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Can a student get a mortgage?
hamodi1993
Posts: 1 Newbie
Hi everyone!
I have been searching on the internet with no luck and hope someone can help me out here.
I am a student, 20 years old but I have a £115k deposit from inheritance. I am looking to buy a property worth £170k (32% LTV). The property will easily achieve a rental income of £1,100 PCM.
I have looked around and many banks offer interest only mortgage for the amount I require (£55k) for only £120-200 per month repayments.
This all seems good for me as I can pay back the interest and put the rest of the rental income towards paying back the capital. After 1 year I'll finish my degree and I can pay back the mortgage faster as I'll start working.
The problem I'm facing is that I can't find a bank that will offer a mortgage if you have no income unless you already own a property.
Is there any broker that accepts these kinds of mortgages? Am I that much of a risk? It's only 32% LTV, what do they have to lose!?
I should also mention that I get a student loan/grant that's £5000 per year and I'm working part time that gets £400 in a month. Accommodation is free as I live with my parents.
Thanks!
I have been searching on the internet with no luck and hope someone can help me out here.
I am a student, 20 years old but I have a £115k deposit from inheritance. I am looking to buy a property worth £170k (32% LTV). The property will easily achieve a rental income of £1,100 PCM.
I have looked around and many banks offer interest only mortgage for the amount I require (£55k) for only £120-200 per month repayments.
This all seems good for me as I can pay back the interest and put the rest of the rental income towards paying back the capital. After 1 year I'll finish my degree and I can pay back the mortgage faster as I'll start working.
The problem I'm facing is that I can't find a bank that will offer a mortgage if you have no income unless you already own a property.
Is there any broker that accepts these kinds of mortgages? Am I that much of a risk? It's only 32% LTV, what do they have to lose!?
I should also mention that I get a student loan/grant that's £5000 per year and I'm working part time that gets £400 in a month. Accommodation is free as I live with my parents.
Thanks!
0
Comments
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If you want to rent it out you need a BTL mortgage and most lenders want you to own the home you live in ( either with or without a mortgage)
You have a big deposit and I am sure a broker may be able to help you0 -
That's right.
There are a few lenders that would offer BTL mortgage but you must be a homeowner. However, there a couple of lenders that offer BTL as first time buyer but the minimum age is 25 yrs or minimum income required is £20-25k per annum or both.0 -
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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