mortgage for student?

auburnmama

hi,

just wondering if students can get mortgages! I will be a first time buyer and seeking to use my right to buy for my local authority rental. I am a health student so get a bursary, so I'm not an average penniless student!
I have seen some websites about student mortgages, but am suspect as they don't seem to belong to any organisation I've ever heard of - and I'm cynical enough to think that there are some companies who will lend to anyone inthe hope they cant keep up with repayments and then take the house?

Do the large financial organisations give mortgages to students?

I am going to see an IFA next week but thought i'd ask on here first

thanks!
AM

Lokolo

I very much doubt it.

Do you have a large deposit?

Do you have regular income (i.e. a full time job)?

I suspect both is no to those.

auburnmama

Yes, I have a deposit. I will be buying this with my partner. Our joint income is in excess of £40k. I am being paid to train, so yes I have a regular income.

It just seems to make sense to buy rather than rent.

Lokolo

auburnmama wrote: »

Yes, I have a deposit. I will be buying this with my partner. Our joint income is in excess of £40k. I am being paid to train, so yes I have a regular income.

It just seems to make sense to buy rather than rent.

Yeh I don't see why you wouldn't be able to get one then!

nervousftb_3

The fact you have a partner who earns (I assume they will be on mortgage too?) does make a difference, and yes lenders DO give mortgages out to students (I know because I am a student and got a mortgage last year!). The main problem is that they will generally only take a percentage of your bursary into account, somewhere around the 50-60% mark depending on the lender. A large deposit and a partner earning a 'normal' wage will really help the situation!

The best thing to do is to find a broker, ensure they understand fully how much your bursary is, that it is tax free, and how long you will be getting it for (if you have less than a year or two left then it could be tricky) and get the broker to do all the legwork trawling around all the lenders for you. In my experience, Britannia said an outright no to students, HSBC and Halifax were willing to have a look, and C&G eventually agreed our mortgage!

So it can be done, but may be a slightly longer process than if you had a normal wage. Good luck!

auburnmama

brilliant, thanks for this! good tip on the bursary reduction. I am in year one and will receive my bursary until 2012! feelmore relaxed about the appointment next week, at least they wont laugh me out of the office!!

thanks folks

VIGILANT22

If you are exercising your right to buy and you're both named on the tenancy, your discount will act as a deposit........???????

auburnmama

we're not both on the tenancy, that may be my only problem. but that's interesting to know!

Conrad

Your partner cannot go on a mortgage deed unless they can join you on the property deed which the councils tend to allow in a few circumstances, but you'll need to ask them.

Pointless seeing any IFA until this point is resolved.

If your partner cannot join the deed then any borrowing will be based on your income alone.

auburnmama

okidoki, thanks for that info! useful to know. I'll look into that first! brilliant, thanks very much