Mortgages as a student

Cloudchild

Hello there, this is a bit of an odd topic and forgive me for my financial illiteracy as i know little about mortgages. Basically I have recently inherited a fair amount of money (enough for a decent house deposit) and i was thinking about whether getting a mortgage is possible as a student? i am currently a 3rd year medical student so i know that when i graduate i should have very decent job prospects and a good wage and will be able to cope with mortgage payments then, however i wondered if i was to get a house now and rent out some rooms to my friends if it would be possible then to get a mortgage?

Lokolo

You could get a mortgage as a buy to let, but this would be more expensive than a normal mortgage. And you to become a landlord. For 1 year, not worth it.

A normal mortgage would require an income now, not a future possible income which is not guarenteed.

themull1

No, you have to have a real salary coming in, not just the prospect of one.

FleaFlyFloFlum

Hi Cloudchild, last year I was in the same position as you, with me and my partner being in our final year of uni and having enough for a deposit due to an inheritance. We went to every high street bank and no-one would give us a mortgage, and just as we were about to give up we tried Halifax who offered us a guarantor mortgage.

This would be the only mortgage you'd be able to get as a student, and you do need some willing parents who would be able to act as guarantors in case you cant keep up with your repayments. The amount you can borrow would be based entirely on your parents income from their work or pension.

Hope this helps

jennifernil

I don't know how easy it would be to get a guarantor mortgage these days, but I would agree it is the only way.

The amount you could borrow will depend on the income of the guarantor(s), but in my experience, any mortgage they already have will be deducted from the amount the bank is willing to lend.

If you will be staying in the same area for at least 3 years, it may be worthwhile.

If you go for it, then remember that you may need to deal with things like gas certificates, HMO legislation, appropriate insurance, income tax etc.

Also, check first that the lender is OK with you having lodgers.

Just to add......we did this for our daughter in 2003, so know a little about how it works, but the availability of mortgages has changed a lot since then. She also got her mortgage through Halifax.

organic_wanabe

I was in Lloyds TSB with my DS a few months ago, just before he started his first year at University. We were both opening an account [plus I already have funds there, but don't know whether that made any difference] and got talking to the member of staff who has a son of the same age. I can't remember how the topic came up, but she mentioned that if my DS ever wanted to get on the property ladder then Lloyds TSB offer a 'Guarantor' Mortgage. I am not sure whether you have to have an account with them.

effielorraine

6mths ago I was a student with a normal bank account, everytime I visited the bank I was offered loans at the best rates i - somewhere at the time around 10/11%. Then I decided to get a student account as one month my mot was due and was worried i'd go into debt and so needed an overdraft.

6mths later with a car that has packed up I needed a loan of a couple of grand to get a little runner and the bank says no way and I cannot even get a credit card with an apr of less than 39.9%apr. Ridiculous. Nor would I expect I'd be approved for finance.

Yesterday I switched my account back over the telephone but must go into my branch i have been informed to have the student marker removed. If I am ever to apply for a mortgage I was advised this would be very important in the descision.

I am not your typical student - I am a bursaried student and get paid nearly 600 a month.This makes no difference.

I have an auxillary nurse job so will not be lying when I tell credit agencies I am employed but will never again tell anyone I am a student.

Anyway point of Long story - Students don't get loans or credit and are very lucky to get mortgages so when dealing with finacers avoid this tag at all costs!!

jennifernil

In the case of a guarantor mortgage, it is decided on the record and finances of the guarantor, so the applicant being a student makes very little, if any, difference.

I think the treatment of students can vary quite a bit from bank to bank when it comes to credit cards.