Low income / mature student mortgage

Bee-tee-71

Hi
I am a full time mature student and need to buy a house, but am struggling to find a lender.
I have a considerable lump in equity from selling my house and need a mortgage of around £25k but due to having income of less than £15k a year I'm struggling to even talk to someone.
I don't really want to rent until I finish my course as this I see as dead money & don't seem to fit into the shared ownership criteria ( I don't really like the idea of this anyway). Can anyone help...

Pixie5740

Have you contacted any independent mortgage brokers?

Once you finish studying are you going to remain living in the same area? Rent isn't dead money, it pays for the roof over your head.

vqmismatch

If you are too dodgy for the banks to touch never fear, peer to peer lending is here for you!

ACG

I agree, speak to a broker. You may find there are options.

Fonque

I'm in a similar boat. I've got a very large deposit and would need a similar sized mortgage and I have an income less than 15,000. I agree with the other posters in going to see a mortgage broker. The person I dealt with helped me to calculate affordability, showed me potential mortgages available along with associated costs.

Also I think it pays to be aware the different lenders have different criteria, so some may be more amenable than others when lending to you. In my personal circumstance one of the larger well known lenders were quite strict on thier criteria and would not have extended me a mortgage but there were others who would consider doing so.

theartfullodger

vqmismatch wrote: »

If you are too dodgy for the banks to touch never fear, peer to peer lending is here for you!

Indeed:

Try Zopa,

agrinnall

AFF8879 wrote: »

Not sure the problem is your income, I think it's the size of the loan. Most mortgage providers have a minimum loan amount which i believe is usually around £30k. Anything less than that you could try looking for a personal loan

I'd have to agree with this, £25K is below the minimum mortgage loan for many lenders, although a broker might be able to find you some who would agree to it (possibly at a higher rate than a more standard amount would be available at).

Have you considered borrowing a higher amount from a lender who allows penalty free repayments, so that you use the mortgage to buy a larger chunk of the property then quickly pay that back using the cash you'd have available?