Using student loan as deposit for house?

robpw2

CLAPTON wrote: »

tell me honestly

do you use your ISA allowance just because you can
you do use the health service just because you can
do your use free schooling for your children just because you can
did you accept child allowance just because you can
do use your cgt allowance just because you can

and so on and on

do I agree with all these things?
then no I don't but it's not unreasonable to live within the law as there are other things I think people should be able to claim but that aren't allowed and one accepts that.

one of the benefits and drawbacks of a democracy

I don't have the luxry of being able to afford to save money in an isa
yes i use health service but i couldnt afford to go private and thats what the nhs is for .. people who are sick not for people who just want to store medicines away for future events.
i dont use free schooling et cause i don't have children
whats cgt?

as i say i am a student who needs his loan money other wise i couldnt afford to study

robpw2

Fang wrote: »

6k at least? What planet do you live on?

i have £3200 to pay my tuition fees
last year i got £2200 each term not excluding the tuition fees loan which get paid to the uni that works out at £6600 which is at least 6k

CLAPTON

robpw2 wrote: »

I don't have the luxry of being able to afford to save money in an isa
yes i use health service but i couldnt afford to go private and thats what the nhs is for .. people who are sick not for people who just want to store medicines away for future events.
i dont use free schooling et cause i don't have children
whats cgt?

as i say i am a student who needs his loan money other wise i couldnt afford to study

Ok; you're a student so presumably have some power of analytical thought

apply the questions to the general population and general situations; so do you think you may do so in future or do you think your parents have done so or do you think such activity is reasonable, normal and justified?

robpw2

CLAPTON wrote: »

Ok; you're a student so presumably have some power of analytical thought

apply the questions to the general population and general situations; so do you think you may do so in future or do you think your parents have done so or do you think such activity is reasonable, normal and justified?

when i graduate and become a lawyer then yes i may save my own money that i earnt in an isa not stuff that was given to me on the basis of helping me throught a difficult time

if i ever decide to have children (which i doubt i will because im gay) then i would hopefully be able to provide for them and i wouldnt have them if i couldn't afford to being gay i guess i have the luxry of never having a "mistake" and can choose when i want to or not have kids
i was bought up to belive if you want something you work hard to get it and that hard work brings rewards

marywooyeah

OP I think you sound like a very clever and determined individual striving to make a better life for you and your son against the odds, you should be proud.
I too have a young son and have just completed the first year of my LLB, and I have been saving my student money for a deposit too lmao!
I think people maybe dont understand the student money clearly on here
I get the tuition fee, and around £3300 as a loan, so each year I have to pay back just under £7000. £7000 x 3 = £21000.
In addition to this, I recieve a maintenance GRANT - non repayable - of £2765, and parents learning allowance of £1508, and a bursary of £1340, all non repayable, so each year I recieve £5613 non repayable each year.
I work 16 hrs and bring home £400 each month, enough to cover the bills and leave me around £80 towards nappies food etc, so I have been able to save around £3500 of my student money this year alone, and I too am putting this as a lump sum in a savings account towards a mortgage.
my aim is after I qualify and am earning a good wage is to then apply for a mortgage and get us a nice house, nice garden etc using my wage to qualify for the mortgage and the student money as the deposit.
It is doable and much more sensible than blowing it on crap, and who would refuse so much free money that they are legally entitled to?
I think everyone should stop slating the op and start praising her, I challenge anyone to find a 20yr old with that level of integrity.

meds12_2

Go for it. That's exactly what I did during my PGCE - took out full loans and grants despite being given a £9000 bursary for training to be a science teacher, as well as working in the holidays. I saved the bursary in high interest ISA's which meant (with other savings) we had a sizeable deposit when we came to buy last year.

Basically the financial crisis has meant that to get onto the housing ladder you really need at least 10% (we had to put down 15%), and without that money that I saved during my PGCE, we would still be living in rented accomodation. We love our house, and I don't mind paying off student loans for a little longer in order to live here - our mortgage application (Nationwide) definitely did not ask where our deposit came from, and did not take the overall balance of student loan debt into account.

If other students are criticizing you for saving your grants and loans because you are working WHILE you study and WHILE you are a full-time Mum, then I suggest they get full-time jobs around their course hours so they can nobly refuse their loans too.

jockosjungle

Mortgage companies don't seem massively bothered about student loans, as they are paid out of wages they just look at your take home pay.

I see no problem with using money you save from a student loan as a deposit, alternately you could save money from your wages and spend the student loan - it's really just how you describe it.

As someone who borrowed £10k though (and had to) I will give you this warning. Your university, etc. will say to you not to worry about the student loan, etc. you only pay it off whjen you earn so much, etc.

I used to earn about £16k, this paid off a nominal sum from my student loan each year (about £110), however its like a credit card debt where you pay off the minimum each month, whilst paying this sum off, I was adding about £600 a year to the debt. It stands at about £13k now and I now have a better job paying twice what I earned before £30k. Now I pay off about £1200 a year, even at this decent wage it'll take me ten years to pay it off if it acrued no more interest, which it won't so I'll be paying it off for at least 15 years.

If you don't earn as much as I do which I imagine is a lot of graduates nowadays (bare in mind I graduated 8 years ago) then it'll take longer to pay off, especially as they're giving larger loans now.

Not sure what you're studying, hopefully something that'll add value to your wages, but if you intend to earn £20k or so chances are you'll be paying off the student loan your entire life, taking 9% of wages above £15k.

I;m not saying you shouldn't do it, but just think about whether you need to take out the loan at all, it may seem an excellent idea now but you will be paying for it your entire life (especially with a bit of saving you could probably muster a deposit in a year)

R

Oldernotwiser

_Andy_ wrote: »

it would need to be declared on the mortgage application

I've never declared where my savings come from!

Oldernotwiser

jockosjungle wrote: »

Mortgage companies don't seem massively bothered about student loans, as they are paid out of wages they just look at your take home pay.

I see no problem with using money you save from a student loan as a deposit, alternately you could save money from your wages and spend the student loan - it's really just how you describe it.

As someone who borrowed £10k though (and had to) I will give you this warning. Your university, etc. will say to you not to worry about the student loan, etc. you only pay it off whjen you earn so much, etc.

I used to earn about £16k, this paid off a nominal sum from my student loan each year (about £110), however its like a credit card debt where you pay off the minimum each month, whilst paying this sum off, I was adding about £600 a year to the debt. It stands at about £13k now and I now have a better job paying twice what I earned before £30k. Now I pay off about £1200 a year, even at this decent wage it'll take me ten years to pay it off if it acrued no more interest, which it won't so I'll be paying it off for at least 15 years.

If you don't earn as much as I do which I imagine is a lot of graduates nowadays (bare in mind I graduated 8 years ago) then it'll take longer to pay off, especially as they're giving larger loans now.

Not sure what you're studying, hopefully something that'll add value to your wages, but if you intend to earn £20k or so chances are you'll be paying off the student loan your entire life, taking 9% of wages above £15k.

I;m not saying you shouldn't do it, but just think about whether you need to take out the loan at all, it may seem an excellent idea now but you will be paying for it your entire life (especially with a bit of saving you could probably muster a deposit in a year)

R

People are much better to look at Student Loan repayments as a graduate tax, rather than loan repayments.

Baileys_Babe

robpw2, would you be happier if OP stopped working & earning and used student loan to pay for everything? If yes, robpw2 you might feel better if you thought OP was investing their wages.

As I said previously fallen_angel09, saving for a deposit is a good idea.