mortgage with a student loan?

Bufger

pixie79 wrote: »

Also, I've worked out on estimated bills and spending I would have between £200 - £300 a month left after all my bills and an estimated £400 p/m mortgage.
Thats based on a £75k property with 10% deposit, over 25 yrs on a 5% interest rate.

After NI, tax, pension and student loan, I have around £12000 net pay a month

Dont just base it on current rate (and you should be basing it on the best rate available with a 10% deposit which is currently 5.99%) but also base it on higher rates to see whether you can still afford it. You dont want to overstretch yourself. If you think your job is safe and you will be on more money in the future then you should go for a long term fixed mortgage.

Heres what i would do if i were you. Save up so you have a 15% depost + a couple of thousand extra for any unseen costs you may not have expected. Make sure your parents are aware of the fees up front if they're willing to pay them. They may just say that but might not realise you could be talking £3,000 in fees (as an average!). Go for a 5 year fixed rate mortgage with your 15% deposit (thats an 85% LTV in bank language). You will find more banks will be willing to take you on.

Keep your credit score good and you'll be in a good position to proceed. if you can sort that out by the end of next year you should be in a great position, house prices arent likely to rise that drastically and lenders should be lending a bit more by then too.