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The Only Student Mortgage Guide You Need

MORTGAGES | 23.09.2021

Due to high rent payments and less than satisfactory accommodation, it’s really easy to see why young adults are applying for a student mortgage. If you have access to a lump sum of money and wish to get on the property ladder as soon as possible, then a student mortgage could be for you. Here’s everything you need to know before applying.

What is a student mortgage?

A student mortgage, commonly known as a ‘buy-for-uni’ mortgage, is for students aged 18 or over in full-time education, usually with two years left of their course. They’re often taken out by students with access to a large amount of money, (typically inheritance or a savings account), which can be used for a deposit. 

Can you get a mortgage when you are a student?

Yes, but you’re most likely going to need a mortgage guarantor too. As you won’t be in full-time employment, lenders will probably reject your application for a student mortgage. However, a large deposit along with a guarantor certainly makes you a more attractive borrower. 

Who can be your guarantor?

A mortgage guarantor is someone who is responsible for paying the mortgage should you not be able to. A guarantor can either be your parents, grandparents, or legal guardian, as long as they fit the following criteria:
  • Not be over 65 at the time of application
  • Have a property in the UK
  • Be a UK resident

What kind of property can I buy?

Criteria differs between lenders, but the requirements are usually the following: 
  • Have a property within a 10-mile radius from your university
  • Buy either a 3 or 4-bedroom house
If you’re thinking of renting out rooms, you need to bear in mind you can only rent out rooms that are listed. This is a popular option for students looking to buy as the rent money can contribute to your monthly mortgage payments. 

Does student loan count as income for a mortgage in the UK?

Student loans don’t count as income for a mortgage, but you could use some of it towards a deposit if you have the means to do so. And if you happen to be employed during your studies and have proof of income, your mortgage application will be more attractive to lenders.

Student mortgage providers

Due to a spike in demand, there are now plenty of student mortgage providers offering competitive rates. It’s just about finding the right product for you, which is something our mortgage brokers can help with. They have access to exclusive rates and a good understanding of which lenders are most likely to accept your application.

Buy for Uni mortgage application

If you’re interested in getting a student mortgage or would like help with your application, please don’t hesitate to get in touch with our experts at TaylorMade here. We can save you time, money, and stress by taking care of the paperwork, and always ensure you get the best rate possible. Make your first step on the property ladder a steady one with a mortgage broker today.
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In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567

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