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A pioneering mortgage product developed by Bath Building Society is proving successful in helping students to reach that all important first step on the housing ladder. Since its introduction in 2006, Bath Building Society's "Buy for Uni" mortgage is the only one offering students a 100% mortgage, with their parents acting as guarantors, during their time at university. Many of the students who originally took advantage of the unique product have since completed their studies, and are finding that being on the housing ladder before graduating has put them in an advantageous position on leaving university. David Bryant has recently graduated from Bath Spa University where he studied for his degree in Creative Writing. In 2006 David arranged his Buy for Uni mortgage to the value of £220,500 to purchase a three-bedroom property near Oldfield Park, Bath. With his parents Alan and Jeanette acting as guarantors for the mortgage and helping with all aspects of renovation of the property, David spent three months fixing up his property to a high standard, converting a downstairs room to make a fourth bedroom and allowing him to rent out the other three rooms to fellow students. |
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"I had completed my first year of university when I found out about the Bath Building Society Buy for Uni mortgage on the BBC website," said David. "I decided to have a look around and found a 'fixer-upper' in Oldfield Park. I approached Bath Building Society with my parents and asked if they could help us, and they arranged the mortgage for me." "My parents were guarantors, and we made an agreement about how I was going to keep the property. Both parties realized it was a good opportunity, and it made more sense for me to invest £300 in my own property each month rather than giving it away to someone I barely know." David renovated his property with the help of his parents and sister over a three month period, undertaking structural work as well as renewing the electrics, installing a gas supply, damp proofing and laying floor boards. He now rents out three bedrooms at the high end of the student market. He added, "It's very nice to have my own house, and to have joined the property ladder at 19 was brilliant." Gill Orchard, Customer Support Manager from Bath Building Society, says that the Buy for Uni mortgage has been growing in popularity since its conception, and now provides one of the few viable routes onto the housing market for student first time buyers. "We receive a lot of enquiries about the "Buy for Uni" mortgage," she said. "It is a product that has many different advantages for students and parents and we're proud to be the first building society to offer such a mortgage." "Having the knowledge that their children are on the housing ladder, before leaving university, is a real plus for some parents. Not only are they not 'throwing money away' renting from someone else, there is also the knowledge that they are safe and comfortable in their own property which is of a good standard. These days, many young people are married with families before they can even get onto the property ladder. Our product is helping students to invest the money they would be paying in rent in their own property whilst also enabling them to rent out rooms to other students helping to cover the cost of the mortgage. As homeowners, we are also finding that the students are taking good care of their houses and neighbourhood." Dick Jenkins, Chief Executive of Bath Building Society said that the Buy for Uni mortgage was a response to the needs of customers. He commented, "Bath Building Society has always responded to the needs of our customers, and following a customer survey in 2006 we devised the Buy for Uni product to help meet the needs of modern buyers. We're proud to be innovators in this field, and have had much positive feedback about the mortgage." |
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