What is a Buy for Uni mortgage and can I get one?

6th December 2022

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

What is a student mortgage and can I get one?
Renting as a student is notoriously costly, especially considering the quality of housing available. As a result, many are left wondering if there is a better alternative, one where they can have ownership over their own accommodation.


What is a Buy for Uni 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 rather because:

  • You have no income. Lenders will look at your income to judge whether you can afford mortgage repayments, and if you’re in full-time education, chances are you don’t have a full-time job
  • You have little to no savings. As you don’t have a full-time income, there’s a good chance you don’t have a savings pot large enough for a deposit on a house.
  •  You’re Young. Being young usually means you won’t have built up a credit score, which is a score which many lenders use to judge how reliable you are at borrowing and repaying money.
This is where student-specific mortgages like Buy for Uni come in. A Buy for Uni mortgage is essentially a Buy to Let mortgage for students. In other words, it allows you to buy a property as a student and then rent out the spare rooms to help cover the cost of your mortgage repayments.
This mortgage allows the student to get onto the property ladder and potentially make some money too. Take a look at this Guardian article, which highlights a student who could potentially make £30,000 using a Buy for Uni mortgage. 


Can I get a mortgage as a mature student? 

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

If you’re currently a PHD student or studying a masters, it’s still possible to apply for a Buy for Uni mortgage, as long as 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 are different from other types of borrowing because they do not appear on your credit file and your credit rating is not affected. However, if you apply for a mortgage, lenders may consider if you have a student loan when deciding how much you can borrow.


What is a guarantor in a Buy for Uni mortgage? 

A guarantor is typically a parent or other close relative that uses either their savings or property as collateral security against your mortgage and signs a formal declaration agreeing to make the payments if you’re unable to do so.

If both you and your guarantor are unable to pay the mortgage repayments, mortgage providers are within their rights to repossess your guarantor’s property to make the payments on your behalf.
Although 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 permanent right to residency
  • Meet the minimum and maximum age requirements of the selected lender
  • Have a good, clean credit history

How does a student mortgage work?


Where to find the best student mortgages?

The student mortgage market has seen a lot of growth in recent years, with many lenders entering the market. You can use comparison sites like Expert Mortgage Advisor or Finder to find a mortgage suitable for you. 

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


Can I get a mortgage as a student?

As you can see, getting a mortgage in university is a lot more achievable than you might have thought.

If there’s someone in your life 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 direct to a lender and apply. If you have any questions about our Buy for Uni mortgage, feel free to get in touch.
If all goes well, you could be living in your very own home before you know it!