Student with cash!!!

always_rooked

Just after a wee bit of advice please.
I'll be starting uni in September (in Scotland, single parent, mature student) and will have a fairly substantial amount of money (in the region of £50,000) coming my way just before I start. So, my question is will I have to use up this money on living expenses or will I be able to keep it till I graduate for a deposit on a house? Have looked at various savings accounts, ISAs etc which would mean I could live on it for 4 years but it seems a shame not to be able to buy property with it. I'm unlikely to ever have this much ever again.
x

dmg24

I am basing this information on the UK system, so it may not be entirely accurate. As a parent, you will be eligible for various benefits whilst studying, but the majority of these are means tested, and therefore you will not be eligible.

If you do a search for parents and studying, or terms like these, you will find some helpful information x

always_rooked

Yeah tried it, not really getting anywhere though. Everyone seems more interested in income and not savings. I don't know if it'll just be the interest gained that will be counted or if it'll be the savings themselves. Thanks for your time x

dmg24

It will vary according to what you are claiming (and you're right, the information about income is much clearer!). It might be best to work out what you could potentially claim, and then look at each of them in turn? x

always_rooked

I think it's time for a financial adviser, the whole thing hurts my head! It's such a major change to my circumstances that I don't want to do anything stupid. Just looking at other posts makes me realise how fortunate I am, although as it's inheritance I'd rather not have it. Thanks again x

Clockwatcher

buy a house with the money now, then SAAS and SLC won't know about it!

dmg24

A financial adviser is unlikely to know about the affect of the money on benefits, particularly those specifically relating to students with children. Have you contacted the student finance officer at your university? They should have the information that you need.

I would agree about investing the money in property (though many would disagree!), however the issue here would be keeping up with the mortgage repayments whilst studying.

always_rooked

I'm a student at the moment and so can't buy without a guarantor (which I don't have!) and like you say keeping up with repayments could be a trauma. Even looked into the whole part ownership thing and that's a no go too as I technically will not be on a low enough income to qualify for it. I reckon my only option is to work my !!! off during holidays and try not to eat it all up. I've spoken to people in student support but they're all acting like I'm the first person this has ever happened to as all I got was a "lucky you" and so they were most unhelpful. But thank you. Next stop SAAS. x

Oldernotwiser

always_rooked wrote: »

I'm a student at the moment and so can't buy without a guarantor (which I don't have!) and like you say keeping up with repayments could be a trauma. Even looked into the whole part ownership thing and that's a no go too as I technically will not be on a low enough income to qualify for it. I reckon my only option is to work my !!! off during holidays and try not to eat it all up. I've spoken to people in student support but they're all acting like I'm the first person this has ever happened to as all I got was a "lucky you" and so they were most unhelpful. But thank you. Next stop SAAS. x

But surely you'll have to pay rent; would this be much less than a mortgage? You won't be eligible for HB with this amount of capital.

always_rooked

I don't get the money for another 6 months so I have no money at the moment. Surely I can't be penalized for something that I don't have yet? I have no intention of trying to claim benefit when I get it, that would be really unfair. I only wondered what exactly was taken into account re loans etc so it didn't all disappear. Just trying to be savvy not trying to get away with anything sinister. And you're right, rent is probably more or less the same as mortgage repayments but there isn't really any other option.

Oldernotwiser

always_rooked wrote: »

I don't get the money for another 6 months so I have no money at the moment. Surely I can't be penalized for something that I don't have yet? I have no intention of trying to claim benefit when I get it, that would be really unfair. I only wondered what exactly was taken into account re loans etc so it didn't all disappear. Just trying to be savvy not trying to get away with anything sinister. And you're right, rent is probably more or less the same as mortgage repayments but there isn't really any other option.

I didn't mean to imply that you'd be doing anything wrong and obviously you can't be penalised for money you haven't yet received. If you'll be paying your own rent rather than claiming HB while you're studying I can't see why you couldn't buy something as soon as your lump sum comes through. If you can afford the rent then surely the mortgage payments will be no different? If things are tight financially you could have another student in to share in term time to help out.