Buy-to-let helps student debt
by Gill Montia
Britannia is promoting its buy-to-let mortgages as a means of reducing student debt.
The average student leaves university with nearly £14,000 of debt that can take up to 11 years to clear.
As well as hindering a young person’s financial start in life, this level of debt can affect their ability to get on to the property ladder.
With this in mind Britannia is advising parents to consider buying a property for their child to live in while at university.
Britannia’s buy-to-let mortgages are unlike many others on the market, in that they allow properties to be let to family members.
This means that a son or daughter can live in and manage the property during university years, whilst letting out some of the space to fellow students who will be helping to pay the mortgage.
Any equity built up in the property during the university years can then used to pay off student loans and debts.
According to a recent survey by the building society, 57% of potential buy-to-let investors would consider this option for their undergraduate offspring.
In addition, 42% of those surveyed believed that their property would be better maintained if it was rented to a family member.
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