Student guarantor mortgages

minnie_dipsey

Do Student guarantor mortgages still exist?

I am loooking to get on the property ladder, but are currently at university so have no income. My parents have a large house with plenty of equity, so are happy to give me the deposit and guarantee the full mortgage. Where can I find out more details about rates and the implications to my parents - I do not want them to lose out tax wise etc.

Thanks

Thrugelmir

minnie_dipsey wrote: »

so have no income.

Then having your parents as guarantor doesn't really help. As the critical is. Who is going to fund the mortgage repayments every month?

holly_hobby

This is very possible with Bath BSociety - whom offer a Uni Mge.

It is specifically for those at uni, with parents backing, in essence the property may be purchased in the childs name (avoids CGT for parents on sale) or jointly with parents.

The affordability is essentially assessed on the rental income from other students renting rooms, with parental income being assessed for any shortfall to reqd sum.

Anyhoo, this gives you a brief idea of what its about (and does not consitute advice), it is a unique scheme, which may suit your requirements.

Here's a link to save a bit of time hunting it down ... http://new.bathbuildingsociety.co.uk/?page_id=1256

Hope this helps

Holly

kingstreet

If they have the income/status and time to retirement, it may be easier for them to raise the whole purchase price by remortgaging their own home. If they are borrowing less than 60% of the value of their home, they will get the best rates in the market, sub 3% for a five year fix, for example.

The property can then be purchased in your name and once you have a career and are "mortgageable," you could remortgage the property to raise the funds to pay them back.