buy or carry on renting??

lkmc01

DannyboyMidlands wrote: »

In fact the OP sounds very sensible

thanks. I took the student loan partly based on mse advise http://www.moneysavingexpert.com/loans/student-loans-repay#should

evoke

It's still playing the system at best and a scam at worst. I hope the SLC are reading this thread as it's a shameful abuse of taxpayer's money.

Ordinarily you cannot take out a loan to create a deposit for a mortgage.

How can using £20K of student loan be any different when it comes to rules for mortgages?

Student loans are there for subsistence during your further education, not for buying properties with.

casper_g

evoke wrote: »

It's still playing the system at best and a scam at worst. I hope the SLC are reading this thread as it's a shameful abuse of taxpayer's money.

Ordinarily you cannot take out a loan to create a deposit for a mortgage.

How can using £20K of student loan be any different when it comes to rules for mortgages?

Student loans are there for subsistence during your further education, not for buying properties with.

Every well-off person I knew at university took out the maximum loan they could get. They either blew it on luxuries or invested it somewhere the interest would exceed inflation. They weren't scamming the system. The system was explicitly and deliberately set up so that student loans were not means tested but available to all regardless of whether they needed the money to get though the course.

The_Blue_Hatter

evoke wrote: »

It will have to be declared at some point - possibly if and when the OP actually gets a job to repay taxpayers who have lent her £20K for free. It's a nice little scam.

Dont hate the player, hate the game.

birduk

evoke wrote: »

It's still playing the system at best and a scam at worst. I hope the SLC are reading this thread as it's a shameful abuse of taxpayer's money.

Ordinarily you cannot take out a loan to create a deposit for a mortgage.

How can using £20K of student loan be any different when it comes to rules for mortgages?

Student loans are there for subsistence during your further education, not for buying properties with.

Well how about thinking slightly differently. The OP has used her student loan for living costs whilst at university and the money that she took from her boyfriend instead is the deposit. Would that make you feel better?

And back to my earlier post- I did say it counted as affordability! So yes, when it shows up on your payslip it will count against you, but the loan will not (different to a commercial loan).

Personally I didn't get a penny from my parents and am currently in SL debt to the tune of more that £10k- even though I have been paying back for quite some time. Am I bitter that someone else was able to save their loan- yes, a bit, but at the end of the day, that's the game.

must_try_harder_2

I agree that the OP could just re-word it to say that they have been using part of the student loan to live off which has enabled them to save 20k from her partners salary.

I took out the student loan each year. I also worked throughout a lot of my degree, and did long hours during the summer and christmas holidays. At the end of my degree I had 15k saved and used this towards a deposit. Who's to say whether that 15k came from my student loan or from what I earned when i was working? And does it even matter? I am paying it back with interest.

I would advise against buying though. At the moment you are eating into your savings, but what if you use all your savings to buy somewhere and something goes wrong. How do you pay for that? Owning a house involves so much more cost than just the mortgage. I cannot believe how much we've spent in the last 6 months on emergency repairs and fixing things that have broken in our house.

Maybe you could go along the route of posting a SOA or something to see if there's anywhere you can cut down on your outgoings so that you don't have to keep dipping into your savings?

thequant

lkmc01 wrote: »

Hi

Only my partner is working at the moment on 19.5 grand a year pre deductions. We have a 20 grand deposit and have been told my mortgage advisor that we could get mortgage for up to 70 grand plus our 20 grand deposit on a rate around 4%, fixed for 2-3 years paying back around £380-£400 a month.

But.... the houses we could get for 90 grand aren't in as nice as area, an ok area, but not as nice.

you need a reality check, on 19.5k earning pre-tax for a couple you are NEVER ever going to be living in a nice middle class suburban area.

!!!!!! a substantial number of households on benefits get more than this.

if your partner can only earn £19.5k pa, you need to accept your station in life.

don't mean to be harsh, but you sound like the vast majority of young couples these days who have delusions of being middle class because you have a crap degree from an ex-poly and wear a cheap suit for answering a telephone at work.

evoke

LOL. Welcome to the world of "Blair's children" where being a property magnate and a captain of industry by the time you're on full-time benefits after 'Uni' is a right and entitlement.

spadoosh

lkmc01 wrote: »

thanks. I took the student loan partly based on mse advise http://www.moneysavingexpert.com/loans/student-loans-repay#should

I concur, op genious. The student loan is available to all students. Better spent on a deposit for a house than literally p***ed up the wall, like 85% of most students are doing.

Not only that its the cheapest possible finance options and for a young couple trying to get a house 5k isnt easy to find whilst renting nevermind 20k!!

People should stop slating them. Looking at the op they are very very bright and will soon be earning way above the 15k threshold which she will start paying it back.

Well done op. hope something works out for you and you get your house.. Good luck!

evoke

Erm...the OP hasn't actually got a job. I assume she's on benefits currently. And trying to buy a property.