Student Mortgage Scotland
- We’re whole of market Mortgage Advisers based in Central Scotland.
- We’ll use our years of experience to find the right mortgage for you.
- Clients love our speed and communication throughout the process.
Get In Touch
Student Mortgage Scotland
We talk about mortgages for students in Scotland with Carolyn.
Can students get a mortgage in Scotland? What are the requirements?
Theoretically, students can get a mortgage. It all comes down to income.
If you are perhaps studying part time or doing some form of distance learning, and you’ve got a full time salary, being a student shouldn’t prevent you from getting a mortgage. It’s subject to the usual affordability checks.
However, if you’re a full-time student and don’t have any source of income, it’s unlikely that we’ll be able to get a mortgage in your name only.
What type of student can get a mortgage and who qualifies for a student loan in Scotland?
Any student who has got enough income to justify the mortgage they need can apply for a mortgage. In terms of student loans in Scotland, it’s not my area of expertise. I believe that it’s open to most students.
But if somebody takes a student loan, that can theoretically impact their affordability for a mortgage. It’s important to take advice around that.
Do joint mortgages exist for students?
Yes, if you had two part-time students whose incomes together allowed them to reach the affordability, they can certainly apply for a joint mortgage.
There might be a couple where one is in full-time employment and one is a student and perhaps has part-time income – or even no income. It’s also possible for that to be a joint mortgage. Again, it’s worth getting advice around affordability.
Chat With An Expert
Can a student get a guarantor mortgage? Are there any other schemes available?
We have something now called Joint Borrower Sole Proprietor, which has replaced the traditional guarantor mortgage. It allows students to buy a home jointly with someone else, typically a parent, acting as a guarantor. We can use the parent’s income to meet the affordability criteria. For some people that works really well.
There are some downsides – if the parents have their own mortgage or their own property, that impacts affordability. Also, the length of the mortgage term will be dictated by the older person’s age and could mean that the mortgage would be shorter.
Joint Borrower Sole Proprietor is the main option for a student. Again, it’s worth taking advice to make sure that your circumstances fit the criteria and to understand all the implications.
Do Scottish students have to pay council tax?
Again, it’s not really my area of expertise, but my understanding is that they don’t have to pay council tax. I think it depends whether the household is entirely students – if there are any working people, they would have to pay.
It’s something that can change, so it’s worth checking with the council for the area that you’re living in.
How can I improve my chances of getting a mortgage as a student?
This is a really pertinent question, because often students are quite transient and move around a lot. If you are applying for a mortgage, lenders will want a three-year address history, and whether they can find proof that you’ve lived at an address – either the current one or previous – has an impact on whether you’ll be approved.
So it’s important to remember where you’ve lived and the relevant periods of time. It’s particularly useful to remember things like flat positions, which sometimes people forget.
If you are moving into new accommodation, make sure you register on the electoral roll for every address that you are at. Even if you’re not expecting to vote during that time, it identifies you at the address and makes it easier for the mortgage lender to find you.
What costs are involved here? Do I have to pay stamp duty in Scotland as a student?
Stamp duty is now called Land and Buildings Transaction Tax, and it applies depending on how much you pay for a property.
If you are under the threshold where it applies, whether you’re a student or not, you won’t have anything to pay. It’s a tiered system, and if you’re a First Time Buyer, at the moment there is extra relief. If you’re a student, that would apply to you, but there are no particular exemptions for students.
The rest of the costs are much the same for anybody. You’ll have your legal costs, your financial advice costs and your deposit. If any tax applies, you will have to pay that as well.
How do you apply for a mortgage as a student in Scotland? What is the process?
It’s much the same for anybody. It’s about establishing your level of affordability. It’s worth speaking to somebody like myself, who has access to a wide range of lenders and products, because you’re more likely to find something that would suit your circumstances. Finding out your affordability is probably your first job.
What else do we need to know about getting a mortgage as a student in Scotland?
For a lot of people it’s a really good option, because student accommodation can be very expensive. If you have bought a property, you’re getting some value for that expense.
Don’t assume it’s not possible. Certainly, there are more criteria around it than for a straightforward mortgage, but somebody like myself with expertise in the market can give you up to the minute advice about what’s available. We can look at how that applies to your own circumstances.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Tax treatment varies according to individual circumstances and is subject to change.
