29th August 2024
Find out if you're eligible for a student mortgage with our comprehensive guide.
A student mortgage allows university students, often with the support of their parents, to purchase a property during their studies. Unlike renting a student house, owning a property through a student mortgage offers several advantages including building equity and the opportunity to generate rental income by leasing out spare rooms, which would go towards repayments on the mortgage. This approach not only provides housing stability but also serves as a financial investment for the future.
Most students are eligible to apply for a student mortgage if they meet a few basic criteria, like being a full-time university student and having a parent to help with the process. While these general requirements set the foundation, there are some important specifics to consider as well, which we'll explore further in the rest of the article.
Typically, you'll need to provide proof of income, identification, bank statements, and details about the property you're purchasing. You may also need to provide evidence of university enrolment and financial support.
When it comes to student mortgages, the type of degree you’re pursuing matters less than your status as a student. Whether you’re an undergraduate or postgraduate, you’re generally eligible to apply. You don’t need to be in your first year to qualify either—as long you’re not in your final year of studies, you can explore a student mortgage. However, with most lenders, only full-time students are eligible for student mortgages. This is the case for our Buy for Uni mortgage.
When applying for a student mortgage, there are some restrictions to keep in mind. International students with a student visa, unfortunately, cannot apply. Additionally, student mortgages are not available as joint mortgages, so married students or long-term partners cannot apply together.
When it comes to parental involvement, if your parents are divorced, there is no requirement to have both included on the mortgage, so you can pick either one of them and their current partner, if they have one, to be included on the mortgage as a parental helper. Furthermore, parents can still assist with a student mortgage if they have a mortgage of their own, as long as they meet the lender’s requirements.
At the Vernon, we make decisions on an individual basis, so even if your circumstances are unique, it’s always worth getting in touch.
Your credit score can impact your eligibility for a student mortgage. While we can’t specify an exact score that would be considered too low, factors like defaulting on a previous loan, missing credit card payments, or having a history of financial instability can all negatively affect your score. Lenders will look at these details to assess your ability to manage the mortgage responsibly. If your credit score is on the lower side, it might make the approval process more challenging, but it's not necessarily a dealbreaker.
If you're unsure whether you meet the criteria for a student mortgage, don't worry—help is available. We encourage you to get in touch with us to discuss your specific situation with one of our expert team. They can walk you through the requirements and help determine your eligibility, ensuring you have all the information you need before moving forward.
If you're interested, call 0161 429 6262 or get in touch.