Can I use my student loans to buy a house

abbie_1998

My boyfriend and I are tired of paying ridiculous amounts to rent sub par houses and want to buy a house instead. He's in full time work, I'm in part time and am also a student. Both our parents have saved money over the years for us to be able to use as a deposit for a house but both our incomes are fairly low (his is £21,500 and mine is around £10,000). I'm getting a maintenance loan of £3,900 this September and was wondering if I could use this as "extra income" when applying for a mortgage, as technically this is a guaranteed income to me and I use it for rent anyway so why couldn't I use it to pay off a mortgage?

silvercar

Depends on the lender. Different lenders have different criteria.

sheramber

But it is only guaranteed as long as you are a student.

popadom

Lenders can be very strict. I can't use maintenance money (although it will be around until my child is 18) as extra income. I doubt you would be able to use the loan. You could save it to form a deposit once you are working though. 

jon81uk

I don't know all the details, but my parents acted as guarantors on a house for my brother as it was cheaper to buy for university than it was to rent for him.

macman

It's not income, it's a loan. And it's only available while you remain a student.

MalMonroe

I've been in a similar situation when I was a student and desperate to get out of rented properties but as macman says, this money is a loan and will only last for the duration of your course. And then you have to pay it back once you are earning above a certain amount.

Frustrating though it is, it probably is wisest to wait until you've finished studying and can get a full time job so that your higher combined incomes will be considered when you finally apply for a mortgage.