Got my career development Loan - Now What??

Gareth83

I've just bagged my CDL with Barclays for £7840.

What's next? Just whack it in my Kaupthing/ING account?

Any other suggestions?

Would it be wise to use £5000 as a deposit for a house then I have £9k in savings and roughly £3k of the above loan to pay for rent and improvements on the house?

I have a job lined up next July for £24k a year so this could be a viable option?

I see this as a better option than paying rent for the next year. What do people think with teh current situation of the housing market? Good time to grab a bargain?

Thanks in advance

Gareth

lil_miss_sunshine

How did you get that? I thought they were for courses and stuff like that..

Gareth83

Not sure what you mean?

This is a CDL aimed to cover up to 80% of the fee costs and rent/living expenses. It doesn't take into account your income only expenditure so I asked for the full amount.

So it will be used for my uni fees and rent/living costs....

My question is rather than rent can I use it as a deposit? Although I suppose I need a guarantor??

justsayyes

If you use the money for a deposit, how are you proposing to pay your course fees and live? This is a loan specifically for completing a course of study - it's not a cash gift.

Gareth83

Like I have said, the loan doesn't take into account any income or savings.

I have a part time job paying £10.80 an hour whereby I can work 2-3 x 12hr shifts a week, then there's my savings......

At the end of the year I'd get a 0% loan as ML suggests and transfer the amount over etc.

So is this a viable option?

CLAPTON

Gareth83 wrote: »

I've just bagged my CDL with Barclays for £7840.

What's next? Just whack it in my Kaupthing/ING account?

Any other suggestions?

Would it be wise to use £5000 as a deposit for a house then I have £9k in savings and roughly £3k of the above loan to pay for rent and improvements on the house?

I have a job lined up next July for £24k a year so this could be a viable option?

I see this as a better option than paying rent for the next year. What do people think with teh current situation of the housing market? Good time to grab a bargain?

Thanks in advance

Gareth

Normally CDLs are given to graduates. One would have expected better.

Gareth83

CLAPTON wrote: »

Normally CDLs are given to graduates. One would have expected better.

Why bother posting if nothing constructive to say?

Gareth83

any constructive input for this?

CLAPTON

OK

summarising the situation then its like this

you are a new graduate and just starting a Graduate Course

you have just got a CDL of 7840 (and a CDL is a loan that is both payment free and interest free for the first year.. you need to say this as I would guess 99.99% of the population wouldn't know that)

you have in total 9,000 in savings including the CDL

you have a income of XXX per month
(yes I can do the maths of your income but I guess so can you and I don't know how many shifts you do on average per month)

so the problem is what to do with the money
-save
-or buy a property

Now some more info would be useful

-what is a realistic price for a property where you live
-confirm that your parents are willing and able to guarantor a mortage for yyy (that means they can afford to pay the mortgage if you can't
-what do you estimate the mortgage monthly repayments would be


also you could explain why, as you have 9k in saving, only 5k go for a deposit while 3k go on rent and property improvements (why rent ? when you're buying?) and what happens to the other £1k.

Now maybe people could make some sensible comments.

Also I don't understand your reference to 0% loan at the end of the year.. do you mean a 0% BT or 0% Overdraft or what.

Oh.. and my other post was meant to inspire you to review your previous posting but....

Gareth83

CLAPTON wrote: »

summarising the situation then its like this

you are a new graduate and just starting a Graduate Course

I graduated 2yrs ago, but for the purpose of the discussion that is a fair summary

you have just got a CDL of 7840 (and a CDL is a loan that is both payment free and interest free for the first year.. you need to say this as I would guess 99.99% of the population wouldn't know that)

you have in total 9,000 in savings including the CDL

no, as per my initial post I have the CDL 'and' £9k of savings. So essentially I have ~£17k to play with

you have a income of XXX per month
(yes I can do the maths of your income but I guess so can you and I don't know how many shifts you do on average per month)

On average, about £800 a month although for 4 weeks over Christmas I will be earning roughly £500 a week.

so the problem is what to do with the money
-save
-or buy a property

Essentially yes

Now some more info would be useful

-what is a realistic price for a property where you live
-confirm that your parents are willing and able to guarantor a mortage for yyy (that means they can afford to pay the mortgage if you can't
-what do you estimate the mortgage monthly repayments would be

-£100,000 would be a realistic price
-they would yes
-I'm not sure on the mortgage repayments, this was just an initial suggestion with the market the way it is. Would it be best to get just interest only for example?


also you could explain why, as you have 9k in saving, only 5k go for a deposit while 3k go on rent and property improvements (why rent ? when you're buying?) and what happens to the other £1k.

As mentioned your figures have been miscalculated/misinterpreted. £5k from the CDL would/could be used as the deposit. £9k + £3k of the CDL would then be used to pay for the mortgage/improvements. (I did wrongly say rent in my first post). Plus my monthly income....

Now maybe people could make some sensible comments.

Also I don't understand your reference to 0% loan at the end of the year.. do you mean a 0% BT or 0% Overdraft or what.

Sorry I meant once the 0% interest free period is over transfer it to a cheapest unsecured loan, or perhaps a 0% CC?

Oh.. and my other post was meant to inspire you to review your previous posting but....

I have been inspired, thanks for your response

CLAPTON

just some thoughts

-we can all only guess but I would see the housing market failing further and a sudden upturn is unlikely so I wouldn't see a rush to buy

-how safe is the job (well done on having something sorted)? Given the economic downturn is there any possibility of the job offer being withdrawn ?

-I wouldn't rely on a 0% BT CC to repay the CDL as they are quite hard to get and often don't have a very high credit limit.

If you do want to pursue the house purchase option
then I would suggest you visit a mortgage broker and get their views and maybe consider whether a 10% deposit might improve the options

And of course consider whether you could sublet a room.. presumably you are in a Uni town.

best of luck whatever you decide