14% of student body would consider property purchase.

Posted 2007-11-5

Students at university considering purchasing a property are advised to consider the additional expenses to mortgage repayments; including property maintenance and ‘off periods’ when a lack of tenancy for spare rooms, may come to pass.

With research revealed by Abbey, a financial services provider, showing that 14% of the current student population would consider purchasing property to live in during their studies at university, Abbey asserts that during times of financial difficulty or when unexpected expenditures arise, “People considering it need to make sure that they can afford the mortgage payments plus any maintenance costs, service charges and down-time between tenancies,” said head of mortgages, Nici Audhlam Gardiner.

If financial hardship does befall the student owner, a secured loan could be taken out in addition to a mortgage – it is known as a “second charge.”

The resultant cash could prove to be crucial in covering unexpected costs incurred until empty rooms can be rented or necessary maintenance work can be successfully completed.

The total amount lent in secured loans increased by £9.6 billion in June 2007 - typically the month when student tenancies come to an end - statistics from Credit Action have shown. 

Therefore, it is imperative for prospective student property owners to consider all aspects of their scholastic expenditures including those which may be incurred from purchasing Real Estate.

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