Can a Student Get a Mortgage?

The concept of buying a house as a student may seem farfetched to say the least. With student loans and the cost of living to deal with for the first time, adding first time buyer mortgages to this will seem unrealistic. That being said, in the right circumstances, buying a house as a student could be more attainable than first thought. Here we answer, can a student get a mortgage, and if so, what does the path to property ownership look like?

Can a Student Get a Mortgage?

The short answer to this question is yes, you absolutely can! As a student you may even qualify for a 100% LVT (Loan-to-Value) mortgage which would mean avoiding needing to pay a deposit.

Arguably the main point of concern with students getting a mortgage, is that they lack the income from work to pay said mortgage. However, nowadays, a lack of income is not seen as a defining limitation when applying for a mortgage.

It is possible to for a student to get a student specific mortgage, in order to buy a property to live in while they study. This usually does not exceed £300,000 in value and a term of five years.

What Are the Requirements of a Student Mortgage?

The specific criteria will vary slightly depending on mortgage lender, but students applying for first time buyer mortgages can expect the following:

  • The property must be close to your place of study.
  • The property must have three to four bedrooms.
  • If you are not earning any income, you must have guarantors.
  • The property cannot be a studio apartment or flat.

For many people, an income could include a part time job alongside their studies or renting out the other rooms to cover the monthly costs.

More on Guarantors

A guarantor is essential when it comes to buying a house as a student. Essentially, what this means is that if you become unable to meet your mortgage payments, a relative or other responsible adult will be able to step in and help out.

Your guarantor will have to prove that they have the appropriate amount of sustainable income to cover your mortgage payments should the situation arise. As well as this, each mortgage lender will likely have additional requirements for the guarantor to meet. These include:

  • The guarantor should not be over 65 years old at the time of application.
  • The guarantor should not be over 75 years old at the end of the mortgage term.
  • The guarantor must be a UK resident and own a property in the UK.
  • The guarantor should be directly related or be a legal guardian.

Making the Right Decision

Can a student get a mortgage and should a student get a mortgage are both very different questions to ask if you’re in such a position. Buying a house as a student can be an excellent way to save money and get on the property ladder very quickly.

What is also worth knowing is that your plans post-education do not have a bearing on your ability to obtain a mortgage. The main thing to consider  is if you are in a comfortable enough position to meet the mortgage payments.

For those who are lucky enough to be a cash buyer, property can be a great investment, but we would always recommend speaking to an independent financial advisors about your options.

Can You Get a Mortgage With a Student Loan?

Beyond graduation, many young people will enter the world of work in their first professional job and start to think about purchasing a property… if they haven’t already.

However, there is that looming question: can i get a mortgage with a student loan?

The short answer, yes you can.

Lenders will take student debt into account when running affordability checks but, as the monthly contributions are relatively low and student loans do not appear on credit reports, it should not have a marked influence on borrower desirability.

Thinking on Buying a House?

If you want to explore the options surrounding buying a house as a student further, our mortgage specialists are always happy to discuss first time buyer mortgages with you. Get in touch or request a callback today!

Article By Chris Evans

June 15th, 2021

Chris heads up the specialist mortgage team which encompasses first charge mortgages, buy-to-let finance and second charge loans.

Chris has spent the last 17 years gaining experience in mortgages, protection and secured loans with roles at Legal & General, Nemo and Mortgage advice bureau giving him a broad understanding of the property finance markets.

Having Joined the Pure Group in 2017 he has worked with Ben to establish and grow the 1st and 2nd charge proposition exponentially in a short period of time. Chris has overseen the recruitment and development of an extremely experienced team of employed and self employed advisers that continues to deliver year on year growth.

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