Buying student flat

F1F1 · 15 May 2005 at 8:21PM

We're in the process of buying a flat for our sons at university, with one room rented out. We're trying to find the cheapest mortgage for this flat. We already own our own house, so this would be classed as a second property which would presumably be classed as a buy-to-let mortgage. We have some savings which could be put towards the mortgage.

Does anyone have experience and/or advice in this area?

Thanks in advance.

herbiesjp · 16 May 2005 at 7:58AM

There would be a few lenders that could look at the student let scenario for you, but it will depend on the figures you are looking at.

F1F1 · 18 May 2005 at 8:01PM

herbiesjp wrote:

There would be a few lenders that could look at the student let scenario for you, but it will depend on the figures you are looking at.

Thanks, I think hubby might contact you direct.

Joe_Bloggs · 19 May 2005 at 12:00AM

You could ask Cherie Blair ! If you had the cash in the past then this type of short term investment was the way to go. Who is to say if it makes sense today if/when the housing market falls.
J_B.

burbs_2 · 19 May 2005 at 12:09AM

I have just gone through exactly the same. I have just bought a flat to let to students as a new business venture. I wanted to get a house but im not willing to take on that much of a risk at the moment as im only 23 and have other ventures to think of. I did not take out a big mortgage on the property so i dont know if i can be of too much use to you but if i can im willing to help.

burbs_2 · 19 May 2005 at 12:11AM

When i first got the student let idea in my head i posted on this site and did not really get too many responses but one i did pointed me in the direction of some useful information, i will try and find it out again.

Fairdo_2 · 19 May 2005 at 11:52AM

I have dealt with very similar cases in the past and have been able to place it with a high street lender on a high street rate if your incomes are sufficient to cover that mortgage and other existing mortgage commitments.

At least one lender would look at it on the basis that you are buying for a dependent relative. However, they would not want you to be letting the other room out.

Otherwise Buy To let can be an option, but it is not always straight forward if you are being honest with the Lender. This is because you will inevitably be asked whether you are planning for a family member to reside at this address and some lenders will not like that.

Therefore, be careful which lenders you look at and make sure that this would not be a spanner in the works for you.

F1F1 · 21 May 2005 at 11:42AM

burbs wrote:

When i first got the student let idea in my head i posted on this site and did not really get too many responses but one i did pointed me in the direction of some useful information, i will try and find it out again.

Thanks, that would be great.

F1F1 · 21 May 2005 at 11:47AM

Fairdo wrote:

I have dealt with very similar cases in the past and have been able to place it with a high street lender on a high street rate if your incomes are sufficient to cover that mortgage and other existing mortgage commitments.

At least one lender would look at it on the basis that you are buying for a dependent relative. However, they would not want you to be letting the other room out.

Otherwise Buy To let can be an option, but it is not always straight forward if you are being honest with the Lender. This is because you will inevitably be asked whether you are planning for a family member to reside at this address and some lenders will not like that.

Therefore, be careful which lenders you look at and make sure that this would not be a spanner in the works for you.

Thanks for the advice. We're still looking at all angles.

Buying student flat

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