100% Mortgages For Students

The Bath Building Society has introduced a new mortgage deal which aims to help students onto the property ladder, and is said to be unique.

Under the scheme, university students can take out 100% mortgages up to the value of £250,000, and can then rent out rooms in the property to help cover the monthly cost of the mortgage.

In a report in the Guardian, a spokesman from the Building Society said that the students would require help from their parents, whose home would be used as collateral for the loan.

Although there are undoubtedly some positives to this new product, the possibility of getting into more debt is unlikely to be attractive to students, and of course it also relies on the parents being willing to put their own house on the line.

The scheme is currently only available for students in Bath and Bristol, but could be extended to the rest of the country.

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