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    • WhiskyJoe
    • By WhiskyJoe 13th Jan 18, 1:56 PM
    • 6Posts
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    WhiskyJoe
    Help please! Can I get a mortgage as a student?
    • #1
    • 13th Jan 18, 1:56 PM
    Help please! Can I get a mortgage as a student? 13th Jan 18 at 1:56 PM
    A bit of background first:
    I am a mature student, studying medicine.
    I own (outright) my property worth 165k (which I would be able to rent for about £700 per month), but I want to move to a bigger property.
    I have not had a mortgage before.

    As a student, would I be able to get a mortgage, given that my income could only be £700 per month?
    Can I use my existing property as a desposit/collateral? I don't really understand how it would work...
    If I could get a mortgage, how much would be possible?

    Thanks in advance for any help!
    Last edited by WhiskyJoe; 13-01-2018 at 2:03 PM. Reason: additional info
Page 1
    • Gabbs the Newt
    • By Gabbs the Newt 13th Jan 18, 2:14 PM
    • 141 Posts
    • 404 Thanks
    Gabbs the Newt
    • #2
    • 13th Jan 18, 2:14 PM
    • #2
    • 13th Jan 18, 2:14 PM
    It doesn!!!8217;t sound viable, although a mortgage broker would be able to advise. Do you have any cash savings? You would be paying the additional rate of SDLT if you are not disposing of your current house, which is 10k on a 250k property.
    • CommitedToChange
    • By CommitedToChange 13th Jan 18, 2:17 PM
    • 1,289 Posts
    • 4,022 Thanks
    CommitedToChange
    • #3
    • 13th Jan 18, 2:17 PM
    • #3
    • 13th Jan 18, 2:17 PM
    When you say your income would be £700 per month - is that from renting your current property? Do you have a deposit, money for fees? I'd say no lender would lend to you - too high a risk.

    What is your income per month if you sold your current propery to use as a deposit?
    Attempting to buy a house
    • WhiskyJoe
    • By WhiskyJoe 13th Jan 18, 2:38 PM
    • 6 Posts
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    WhiskyJoe
    • #4
    • 13th Jan 18, 2:38 PM
    • #4
    • 13th Jan 18, 2:38 PM
    Thanks for your advice. From what I'd read on Google etc. I didn't think it was viable, but I couldn't find examples of people in my exact situation. I was just unsure whether when people referred to equity being used as a deposit that it may be applicable in my situation.
    I don't have any cash savings any more.

    Yes, the £700 a month income would be the rent that I could get from this property. I presumed that I wouldn't be able to count my university bursary and maintenance loan as an income (prior to me qualifying as a doctor). I am a correct about that?

    Unfortunately I wouldn't be prepared to sell my current property. It has too much sentimental value, so the most I'd be willing to do is to rent it out.
    Last edited by WhiskyJoe; 13-01-2018 at 2:42 PM. Reason: typo
    • Comms69
    • By Comms69 13th Jan 18, 2:40 PM
    • 2,970 Posts
    • 2,939 Thanks
    Comms69
    • #5
    • 13th Jan 18, 2:40 PM
    • #5
    • 13th Jan 18, 2:40 PM
    Thanks for your advice. From what I'd read on Google etc. I didn't think it was viable, but I couldn't find examples of people in my exact situation. I was just unsure whether when people referred to equity being used as a deposit that it may be applicable in my situation.
    I don't have any cash savings any more.

    Yes, a month would be the rent that I could get from this property. I presumed that I wouldn't be able to count my university bursary and maintenance loan as an income (prior to me qualifying as a doctor). I am a correct about that?

    Unfortunately I wouldn't be prepared to sell my current property. It has too much sentimental value, so the most I'd be willing to do is to rent it out.
    Originally posted by WhiskyJoe
    ... what happens when tenant doesn’t pay rent....
    • pinkshoes
    • By pinkshoes 13th Jan 18, 2:44 PM
    • 15,783 Posts
    • 21,680 Thanks
    pinkshoes
    • #6
    • 13th Jan 18, 2:44 PM
    • #6
    • 13th Jan 18, 2:44 PM
    Thanks for your advice. From what I'd read on Google etc. I didn't think it was viable, but I couldn't find examples of people in my exact situation. I was just unsure whether when people referred to equity being used as a deposit that it may be applicable in my situation.
    I don't have any cash savings any more.

