As we head towards the Easter break, thousands of first-year university students up and down the country will be preparing for exams and making plans for where, and with whom, they are going to live in their second year.
This can be an extremely exciting time for many students, as friendships have been firmly established; they are comfortable and fully settled in their new university town or city and they are often truly immersed in their new student life.
As with any type of move, however, securing a good and affordable student house can be a challenge. Competition is fierce, stock is limited, and the quality of housing can vary hugely, especially when compared to university-owned halls of residence or their own family home.
One of the many concerns that parents often have for their university-attending children is that they will graduate after three to five years with a staggering level of debt.
Research carried out by the Student Loans Company shows that graduates in England will leave university with an average debt of £44,940; this is before they have even started their careers.
For brokers with clients who have children of university age, this presents a great opportunity to discuss their children’s housing needs and explore whether they’re in a position to help their child to buy a home while at university.
Demand for student/university mortgages, also known as Buy for Uni mortgages, has grown significantly over the last few years as more students and parents seek out ways to help ease the financial burden of attending university while also laying the foundations for future financial security. .
In fact, we have received more applications for this type of mortgage so far in 2025 than in the last two years combined, with the forthcoming stamp duty changes on April 1st a key driver for this growth.
A Buy for Uni product works by allowing borrowers currently studying at a UK university to purchase a home to live in with the support of their parents. Any spare rooms can be rented out to fellow students and friends to cover the cost of the mortgage.
This means that as well as every penny paid in rent going towards the mortgage, the borrower will also graduate from university as a homeowner. It also mitigates the risk of eviction during their time as a student.
In the current economic climate, helping a child purchase a home while at university can also be a positive move for any parents in the position to help their child get on the property ladder.
In contrast to purchasing a buy-to-let (BTL) or second property, applying for a Buy for Uni mortgage means the parents will not be listed on the deeds and can avoid paying stamp duty on a second home as their child will be the main applicant on the mortgage and the registered owner and occupier of the property.
It also means that as a first-time buyer (FTB), their child will be exempt from paying stamp duty on any properties they purchase which are worth less than £300,000 from 1st April 25.
Many of the Buy for Uni mortgage applications we have recently received have been for 100 per cent LTV borrowing, which lowers the need for a deposit and prevents the need for parents to gift any money they will not see again. Instead, they can provide a security of up to 20% as a cash deposit or as a collateral charge against the value of their house.
Both options can then be released later down the line when their child graduates from university and sells the property, rents it out as a BTL or remortgages onto a standard loan.
It is also worth noting that Buy for Uni products are not only available for younger university students. Mature students can also apply, making them a viable solution for the average 34-year-old FTB who may be looking to return to education or retrain in another profession.
Obviously, a Buy for Uni product won’t be a viable option for every parent in the UK, but for those in a position to help their child get onto the property ladder, it may be an option worth exploring to set them on the path to homeownership a little earlier than planned.
