Mortgage Choices for a Student

dagrowler

Hello!

So I was just wondering if anyone knew the best thing to do in my situation? I'm with Nationwide on a Tracker mortgage at the moment (which is lush) so my interest rate is 2.08%. I got it two years ago when i was in a stable job but I'm coming to the end of that in the next few months.

Anywhoo in September I went back to uni to become a midwife and obviously my income is basically non existant. Does anyone have an idea of how i can keep my mortgage payments lowish (I know i will never get as low as i'm on now) once this tracker expires?

Thank you!

devon123

Hi there

I did this a few years ago. Do you start your course after you want to remortgage? I remortaged in the April, quit my job in August and started my course in September. I was able to take in a lodger for the duration of my course (one academic year) which paid the mortgage with some savings I had. Is this an option for you?

dagrowler

Well I've already started the course. I defo want to try and get a lodger in (hoping some of my selfish friends will get dumped so i can have one of them, but annoyingly they're all "happy").

This is my problem... will i just have to stay with what i'm doing with the mortgage as i effectively have no income now?

devon123

As far as I know, if you stick with your current lender and they are offering you a deal then you won't have to prove your income. How long is your course? I don't think you could remortage elsewhere as they'd want proof of your income.

You can get up to £354 pcm (give or take a few pence) tax free from a lodger I think.

dagrowler

It's a 3 year course and i'm 6 months into it. Yeah i was thinking i'd stay with nationwide, to be honest i'm pretty happy to do that anyway as they've been good.

Should i take a payment holiday or will that jsut screw me up further down the line?

devon123

I'm not a financial advisor - just speaking from experience and the limited knowledge I have!

How long can you take for payment holidays? I suppose you just have to consider the interest building up. Can a lodger in as soon as poss I reckon!

dagrowler

Thanks Devon..

Another question. would it be impossible for me to move house? I'm just thinking of downsizing (I have a huge 3 bed which i really don't need).

devon123

I think that your mortgage needs to be portable to another property. They should be able to give you quick yes/no over the phone!

That would help lots though with repayments I guess! Good luck with the training.

dwsjarcmcd

Currently the best (and only option in reality) is to stay with Nationwide and within that the 'cheapest' option will be to mature onto their SVR which is currently 2.5%, probably the best in the market. This is because Nationwide gave a promise to price their SVR against BoE rates and have so far stuck by that.Regarding moving and downsizing, I doubt you'll be able to do this as effectively 'porting' is a new application form which is underwritten. If you don't have an income, you won't be able to get a mortgage.

MORPH3US

Sorry if I missed this, but regardless of you finding a good deal or not or keep mortgage payments low or not.... how are you going to pay any amount at all without a job?

Getting a lodger would be very good but if that doesn't happen then you are screwed.

dagrowler

Correct Morpheus. I am a little bit screwed. I've got a bursary from the NHS and a student loan which is meant to cover living expenses (barely). So I do have a bit of an income, its just that mortgage lenders aren't keen on counting them as a proper income.

Thanks for all the help chaps, I'm (obviously) sticking with Nationwide, going to try and see if I can swap onto a fixed rate, if not i'll stick with the SVR for a bit till i can find a rich doctor to marry and go and live in his mansion.