Saving for University

RosieBee_2

Hi,

one option that replaced the Child Trust Fund is the Junior ISA. with competitive rates and flexible saving its worth a thought.

ruperts

CLAPTON wrote: »

a family member and young graduate, when applying for a mortgage, was assessed on their student loan payments and the amount offered was reduced


try putting numbers into nationwide's calculator and see the affects

https://portal.nationet.com/nationwide/affordability/(ufebglq111znou45nzif3255)/Results.aspx

That'll be based on the old (as in, pre-2012) system though, no? The old system where repayments make a considerably larger dent in one's disposable income in comparison to the new system which only affects you to the tune of approx £65p/m on a £30k salary, remembering also that the repayment threshold increases with inflation. I think Martin's guide is correct on this one.

atush

Well martin perhaps doens't have direct evidence of a family member being affected.

I am going with Clapton on this one.

ViolaLass

atush wrote: »

Well martin perhaps doens't have direct evidence of a family member being affected.

I am going with Clapton on this one.

Amount of money offered is not the same as possibility of getting a mortgage.

CLAPTON

ruperts wrote: »

That'll be based on the old (as in, pre-2012) system though, no? The old system where repayments make a considerably larger dent in one's disposable income in comparison to the new system which only affects you to the tune of approx £65p/m on a £30k salary, remembering also that the repayment threshold increases with inflation. I think Martin's guide is correct on this one.

well we don't know how mortgage providers will respond to the new debt levels

in the pre 2012 system the debts were relatively small and the debt fairly quickly paid off if the graduate was on a decent salary

now the debt will take many many more years to pay off and the mortgage lenders may be more cautious

but in truth I don't know nor do any of us.

MsHoarder

But the same amount of money added to a deposit (rather than removed from a student loan debt) will generally increase the total value available for buying a property. I did do the calculations on this: prior to buying our house we worked out that it was better to have a larger deposit than to pay off our student debts.

This is just trying to maximise the positive impact money has on our lives: ensure we got best value for money and kept the most amount of money possible in our pockets. Obviously it would be easier for us (as pre-top-up fee students) to choose to pay off our loans, but its just a matter of how much money is available.

If it does look as though he will be better off not having a student loan rather than having the extra money, then it is always possible to pay the loan off at that time if the money is available. Also unless he can completely avoid having a student loan at the time he is applying for a mortgage, the monthly affordability of the mortgage is impacted exactly the same if he has £10k as £40k, but having an extra £30k house deposit might make a real difference.

Desperate_Housewife_2-2

Its a nice idea to save something to help them through uni but dont feel obliged to save a fortune! The student loan will get them through uni so you could look at saving some for flexibility. We put away birthday money and a small regular amount every month, shopped around for the best rates and they have £14k each to help them through, it was only small amounts too, made the most of compounding...

Halifax do a regular saver at 6% which is a good rate.