Vernon Building Society launches uni mortgage
Vernon Building Society has released a mortgage for students to generate income whilst at university while Accord Buy to Let and Vida Homeloans have reduced rates on products.
Vernon Building Society has launched a 100 per cent loan to value (LTV) Buy for Uni Mortgage to get students onto the housing ladder and support them through university.
The product will enable parents to help their children buy a home without having to directly fund a deposit, by becoming a joint borrower and providing supporting security on any mortgage amount over 80 per cent of the property value.
There will be a collateral charge on the parents’ own property or a cash deposit, which will earn interest.
The borrower owns the property in their sole name and the parent is not on the title deeds meaning they are not liable for stamp duty.
The hybrid buy-to-let and guarantor-style mortgage product has a rate of 4.70 per cent and the five-year discounted rate has no early repayment charges.
Tom Gurrie, intermediary sales manager at Vernon, said: “Many parents want to help their children onto the ladder and ease the costs of putting them through university, and the Buy for Uni Mortgage lets them do both.
“Instead of paying rent to a student landlord, the student becomes the landlord, receiving rental income that helps cover their mortgage repayments, while having a secure home for the duration of their degree course, or beyond.
“This flexible, forward-looking mortgage product helps parents to give their children an invaluable leg-up on to the ladder.”