Could I pull this off? Grad Loan-Deposit 90%

Thriftking

I am 28 years old and have been accepted on an MSc Course starting this coming October.

I have enough money stashed away to cover the tuition fees and the format of the course is such I will be able to work part time too.

I am entitled to a Post-grad loan of up to £10,000. These are interest free for the duration of the course (1 year).

Could I use this money as a deposit for a mortgage? I'd really like to get on the housing ladder and if I can secure a 90% LTV deal. This would be great.

I would negotiate the mortgage whilst still in F/T employment for security. I would look at renting a room which would be tax free under the government 'rent a room scheme'.

Is this viable or just laden with potential pifalls?

clutton_2

are there any 90% LTV's ???

Thriftking

Yes....

http://www.money.co.uk/mortgages/90-mortgages.htm

not_tonight_josephine_2

you would have to tell the lender you are about to give up work so I very much doubt they would offer you a mortgage

JQ.

not_tonight_josephine wrote: »

you would have to tell the lender you are about to give up work so I very much doubt they would offer you a mortgage

I think that's the point - he's not going to tell them. I believe that's called Mortgage Fraud.

Emmzi

if you stash the money and ue it when you are in full time employment again, yes

right now, no

pinkshoes

Firstly, they will ask you how you are funding your deposit. When you tell them via a loan, then they will not accept it as a deposit.

So in short, the answer is no!