Finding a mortgage as a student can be tough, but it doesn’t have to be. As long as you’ve got the correct paperwork and some proof that you’re going to be earning money once you graduate, then you should be able to get an affordable student mortgage. In this article, we’ll look at five different types of student mortgages that don’t require a guarantor (as well as several other options).
Tesco Bank Student Home
- Interest rate: 4.79%
- Eligibility criteria: You must be a student or recent graduate, and the property you are buying must be within England, Wales or Scotland. You will also need to have a deposit of at least 5%.
- Maximum loan amount: £250,000
This is one of the best student mortgages (read our full review here) because it has a competitive interest rate and is available for both first-time buyers as well as home movers. As with all student loans from Tesco Bank, you can get up to 100% funding towards your accommodation costs by using their Help to Buy Equity Loan scheme. The repayment term for this product is 25 years (repayments start 30 days after completion).
1. Santander Student Buy to Let Mortgage
If you’re a student looking to buy a property, the Santander Student Buy-to-Let Mortgage is an excellent option.
This mortgage is available for students who are studying at a university or college and those who have graduated and are looking for work. It’s also suitable for students taking a gap year.
2. NatWest Student Let Mortgages
If you’re a student and need to get a mortgage, consider taking out one from NatWest Student Let Mortgages. This is actually one of the best student mortgages available. You can borrow up to 90% of your property’s value, which makes it an ideal choice for those who want to take advantage of the equity in their home as well as continue paying down their debts. The only downside is that there are no fixed rates—they fluctuate with market conditions (which means they go up). However, this isn’t too much of an issue since most first-time buyers won’t be looking at them anyway—they’ll probably opt for variable rates instead.
If this sounds like something you’d be interested in learning more about, click here!
3. HSBC Student House Purchase Mortgage
HSBC Student House Purchase Mortgage is a great option for borrowers looking to borrow up to £250,000. If you’re buying a property with a value of less than £150,000, your maximum loan amount will be 90% of the purchase price. For purchases above this figure, your maximum loan amount will be 85% of the purchase price.
If you want to borrow more than 85%, but don’t have anyone willing or able to act as guarantor on your behalf when applying for this student mortgage (which is typical), HSBC will allow you to take out two mortgages at once: one for 85% and one for 10%.
4. Halifax student mortgage
The Halifax student mortgage is a great option for students looking to get a mortgage without guarantor.
It offers an interest rate of 2.29%, with a repayment term of five years, which can be extended to seven years if you choose not to pay back the loan at the end of five years. The maximum loan amount is £25,000 and there’s no upper age limit so even 50-year-olds are eligible if they’re still studying full-time. If you want to borrow more than £25k, then this might not be the right student mortgage for you but if it works within your budget then it’s worth considering as part of your overall finances.
You’ll need a good credit score (at least 600) before applying for this type of student loan as well as proof that you’re still attending university or college on an ongoing basis so make sure that any documents related to these two things are current and up-to-date before starting the application process.
These are the mortgages you could get if you’re a student in the UK.
- You must be a student to get a student loan.
- You must be at university or college and studying full-time.
- If you’re under the age of 40, you’ll need to show that you can afford this mortgage on your own income alone. This means that if you have other debts or commitments, such as a car payment or credit card bills, then these will need to be paid off before applying for the mortgage.
- You can only apply for one student mortgage at any given time (this includes fixed-rate deals), so if you’ve already been accepted for one it may not make sense to apply again until your current deal has ended.
If you’re a student in the UK, then hopefully this article has helped you out. We’ve listed five of the best student mortgages without a guarantor, and we’re sure that one of them will be perfect for you. Just remember to do your research before committing yourself to any deal!
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