Am I able to get a mortgage as a student and will it effect anything?

Sian19

I have recently inherited £50k from the sale of my dads mums property. This money was not written as mine in her will but officially my dad has inherited £300k and is giving 50,000 each to me and my sister (have not yet got this money).

I am currently living at home still, but my mums mum (my other nan) is selling her property to move in to something smaller. She has owned this home since before I was born and it is where I grew up and I feel very emotionally attached to it. As well as this, its a very nice home.

I am a 19 year old student and have a child, although fully intend to work full time when I have finished university. The only benefits I get are child tax credits and the regular child benefit, I get no benefits that aren't related to my child. My main income is student finance (of which I get the higher amount due to have a child, and I am classed as an independent student so parent's income is not taken in to consideration) I get just under £15,000 a year (combining student finance and benefits) However a portion of this goes on travel to uni, books etc.

I have used an online mortgage calculator and if I put down a 50k deposit for the value that they are selling their home I would be looking at monthly repayments of £312 as a first time buyer, which I could afford as if I was renting my own property that is how much I would have to pay myself anyway (the rest would be topped up by housing benefit)

My question is, would any companies be willing to give me a mortgage if I am a student? Obviously my income is only guaranteed for 3 years (when I finish uni and won't be getting student finance) but I intend to secure a training contract which will mean an income in excess of what I am getting now.

I know this is probably unrelated too, but when I receive this money off my father (and if I was to purchase a property rather than keep the money in savings) will it effect my child tax credits at all?

HappyMJ

Sian19 wrote: »

I have recently inherited £50k from the sale of my dads mums property. This money was not written as mine in her will but officially my dad has inherited £300k and is giving 50,000 each to me and my sister (have not yet got this money).

I am currently living at home still, but my mums mum (my other nan) is selling her property to move in to something smaller. She has owned this home since before I was born and it is where I grew up and I feel very emotionally attached to it. As well as this, its a very nice home.

I am a 19 year old student and have a child, although fully intend to work full time when I have finished university. The only benefits I get are child tax credits and the regular child benefit, I get no benefits that aren't related to my child. My main income is student finance (of which I get the higher amount due to have a child, and I am classed as an independent student so parent's income is not taken in to consideration) I get just under £15,000 a year (combining student finance and benefits) However a portion of this goes on travel to uni, books etc.

I have used an online mortgage calculator and if I put down a 50k deposit for the value that they are selling their home I would be looking at monthly repayments of £312 as a first time buyer, which I could afford as if I was renting my own property that is how much I would have to pay myself anyway (the rest would be topped up by housing benefit)

My question is, would any companies be willing to give me a mortgage if I am a student? Obviously my income is only guaranteed for 3 years (when I finish uni and won't be getting student finance) but I intend to secure a training contract which will mean an income in excess of what I am getting now.

I know this is probably unrelated too, but when I receive this money off my father (and if I was to purchase a property rather than keep the money in savings) will it effect my child tax credits at all?

It's possible...are you single? You didn't mention that bit. Child maintenance if you get any can also be taken into account when calculating your affordability for a mortgage.

You won't get housing benefit as you will have too much capital.

The money you have won't affect child tax credits as capital does not count but it will affect universal credit of which you'll get nothing. If you buy a house to live in then the equity you have in that house will not count and you can get universal credits. However, you need a mortgage to pay for the rest of the house and that's going to be difficult. Could your father buy a share of this new house and be on the mortgage with you? You could then use his income to secure a mortgage...you would in reality contribute the deposit and make the payments yourself and if one day you can't your father will be required to and it should be OK. Problem is he might have to live in the property to count as a owner occupier mortgage.

Mojisola

Sian19 wrote: »

I have recently inherited £50k from the sale of my dads mums property. This money was not written as mine in her will but officially my dad has inherited £300k and is giving 50,000 each to me and my sister (have not yet got this money).

Your Dad should check about a possible inheritance tax liability on his own estate - it might be better to do a deed of variation of the will and have the money go directly to you.

I am currently living at home still, but my mums mum (my other nan) is selling her property to move in to something smaller. She has owned this home since before I was born and it is where I grew up and I feel very emotionally attached to it. As well as this, its a very nice home.

Would your father be willing to loan you the difference in price? Have an official agreement drawn up and stick to the repayment terms just as if you had a mortgage.