Lockhart Grey Financial Planning Ltd

It is estimated that going to university may cost between £8,000 – £10,000 per annum between tuition fees, accommodation and general living expenses which all contribute to typical University costs.  So this makes for a very expensive time for parents as they finance their children’s education.

One area that could save costs and even make money would be for the student to take out a student mortgage. Taking out a student mortgage is becoming more and more popular with student and parents alike. This can either be in the students own name with the parent acting as a guarantor or it can be in joint names between the parents and student.

This enables you to live in a property of your own choice whilst not paying rent to a landlord.  You are effectively paying your rent into an asset that will hopefully rise in value.  So there is the possibility of a capital return.

Please note that increases in house prices are not guaranteed and there are tax implications for any income you receive or capital gain you make.  You are advised to take the appropriate advice in this area

It may be possible to obtain a guarantor student mortgage if you have parents willing to be that guarantor for the mortgage.  it should be possible to obtain a student mortgage of up to 90% of the property value.  However this will generally be determined by the financial standing of the parents.  This will determine the maximum loan to value will be and how much can be borrowed. Lenders will be looking at the parents income and employment status, existing credit commitments, existing mortgage and equity amongst other things.

At Lockhart Grey Financial Planning, we will help source the mortgage that best suits your own individual circumstances.  If you require we can also arrange the legal/conveyancing service for you and arrange any surveys required to be carried out.

Typically student mortgages may have to provide a minimum10% deposit for the purchase of their property. If you are looking for a bad credit student mortgage or a poor credit student mortgage then we are able to source a lender and product that will suit your adverse student mortgage needs. Your mortgage finance will depend on your and your parents own financial situation

As stated, buying your first house, getting a student mortgage or moving home can be a very daunting experience.

With Lockhart Grey Financial Planning’s Mortgage Service it’s never been easier to own your home and get a student mortgage. We can guide you through the process explaining exactly what happens at each stage and in a language you understand. We can help you in dealing with an estate agent, provide an experienced solicitor and will help you through every step to completion via our experienced processing team.

Please fill in our quick enquiry form, or call us for a free, no obligation consultation. You may also find our mortgages glossary useful to explain some of these terms.

Remember it is in lenders’ interest to provide you with a mortgage, as long as they do not feel you are stretching yourself.  They want your business.  A mortgage is generally a lower risk to them, compared to a personal loan, or a credit card, as they always have the house to “secure” the loan against if you are unable to make your payments.