Off set your offspring's student loan with a student home

The average student runs up debts of nearly £14,000 during their three years at university which can take up to 11 years to clear. This debt not only hinders their financial start in life but also impacts their ability to get on to the property ladder.

There were no Child Trust Fund vouchers handed out when this year's crop of university students was born. But a savvy parent can help their son or daughter get ahead by buying a buy to let for their child to live in while at university. With property prices rising at a steady rate equity can be built up in the property during the university years and then used to pay off student loans and debts on graduation.

Britannia's Buy to Let mortgages, unlike many others, allows properties to be let to family members - so a son or daughter can live in and manage the property while at university, with additional rooms being let to fellow students to pay the mortgage. A survey recently carried out by Britannia shows that 57% of potential Buy to Let investors would like this family friendly option.

With a property of £150,000 rising at approximately 10% per year over a three year period it would be possible to make around £45,000 which would cover the expenses involved in buying and selling a property and go a long way to pay off any student debts.

Neville Richardson, Group Chief executive at Britannia, said 'This is a great way of giving your child a solid financial start in life and a safe place to live while at university. Britannia's research showed that 42% of potential Buy to Let investors feel that their property would be better maintained if it was rented to a family member.'

Rooms are always in demand in university areas and they can be registered with the university's accommodation cell to find student tenants. Owning the property is also a good way of getting piece of mind knowing that your offspring are living in a safe well maintained house.