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Mortgages for students

Our skilled advisors know that it can be more complicated to find mortgages for students. With lower or inconsistent income, you may struggle put a mortgage deal in place.

With the support of a broker with the right background and experience, there can still be excellent deals available for students. It is worth speaking to an expert who understands exactly how student mortgages work. This can be key to finding a deal with the best possible rates.

Our specialist team know which lenders are most likely to offer mortgages for students and which mortgage type will be the best choice.

There were record numbers of students reported to be starting university in 2022. Nearly 180,000 18-year-olds were accepted following their exam results – a 20% increase on 2019. There were 425,830 students of various ages and backgrounds that began studying at university in 2022.*

Mortgage advice for students

Students can have low income or possibly no income other than student finance. This means it can be harder to find lenders willing to provide mortgages for students. The right advice from a broker with experience in student mortgages can make a significant difference in getting your mortgage approved.

Our team are specialists when it comes to mortgages for students with complex income, adverse credit and more. We know of many excellent lenders for these circumstances and can support you in choosing the right one for your needs.

Our highly skilled mortgage brokers will compare rates and deals across over 50 of the UK’s top lenders. This saves you the time and hassle of doing this research yourself. You can trust you will be receiving the best rates possible with our experts.

In this section (mortgages for students):

Can a student get a mortgage?

Our fully qualified mortgage brokers know that being a student can often mean lower or inconsistent income. This can cause significant complications for a mortgage application without the right advice in place.

There can be excellent rates and deals available for mortgages for students. You just need to know where to look and which lenders will be best. Our team are specialists with years of expertise in finding mortgages for people with complex income factors.

There are certain mortgage types that can be more suitable options than others for students. If struggling to get a mortgage approved, students looking to buy a home should consider options such as:

  • Joint mortgages: applying with multiple people on the application will affect the income multiples available and your chances of being approved. The mortgage can even be based solely on the other applicant’s income if necessary.
  • Guarantor mortgages: having a guarantor support your application can increase your chances of having your application approved. A guarantor will most commonly be a parent, family member or legal guardian. As the guarantor will agree to take over repayments if needed, this will make you appear less of a risk to lenders.
  • Shared ownership mortgages: shared ownership schemes can be a good option for students. A middle ground between buying and renting, you buy a percentage share of a property and pay rent on the rest. This equals a lower deposit and overall loan amount needed, with the option to buy more shares later (known as ‘staircasing’).

Any of these mortgage types can be very helpful for students who otherwise may not be able to get a mortgage approved due to low income.

Which are the best lenders for student mortgages?

The best lender for a mortgage will depend on individual circumstances and the mortgage type needed (e.g. first time buyer mortgages vs buy to let mortgages).

There are many brilliant lenders in the UK, with over 100 currently providing mortgages.

This means there is a wide variety of choice. Even though some lenders may be less likely to approve mortgages for students, there will be many that will.

With complex income in most cases, students may need to apply to more specialist lenders rather than high street banks and building societies. This is especially true if there are other factors such as adverse credit that could also affect your ability to borrow.

Our team of mortgage experts have access to a panel of over 50 of the UK’s top lenders. This means we can compare hundreds of deals to find the ones most suitable for students.

How to find the best mortgages for students

There are several ways you can apply for a new mortgage or a remortgage. The way you apply can have an impact on your rate. Some common ways to apply for a mortgage are:

  • Speak to a mortgage broker or mortgage advisor: this is often the easiest approach for borrowers looking for new mortgages or remortgages. This option gives you access to specialist advice and a wide panel of lenders to choose from.
  • Apply to your Bank or Building Society: you can apply directly to a bank or building society, which can work well for some borrowers. It will limit the amount of available deals and rates though as you will only be speaking to one lender.
  • Apply for a mortgage online or via a price comparison site: this becoming a more popular option due to its convenience and lower cost. It can become confusing and time consuming to apply in this way though. You won’t have the support of an advisor who understands how your background and circumstances will affect your rate.

As student applications can be more complicated, it is worthwhile to speak to a specialist broker familiar with how mortgages for students work. This will be the quickest and easiest way to find the right lenders willing to offer reasonable rates for student mortgages.

Does student finance count as income for a mortgage?

Income is one of the main elements assessed when applying for a mortgage, affecting your affordability and the income multiples offered to you.

Lenders can vary on what they will class as income. Usually you will not be able to claim student finance as your income. Student loans will not be classed in the same way as typical monthly or annual salary from a full or part time occupation.

A skilled and experienced broker will be able to advise you on the best lenders to approach for your income.

Does student bursary count as income for a mortgage?

Certain lenders will allow you to class bursaries as part of your income when applying for mortgages for students. This is similar to how they would assess investments and dividends for other applicants.

You will however also need another form of steady income. Bursaries alone will not be enough income to qualify for a mortgage for students.

Are student loans considered when applying for a mortgage?

As a student, you may be worried that having student loans will negatively impact mortgage applications now or in the future.

When applying for a mortgage, you will need to declare any current or previous student loans. It is important to be open and honest with lenders. Missing out relevant financial information can cause complications and can even lead to a mortgage offer being withdrawn.

Student loan debt will usually be seen as less serious than other types of debt. Credit card debt or unsecured personal loans will cause more issues than student loans would. In fact, lenders may look on you having been to university as a positive factor. This can indicate good career prospects and steady income, making you less of a risk to lend to.

Mortgage programs for students

There are schemes students can benefit from when applying for a mortgage. This is particularly true if first time buyers, which will likely be the case for most students.

Some buyer support schemes that can lead to savings for mortgages for students include:

If eligible for any of these schemes, you have the potential to save. This can be with additional financial support or the option for a lower deposit amount.

You may even be able to get what is known as a buy for uni mortgage. This is a type of buy to let mortgage. The student buys the house and covers the mortgage repayments by renting out rooms.

These deals will only be available through specific lenders. It is a good idea to consult a specialist broker if looking for this mortgage type.

Mortgages for medical students

Being on a course such as medicine or dentistry can look appealing to lenders compared to other degrees. Medical careers will generally have higher income, promotion opportunities and stable and reliable income.

If training to enter a medical profession, lenders will likely consider you less risky to lend to. This is because of good career prospects and potential for job security.

We have years of expertise in helping find the best mortgages for students working towards medical degrees. Our specialists have helped many medical staff and students with their mortgages with low interest rates and affordable monthly repayments. This includes nurses, doctors, dentists ,vets and more.

Mortgages for PHD students

Mature students such as those studying for PHDs may be looked on more favourably by lenders. This is due to having a longer career history compared to other students. You may have been able to build up more savings or a higher deposit.

Studying for a PHD can also equal the potential for high income in the future, due to being highly qualified in your field. This can look appealing to lenders, with you being less at risk of defaulting on your mortgage repayments.

When studying for a PHD, you may be in receipt of a stipend income. Although helpful to boost your finances, most lenders will not accept this as a form of income.

Mortgage for international students

It can be harder for international students to get a UK mortgage and buy a house without advice from a specialist broker.

Many lenders will be willing to offer home loans to international students, providing they pass their lending criteria and affordability requirements. There can be complications though such as if a guarantor is required.

A guarantor mortgage can be a great option for many students who would otherwise struggle to get a mortgage approved. Lenders will require guarantors to be UK residents, which can present issues for international students whose families will likely be abroad.

If in this situation, speak to an expert broker for advice on the best way for you to put your mortgage in place.

*according to Gov.uk

Useful resources

UCAS – Undergraduate Student Support

Citizen’s Advice – Student Loans

Gov.uk – Mature students: university and funding

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