Student Let Mortgages
STUDENT LET BUY TO LET MORTGAGES – FOR THE LATEST RATES CALL: 01603 340 644
What is a Student Let mortgage?
Student let, or buy to let mortgages on properties which are being let to students, are very competitively priced. Typically, they cost the same charge for interest on the standard buy to let mortgage.
A mortgage lenders criterion is all dependent on the following:
- How many students are going to occupy the property.
- How many rental agreements are established.
- Whether the property requires a HMO license.
If the property is being rented to 4 students, on a single AST shorthold tenancy and the property does not require a HMO license, then you could typically expect to pay a standard buy to let interest rate.
However, if you are going to let to 8 students on 8 individual tenancies, then this is something quite different. You can expect to pay a premium for the interest rate whether a HMO license is required or not.
There are a couple more lenders who will accept up to 5 students on their standard buy to let mortgage rates. Any more, and you can expect to pay a premium for a ‘Complex Buy to Let Rate’.
Yes, you are being charged a higher interest rate and some clients quite often cannot understand the justification for this increased charge. But these type of lets are not in the mainstream mortgage lending as single family let, where 90% of buy to let mortgage business is completed. However, the rental income is quite often extremely good.
Complex buy to let mortgages are the niche lenders who understand this market. However, as it typically requires a manual underwriting process, there is potentially more work involved.