the increase in the price in the long term, so all you''re doing is trying to break even on the mortgage side or on the financial cost side."
Mr Cook emphasised that there are also "social reasons" for parents to get involved in this kind of deal, commenting that it allows them to "keep an eye" on their children while they at university.
However, he warned that students would have to be prepared for the responsibility of taking on the debt, adding: "There comes a certain amount of problems with it such as making sure there are enough tenants there to be able to cover the costs of the actual debt."
Bath Building Society is currently the only lender offering the product, which allows students to use their parent''s home as security against a 100 per cent mortgage on a property with up to four bedrooms, which they can then rent out to other students.
Darren Cook, head of mortgages for money search engine Moneyfacts, suggested that such a deal could provide a good investment opportunity, commenting: "The investment in the property is the increase in the price in the long term, so all you''re doing is trying to break even on the mortgage side or on the financial cost side."
Mr Cook emphasised that there are also "social reasons" for parents to get involved in this kind of deal, commenting that it allows them to "keep an eye" on their children while they at university.
However, he warned that students would have to be prepared for the responsibility of taking on the debt, adding: "There comes a certain amount of problems with it such as making sure there are enough tenants there to be able to cover the costs of the actual debt."
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