Student Mortgage Quotes & Advice

Student mortgages used to be relatively common products before the credit crunch but there are very few lenders offering them currently, so we do not recommend using our online mortgage quotes system to search for student mortgage quotes.

Simply follow the links below to request whole of market student mortgage quotes or independent advice and one of our qualified mortgage advisors will contact you to discuss your circumstances and provide advice on student mortgages.

Student Mortgages Explained

Student mortgages are designed to allow students to buy a property on the basis that they will sub let some of the rooms to other students. This makes student mortgages very different to a buy to let mortgage or a normal residential mortgage product.

Buy to let mortgages will normally stipulate that the owners cannot reside in the property, and residential loans normally exclude sub letting. Student mortgages will be considered as high risk lending due to the property owner usually being entirely reliant on the rental income to afford the mortgage. This is why most student mortgage products have disappeared since the credit crunch started although some remain.

Anyone looking to let a property whether as a true buy to let or as a student let will need to pay particular attention to regulation such as relating to homes of multiple occupancy and regarding gas and electrical equipment.

Student mortgages are also quite different to guarantor mortgage products in that they are specifically intended to be financed by sub letting of other rooms in the property rather than being paid directly by the purchaser or their parents for example. Therefore most are assessed for affordability like a buy to let mortgage and based on the rental income that may be expected from the property.

The Pros and Cons of Student Mortgages

Pros:

• avoids the dead money of student rental accommodation
• get an early start on the property ladder
• renting rooms out means you may even save money on your student accommodation
• rental rather than income based assessment of affordability

Cons:

• interest rates will typically be uncompetitive
• very few products on offer currently
• limited choice of lenders
• there may be legal requirements as a landlord to ful-fill