The 100 pc home loan is back...for students

STUDENTS are being offered 100 pc mortgages if a close family member puts up their savings or home as security.

Loughborough building society has launched a ‘Buy for Uni’ mortgage allowing students over 18 to purchase a home with the help of a parent, step-parent or grandparent.

The buyer must let out spare rooms to students and use the rent to pay the mortgage, in effect becoming a landlord.

As security, a close family member must deposit 20 pc of the value of the house into a savings account or allow Loughborough to put a charge on their own property.

The building society will lend up to 100 pc of the property value to a maximum of £300,000, depending on income expected from the rent.

The home must have no more than four bedrooms and be within ten miles of the university the buyer is attending.

Loughborough’s Buy for Uni deals starts at 4.54 pc, which works out at £837 a month on a £150,000 loan. There is no fee.