Undergrad student mortgages. Anybody here sorted one?
Discussion
Chaps
Daughter and son each off to uni this year.
I don't fancy lining the pockets of private landlords if I can organise a student/undergrad mortgage and have them buy a small place where they can rent a room to a fellow student.
I read about these student mortgages in a 2015 article in the press - so assume they are still available.
Was thinking of combining with Help to Buy ISA and/or Help to Buy Scheme to get them on the ladder.
Anyone here done this?
I expect it is fraught with the usual risks and, yes, the mortgage rates aren't cheap (at circa 4%-5%) - but we have enough equity to act as guarantor on a place so would like to explore options and hear others' experiences.
Cheers
Daughter and son each off to uni this year.
I don't fancy lining the pockets of private landlords if I can organise a student/undergrad mortgage and have them buy a small place where they can rent a room to a fellow student.
I read about these student mortgages in a 2015 article in the press - so assume they are still available.
Was thinking of combining with Help to Buy ISA and/or Help to Buy Scheme to get them on the ladder.
Anyone here done this?
I expect it is fraught with the usual risks and, yes, the mortgage rates aren't cheap (at circa 4%-5%) - but we have enough equity to act as guarantor on a place so would like to explore options and hear others' experiences.
Cheers
Twin 1 and I tried, but a different reason.
In 2013 we had a little money sitting about and wanted a BTL flat, both working part-time, payments were tiny, LTV about 75%.
We were declined on the basis of our lives being pretty volatile, what if we wanted to study abroad, gave up work etc so I'd assume that you would have to show an income source for your kids to satisfy the lender that they can pay it, if it's only in their names. That'd be a major stumbling block for most students I know
In 2013 we had a little money sitting about and wanted a BTL flat, both working part-time, payments were tiny, LTV about 75%.
We were declined on the basis of our lives being pretty volatile, what if we wanted to study abroad, gave up work etc so I'd assume that you would have to show an income source for your kids to satisfy the lender that they can pay it, if it's only in their names. That'd be a major stumbling block for most students I know
johnfm said:
Chaps
Daughter and son each off to uni this year.
I don't fancy lining the pockets of private landlords if I can organise a student/undergrad mortgage and have them buy a small place where they can rent a room to a fellow student.
I read about these student mortgages in a 2015 article in the press - so assume they are still available.
Was thinking of combining with Help to Buy ISA and/or Help to Buy Scheme to get them on the ladder.
Anyone here done this?
I expect it is fraught with the usual risks and, yes, the mortgage rates aren't cheap (at circa 4%-5%) - but we have enough equity to act as guarantor on a place so would like to explore options and hear others' experiences.
Cheers
For reference, your equity isn't a factor when considering you as a guarantor, it's your income, as they would expect you to pay if your child can't, so having lots of equity isn't a relevant factor.Daughter and son each off to uni this year.
I don't fancy lining the pockets of private landlords if I can organise a student/undergrad mortgage and have them buy a small place where they can rent a room to a fellow student.
I read about these student mortgages in a 2015 article in the press - so assume they are still available.
Was thinking of combining with Help to Buy ISA and/or Help to Buy Scheme to get them on the ladder.
Anyone here done this?
I expect it is fraught with the usual risks and, yes, the mortgage rates aren't cheap (at circa 4%-5%) - but we have enough equity to act as guarantor on a place so would like to explore options and hear others' experiences.
Cheers
You also need to consider the impact of being a guarantor as if you need to lend, the mortgage is shown up on your credit file as a commitment, whether you are paying it or not.........
Sarnie said:
johnfm said:
Chaps
Daughter and son each off to uni this year.
I don't fancy lining the pockets of private landlords if I can organise a student/undergrad mortgage and have them buy a small place where they can rent a room to a fellow student.
I read about these student mortgages in a 2015 article in the press - so assume they are still available.
Was thinking of combining with Help to Buy ISA and/or Help to Buy Scheme to get them on the ladder.
Anyone here done this?
I expect it is fraught with the usual risks and, yes, the mortgage rates aren't cheap (at circa 4%-5%) - but we have enough equity to act as guarantor on a place so would like to explore options and hear others' experiences.
Cheers
For reference, your equity isn't a factor when considering you as a guarantor, it's your income, as they would expect you to pay if your child can't, so having lots of equity isn't a relevant factor.Daughter and son each off to uni this year.
I don't fancy lining the pockets of private landlords if I can organise a student/undergrad mortgage and have them buy a small place where they can rent a room to a fellow student.
I read about these student mortgages in a 2015 article in the press - so assume they are still available.
Was thinking of combining with Help to Buy ISA and/or Help to Buy Scheme to get them on the ladder.
Anyone here done this?
I expect it is fraught with the usual risks and, yes, the mortgage rates aren't cheap (at circa 4%-5%) - but we have enough equity to act as guarantor on a place so would like to explore options and hear others' experiences.
Cheers
You also need to consider the impact of being a guarantor as if you need to lend, the mortgage is shown up on your credit file as a commitment, whether you are paying it or not.........
I'm mainly interested to hear from anybody who has either done it or a mortgage broker who has arranged such loans.
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