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Students and parents attracted to new home-ownership scheme
Tuesday, 12 June 2007
Life after graduation
An innovative new scheme allowing students to take a step on to the property ladder while still at university has met with huge success in the first year of its existence.
Bath Building Society released its Buy-for-Uni mortgage offer for the first time in April 2006, and has reported that interest from student and parents alike has grown hugely in little over a year since launch.
Buy-for-Uni allows students to apply for a 100 per cent mortgage on a property of up to four bedrooms, with no deposit required and with the home secured against that of the parents.
"We have done a lot of cases over the last year and there are still a lot of enquiries coming in now," said Malcolm Graham-Jones, head of lending at Bath Building Society.
"You either get the actual student who is really interested in it and really wants to do it, or you get the mum and dad on because the student doesn't actually believe that they've got enough experience to talk to somebody about it," he explained.
"But a lot of students will make the call themselves and find out all the information, and mum and dad are just sort of sat in the background until it gets to the technical details."
Mr Graham-Jones now says that he expects Buy-for-Uni to catch on quickly across the country as future graduates look to get their place on the property ladder as early as possible.