Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Quickfire Roundup:
It may come as a surprise, but you certainly can get a mortgage as a student.
It may well be harder to get than a standard, but several mortgage providers will offer these.
Generally speaking, you’ll need a guarantor in place, and you may find that you need a larger deposit but it is more than possible.
Wanting to know if can you get a mortgage as a student? Let’s be honest, students don’t always have it the best.
If you’ve been there before, you’re probably used to paying high rental costs in return for sub-standard student accommodation.
The good news is that students don’t have to accept this. That’s because the answer to “Can you get a mortgage as a student?” is a great one.
It might not be the answer you’d expect, but you can get a mortgage and have your very own home.
By using a broker, you can secure a student mortgage and put yourself in an enviable position. As you read on, I’m going to explain just how this can be done.
Boon Brokers are one of the UKs leading online mortgage brokers. They have a 5-star excellent Trustpilot rating with over 543 reviews.
- No mortgage fees
- Whole of market access
- Free online consultations
- Directly authorised by the FCA
- No in person meet ups
Table of Contents
Can you get a mortgage as a student?
Mortgages for student are totally possible but of course it’s usually much harder to obtain due to income levels. If you have hopes of getting onto the property ladder, there’s nothing that says student mortgages can’t be given.
What makes securing a mortgage loan a little trickier is not the fact that you’re a student: it’s the things that go hand in hand with this.
Generally speaking, those seeking a student mortgage will be:
- Younger than typical mortgage applicants – unless you’re a mature student, you’re likely to be younger than most people who apply for mortgages. This means that you’ve probably not yet had the chance to build your credit history, and this can make it harder to be approved
- Student income levels – as you’re in full-time education, at best, you’re only going to have a part-time job. Getting a mortgage on a low income makes providers nervous about how you’ll manage your monthly mortgage repayments
- Lack of savings – if you do have a savings account your balance is unlikely to be overly healthy. It’s even more unlikely that you’ll have had the chance to save a deposit for a mortgage
The above are all making assumptions, and these might not all apply.Â
If you happen to have built a good credit history, can demonstrate that you can make money as a student and can offer a deposit then you’re in a great position.
In fact, you would be able to apply for regular mortgages.
What is meant by a student mortgage?
A student mortgage is one that lenders offer to people in full-time education who are at least 18 years old.Â
However, if you look at one mortgage provider and then compare it to another, you’ll find that student mortgages can look a little different.
Some mortgage providers will offer a specialist product that’s designed just for students. Other lenders will offer guarantor mortgages instead.
These mortgages protect the lender as, if you fail to make your mortgage repayments, your guarantor, usually a family member, is liable.
Buy-for-uni mortgages are also offered by some mortgage providers.Â
These allow you to become a property owner and a landlord at the same time. Not a bad position for a student to be in.
Boon Brokers are one of the UKs leading online mortgage brokers. They have a 5-star excellent Trustpilot rating with over 543 reviews.
- No mortgage fees
- Whole of market access
- Free online consultations
- Directly authorised by the FCA
- No in person meet ups
How To Get A Mortgage As A Student?
To get a mortgage as a student, there are some additional hoops to jump through.Â
That’s because mortgage lenders usually like to see that you have the means to keep up with your mortgage payments.
To make things easier, it’s worth getting a mortgage broker on board.Â
They will know the lenders to apply to and they’ll find the best deals and interest rate.
Whatever happens you’ll need a good credit score to buy a house whether that’s from you or via a guarantor.
There are a couple of other things that you can do to secure a student mortgage. Let’s take a look at these now:
Find yourself a guarantor
Many lenders are fans of guarantor mortgages. That’s because it gives them an extra level of security.Â
The mortgage provider knows that if you miss any payments your guarantor has to pick these up.
There are stringent guarantor requirements and it’s a big deal to ask someone to act on your behalf.Â
Generally speaking, your guarantor will be your legal guardian, grandparent, parent or any other direct family member.
