Get full marks with our student let mortgages

Student let mortgages can be very competitively priced.

In fact, the cost for a student let is usually the same charge for interest on a standard buy-to-let mortgage! It all depends on the following mortgage lenders criterion: first, the number of students occupying the property. Second, the number of rental agreements established. And third, whether or not the property requires a HMO (Houses in Multiple Occupation) license.

Most mainstream lenders will even permit 4 students on a single shorthold tenancy.

Therefore, you could typically expect to pay a standard buy-to-let interest rate. However, this is provided that the property doesn’t require a HMO licence. There are a couple more lenders who will accept up to 5 students on their standard buy-to-let mortgage rates. Any more, however, and you can expect to pay a premium for a complex buy-to-let rate.

It is important to mention that, if you are letting to 8 students on 8 individual tenancies, this is something quite different. You can expect to pay a premium for the interest rate whether a HMO license is required or not.

Many of our clients cannot understand the justification for this increased charge.

A complex buy-to-let is not in the mainstream mortgage lending as single family let, where 90% of buy-to-let mortgage business is completed. However, while you are being charged a higher interest rate, the rental income is quite often extremely good. Also, the Vincent Burch team work hard to find competitive deals to quote to you.

Complex buy-to-let mortgages are the niche lenders who understand this market.

However, more work is potentially involved as it requires a manual underwriting process. But's that where Vincent Burch comes in. Get in touch with our team to discuss your scenario and we will endeavour to increase your profit levels by finding you the right lenders and deals.

Andrew Bowls is our head of Buy-To-Let Mortgages and will be happy to answer any of your questions. Please email him on [email protected] or give us a call on 01603 340 644.