A Guide to Student Mortgages

3rd October 2023

Discover what student mortgages are, who can apply for them, and how to get on the housing market as a student with this article.

A Guide to Student Mortgages | Vernon Hub

Renting as a student is known for being extremely costly, especially with the quality of housing on offer. As a result, many are left questioning if there is a better alternative, one where they can have ownership over their own accommodation. 

What is a Student Mortgage? 

For most students in full-time education, getting a mortgage on a house will be difficult. However, this isn’t usually because you’re a student, but instead down to other factors: 

No income: Lenders will look at your income to judge whether you can afford mortgage repayments, and if you’re in full-time education, it may be difficult to receive a stable income from a full-time job. 

Lack of savings: As you don’t have a full-time income, you probably don’t have enough savings for a deposit on a house. 

Poor credit score: Being young usually means you won’t have built up a credit score. This is a score that many lenders use to judge how reliable you are at borrowing and repaying money. 

This is where student-specific mortgages like Buy for Uni are useful. It allows students to buy a property and rent out the spare rooms to help cover the cost of their mortgage repayments. This allows the student to get onto the property ladder and potentially make some money back too.  

Can I Get a Mortgage as a Mature Student?  

As a mature student, you are eligible to apply for a student mortgage, and most lenders use similar criteria to assess your application as they would any other student applicant - although requirements will of course vary depending on who you approach. 

If you are currently a PHD student or studying for a Masters, it’s still possible to apply for a Buy for Uni mortgage if you’re aged between 18 and 30, with at least one year left on your course.  

Does a Student Loan Affect a Mortgage? 

Student loans differ from other loans because they do not appear on your credit file and don’t affect your credit rating. However, lenders may consider if you have a student loan when deciding how much you can borrow when applying for a mortgage. 

What is a Guarantor in a Student Mortgage?  

A guarantor is typically a parent or close relative who uses their savings or property as collateral security against your student mortgage. They sign a formal declaration agreeing to pay if you’re unable to do so. 

If both you and your guarantor are unable to pay the mortgage repayments, the mortgage providers are within their rights to repossess your guarantor’s property to make the payments on your behalf. 

Although the requirements will vary by lender, guarantors will typically need to meet the following requirements: 

  • Be a direct family member or legal guardian. 
  • Own a property in the UK. 
  • Be a UK resident with a permanent right to residency. 
  • Meet the minimum and maximum age requirements of the selected lender. 
  • Have a clean credit history. 

A Guide to Student Mortgages | Vernon Hub

Can I Get a Mortgage as a Student? 

As you can see, getting a mortgage as a student is a lot more achievable than you might think. 

If there’s someone who you think might be willing to act as your guarantor, it might be worth asking the question. If it’s a yes, get in contact with a mortgage broker or go directly to a lender and apply. If you have any questions about our Buy for Uni mortgage, feel free to get in touch

Here at the Vernon, we were one of the first mainstream lenders to offer a Buy for Uni mortgage. We look at your application on an individual basis to get to know your circumstances and your case. Take a look today, and feel free to give us a call or come into one of our branches if you would like any more information. 

If all goes well, you could be living in your very own home before you know it!