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Can a student get a mortgage?

By Heather · 07 Mar '22  · 

2 min read

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Are you feeling bogged down by paying a landlord for the bare minimum? Why not consider becoming your own landlord by taking out a student mortgage? Investing in a student mortgage is not only potentially a cheaper alternative in the long run, but you could also have a place to call your own.

Why get a student mortgage?

In a nutshell, many people look to get a student mortgage to:

  • Save money
  • Get on the property ladder as quickly as possible

Student mortgages are for 18+ students in higher education, usually with two years left of their course.

If your plan isn’t to stick around after you graduate, you can always sell your house and use the money to give you a head start in your next venture. Whether you stay in the property or move on, you’d have hopefully made a saving and given yourself an advantage by getting on the property ladder earlier than your peers.

See how much you can borrow

Get an indicative idea of your borrowing potential by answering the simple questions below

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What kind of property can I buy?

All lenders have different criteria, but generally speaking the requirements are:

  • Have a property within a 10-mile radius from your university
  • Buy either a 3 or 4-bedroom house

If you’re considering renting out rooms, bear in mind you can only rent out rooms that are listed. Renting out rooms is a popular option as the rent money could cover, or contribute to your mortgage costs each month.

How can I get a student mortgage?

Since student mortgages are becoming increasingly popular, finding lenders who offer them is easier than ever before. But without a full-time job, many lenders tend to reject applications for student mortgages, as they’re a high risk.

However, there are certain things you can do to make yourself a more attractive borrow. These include putting down a large deposit and having a mortgage guarantor.

Putting down a large deposit means you’re less of a risk to lend to. Many lenders will ask for a 10% deposit, but if you don’t have this much, we recommend you speak to a mortgage adviser as they might have access to more specialist lenders that don’t require a large deposit. A mortgage adviser will also be able to advise whether it’s worth taking the time to save more money for a deposit, or if this might outweigh the benefits of getting on the property ladder as soon as possible.

Who can be your guarantor?

Basically, a guarantor is someone who has your back should you not be able to pay your mortgage back.

A guarantor is usually either your parent(s), grandparents or legal guardian, and must adhere to the following criteria:

  • Not be over 65 at the time of application
  • Have a property in the UK
  • Be a UK resident

As your guarantor is responsible for paying the mortgage in the event that payments are not made on time, they must be able to prove they have a minimum sustainable income. For some lenders, in the case where both parents live together, it’s a requirement that they both act as guarantors.

Student mortgages are dependent on your guarantor not only for security measures but also for their credit history. This is because as a student, and assumingly a first-time buyer, you may have very minimal credit information; too little to build up a real picture of your credit history anyway. There are ways you can improve your credit score if you’re concerned your guarantor might have a bad credit history.

If you think a student mortgage might be right for you, please don’t hesitate to get in touch with our friendly team and they’ll be able to talk you through the process. In the meantime, you might want to work out how much you could borrow.

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