Mortgage as a student?

[Opara]

Hi, this is just a provisional enquiry really that's originated from some thinking out loud last night.I'm 29 and going back to uni the autumn and i'm looking at places to rent at the moment.Adding it all up by the end of my course i'll have racked up about 20k in rent.

Is it such a crazy thought to consider getting a mortgage and buying a place outright? I've managed to save around 50k up but will have no real earning outside of my student loans/grants etc.

Anyone do anything similar?

Cheers

[sinizter]

Without an income, you won't get a normal mortgage.

You may be able to get a buy to let mortgage, with a high percentage deposit. Lower percentage deposit options will only be available if you have some income.

The fact that you want to live in it might complicate it a whole lot more.

[Opara]

Thanks mate, shame really because after doing some provisional quotes the mortgage comes out cheaper than renting and that's with a 40k deposit leaving 10k for emergencies.

I'll carry on investigating.

[sinizter]

Opara said:

Thanks mate, shame really because after doing some provisional quotes the mortgage comes out cheaper than renting and that's with a 40k deposit leaving 10k for emergencies.

I'll carry on investigating.

What price range property do you envision buying ?

How many bedrooms ?

Are you going to be renting out to other students ?

All these are factors which will affect your eligibility. I'm sure someone with some real experience in finding mortgages will be along to give you an opinion shortly. My opinion is formed after hunting for mortgages and enquiring with brokers, etc.

[Sarnie]

Virtually impossible.

How are you intending to pay the rent? With your £50k savings?
If you use that as a deposit to buy a house, how will you pay the mortgage?

There are BTL lenders who do not require income but you living in the property would be the issue.....

[Opara]

My plan was to live in the property, say a place for £110000 with £40000 down.From the online quotes I did it would leave me with monthly repayment of around £350.These would be paid from my student loan/scholarship/bursary income that i'll be getting.


I did consider the BTL route and would seemingly be eligible from what i've read.The only problem is that it's alot more faffing plus without having much cash to spare I could be stuck with a scenario of no tenants and be struggling to cover the mortgage.

[Eric Mc]

Using a student loan to repay a property loan - are you Gordon Brown?

[Opara]

Seems to make sense, it has a more favourable interest interest rate and the debt is wiped out after 30 years.

[jonny70]

Put your parents on the mortgage.

[Eric Mc]

Opara said:

Seems to make sense, it has a more favourable interest interest rate and the debt is wiped out after 30 years.

I've changed my mind - YOU are Gordon Brown.

[-Pete-]

I bought my first house as a student, my parents acted as guarantors, I got a good part-time job, and as you said, the mortgage was cheaper than renting. Watch out for rising interest rates (unlikely in the next few years IMO) and all the other costs of home ownership (rates, water, elec, gas, repairs, insurance x2).

[HeatonNorris]

Eric Mc said:

Opara said:

Seems to make sense, it has a more favourable interest interest rate and the debt is wiped out after 30 years.

I've changed my mind - YOU are Gordon Brown.

But if paying a mortgage is cheaper than paying the rent, it makes lots of financial sense.

Many parents do it for their children in order to save money. It helped us when we were just starting out together, as the house we rented off her father was sold when we graduated and moved, with the profits being used to help us fund the deposit on our first flat.

[Sarnie]

HeatonNorris said:

But if paying a mortgage is cheaper than paying the rent, it makes lots of financial sense.

Many parents do it for their children in order to save money. It helped us when we were just starting out together, as the house we rented off her father was sold when we graduated and moved, with the profits being used to help us fund the deposit on our first flat.

But we're not talking about the OP's parents buying the property..........

[HeatonNorris]

Sarnie said:

But we're not talking about the OP's parents buying the property..........

Essentially the same thing, though, only he has the £40k needed for the deposit, whilst an 18 year old student needs the parents to find that.

The end result is the same - student saves money on rent, regardless of who is paying it.

I suppose it would be fraudulent to apply for a mortgage whilst you're earning, in the knowlege you were going to go to Uni in a couple of months...

[Sarnie]

HeatonNorris said:

Essentially the same thing, though, only he has the £40k needed for the deposit, whilst an 18 year old student needs the parents to find that.

The end result is the same - student saves money on rent, regardless of who is paying it.

I suppose it would be fraudulent to apply for a mortgage whilst you're earning, in the knowlege you were going to go to Uni in a couple of months...

As I said, not the same thing.

The amount of people propogating fraud on this forum is quite shocking at times.......

[BoRED S2upid]

BTL student hovel with 3/4 rooms rent out said rooms to get an income 3 x £60 per week covers the mortgage you live in the 4th jobs a good un isn't it? I don't see a problem with this your income is from the other rooms.

[Opara]

Cheers, the guarantaur would definitely be an option, i've already spoken to my mum about it.

What should be the next step? See my bank or are there independent advisors?

Thanks

[Sarnie]

Opara said:

Cheers, the guarantaur would definitely be an option, i've already spoken to my mum about it.

What should be the next step? See my bank or are there independent advisors?

Thanks

[Opara]

Sarnie said:

Is that a wave or are you raising your hand to offer some help?

[Sarnie]

Opara said:

Is that a wave or are you raising your hand to offer some help?

It's both

Drop me an email if you want to advice?