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How students can buy a £400,000 home with zero deposit

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A building society is offering 100% mortgages to 18-year-olds while at university. Spoiler: you’ll need wealthy parents.



Fancy literally lording it over your college flatmates? A growing number of building societies are offering deals that let young adults buy their university home and pay the monthly mortgage with the rent they charge other students.

...The striking feature of these deals is that students can borrow 100% of the property value – so there is no need to save up tens of thousands of pounds for a deposit. What’s more, the student almost certainly won’t have to pay any tax on the rental income, unlike a traditional landlord, nor the higher stamp duty that landlords have to pay when purchasing a second home.


article here...

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I'm not surprised that there is lending for this purpose.

"arrears have been almost invisible “They are very good landlords"" Dear God what have we come to. 

4.8% variable seems pretty steep. I guess it's justified given the limited loan life + the relatively small/specialized demand for these loans. 

Not the worst idea if you actually like the area, can get tenants for the rooms + want to stay after graduation, But if you need to move around for work it could be an absolute nightmare. 

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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