Can students get mortgages?

Arcan

I have currently £25,000 and want to buy a house to rent out. I've found the perfect one which requires very little work; however it's priced at over £50,00 would any bank consider mortgaging out to a 2nd year student?

Thanks

P.s The house is in my hometown and not where I am currently living (at university)

Mallotum_X

Priced at 50k?

Do you have a family member who would be prepared to act as a guarantor?

19lottie82

Sure, if you have a steady form of income which is enough to pay the mortgage and a glowing credit history.

It's not all easy money being a LL tho you know! What would you do if you had a tenant who didn't pay rent for months at a time. Could you afford the legal fees to evict them?

Or if the boiler broke, could you afford to replace it?

Arcan

I don't have any income, which might be the problem.
I know being a LL is pretty tough, got a lot of friends/relatives who do it. I am not looking to make money out of renting just to use the rent to pay my mortgage which should provide excess money for problems.

moneyshoe

I had a mortgage as a student. My parents gauranteed it and I let out rooms in the flat to other students (with the banks permission). This was a while ago but I had no problems getting the mortgage, nor did I ever have any problems paying it or keeping up with essential repairs. I did have one girl who just would not pay her rent though and this was very hard work. If you do decide to do this I would recommend using a letting agency it can be very stressful dealing with tenants and for me it would have been worth paying somebody else to handle the stress. I also don't think they would have messed an agency around as much as a 20 year old fellow student.

kingstreet

Ok. This is an arms-length BTL and it isn't student accommodation for you...

In which case, your typical BTL product needs;-

- a maximum loan of 75%
- rental income to be 125% of mortgage interest at 6%
- a personal income of £20k+
- the borrower to be a homeowner.

You may find a lender/product which is more relaxed on one of these items, but more than one and it's probably a non-starter.

A broker may be your best bet for such a product. BTL business is still very broker-centred with many lenders not accepting direct business.

jeffrey_williams

Hi Arcan,

Have you tried contacting any banks as they would give you precise information about the legalities involved. But I think you would need guarantor for the mortgage plus under the current economic climate you would need a good credit history if you are eligible.