Is this possible for Mortgage as a student?

[Morgweather26]

I have been awarded a range of scholarship grants and bursaries (not for tuition but for maintenance which I can spend on anything I want) for university by both the university that I attend and two charities that specialise in helping people from low-income backgrounds or people who have been in care/are estranged.

The total value of this is £30,000 a year.

In addition to this, I get about £10,000 a year in Student Finance and get about £7,500 a year in Personal Independence Payment (PIP) as I have a disability (PIP isn’t means-tested).

I plan to live at home and commute to save money on rent and have minimal expenses.

I also work part-time, earning about £900 a month.

I still live with my parents but am so desperate to move out and am starting university this year.

I currently have £25k in savings.

I’m just curious but technically could I purchase a house on a mortgage with the £25k as a deposit and then massively overpay the mortgage which I could do since I’d have a lot of money to spare, especially since I won’t be spending it on university rent? Maybe I could pay like £2000/month on monthly repayments.

I don’t want a flat, I want a house.

Is this actually possible?

I’m not an expert but I doubt it because you would only be getting the grants on a short term basis and a mortgage would have to be over a long term (20 years +). So I don’t think they would count them as income.

Try contacting Nationwide. They’re a big lender and they have special first time buyer mortgages.

What house price are you considering?

You can’t include income that has to be repaid (like student finance). It needs to be taxable income, doesn’t necessarily need to be a salary (eg a stipend if you were a clergy person could be considered, as would income from investments). I should imagine only you part time earnings and savings would be considered. I don’t know about PIP. If in doubt, contact a mortgage broker who will be able to tell you your borrowing capacity.

Student loan isn’t the best in the long term, it end up really expensive to pay back so if you don’t need the maintenance loan don’t take it!

I think you’d need a more stable income first. I also think buying a house on your own is a huge commitment for this stage when you’re just starting university life.

No
Absolutely and categorically not

That’s very certain. Surely it will depend on how much the property is. She’s got a wage and she’s got a lump sum.

No I do not think you would succeed bass in these numbers .

Remember you have to furnish and maintain and insure your property. The mortgage calculator will take into account overall affordability and this process can be very inflexible.

Out of interest where are you looking and why a house not a ground floor flat for example? Cheap flats in some uni towns may be affordable.

Yes it is certain
op call any broker today or even your current bank provider and they will confirm that student loans and bursary will not be included In any affordability calculations

But wages and deposit will.

The wage is £900 per month. You won’t get a decent mortgage for a house regardless of £25k deposit.

Your deposit isn’t big enough to get a mortgage for a house when you earn £900 a month. Why do you want to take on the burden of being a single homeowner on top of studying? I would stay at home for as long as you can to build up your deposit.

In your position, I would keep focused on my studies and building your savings/deposit so that as soon as you have a full time post uni job you're set to get a lovely house that will be all yours. Then protect that asset going forward. You've got the right mindset, you're just a little too keen yet!

Mortgage unlikely on your included income, as other have suggested best bed to suck it up at home while at uni and save save save. On you income you buy outright in 3 years (up north anyway)

Student finance is a loan so that won’t be considered.

A 25k deposit, with a purchase price of £150k, will see you needing a mortgage of £125k. Using a mortgage calculator taking your earnings and PIP into account, you’d be able to borrow around £50k.

flats are usually leasehold. They have service charges and ground rent which need to be paid on top of a mortgage.
You’ve got other people in the block who could be noisy or antisocial.
Lots of reasons.

Nope, there isn’t the affordability to borrow enough. £900? Not even close

Yes it is possible if you have a guarantor, such as your parents who will guarantee to pay the mortgage if you can’t.

No, for several reasons. Loans cannot be used as deposits or counted as income. Even if they could, it's a short-term thing anyway.

I think it’s very unlikely but it depends where in the country you are looking and what condition you are looking at.

The bank will want to see a predictable and reliable income to cover the mortgage period.

What have I just read!!! Almost £60,000 a year, as a student is this a joke? Just for one person living at home !! I’m sorry there are families on less than half that paying my there way , just wow can’t believe those figures

Work hard and you can get a scholarship as well.

Not sure why anyone would be envious of the need for PIP though.

You would only be able to get your earnings and possibly PIP taken into account for a mortgage.

Double check you are entitled to all of those bursaries before you accidentally get overpaid, and then rent a studio or one bed flat if you don’t want a student flatshare.

It is a lot of bursary and scholarship money and I’m surprised OP is entitled/eligible for all of it but maybe I don’t know enough about it.

I do think she should comb over all the terms and conditions etc just in case, and make sure she hasn’t missed declaring anything or that there’s no additional terms attached to having multiple bursaries.