BTL Mortgage for Student Tenants

gwernybwch

Hi,

I'm searching for a BTL mortgage with the following criteria -
* Student Tenants (under a single AST)
* Max. of 4 tenants in the house (therefore may be considered a HMO)
* Fixed interest rate - preferrably around 5 year fixed period

The only lenders that I have managed to find so far are Leeds BS and Northern Rock.
Anyone know of other lenders that meet my criteria?

Thanks in advance for any replies.

Thrugelmir

Who else have you approached?

gwernybwch

Thrugelmir wrote: »

Who else have you approached?

I haven't approached any lenders as yet, I'm still looking around the market to see what is available.

I've found many BTL fixed term deals of 3 to 5 years, but when I look at the small print they don't lend for student houses.

I was hoping that there might be a student landlord on the board, saving me going through all the lenders small print.

Thanks.

Lokolo

Given that over the past few years the student housing market has pretty much boomed, and the fact that student intake is going to drop considerably over the next few years, I think this is a bad idea.

sarahevie

bradford and bingley lent for mine.

For remortgaging I've had offers from The Mortgage works, but I'm sticking with bradford and bingley as I have a very good variable 1.5% over base

gwernybwch

Lokolo wrote: »

Given that over the past few years the student housing market has pretty much boomed, and the fact that student intake is going to drop considerably over the next few years, I think this is a bad idea.

Taking the market as a whole I might agree with you.

My house is close to both a 'Russell Group' (read: middle class students) University and a Hospital, so for the medium-term I think that there is going to be a good demand for students wanting to attend that University and increasingly now students from overseas.
I think that I've got quite a good understanding of my potential tenants desires, so haven't had any problems letting the house out so far or finding good tenants. The only issue is the increasing mendling of the local council with the regulation of student houses.

In fact, one of the reasons for looking at a BTL mortgage was to consider re-mortgaging to buy another student let!

sarahevie wrote: »

bradford and bingley lent for mine.

For remortgaging I've had offers from The Mortgage works, but I'm sticking with bradford and bingley as I have a very good variable 1.5% over base

Thanks I'll have a look at both the Mortgage Works and Mortgage Express (formerly B&B) and see if they do fixed rate mortgages with student tenants.

anselld

Coventry Building Society have some good rates (and low fees) and accept student BTL up to max 4 students in a property.
Details on their website.

gwernybwch

anselld wrote: »

Coventry Building Society have some good rates (and low fees) and accept student BTL up to max 4 students in a property.
Details on their website.

Thanks, I'll take a look.

Anyone else able to make a recommendation for a lender that meets my criteria?

Thrugelmir

Mortgage Express is not offering new mortgages.

m00m00

I live close to a Russell Group University, a Red brick, and a big hospital, and HMO's have utterly bombed in the past 2 years, due to the universities investing heavily in student accommodation. You really need to check the plans of the University to see if they intend to build their own property, as many are, before getting involved with student property. HMO student housing is very much the domain of the cash buyers here.

gwernybwch

m00m00 wrote: »

I live close to a Russell Group University, a Red brick, and a big hospital, and HMO's have utterly bombed in the past 2 years, due to the universities investing heavily in student accommodation. You really need to check the plans of the University to see if they intend to build their own property, as many are, before getting involved with student property. HMO student housing is very much the domain of the cash buyers here.

Thanks for the reply. The house prices in the area took a hit about 3 years ago, way before the residential market started to go down. I don't know whether it was because investors were reading the market and getting out or because there was so much purpose built student accomodation being built at the time - or a bit of both. It is only now that they have recovered to pre 2007 levels.

You have to remember that there is a fair majority of students / recent graduates / 'young professionals' that don't want to live in purpose built student accomodation (i.e. any colour you want as long as it is magnolia) and much prefer to live in a house, particularly one that is furnished to feel like a home.
Hopefully this is bourne out in that I already have agreement(s) in place for tenants to rent my house for the next 15 months.

Anyway back to topic - Fixed rate, BTL mortgages that allow student tenants - anyone know of any others?