Student Mortgage

kaybees

Hello

Me and my husband have been looking a flat to rent for the coming acedemic year and up in newcastle its approx £450 for a 1-2 bedroom flat. Calculated over the next 4 years that adds up to ~ £20,000:eek:

We were thinking about it and surely it would be better to put towards paying off a morgage....
We had a quick look on rightmove and in the surrounding areas of newcastle (west newc and gateshead) a 1-2 bedroom house or flat would be about £60k.
We have a £7k (ish) lump sum to use a deposit (is a 10% deposit the norm??) and my hubby's parents would be able to guarentee the mortgage.

We can use the money that we would on rent (could prob go to £500) on repayments (is this a okish amount to spend on mortgage? I realise I don't much about this subject)

The down side is that we're both young (20 and 21) and still have 3-4 years of uni to go with an anual income of just over £10,000. We don't have to pay council tax though and the inlaws pay for out internet/tv license.

Also we don't have any credit cards and only have student loans so I'm not sure what are credit ratings are like!

On the upside we're both doing courses (Maths and Medicine) with an extremely high employment rate so we'll hopefully be able to carry on the repayments after graduation (providing we don't get ill etc).

Anyway, does anyone think we'd be able to get a mortgage or is it a pipe dream. I understand no advice is professional but any ideas, similar stories would be great!

Thanks in advance

jennifernn

I think you could get a guarantor mortgage. If you have parents who could guarantee the mortgage that could be the best an option. Our daughter (now in her 3rd year of 5 ) has a flat which we purchased in her name with us guaranteeing the loan. The amount you can borrow goes on the income of the guarantor. As we had a very small mortgage ourselves she was able to borrow £ 113000, we pay the mortgage, but it seems you can take care of payments yourselves, so your guarantor should have no worries. It will certainly be a better proposition than renting. Our daughter rents out a room and that now covers about half the monthly payment. Just make sure you do ALL the sums first!!
Our daughter's mortgage is with the Halifax. Not everyone does guarantor mortgages.

herbiesjp

Indeed, I think the guarantor option may be viable for you should your parents be in a suitable financial position.

I would have a word with a whole of market adviser, as well as a good soliciotr in order to make sure that the mortgage is set up in such a way as to not incur the guarantor fees when they come to be taken off the mortgage and deeds.

HTH

Robert_Sterling

kaybees wrote:

Hello
We have a £7 (ish) lump sum to use a deposit (is a 10% deposit the norm??) and my hubby's parents would be able to guarentee the mortgage.

I do not think a lump sum of £7 will go far. Other than that I think you shoul be OK.

HGLTsuperstar

7K (10%) deposit is very good, most people go for just 5% but the more the better. However you may want to put some if towards furniture etc, and dont forget moving costs, solicitors fees