Student Mortgages

chatty123

advice on mortgages please...
my son is desperate to buy his own property but he is still a student but due to graduate this summer. his older brother says he will help him by going 50/50 on the mortgage. he is already a houseowner and has a mortgage himself for £47,000 but says it will help his brother but will also be an investment, and when his brother graduates he can buy him out if he wishes.
But can students get mortgages?
he would be looking to borrow about £50,000 and does have a weekend job that earns him between £350 and £600 per month depending on his bonuses.

Alan_M_2

Has he already got a job lined up when he leaves education?

chatty123

no. but as he will have a degree in engineering he has a few options to follow at thre moment

maninthestreet

How much does he already owe for his student loans??

chatty123

as of today about £4000 and this figure will not rise above £5000 by the end of his graduation. he has £1000 in savings..

Acc72

As he is in his final year I would concentrate on passing my finals and worry about buying a house after I have graduated and found a job.

What if he buys a house now in Manchester and then gets a job in Glasgow in 6 months ??

I wouldn't have thought he would be able to get a mortgage anyway (maybe self-cert at a higher rate of interest ?) - unless somebody was willing to be a guarantor.

Why is he desperate to buy his own property ? - there are other things to worry about first (exams, finding a job, student loans etc.).

If I was in his position I would probably continue to rent until I was more settled and hopefully earning more money in a few years. If he lives in a shared house he could possibly save up to £400 per month compared to buying (plus have no repairs costs or buiyng costs etc) to put down as a deposit as a house in the future.

Also, if he buys a house with his brother then he is also rushing to buy half a property !!

chatty123

also may i add that he doesn't live in student accomodation he commutes daily from home

Jim_B_3

AYe. For crying out loud, buy him some drugs and send him to a foreign beach for a month.

n.b. having a bag of skunk and going to Thailand really really don't mix, kids.

UK007BullDog

No he cannot get a mortgage until he is in full time work.

Unless his brother and you are going to be guarantors and are going to pay the mortgage and all the fees and stamp duty if any. The lender will see if both of you (or just the brother) would be able to support the mortgage completely on their own.

I too think it is too early for him. He needs to get a job and settle in first of all. Once he has a good salary after six months with the brothers help it is much more likely to be able to buy something.

talksalot81

I have heard of several students getting mortgages based on postgraduate grants... but I have never heard of an undergrad who has no fixed income. It sounds a bit mad to me. Firstly he would be mad because he has no real idea what his situation will be in a year and secondly the lender would be mad for exactly the same reason... however the second point may well be moot because anyone can get money these days!