    Yes, the £700 a month income would be the rent that I could get from this property. I presumed that I wouldn't be able to count my university bursary and maintenance loan as an income (prior to me qualifying as a doctor). I am a correct about that?

    Unfortunately I wouldn't be prepared to sell my current property. It has too much sentimental value, so the most I'd be willing to do is to rent it out.
    Originally posted by WhiskyJoe
    No, it would therefore not be possible.

    You would need to sell your house to use the £165k as a deposit, then get a mortgage with your income. As you have no income, then this isn't going to work.

    You are better off living in the property and renting the rooms out to save some more money.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
    • WhiskyJoe
    • By WhiskyJoe 13th Jan 18, 2:45 PM
    • 6 Posts
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    WhiskyJoe
    • #7
    • 13th Jan 18, 2:45 PM
    • #7
    • 13th Jan 18, 2:45 PM
    ... what happens when tenant doesn’t pay rent....
    Originally posted by Comms69
    Hmm good point!
    • WhiskyJoe
    • By WhiskyJoe 13th Jan 18, 2:50 PM
    • 6 Posts
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    WhiskyJoe
    • #8
    • 13th Jan 18, 2:50 PM
    • #8
    • 13th Jan 18, 2:50 PM
    No, it would therefore not be possible.

    You would need to sell your house to use the £165k as a deposit, then get a mortgage with your income. As you have no income, then this isn't going to work.

    You are better off living in the property and renting the rooms out to save some more money.
    Originally posted by pinkshoes
    I don't have any spare rooms unfortunately. I'm in a 1 bed flat.

    Thanks for the clarity though. Looks like I'll have to wait until I qualify.
    • WhiskyJoe
    • By WhiskyJoe 13th Jan 18, 3:01 PM
    • 6 Posts
    • 0 Thanks
    WhiskyJoe
    • #9
    • 13th Jan 18, 3:01 PM
    • #9
    • 13th Jan 18, 3:01 PM
    No, it would therefore not be possible.

    You would need to sell your house to use the £165k as a deposit, then get a mortgage with your income. As you have no income, then this isn't going to work.

    You are better off living in the property and renting the rooms out to save some more money.
    Originally posted by pinkshoes
    What if I got a joint mortgage with my partner instead? Would that make it possible?
    The reason I was thinking of keeping it separately originally was because she was thinking of buying a separate home as an investment. But ultimately our main goal is to have a house together.
    • CommitedToChange
    • By CommitedToChange 13th Jan 18, 3:04 PM
    • 1,289 Posts
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    CommitedToChange
    You still don't have a deposit, money for fees or stamp duty.

    Have you looked into becoming a landlord and all the laws you have to follow - you wouldn't make £700/month even if that was the rent as you had a paying tenant as you have to have insurance, money for repairs etc etc. Not to forget tax.

    Plus if you won't sell your flat for sentimental reasons - are you ready to see it trashed by bad tenants, this does happen.
    Attempting to buy a house
    • WhiskyJoe
    • By WhiskyJoe 13th Jan 18, 3:16 PM
    • 6 Posts
    • 0 Thanks
    WhiskyJoe
    You still don't have a deposit, money for fees or stamp duty.

    Have you looked into becoming a landlord and all the laws you have to follow - you wouldn't make £700/month even if that was the rent as you had a paying tenant as you have to have insurance, money for repairs etc etc. Not to forget tax.

    Plus if you won't sell your flat for sentimental reasons - are you ready to see it trashed by bad tenants, this does happen.
    Originally posted by CommitedToChange
    In the joint mortgage scenario, my partner has the capital to cover all the deposit costs etc.

    You're right, I would need to deduct the costs of insurance etc from the gross income of the rent. Also very good point about potential bad tenants. Although given it's close proximity to the hospital I would be only considering young doctors - not that this necessarily removes all risk.
    • hazyjo
    • By hazyjo 13th Jan 18, 3:32 PM
    • 10,633 Posts
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    hazyjo
    Never ever rent out a property that has sentimental value

    Memories are in your head. I've owned 8 properties now, some with much sentimental value. I look back fondly, with love even, but didn't need to hang onto them for that. I know we're all different - but please think VERY carefully about renting it out! Big mistake.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • michelle09
    • By michelle09 13th Jan 18, 3:52 PM
    • 786 Posts
    • 4,363 Thanks
    michelle09
    I spent six years living in hospital accommodation - I would definitely not assume that young Doctors make good tenants, have seen a lot of evidence to the contrary!
    • WorkingTowardsDebtFree
    • By WorkingTowardsDebtFree 13th Jan 18, 6:20 PM
    • 74 Posts
    • 54 Thanks
    WorkingTowardsDebtFree
    I don't think that what you're trying to do would be viable without a better income, and if it was then the levels of interest would cripple you.

