Student — pricing factors (UK)
What lenders weigh when pricing student cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a student case is accepted and how it is priced. They are not a quote.
- Student accommodation experience
- Strong financial position and track record
- Professional team and management structure
- Adequate working capital and reserves
- Understanding of student rental market
- Suitable property for student accommodation
For indicative numbers, use our mortgage calculators and compare brokers who specialise in student.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Specialist lenders with student accommodation expertise
- Academic year cycle consideration
- Flexible lending criteria for student properties
- Professional support for student housing investments
- Access to prime student locations
Fee breakdown
Common charges to plan for alongside the headline rate.
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
Rate FAQs
Quick answers to common pricing questions.
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 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.
Can I use a limited company for student accommodation finance?+
Yes, many lenders offer student accommodation finance to limited companies, which can offer tax advantages. However, the criteria may be stricter, and you'll need to demonstrate the company's experience and financial strength.
Can I get student accommodation finance for a property in a different location?+
Yes, though lenders may have preferences for certain locations or property types. You'll need to demonstrate that the property is suitable for student accommodation and that you can manage it effectively from your current location.