Mortgage for students

SnowyOwl_2

Hi

I am looking into going to university in October (if I can get a place confirmed in good enough time). My situation is that I live in a cheaper part of the UK, and have been lucky enough to pay my mortgage off. My house is too far from any university, so in order to do the degree I will have to move. I really want to stay on the property ladder, and expect that when I move I'd need to raise around £40k via a mortgage. I would be looking to paying this off through part-time work (MacDonald's, Argos...anything!) and I would be happy to have a lodger as well. My question is about how to approach lenders with this sort of repayment plan to offer - would lenders be willing to lend to me on this basis? Any advice would be gratefully received.

Oh and I am single and have no kids...never did find Mr Right...so it's just little old me!

Thanks.

SnowyOwl_2

Hi Student100

I went through the Mortgages and Endowments board, and yonks ago when someone had a query vaguely along the same lines they were advised to put their query into the Student board, so I followed suit.

Since it's a student specific query which is likely to have been encountered by wannabe mature students like me I thought it appropriate to go in here.

I don't mind where it goes really, if you think the other board will be better then feel free to move it over.

Thanks.

SnowyOwl.


*** Edit by Student100: At SnowyOwl's request I'm now moving this to the Mortgages and Endowments board ***

student100

Can anybody help SnowyOwl with this?

Debt_Free_Chick

If the amount you want to borrow is less than 80% of the value of the property you are buying, then you could go the "Self Certification" route. This means that you don't have to provide details of your income ... they take your word for it.

But think about this very, very carefully .... if you can't afford the repayments, you're likely to lose your house.

Can you not sell your old property and buy a new one outright, with no mortgage?

SnowyOwl_2

Thanks for your reply Debt Free Chick.

It depends on where I go to study. My favoured choice at the moment is to Uni of Sussex, unfortunately in an expensive part of the UK while I am currently in one of the cheapest. I am willing to sell my house and replace it with a one or preferably two bedroom flat (so that I can rent a room out) - but there will probably still be a shortfall hence the requirement for a mortgage. The shortfall would be anything up to £40k but probably less, possibly more around £20k in which case the monthly repayments would be comfortably met by having a lodger.

Otherwise I could upsticks to somewhere else cheap. I have two concerns however - I don't want to compromise the quality of the course I plump for. This is an enormous undertaking at 38 years and I have to get it right! The courses I am considering in Uni of Surrey satisfy my criteria for the course itself, and for professional progression afterwards.

Also, I want to go to somewhere familiar and where I will be happy even if that means I will need a bit of a mortgage. I am familiar with Brighton and know that I would be happy there. Also it is quite large and there are plenty of opportunities for part-time work, so I think it's a good bet.

Is there anything else I should know about Self Certification mortgages? Or any other options I could consider?

Debt_Free_Chick

My favoured choice at the moment is to Uni of Sussex, unfortunately in an expensive part of the UK

Brighton is probably the most expensive place in Sussex! But if you can commute there should be cheaper options. (I live in East Sussex)

Try a Google search for self certification mortgages. You willl probably have to pay a higher interest rate though.

I would really try and buy something that doesn't need a mortgage though, as you will be putting yourself under financial pressure ... in addition to studying ... mmmm .. think about it very carefully.

Good Luck