    If your goal is to have a bigger property, then the way to do it might be to sell your current property and buy a bigger property that's worth the same. It may be a house that needs work, or it may be in a slightly cheaper area.

    Of course, those things involve making compromises - you may not like those areas as much, or you may not want to do work that needs doing, or you may need to travel further to places of study....

    You have to weigh up what the most important factors around home ownership and how that affects your life are at the moment and decide if it's possible to do any of those things, or if actually your home location / it's current decor/repair/etc are preferable despite being slightly smaller.
    • juniordoc
    • By juniordoc 14th Jan 18, 12:06 AM
    • 364 Posts
    • 286 Thanks
    juniordoc
    Once you qualify you will have very little control over where in the UK you work (unless you are keen on the very least popular areas) so the career is not particularly compatible with home ownership until you get to specialty training level.
    Also the stress of being a landlord is something you could do without on top of med school study intensity/ newly qualified doctor life.
    • lincroft1710
    • By lincroft1710 14th Jan 18, 3:30 PM
    • 10,726 Posts
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    lincroft1710
    If you won't sell your flat (sentimental reasons??) it will be years before you can buy a bigger place unless you are on a joint mortgage with your partner after you qualify and are in your first job. Joint ownership can also bring problems and you have an unoccupied flat which you will have to pay Council Tax on plus utilities as renting out is not recommended.

    Finally WhiskyJoe sounds a very inappropriate user name for a mature medical student!
    • MonkeyDr
    • By MonkeyDr 14th Jan 18, 9:53 PM
    • 142 Posts
    • 169 Thanks
    MonkeyDr
    Once you qualify you will have very little control over where in the UK you work (unless you are keen on the very least popular areas) so the career is not particularly compatible with home ownership until you get to specialty training level.
    Also the stress of being a landlord is something you could do without on top of med school study intensity/ newly qualified doctor life.
    Originally posted by juniordoc
    I don't necessarily agree with this. I owned a flat while a mature medical student. Had lodgers. Lived in it for years afterwards, while working in a v competitive geographical area (London), and always in the specialties of my choice. Maybe I was lucky. Maybe I chose the location really well (a few of my posts were in walking or cycling commuting distance).

    Career can be entirely compatible with home ownership, although I agree that some flexibility may be needed. Plus, the OP already owns it!
    • juniordoc
    • By juniordoc 14th Jan 18, 10:00 PM
    • 364 Posts
    • 286 Thanks
    juniordoc
    London I would not say is typical of the rest of the country, I think you probably were quite lucky.
    OP is talking about purchasing a second property to the one he/she already owns. Obviously they can't do anything about the location of the first property.
    • zagubov
    • By zagubov 14th Jan 18, 11:16 PM
    • 15,309 Posts
    • 131,062 Thanks
    zagubov
    London I would not say is typical of the rest of the country, I think you probably were quite lucky.
    OP is talking about purchasing a second property to the one he/she already owns. Obviously they can't do anything about the location of the first property.
    Originally posted by juniordoc
    This is bang on- London's a bit of a one-off. The vast majority of the UK consists of cities who don't have multiple medical schools or so many teaching hospitals in the same geographical area.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
    • macman
    • By macman 15th Jan 18, 10:19 AM
    • 41,920 Posts
    • 17,396 Thanks
    macman
    You can have a mortgage dependent on your income-being a student is not the point. A joint mortgage will depend on you and your partner's joint income, which you haven't told us. Nor have you told us how much you would need to borrow after the deposit. Without the basic info, no-one can really help you further.
    As pointed out above, incurring a CGT liability for sentimental reasons is absurd. If you want to be a professional LL and the figures work, then fine-but don't be an amateur one because you can't bear to sell it!
    Last edited by macman; 15-01-2018 at 10:21 AM.
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