Eligible guarantors will also:
- Meet the maximum age requirements (generally they need to be 65 or younger)
- Own a property
- Be a UK resident
- Have good clean credit history
It’s worth bearing in mind that if guarantor mortgage repayments are missed, ultimately your guarantor’s property could be put at risk.Â
They risk losing either their savings or their house!
Offer a larger deposit
How much deposit is enough? Well, there are student mortgages out there where you can borrow 100% of the property value.
However, just because you can doesn’t mean that you should.
The bigger the deposit you can offer the better. It shows the mortgage lender that you’re serious and willing to share the risk.
It also opens up more products and means that you could get more attractive interest rates.
If you want to find out what the average monthly mortgage payments by area are then click the link there.
What is a buy-for-uni mortgage and can I get one?
This form of student mortgage works in the same way as a buy-to-let mortgage. You get a mortgage, own a property that you live in and then rent out rooms to other students.Â
This helps you to meet the mortgage repayments and can even lead to you making a steady income.
If you manage to persuade a family member, or legal guardian, to support you, university mortgages like these can offer 100% of the purchase price.
That means that you can get a mortgage without worrying about the minimum deposit.
Personally, the buy for uni mortgage scheme is a pretty decent idea for those looking to build up equity whilst they study.
As a student applicant looking for a university mortgage, there are other conditions that you’ll need to comply with. Some of these may include:
- Having a minimum of 1 year left on your course
- The property must be within 10 miles of your uni
- You aren’t able to rent to more than 2 other students
- Your uni must be outside of London
- The property can’t be a studio or an ex-council flat
Is there a mortgage for a PhD student?
As a PhD student, you can apply for a student mortgage in the same way that an undergraduate can.
As part of the mortgage application, you’ll probably need to offer a guarantor as most mortgage providers won’t accept your stipend as proof of income
The problem with a stipend is that you’re unlikely to be receiving it for the whole student mortgage term.
When the money stops, mortgage lenders need to know that you still have a way of paying.
Do all lenders offer university mortgages and student mortgages?
A mortgage broker can direct you to lenders that will offer student mortgage products. However, some mortgage lenders that are well known for offering these include:
- Vernon building society
- Scottish building society
- Loughborough building society
- Bath building society
These lenders are known for treating university students fairly when it comes to applying for a mortgage loan.
The pros and cons of getting a student mortgage
If you wondering if you should get a student mortgage, it’s worth considering the pros and cons of this.Â
Here’s a look at the main ones:
Pros
- Your mortgage payments are likely to be lower than what you’d be paying in rent
- You get on the property ladder at a young age
- With a buy-for-uni mortgage, you have the opportunity to make money
- You get to build your credit history
Cons
- You’re tied in. If you decide to move away when your course has finished you still need to pay the mortgage. You could consider renting it out or even selling it
- Buy for uni mortgages make you a landlord and that is a massive responsibility
- If you have a student mortgage guarantor they are in a risky situation
Boon Brokers are one of the UKs leading online mortgage brokers. They have a 5-star excellent Trustpilot rating with over 543 reviews.
- No mortgage fees
- Whole of market access
- Free online consultations
- Directly authorised by the FCA
- No in person meet ups
FAQs
Can an international student get a mortgage?
International students can still apply for a student mortgage. Lenders will consider your credit file and your situation as a whole.
While securing a mortgage is possible, the truth is that international students will find the process a little more difficult.
Can I get a mortgage straight after university?
If you’ve not had a property before, you’ll be the same as all first-time buyers. This means that you can apply for a mortgage just like anyone else.Â
If you’ve managed to avoid building a bad credit history and if you’re income is sufficient, you have a good chance to succeed.Â
Of course, you’re likely to have some level of student debt though and lenders will consider this when assessing how much you could borrow.
It may be useful to consider guarantor mortgages to boost your chances even more.
Final thoughts - Can Students Get A Morgage?
You can get a mortgage as a student, and you can even go as far as becoming a landlord with a buy for uni mortgage.
There’s certainly options for you!
Just remember that a mortgage is a huge responsibility and this isn’t something that you should enter into lightly, especially when you have a guarantor involved.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
