source of deposit

jp83_2

Hi,

I am looking to buy a house in 2012 and I am currently saving for a deposit.

My question is that from September I will be a full time undergraduate student but will still work 15-20hrs per week plus holiday shifts(in a qualifed medical profession so half decent money). During this time, as well as my income from work I will be in receipt of student loans. I will be saving my work income and living off my student loans for rent etc.

Can anyone tell me if when applying for a mortgage if it will look like I have just banked my student loans as a deposit (as loans and wages will be paid into same account)... and if this will negatively affect a mortgage application?

To reiterate, I will be living from student loans (which I have to repay) and saving my wages for a deposit.

I am buying with my partner who has his own savings for a deposit and works full time.

Any advice appreciated x

Annisele

jp83 wrote: »

Can anyone tell me if when applying for a mortgage if it will look like I have just banked my student loans as a deposit

Well, yes, it will - because that will be exactly what you've done! I appreciate that the deposit will come from your wages, but if you didn't have the student loan then you'd have had to spend the wages on living. In effect the student loan has funded the deposit.

However, that's not necessarily fatal to your application. It will depend on all the usual things like LTV, your income (though they might worry that you won't be able to keep up with 20hrs per week and a full time course), your partner's income, your credit records etc.