Student Let Mortgages
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Helping You Finance Student Rental Properties Nationwide
Student accommodation remains one of the most in-demand sectors in the UK rental market. Whether you’re an experienced landlord, a first-time investor, or planning to expand your portfolio, a student let mortgage offers a valuable opportunity to maximise rental income, especially in established university towns and cities.
At Drummonds Finance Group, we help landlords across the UK secure specialist mortgages for student lets, including HMO properties and limited company applications. We’ll guide you through the entire process, from understanding lender criteria to securing your mortgage offer and planning your long-term strategy.
If you’re investing in student property and want the right mortgage to support your goals, our advisers are ready to help.
What Is a Student Let Mortgage?
A student let mortgage is a form of buy-to-let finance used to purchase or remortgage properties rented specifically to students. These mortgages are designed to meet the unique requirements of student tenancies, often involving multiple unrelated tenants, higher turnover, and stricter licensing regulations.
Unlike standard buy-to-let mortgages, student let mortgages often involve properties classified as Houses in Multiple Occupation (HMOs). Lenders assess these deals differently, which is why it's important to work with a broker who understands the sector and can recommend the right products for your needs.
Who Are Student Let Mortgages Suitable For?
These mortgages are suitable for both new and experienced landlords who are looking to let property to student tenants. If you already own a rental property and are considering converting it into a student let, or if you're buying your first HMO, we can help you navigate the requirements.
We also work with investors purchasing through limited companies, landlords building their portfolios, and clients remortgaging existing student lets to raise capital for additional purchases. Even if you’ve never owned a rental property before, there are lenders who will consider first-time landlords, depending on your financial background and deposit size.
Understanding Lender Criteria
Each lender has its own approach to student lets, but there are several common factors they’ll look at. Your deposit, rental income projections, property condition, and your own income (if applicable) will all influence the type of mortgage you qualify for.
In most cases, a deposit of 20 to 25% is required. Some lenders are more cautious with student tenants and may ask for additional evidence of demand, professional property management, or local licensing. If the property is considered an HMO, generally meaning it’s let to three or more unrelated tenants, you’ll also need to meet your local council’s licensing conditions.
We’ll review your full situation in advance and recommend lenders that match your goals, experience level, and preferred structure, whether personal or limited company.
Limited Company Student Let Mortgages
More landlords are now buying student properties through limited companies, often called SPVs or Special Purpose Vehicles, due to tax changes and long-term flexibility. If you're investing in student accommodation using a limited company structure, we can help you access lenders who specialise in this area.
Limited company mortgages are assessed differently from personal applications, and not all lenders offer them. However, they can provide more control over your investment strategy, particularly if you're planning to grow a portfolio or reinvest your rental income.
Can You Get a Student Let Mortgage Without Landlord Experience?
Yes, while some lenders do prefer applicants with existing rental experience, there are also competitive options for first-time landlords. If you're financially stable, have a good deposit, and can provide evidence of strong rental demand in your area, it's still possible to access high-quality mortgage products.
We regularly help first-time landlords step into the student market for the first time, including young professionals, family investors, and parents buying properties for their children to live in while at university.
Investing in Top University Cities
The UK’s strongest student cities, including London, Manchester, Birmingham, Leeds, Bristol, and Liverpool, offer consistent tenant demand and attractive rental yields. Oxford and Cambridge, for example, are well-known for their limited student housing stock and growing international populations.
In Oxford, demand for compliant HMOs remains extremely high. With two major universities and strong rental yields, Oxford continues to be a prime location for student property investment. However, licensing rules are strict, and lender criteria can be tighter, which makes expert advice even more important.
Whether you’re investing in Oxford or elsewhere in the UK, our team will ensure your mortgage application is structured correctly and submitted to the right lender.
Raising Capital Through Remortgaging
If you already own a rental property, remortgaging it for use as a student let is one of the fastest ways to raise capital for a second purchase. We can help you switch to a lender that supports student rentals, raise funds for renovation, or restructure your mortgage under a limited company if that aligns better with your tax planning.
We also help landlords remortgage existing student lets for better rates, interest-only flexibility, or longer-term fixed deals to support cash flow.
Case Study: Student Let Investment in Oxford
Client: Emma, a first-time landlord from Reading
Location: Cowley Road, Oxford
Property: 4-bed student HMO
Goal: High-yield investment with long-term rental security
“I wanted a strong, long-term rental investment near the universities, but I’d never owned a student let before. Drummonds helped me find a lender who accepted first-time landlords, secured a great rate, and guided me through the whole HMO process.”
We sourced a five-year fixed student let mortgage at a competitive rate. Licensing was minimal due to the property’s size, and the deal was completed in just six weeks. All four rooms were let before the term began, delivering a yield of over 6%.
Emma is now planning her next Oxford purchase with our support.
Tailored Advice, Exceptional Service
The Drummonds Advantage
When it comes to financing student lets, experience, strategy, and lender access make all the difference. At Drummonds Finance Group, we offer far more than just mortgage sourcing — we provide expert guidance from day one and stay with you long after the deal completes.
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Commercial Mortgages
We offer financing solutions for a variety of commercial properties, on a referral basis to a specialised commercial broker, including: