Student buying a house.

solitaryromeo

Hello there,

I am new to this forum so please bare with me as I try to explain my situation. Any help I receive will be very much appreciated.

I am a single child and live with my parents and will be graduating from Uni in 2012.

The house next door has gone on sale and I have always been waiting for this opportunity as I want to move out after marriage but live close to my parents as they are elderly.

My parents are disabled and receive benefits so there is no income in the house apart from that.
My parents current home is worth around 90k and has about £30,000 left on mortgage for 17 years more.


My question is: Can i buy this house as a student? If we can pay the 20% advance, will the bank give us a loan even if i havent finished my studies yet, and do not have a job? Can I convince the bank that I will maintain the payments (student loan, part time job etc)

My parents are willing to put their current house as security for the new house for me. so the bank can be rest assured? But I am worried that the new house may become an Asset on their name, which will result in effecting their benefits.


Please help as the landlord next door may sell the property if we delay.


Many Thanks in advance, any questions I will be willing to answer.

BitterAndTwisted

You have no income and your parents are totally reliant on benefits. There isn't a cat's chance in hell that you'll get a mortgage. Even if your folks do have £60k-worth of equity only a person of questionable morals would allow them to put that at risk. Graduate. Get a job. And save, save save up your own deposit.

G_M

To get a mortgage you need several things:

* some cash/savings. At least 10% of the value of the property
* an income. Guaranteed. ie a permenant, full time job with a contract
* a good credit history - no bankrupcy, county court judgements etc

You say you have "20% advance" so you (may) have 2 of these, but you need all 3.

The same is true for your parents if they wanted to increase their existing mortgage to lend/give you the money: they too would need all 3 and it sounds as if they do not have the income.

Sorry.

Sharon87

I know one student who bought a house with mortgage, that's because her fiance was working full time and she was working part time. Had enough savings and income with no adverse credit history. This put a bit more pressure on her with her job as she wanted to do as many hours as she could get and still study. She still passed, but not with the best results.

If you want to buy a house, wait until you've got a full time job, because even if you get accepted (highly unlikely though) it will put more pressure on you to get money as oppose to your studies.

Running_Horse

Enjoy being a student, and save home ownership and other cares of life until you are older.

It's not as if prices are expected to rocket any time soon.

motherofstudents

I think it's very admirable that you want to live near your parents but as others have said, the practicalities are just not on your side. When you have finished your studies and you are earning, things will be different. Save as much as you can and although the house you want now will almost certainly have gone (but maybe not!) other options may open up. Hope it all works out for you and good luck with your studies.

daisiegg

My partner and I both have full time, permanent, well-paid (ish, in my case!) jobs. We had a deposit and good credit histories.

Still it was a nightmare trying to get a mortgage.

I'm sorry, but as others have said, you'll have no chance. Best to enjoy being a student while you can! Good luck.