The UK's independent property help portal
August 16, 2007

Buy-to-let mortgages for parents of students

Permalink: Buy-to-let mortgages for parents of students
by Kay Mitchell

Buy-to-let mortgages for parents of students

A typical student will accumulate debts of approximately £14,000 during their 3 years at university which can take over a decade to clear. This debt can affect them getting onto the property ladder by hindering their financial start in life.

Child Trust Funds were unheard of when the current generation of students were born. However, a parent could help their child by purchasing a buy-to-let property for them to live in while studying at university. House prices are increasing at a steady rate so equity can be built up in the property. After university, the equity can be used to pay off the student loan.

Buy-to-let mortgages allow properties to be let to family members – so a child can live in while studying. In addition, rooms can be let to other students to pay the mortgage. A survey recently conducted by Britannia highlights that over half of potential buy-to-let investors would like this option.

Rooms are always sought after in university areas and they can be registered with the university’s accommodation cell to find student tenants.

A property worth £150,000 would increase approximately 10% per year over a 3 year period. Therefore, it would be possible to make around £45,000 which could be used to pay off any student debts.


Click here to discuss this: Home Move property forums



Related stories to: Buy-to-let mortgages for parents of students



Previous: «
Next: »

Visited 1582 times, 1 so far today