Is the mortgage market turbulence getting you down? Have you got a mortgage-related question you need answering? Email in and we’ll get one of our experts to reply. Nick Mendes, mortgage technical manager at John Charcol, has given his advice to a reader below. If you have a question for our experts, email us at money@inews.co.uk.

Question: Our son is heading off to university this autumn and we are considering buying a property for him to live in. Rather than him wasting money on rent, we wondered if it would be possible for him to live there and rent out the other rooms to friends. Is this something we can do, and how would it work from a mortgage perspective?

Answer: This is a question we’re hearing more and more, and it’s a very sensible one. With student rents continuing to rise and availability often limited, many parents are looking at ways to support their children through university while making a smart investment at the same time.

The good news is that yes, it is possible to buy a property for your child to live in while they study, and to let out spare rooms to fellow students. There are several mortgage options available, but it’s important to understand how they differ, and which one suits your situation best.

‘Buy for university’ mortgages

One option that is specifically designed for this scenario is a “buy for uni” mortgage offered by the likes of Bath Building Society and Loughborough Building Society. This allows a student to purchase a property in their own name, live in it during their studies and rent out the spare rooms to help cover the mortgage.

These mortgages are only offered by a limited number of lenders and come with specific criteria. The student must usually be over 18, enrolled on a university course and have at least one year of study remaining. The property generally needs to be located within a certain distance of the university, often within 10 miles.

In most cases, the student can rent rooms to other students, though there is usually a limit on the number of tenants allowed. Many lenders will only permit up to three people in total, including the student borrower.

A parent or close family member is usually required to act as a guarantor. This means they agree to cover the mortgage repayments if the student is unable to, and they may need to offer additional security such as equity in their own home or a savings deposit held with the lender.

There are often restrictions on the type of property that can be purchased. Some lenders will not allow flats above shops, ex-local authority buildings or studio apartments, so it’s important to check the eligibility before making an offer.

“Buy-for-uni” mortgages offer several advantages. They enable the student to get on to the property ladder earlier than usual, and the rental income from other students can help meet the monthly mortgage payments. Most importantly, it avoids the need to pay rent to a landlord, which over the course of a three-year degree can amount to a significant saving.

That said, there are some drawbacks to consider. The parent acting as guarantor is taking on financial risk, particularly if property values were to fall or rental income became unreliable. The student also takes on the role of landlord, which means handling maintenance issues, collecting rent and ensuring legal responsibilities are met, all while balancing their studies.

These mortgages can be an excellent solution for the right family, but they require careful consideration and a clear understanding of both the financial and practical commitments involved.

Other options to consider

If that sort of mortgage does not suit your needs, there are alternative routes worth exploring.

A common approach is to use a buy-to-let mortgage. However, standard buy-to-let products are designed for properties being rented to tenants on a commercial basis. Most lenders will not allow a close family member, such as your child, to live in the property under these terms.

This is where a family buy to let might be more appropriate. These are specialist products which permit the property to be let to tenants while also allowing a family member to live there, subject to lender criteria.

Another increasingly popular option is a joint borrower sole proprietor mortgage. This allows the parent to contribute their income to the mortgage affordability assessment without being named on the title deeds of the property.

This set-up can help with tax efficiency and avoids the second home stamp duty surcharge, provided the child is the sole owner and it is their only property.

Practical considerations

It’s important to be aware that if your child rents out spare rooms to friends, the property may fall under house in multiple occupation (HMO) rules. This depends on how many tenants live there and whether they share facilities such as a kitchen or bathroom.

Local councils have their own policies on HMO licensing, and not all lenders are comfortable with these arrangements, so it’s crucial to check this early on.

You should also factor in the stamp duty implications. If you purchase the property in your name, and you already own a home, the additional property surcharge will likely apply. If the property is purchased in your child’s name as their first home, this can often be avoided, but that will depend on how ownership is structured.

What else to think about

While the idea of living with friends can sound ideal, it does not always go smoothly. When your child becomes the property owner, they also take on the responsibility of being the landlord – even if the tenants are close mates.

That means chasing rent, resolving disputes, and taking charge when things go wrong. It can be uncomfortable collecting rent from a friend who is behind on payments, especially if they are going through a difficult time financially.

Fallouts can also be more complicated. Disagreements over bills, noise or house rules can quickly create tension, and when your child is also the legal tenant or property owner, the line between friendship and responsibility can become blurred.

It’s a good idea to put agreements in writing and be clear from the start about expectations around rent, shared costs, and house behaviour. Even with close friends, having a basic tenancy agreement can help avoid awkward conversations later.