Mortgages are available for the development, refinance or purchase. Second charge and equity release options are also available.

Affordability and repayment

The affordability of the loan is based primarily on the rental income generated over the term of student tenancy agreements.  Student tenancies generally run in line with the academic term, so the property may not be occupied for a full calendar year year.  However, it is also possible to have tenancies for a full 12 months.

Loan terms and lending criteria

For purchase or refinance, loans are available up to 75% of the market value.   Both interest only and repayment options are available.

For development opportunities, finance can be considered up to 90% Loan to Cost or 75% Loan to Gross Development Value.  Experience of the developer is essential as PBSA schemes are often less flexible than standard property developments.

Pricing & Fees

Pricing of these facilities can vary greatly, and it is often linked to the loan to value (LTV), loan amount, and credit quality of the business.

For bridging and development loans, interest can be rolled up or serviced monthly.

Arrangement fees are in the range of 1-3% of the loan amount which can be added to the facility.

Acceptable customer types include:  Sole Trader, Partnership, Limited Company (Ltd) or Limited Liability Partnership (LLP).