Vernon Building Society has unveiled a ‘Buy for Uni’ mortgage to support students onto the housing ladder and through university.
The product enables parents to help their children buy a home without having to directly fund a deposit by becoming joint borrower on the mortgage.
This hopes to provide supporting security on any mortgage amount over 80% of the property value with a collateral charge on their own property or a cash deposit which will earn interest.
The product is available at 4.70% up to 100% of the property’s value with 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.
“And with a flexible range of onward options, they can relocate, stay put or sell up without any early repayment charges.
“This flexible, forward-looking mortgage product helps parents to give their children an invaluable leg-up on to the ladder.”
This product allows the borrower to own the property in their sole name with the parent not on the title deeds.
The ‘Buy for Uni’ product is available direct through limited intermediary distribution with L&G Mortgage Club, SimplyBiz Mortgages, PMS and Sesame.