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Biriani

100% Mortgages For Students

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From this morning's metro:

Teenage students can become property magnates under a new scheme launched yesterday. Undergraduates will be allowed to take out 100% mortgages on properties worth up to £250k, renting out spare rooms to cover the repayments. The package is being launched by Bath Building Society, which claims to be the first lender to offer such a deal. The product is aimed at students in Bath and Bristol but can be taken out by youngsters at other universities. Malcom Graham-Jones, the building society's head of lending, said young people applying for mortgages would need their parents to act as aguarantors. "It will help students get on to the property market," he added.

Run! Run for the hills! The end is nigh!

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Wow. What a fab idea. I'm not sure why people didn't think of it before.

Replacing ftb with almost anything seems to be the current vouge.

Maybe my cat should apply for a mortgage?

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Crazy!!!! :blink:

Especially considering

a) The numbers going to uni are now declining (people have realised Media Studies degrees are worthless)

b ) In Bristol the biggest uni is in the process of building thousands of halls of residence on their site - this will have a big impact on the rental market in Bristol.

That scheme sounds like financial suicide.

Edited by Pete95

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Guest Guy_Montag

This has been going on for years in various guises.

When I was at uni, I knew lots of people who had mortgages (interest only for the first 4-5 years) at or near 100%, but their parents had to act as garunteurs(sp??).

Mostly they made a little money out of it, but being tenements, if the roof needed replaced or something like that they would have been in real trouble.

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This has been going on for years in various guises.

I think there have always been parents who would buy properties for their kids to live in while at uni, and treat it as an investment on the side. Some might even have had the mortgages in the child's name.

The thing that struck me about this was 1) that no deposit is required - is 100% BTL common elsewhere? It certainly doesn't sound like a good idea; and 2) that this is being pitched directly to students, not their parents. The idea that you need to get a foot on the ladder when you're at least three years away from earning a wage and probably don't want to stay in the area is both ridiculous and dangerous.

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I'm suprised to say they didn't say 130% mortgages- the extra 30% being used to pay off the debt the student is likely to have.

Crazy

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This has been available for years. I bet the parents income has to be sufficient for both their own mortgage and the child's. Often that's feasible because of the parents' mortgage debt having been largely eroded by inflation.

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Wow. What a fab idea. I'm not sure why people didn't think of it before.

Replacing ftb with almost anything seems to be the current vouge.

Maybe my cat should apply for a mortgage?

No, cathouses are still illegal at the moment :>

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  • 301 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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