Can students get mortgage with the help of guarantor

okarim

Hello
I'm currently 21 year old student who is interested in purchasing buy to let property (house next door to my family home) with the help of guarantor. My parents have instructed me that the mortgage should be under my name. I know that one of the key factors into consideration of mortgage application is the affordability of repayments, therefore would the potential rental income be enough to compensate for my lack of personal income.

Thanks in advance for any advice

silvercar

In theory the amount a lender will give you depends on rental income.

The disadvantage you have is that lenders prefer potential BTL. Mortgage holders to be home owners themselves and to have an income to cover themselves when the property is empty.

You also need a decent size deposit for a BTL.

there are not many mortgage lenders who will accept a relative as guarantor without being on the mortgage & deeds themselves.

okarim

Thanks for the prompt reply. Based on my current income status, if for example my parents would allow me to generate income from their rental property, would that be sufficient to lenders to justify affordability. Also if my parent are added onto the mortgage, what would be the criteria for BTL mortgage.

Thrugelmir

okarim wrote: »

herefore would the potential rental income be enough to compensate for my lack of personal income.

How would the mortgage be paid if the property is empty or the tenant defaults?

silvercar

A friend was looking for a guarantor mortgage for their (adult) child to buy a property. The only one they could find which didn't require that the parent be named as joint mortgage holder with the child was Virgin Money. Unfortunately Virgin Money won't do BTL lending to non home owners or to FTBs.

I suspect that if you had a parent prepared to be on the mortgage with you, your options would be greater.