Head of Content
Mortgage Advisor & Director
Can students get a mortgage?
Yes! It can be challenging for a student to get a mortgage to buy a home; however, with expert guidance, it is possible.
Without a steady income stream, lenders can be concerned that you won't be able to meet repayments. If this is the case for you, fear not. There are still options available to allow you to buy a home, for example, having a guarantor on your mortgage.
Guarantor mortgages for students
When considering a guarantor mortgage, your guarantor will need to meet the following criteria
- Be a legal guardian or a direct family member.
- Own a property.
- Live in the UK with a permanent right to residency.
- Be under 75 to 80 years old, depending on the lender.
You will typically need to contribute a minimum of 15% deposit (85% Loan to Value).
However, some lenders may offer up to 90% LTV. If you would like to learn if a guarantor mortgage is right for you, use our online form to get started, and one of our experienced advisors will be in touch for an obligation-free chat.
What do I need for a student mortgage?
There are a couple of things that you should consider to help improve your application for a student mortgage.
- Save towards a deposit - having a larger deposit will improve the available pool of lenders that will consider your application and will also grant you access to better rates.
- Improve your credit rating - lenders will want you to have a traceable credit history in the UK. Although there is no 'acceptable' score, lenders will want you to demonstrate that you are a reliable borrower, which means using credit sensibly and making repayments on time.
If you have a smaller deposit or poor credit history, there may still be options available to you. Contact one of our advisors to learn more or read our guide to bad credit mortgages.
How will my student loan affect my mortgage application?
You may be concerned that your student loan will impact on your chances of getting approved for a mortgage. While it may have some bearing, other sources of finance can have more of an effect.
What is more important is that your finances are in a generally healthy state and you can demonstrate to a lender that you (or your guarantor) can make repayments.
What about PhD students?
PhD students are just as likely to be approved for a mortgage as any other student.
As long as you have enough deposit to put forward and can meet mortgage repayments, then there shouldn't be any issues. If you are looking to use your PhD stipend as evidence of salary, you may find that lenders are reluctant to accept this as income as stipends are temporary income.
If you can demonstrate proof of onward income, for example, guaranteed future employment, then lenders are more likely to be satisfied.
At Teito, we have contacts with specialist lenders who will be willing to accept your application, get in touch today.
Can mature students get a mortgage?
Yes!
The same rules apply for mature students when it comes to mortgage applications. To discuss your specific circumstances get in touch today.
Can international students in the UK get a mortgage?
For international students studying here in the UK, it may be possible to get a mortgage.
Your credit history built up here in the UK will make a difference, so make sure you take steps to develop your credit record through sensible lending and repayments.
You may find that if you are applying for a mortgage using a guarantor, that lenders will require your guarantor to reside in the UK with a permanent right to residency.
How can I learn more?
At Teito, we are a whole-of-market mortgage advisor with access to specialist lenders and deals not available to the general public. As a student looking for a mortgage, this can fall into the realm of specialist, and we would recommend you contact an expert in this field to give you the best chance of securing a mortgage.
The worst-case would be to have an application denied, leaving a blemish on your credit history and making it harder to be accepted in the future.
To get started, complete our simple online form to get started, and one of our experienced advisors will be in touch.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
