Loughborough Building Society has relaunched its university product, a joint borrower sole proprietor proposition for students who wish to rent out up to two rooms.

There are two selections, each for loans ranging from £90,000 to £400,000 and charging a £499 fee.

The 80% LTV option has an initial rate of 3.99% and the 100% LTV option has an initial rate of 4.25%.

The lower LTV mortgage requires a standard deposit while the latter will need the joint borrower to provide a deposit guarantee – cash or a second charge on their own home.

Terms range from two years to seven years and the student borrower must be in tertiary education and have at least one full academic year remaining on their course at a university or college no less than 10 miles from the property they wish to purchase.

Loughborough business development manager Ashley Pearson says: “We’re keen to offer mortgage solutions to borrowers with a range of different circumstances and this is an excellent opportunity for those who in most cases, never dreamed they could buy their own home while a student”.