Most people find it difficult to secure a mortgage.
For students, it’s even more challenging.
So, can a student get a mortgage? And, if so – what steps can students take to make this possible?
Read our blog below for an answer to these questions.
Defining a student
The definition of a student varies in the UK, depending on the scheme that you are applying for.
For example, students are described differently when applying for benefits compared with how some universities describe it.
As a general rule, you qualify as a student if you are in full-time or part-time education at a university or college.
This also applies to younger people who are at secondary school, although these people rarely apply for a mortgage.
Can a student get a mortgage?
Yes, it is completely possible for a student in the UK to get a mortgage.
While it may be financially challenging, there are no rules preventing it.
You should also keep in mind that, for students, mortgage lenders want to be certain that you are a reliable recipient of their loan.
Things to consider when getting a mortgage as a student
Having an income stream
You are far more likely to secure a mortgage as a student if you have an income stream alongside your studying.
For example, if you are studying nursing at a university, but also work part-time as a nurse.
Being in final year of education
Being in the final year of education, rather than the first year, is also seen as favourable.
Final year students will be able to secure a full-time job in their chosen profession sooner. So, they are a safer bet when paying back a mortgage.
Key steps in getting a mortgage as a student
Gather relevant documentation
If you are keen to make a mortgage application as a student, then the first thing you should do is gather all relevant information.
This will include credit reports, amongst details about any additional income streams, as a mortgage lender will want to see all of this.
Speak to a mortgage advisor
Secondly, you should speak to a mortgage adviser who can outline your options and explain what is/isn’t possible in your circumstances.
For example, your adviser may recommend that a guarantor mortgage is the only way that you can financially achieve getting a mortgage.
In which case, you will need to review whether this is appealing to you.
Consider an alternative mortgage
There are a range of mortgage options that don’t require deposit that students can consider.
For example, a guarantor mortgage makes it possible for someone (e.g. a student) to secure a mortgage without a deposit or a good credit score.
In this instance, a guarantor agrees to take responsibility for any repayments which you cannot pay.
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