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Student mortgages
Specialist mortgages for student accommodation properties, including purpose-built student accommodation (PBSA) and houses in multiple occupation (HMO) for students. These mortgages consider student rental market dynamics.
Reviewed by David Sampson, Founder & Director
What is a student mortgage?
Student accommodation mortgages finance properties let to university students, ranging from individual houses to purpose-built student blocks. Lenders consider proximity to universities, local student demand and rental yields, with many treating these as HMO or commercial investments depending on property size.
How does a student mortgage work?
1
Initial Consultation
30-60 minDiscuss investment strategy and rental projections
2
Rental Assessment
1-2 daysEvaluate rental yield and coverage ratios
3
Full Application
2-3 daysSubmit financial documents and property details
4
Property Valuation
1-2 weeksSpecialist investment property valuation
5
Underwriting & Offer
2-4 weeksLender reviews application and issues formal offer
6
Completion
4-8 weeksLegal work completed and funds released
What do lenders look for on student mortgages?
Borrower profile
- Student accommodation experience
- Strong financial position and track record
- Professional team and management structure
- Adequate working capital and reserves
- Understanding of student rental market
Property requirements
- Suitable property for student accommodation
- Good location near universities or colleges
- Appropriate facilities and amenities
- Compliance with student accommodation regulations
- Realistic rental income potential
What fees come with a student mortgage?
Arrangement Fee
Lender product fee
1% - 2% of loan
varies by lender
Valuation Fee
Investment property survey
£300 - £1,500
one-time cost
Legal Fees
Conveyancing and title work
£1,000 - £2,000
plus disbursements
Broker Fee
Specialist arrangement fee
0.5% - 1%
on completion
Fees vary by lender. Advisers provide a breakdown before you proceed. Mortgage118 does not quote fees.
Resources
Brokers
28 student brokers in this directory
| # | Broker | Verified | Rating |
|---|---|---|---|
1 | 5.0 (124) | ||
2 | 5.0 (35) | ||
3 | 5.0 (30) | ||
4 | 5.0 (8) | ||
5 | 5.0 (5) | ||
6 | 4.0 (4) | ||
7 | - | ||
8 | - | ||
9 | - | ||
10 | - |
Showing 10 of 28 brokers. Compare the full shortlist.
FAQs
What is student accommodation finance?
Student accommodation finance is a specialist mortgage for properties used to house students, including purpose-built student accommodation (PBSA), HMOs for students, and student housing investments. These mortgages consider the unique rental patterns of the student market.
What types of student accommodation can I get finance for?
Student accommodation finance is available for purpose-built student accommodation (PBSA), HMOs for students, student houses, and other student housing properties. The specific criteria and terms vary depending on the property type and location.
What deposit do I need for student accommodation finance?
Student accommodation mortgages typically require deposits of 30-35% of the property value, though this can vary based on your experience, the property location, and the lender's criteria. Higher deposits may be required for new operators.
How is rental income assessed for student accommodation?
Lenders assess rental income based on location, university proximity, occupancy rates, and market conditions. They may use stress tests and consider the property's potential for year-round income, not just academic year performance.
Can I get student accommodation finance for any property?
Student accommodation finance is available for properties suitable for student housing, including houses, apartments, and purpose-built accommodation. The property must be in a location with student demand and meet local regulatory requirements.
Do I need experience to get student accommodation finance?
Most lenders prefer borrowers with previous student accommodation experience, though some may consider applications from those with relevant property investment backgrounds and strong management teams.
What are the regulatory requirements for student accommodation?
Student accommodation must comply with local regulations, including HMO licensing, health and safety requirements, and planning permission. Some areas may require specific licenses or permits for student housing.
Can I get student accommodation finance for a property I plan to convert?
Yes, though conversion projects may require higher deposits and more detailed planning. You'll need to demonstrate that the conversion meets all regulatory requirements and has appropriate facilities for student accommodation.
What happens if student numbers decrease?
Lenders expect some variation in student numbers and typically require you to demonstrate sufficient reserves to cover mortgage payments during difficult periods. Some lenders may require 6 months' payments in reserve.
Can I get student accommodation finance with adverse credit?
Some specialist lenders may consider student accommodation finance for borrowers with minor credit issues, though the criteria may be stricter. You'll typically need a larger deposit and may face higher rates.
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Mortgage118 is a directory of FCA-authorised advisers, not a lender. We do not publish live rates. Confirm criteria with an authorised broker before you apply.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.