Student mortgage

oliel

Hi just wondered if anyone had gone down the student mortgage route? DD has already paid over £20k in rent over the last few years and has nearly 2 years left. I understand there are mortgages for students and wondered if anyone had experience and could give an idea of deposit/ etc? I understand income from renting a room out can be included in earnings as well as student loan and any other earnings?

kinger101

The thing one needs to be careful of is the high transaction cost of purchasing a house.

If they end up buying a house they want to sell two years later, then tney have;

(a) Solictors fees on purchase

(b) Suveyors fees on purchase

(c ) stamp duty on purchase (and loss of abilty to use FTB rate again.

(d) Solicitors fees on sales

(e) EA fees on sales.

(f) potentially a property they have to pay a mortgage on in a city they no longer want to live in when they find a job elsewhere on graduation.

silvercar

You’re looking for ‘joint borrower, sole proprietor’ mortgages.

I agree with all the points above, plus whether your student offspring is suited to being a landlord. Finding tradesmen in a town where you have no links may be a challenge.

ACG

Not something I do a huge amount of (although I cant imagine any broker does many) but I think the ones we have done in the past are generally 75-80% LTV. Rates can be a bit top heavy (maybe around 6%) but depending on your circumstances, there may be other ways to do it cheaper.

Speak to a broker. They may find a few ways to package it up, hoepfully one will work for you.