Student mortgage UK
As a student, you may wonder whether being in full time education will affect your ability to get a mortgage.
Believe it or not, it can be possible to find a great student mortgage deal. Often the key to this will be consulting with an experienced broker, who understands the difficulties you may face due to your income.
Mortgage for students UK
Mortgages for students can be slightly more difficult to access unless you find the right lender who is willing to offer a student mortgage.
Being a student can complicate a mortgage application if you have low or inconsistent income, bu this will not automatically prevent you from getting a mortgage. Even if you also have a bad credit history, low credit score or other personal loans, our brokers know of great specialists lenders who could be a good fit.
As a team of skilled student mortgage experts, we can compare deals across over 50 lenders in the UK. This allows us to search the market and find which lenders are most open to student mortgage applications.
Can a student buy a house in UK?
Students will be able to buy a property like a person in full time employment can. It will just be that lenders may have additional questions and requirements relating to your income.
Lenders may view your application more favourably if your course may lead to high income in the future (e.g. student doctors) or it currently pays you extra income. Apprenticeships for example, allow for study as well as a consistent stream of income alongside this.
There can be other factors such as being a mature student with previous job experience, income, savings etc that can also help lenders see you as a better applicant for approval. Ultimately there are many things that can affect your application, so it is worth getting mortgage advice from an experienced broker who can help you.
Can students get a mortgage UK?
Students should be able to find great mortgage deals, provided they speak to a broker who fully understands the additional income factors that may impact the application. Being a student shouldn’t have to negatively impact your chances of getting a mortgage.
We can find you lenders who are most suitable for your specific needs and financial circumstances. It may however be easier for you to get your application approved if you take out a joint mortgage with a partner or friend, or if you have a guarantor (e.g. a close family member) in place to support you.
This is because lenders will find the additional support reassuring, as you will be deemed less likely to default on your repayments.
In the case of a joint mortgage, the lender can base the application solely on the other person’s income if necessary. This can help with application approval but may affect the amount you can borrow so bear this in mind.
Student mortgages UK
Students shouldn’t be put off from applying for a mortgage – it may not be as complicated as you think if you have the right advice. Certain lenders may even offer what is known as buy for uni mortgages for current students.
If you also happen to be a first-time buyer there are government schemes in places to help support your first step onto the property ladder.
This includes help to buy equity loans and lifetime ISAs – and with some lenders you may even be able to access a 95% loan to value (LTV) mortgage. This means you will only need to provide a deposit of 5% of the property’s overall value.
There are also other mortgage schemes such as shared ownership schemes that can be beneficial for students or anyone with tighter budgets.
A shared ownership mortgage allows you to buy a percentage share of your home and pay rent on the rest, with the option to buy additional shares later (a process known as staircasing). This mortgage type can be seen as a middle step between buying and renting and a cost-effective way to buy if your budget is more limited.
Does student loan count as income for a mortgage?
When looking for a student mortgage, you may be concerned about how income is assessed.
What lenders will class as income can vary, generally you wont be able to class student loans as a form of income. Certain lenders will allow you to count payments such as bursaries but again this varies depending on lender discretion.
It is likely as well that even if a lender will allow you to claim bursaries etc as income, you will also need another source of income alongside this.
If struggling to find the right lender for your financial situation, speak to our specialist team of top-rated brokers. We have years of expertise in helping buyers with more complex income factors find great mortgage deals.
Do you have to declare student loan on a mortgage application?
Yes, if you have a student loan it needs to be declared when applying for a mortgage. This counts for current loans and any previous loans (for example if you are now on a post-graduate course but had a loan for an undergraduate course).
It is important to be open and honest with lenders about all aspects of your finances. If you try and withhold information and they find out later, this could cause your application to be declined.
Having student loan debt will not have as much of an impact on your application as other forms of debt, as it is indicative of good career prospects. This means lenders may think you could earn more in the future based on your degree, making you appear more secure in terms of affording monthly repayments.
How our brokers can help with student mortgages UK
As brokers with many years of expertise in all mortgage types, we can help you find the perfect student mortgage.
We can check what deals are available across the market to find the lenders and deals most suitable for students.
With more complex income (or even no consistent income other than student finance), getting advice from a skilled broker can make a big difference for your application.
We can help you assess your best choices in terms of mortgage types and interest rates. Speak to our student mortgage experts, for extensive advice on getting the best mortgage rates even as a student.