Can I get a mortgage as a student?

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Student Mortgage Advice in Leeds

Why Should I get a Student Mortgage?

How can I get a student mortgage?

Showing Reliability

What type of property can I buy with a student mortgage?

What happens if I can’t afford my payments?

Student Mortgage Advice in Leeds

University: a place to enjoy freedom, independence and time away from the parents! However, as you know, university life comes with costs and lots of different fees. With constant bills, it can sometimes be hard to see what you’re actually paying for, particularly with student accommodation.

When it comes to student accommodation, you may feel like you’re getting your money’s worth yet sometimes you may feel the complete opposite. You’re in luck if you manage to get a landlord that looks after you and your property and takes care of damages and repairs quickly. On the contrary, you could get a landlord that isn’t responsive at all and leaves you with broken appliances for weeks on end.

Unfortunately, more often than not, students will end up getting a landlord that doesn’t give much back to them and treats them poorly. In this situation, it can make you question, is it really worth spending all of this money to get nothing back? If you’re asking yourself this question, why not consider becoming your own landlord?

When you are your own landlord, you’ll avoid all the hassle and be able to sort things out yourself. You can become your own landlord by taking out a student mortgage. Although it can be expensive in the short term, it can save you money as soon as you get the keys and start living in the property!

Why Should I get a Student Mortgage?

A student mortgage will not only allow you to save money on your accommodation but will also give you an early chance to get yourself onto the property ladder. Usually, these mortgages are more popular amongst students who are planning to carry on their education to a masters/PhD level.

Even if living within the property is temporary, you can always sell it in the future and make money back on it. Alternatively, you could turn it into a buy to let in Leeds to rent out to other students.

When your university journey comes to an end, you will have built up a large amount of equity within the property. This equity, when released, can be turned into a lump sum of cash. You can use this cash on whatever you want, whether it’s for another deposit, a wedding, a car, etc. Since it’s your money and your equity, you can spend it how you want.

There are many different things that you could do with your property in the future!

How can I get a student mortgage?

Sometimes, it can be hard to obtain a student mortgage because you’ll need funds in place to afford one, and for a student, this can be difficult.

As a mortgage broker in Leeds, when a student enquires about a mortgage, we have to ask them some questions to learn about their financial situation and see whether they’ll be able to qualify for one or not. Firstly, we will need to find out whether you have a deposit at the ready. Your deposit can be a gifted deposit, from a Lifetime ISA or even as simple as funds from a savings account.

Secondly, we need to make sure that you can actually afford a mortgage. One of our mortgage advisors in Leeds will measure this by working out your mortgage affordability. You will certainly need a form of income to get a mortgage as a student. Depending on your lender, you may be able to get a mortgage with a part-time job, however, most lenders will only accept a full-time job.

Showing Reliability

Showing reliability is key. You need to show the lender that you’re a reliable applicant that will be able to afford a mortgage. Here are a few examples of how you can increase your reliability:

Increasing initial deposit – By putting down a higher deposit, the overall amount that you’d need to borrow for a mortgage would decrease. This would also mean that your mortgage payments would decrease.

Utilising government schemes – Government-led schemes are a great way to increase your reliability for a mortgage. The schemes are under a program called “Own Your Home”, they were introduced to help first time buyers get onto the property ladder.

Through these schemes, you may be able to access a larger deposit. Some of the schemes include the Lifetime ISA and Shared Ownership. There are many more if you visit https://www.ownyourhome.gov.uk/all-schemes/.

Have an AIP ready – A mortgage agreement in principle (AIP) can benefit your student mortgage application. An AIP proves that a lender is willing to lend to you based on you providing evidential documents to support your income, mortgage affordability, etc.

This is just a few examples, there are more ways to show your reliability as a student. Get in touch with our mortgage advisors in Leeds today to find out even more ways to improve your reliability.

What type of property can I buy with a student mortgage?

Likewise to other mortgage options, you will have to meet certain requirements before securing your student mortgage:

• The property must be within a 10-mile radius of your university.
• The property must be 3-4-bedroom house.

With these points in mind, we suggest that you have a think about what you are going to do with the extra rooms. It makes sense to rent them out to help support your mortgage payments each month.

What happens if I can’t afford my payments?

Lenders won’t take any risks when it comes to offering a mortgage student. They will take careful precautions with all student applicants.

When signing off the papers for your mortgage, you’ll be asked to give a name for a guarantor. This is someone who will cover your payments if you cannot meet them at any time. There are some limitations to who your guarantor can and can’t be:

• They cannot be over 65 at the point of your application.
• The guarantor must own a property in the UK.
• They must live inside this property in the UK.

You’ll find that every lender will always have some sort of backup.

For expert help with achieving your mortgage dreams as a student and first time buyer mortgage advice in Leeds, contact our brilliant team today. We will help you see whether you qualify for a student mortgage and perform a free affordability check on you and your file.

Date Last Edited: February 19, 2024