Summary
Looking for a Student Buy to Let Mortgage? Free Expert Advice!
Student buy to let mortgages help you purchase or remortgage a property to rent to students. Lenders assess these differently from standard lets—some treat them as Houses in Multiple Occupation (HMO). We explain criteria, licensing, rental tests and costs in plain English, then map clear next steps. CeMAP-qualified, FCA-regulated advisers. Rated 5★ with 2,500+ Trustpilot reviews and 5/5 on Google.
What you’ll get (quick overview)
Eligibility check: property setup, room sizes and HMO licensing where required.
Local rules made simple: Article 4 planning areas and how they affect student lets.
Rental tests explained: income coverage and stress-rate rules (varies by lender).
Tenancy structure guidance: joint & several vs individual ASTs; how guarantors are viewed.
Ownership options: buy in personal name or via a limited company/SPV.
Valuation approach: standard vs yield-based methods (lender dependent).
Deposit/LTV clarity (loan-to-value = mortgage as a % of the property price).
Smooth process: document checklist and clear timelines to completion.
When to speak to an adviser
- You’re a first-time landlord or converting a property to an HMO.
- The property needs (or already has) an HMO licence or layout changes.
- You’re remortgaging to release equity or moving from residential to buy-to-let.
- Rental cover looks tight and you need limited-company or top-slicing options.
- There are credit blips, complex income or you were declined elsewhere.
Trust & transparency
CeMAP-qualified advisers. FCA-regulated. UK-wide support. Rated 5★ with 2,500+ Trustpilot reviews and 5/5 on Google.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Who can get a Student Buy-to-Let Mortgage?
When considering your application for a Buy to Let mortgage, the lender will ask for details about the rental property and how you intend to let it. If your intention is a student property investment, the criteria are likely to be more focused on your own landlord experience, than it would if your intentions were for a single occupancy property.
Access All the best HMO Lenders and Products Today Get a mortgage in principle in minutesExact criteria will vary from lender to lender, but the majority of lenders will require that you:
- Own your own residential property
- Have an income of at least £25,000
- A deposit of 25% or more
- Are able to complete the mortgage before the age of seventy
- Have prior landlord experience – whilst flexible for those taking on sole tenant properties, you are unlikely to be approved for a Buy to Let mortgage on a student property without experience
How do Buy to Let Mortgages work with more than one tenant?
Whilst the actual terms of the mortgage itself will not differ, the lending criteria will. Where you’re buying a HMO (House of Multiple Occupancy) property, your loan offer will be calculated on the rent you can achieve on a room by room basis, rather than on the property as a whole.
In some circumstances, this may mean that you can achieve a higher loan-to-value amount, as student lets have the potential to be more profitable than single occupancy properties. This will very much depend on the individual property, however.
Student Buy-to-Let Mortgage FAQ’s
For HMO properties, the loan offer is based on potential rental income from each room. This may result in a higher loan-to-value amount depending on the property’s profitability.
The amount is based on potential rental income, assessed per room, rather than the entire property. Loan offers will vary by property and rental potential, with personal income stress tests also applied.
To qualify, you typically need to own a residential property, have an income of at least £25,000, a 25% deposit, the ability to complete the mortgage before age 70, and prior landlord experience.
You need to cover mortgage payments during vacancies. Student lettings often have 11-month rent agreements, and landlords use August for refurbishments.
Rental income is subject to income tax, and selling the property may incur capital gains tax. Additional properties attract higher stamp duty.
How much can you Borrow for a Student Buy to let Mortgage?
When buying a property to be used as student accommodation the loan amount will be based on a variety of factors. Much like a standard Buy to Let mortgage, the lender will predominantly look at the potential income, in this case, however, on a room by room basis, rather than the property as a whole. As such it’s impossible to suggest an average loan amount, as this will very much depend on your chosen property and its rental potential.
There would also be a stress test of your own personal income to ensure that you are able to maintain payments under a change in circumstances, for example, a rise in mortgage interest or as we’ve seen recently, long term vacancy of the property due to Coronavirus.
The criteria of the stress test will vary from lender to lender, but also depending on your own tax bracket and the duration of your fixed interest rate.
Landlord insurance covering building issues and rental loss is recommended. Tenant behavior may also impact coverage needs.
Brokers provide access to competitive deals and lender criteria navigation, greatly aiding those with extensive property portfolios.
Affordability is judged based on expected rental income, requiring stress tests against potential interest rate rises.
Generally, a 25% deposit is required, though some lenders may accept as low as 20% with higher interest rates.
Consider the local student population, demand, property condition, compliance with HMO licensing, and management needs.
What should you do when students are not around?
As with any mortgage, it will need to be paid regardless of the circumstances, so for buy-to-mortgages, that means through periods of vacancy. You would therefore need to prove that you had the means in place to pay the mortgage in these circumstances.
Whether letting out a converted student house or purpose-built student accommodation, student lettings are usually based on 11 monthly payments, rather than the academic year. This means that students are aware of the need to pay even when they are not in situ.
Most landlords use August to refurbish the property in order to re-let it for the following year. This should be taken into consideration when financial planning, as well as the frequent advertising or property management costs involved with letting properties to short-term tenants.
Whilst logic would seem to dictate that more rooms to let means a higher profit margin, this is not necessarily true when tax liabilities are considered. Income tax will be due on all rental income as well as both capital gains and income tax, should you decide to sell the property. When you own more than one property, stamp duty will be significantly higher on the additional properties, so this should also be considered carefully. You should also be aware that tenancy agreements will need to be amended to accommodate multiple tenants as each individual tenant needs to agree to the contract terms. What else should I be aware of when investing in student accommodation?
How can a Mortgage Broker help you get a Buy-to-Let Loan?
Many lenders prefer to deal with mortgage brokers for buy-to-let mortgages, rather than the public. This is especially true, the larger your portfolio of properties. Consequently, applying via a broker would give you access to significantly more competitive mortgage deals than applying directly.
Why use the Mortgage Broker?
At The Mortgage Broker, it’s our vision to become the UK’s most trusted and
respected mortgage broker. The only way for us to achieve this is by providing straightforward
and transparent advice to every one of our clients.
From your first call to your last, we put customer service first before all else so you can be
confident in getting expert mortgage advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We offer FREE no-obligation advice with no hidden costs. Payment is only taken when we proceed with the application. Therefore if we don’t complete any business, the customer never pays a penny.
Typically, first-time investors face more scrutiny due to intensive management needs and may require a mortgage broker’s assistance.
Advantages include higher rental yields, consistent demand in university areas, and potential for portfolio expansion with proper management.
Risks include void periods, management demands, tax liabilities, and potential wear and tear costs. Proper planning and management can mitigate these risks.
You’ll generally need ID, proof of income, property details, and documents proving landlord experience.
Stress tests ensure you can maintain payments despite interest rate rises or prolonged vacancies, dependent on tax bracket and fixed rates.
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