In some cases, the financial capacity can be extended, because there is a chance to get a mortgage or a loan. However, in practice, in the current financial situation, the majority of transactions are now made under the cash only scheme. For small cost student apartments, most real estate developers do not welcome mortgage options, but if the purchase amount is reaching £100,000, getting a mortgage becomes a more realistic option.
Currently, Buy To Let program is maintaining the leadership positions, under the terms of which paid only the interest on the loan, and the loan body is provided later on. But for non-residents issuing such a loan is an extremely complicated job. The conditions are very attractive: the refinancing rate of the Bank of England’s 0.5%, the loan can be obtained at 1 – 1.5% rate by paying an initial fee of 35% of the cost of housing, but they are relevant only for purchases of at least 8 – 10 rooms with an average project cost £50-60,000.
And with a lower amount (but not less than £100,000 – 250,000 according to various experts) one can only qualify for the classic loan. But, in principle, you can take advantage of relatively low rates: foreign investors can get a mortgage at 2.5 – 5%, while the credit period ranges from 5 to 25 years, and the maximum loan amount equals 70% of the cost of housing. However, mortgage loans for student apartments is a specialisation of just a few banks: according solicitors.guru survey among its conveyancing solicitors directory, the platform represents a large legal database where you can find a solicitor effortlesly, the target banks should be Aldermore, Leeds Building Society and Paragon Mortgages.
However, you can do without banks, as in the UK you can take advantage of ‘mortgage’ opportunities provided by developers: they take a bank loan for the entire project and distribute it among those willing to lend to customers from any profits. This type of mortgage usually balances between 3 – 5% per annum. Most of the businesses that work with real estate companies offer loan at low rates in 2.5 – 3% + LIBOR range.
If the property is still under construction, it may be possible to do without a mortgage, even if the equity capital at the time of purchase is not high. In the UK, until the object is completed, the buyer does not pay for it in full. The purchase process takes place as follows: the first deposit is paid at £5,000 – 7,000, and the unit is reserved for a specific person, and then within 28 days after the initial payment payable, 30-50% of property value is covered, and the remaining 50 – 70% are due to be paid only after the end of construction. But, of course, any installment or mortgage is not exempt from charges.