Using student loan as deposit for house?

dizzyblonde82

fallen_angel09 wrote: »

So what, people get given council houses and there situation changes, they do not get thrown out, or asked to leave just because they can afford housing elsewhere.

Most people in housing association properties will be on a life tenancy so unless you get in arrears, cause trouble etc the house is yours as long as you want to live there.

CLAPTON

robpw2 wrote: »

As a student I know that studnet loan money equates to 6k at least very year and for most of us its very tough
i have nothing against her saving money or trying to provide a better life for her child or what she did before , she came on here asking a question wether or not she should save her student loan money because she could afford to not take it yet at the same time claims she cannot afford rents of £500 well her studnet loan money would pay for a privately rented house quite easily , she obviously now no longer has a need for a council house . Thefore i feel it is relevant her living situation considering she is asking if she should use the money to save for a deposit for a house ,

well, the opportunities are as they are.

people who dont need child allowance are given it; few if any refuse it

people who don't need it, are offered free state schooling; many accept it

people are offered free health assistance and many take advantage of it

any one over 60 get free bus passes and free swimming, even millionaires

and so on

maybe the law is wrong; well lets change, it don't don't un-reasonably criticise those that accept what is offered

opinions4u

fallen_angel09 wrote: »

Lovely, thanks for that information.

Would you not suggest using the student loan as deposit then? If not why not? Just trying to figure out what way to do things...

I am very cautious about debt. I spent 20 years working in bank/building society branches (including an extended period as a mortgage underwriter) and have seen the positive and negative outcomes that borrowing money can bring people.

Those who have genuinely saved for a house deposit rarely got in to financial difficulties. Those who borrowed (either commercially or from family) tended to have a higher propensity to struggle with their finances and are, statistically, more likely to end up with a repossesion problem.

You do sound like a very level headed individual and I'm sure that whatever decision you take on this one will be properly thought through with consideration given to the risks of maintaining higher debts balanced against the desire to own a home.

In the short - medium term you do, I suppose, have the option of taking the loan, saving it somewhere (index linked NS&I makes a lot of sense) and then reviewing your options at some point in the future - to buy, to repay student loan or a plan (c) that may have materialised!

I'm still trying to balance my cautious approach against the post by Clapton, someone who's postings invariably make a lot of sense.

At present I don't think I'm being overcautious with what I've stated. But I'll sleep on it!

robpw2

CLAPTON wrote: »

well, the opportunities are as they are.

people who dont need child allowance are given it; few if any refuse it

people who don't need it, are offered free state schooling; many accept it

people are offered free health assistance and many take advantage of it

any one over 60 get free bus passes and free swimming, even millionaires

and so on

maybe the law is wrong; well lets change, it don't don't un-reasonably criticise those that accept what is offered

so what about those who claim benefits just because they can - i guess you would find that wrong but under your reasoning they are doing nothing wrong !!

newdawn_2

Fallen angel.....exactly what we are planning to do. Student loans are the lowest form of borrowing and repayment. I plan to use my loan to cover the lost of H.B, additional childcare costs and petrol cost. If we can save the rest we may be in a much better financial position one day.

You have received a lot of critiscm of this thread from people who clearly have no idea about social housing.

What a fantastic example you are setting for you son-well done!

newdawn_2

robpw2 wrote: »

so what about those who claim benefits just because they can - i guess you would find that wrong but under your reasoning they are doing nothing wrong !!

If they are claiming it legally whats the problem?

The millionaires can claim child benefit because it isnt illegal.........maybe the government should change it but doesnt mean they shouldnt claim it til they do.

newdawn_2

Why should OP give up her social housing home? You can work full time and still be in social housing! At least it ensures a good mix of tenants so not everyone is at home all day living on benefits.......Income has nothing to do with social housing.

Pros: Cheaper rent, security of tenure, able to make your house a home without fear of your landlord evicting you
Cons: Neighbours can be a nightmare, higher levels of noise and sometimes crime....there are good and bad social housing.

robpw2

newdawn wrote: »

If they are claiming it legally whats the problem?

The millionaires can claim child benefit because it isnt illegal.........maybe the government should change it but doesnt mean they shouldnt claim it til they do.

but this is why this country is in a mess because people think its there why shouldn't i take it /claim it .. Mps expenses they didn't do anything illegal they just claimed it because they could and no-one stopped them

what your suggesting is this person shows their child that just becuase its there you should have it ! We cannot afford to continue on down this road everyone blames the government but its people like this that cause the problems

if everyone who didnt need a student loand didnt claim it then there would be more money to help those who are in difficulties ,

and as for benefit claiments there are o people who are claiming not illegaly)but just because they cannot be bothered getting a job its because its there

robpw2

newdawn wrote: »

Why should OP give up her social housing home? You can work full time and still be in social housing! At least it ensures a good mix of tenants so not everyone is at home all day living on benefits.......Income has nothing to do with social housing.

Pros: Cheaper rent, security of tenure, able to make your house a home without fear of your landlord evicting you
Cons: Neighbours can be a nightmare, higher levels of noise and sometimes crime....there are good and bad social housing.

because there isnt enough social housing for people who need it, they have waiting list in some areas of 5 years,

Oldernotwiser

_Andy_ wrote: »

No mortgage lender will accept a student loan as a suitable source of deposit.

How would they know?