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?

Sorry if I came across envious, not at all good luck to op, I was just shocked at the figures , I’m not in receipt of pip but have a recent diagnosis of rheumatoid arthritis so I may be glad of it in the future

These hardly exist anymore

I thought that. Then thought I’d be shot down in flames.

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

Is this really a year or for durstion so split into 3 years? That sounds like really weirdly high amount if that is really per year.

Just go and see a mortgage broker they will tell you. No one on here can tell you FOR DEFINATE, they can only tell you what they think will happen

The only thing on here they will care about is the part time salary of £900 a month.

this is highly unlikely to get you a mortgage offer which is sufficient to buy a property

Why not contact a mortgage broker to ask? L&C are good. But I'd be skeptical that any grants / bursaries would be considered as income, as they have an end date.

You're on nearly 50k a year as a student!

WTF!

But this is short term and isn’t income as such

Including loan it's £60k per year!

No wonder you have so much saved, you’re rinsing the tax payer and charities!

Why take out the student loan? Use the 30k to pay the fees.

Absolutely possible, good for you Op.
Just use the lump sum payments to make a larger deposit and you'll get a cheaper mortgage. Interest rates should come done soon as well, I hope we'll be looking at 3.5% by next year

Exactly. That’s supposed to be the point of this sort of money, to save “low income” students being saddled with debt. Unfortunately, there are people like this out there who exploit loopholes, taking opportunities for study away from those who genuinely need them and who can’t go to uni at all without them.

Agree. It's crazy to burden yourself with a student loan in this situation.

You're still highly unlikely to get a mortgage OP. You have a short term situation where you're being given money. You then have no job other than a £900 a month part time role. You are not a good bet for a lender.

There are lots of mortgage calculators on line, try a few of them.

Would your parents co sign or whatever to guarantee payments? Don't know if it's even a thing, but I think I've heard of parents being able to do something.

Indeed, or envious of having a bursary because of having come from a care background. I am always astounded at what some posters are envious of.

But you can see that in this case it comes from the OP explicitly saying she has minimal expenses and no use for the money as a student living at home, hence her sussing mortgage options. I don't think anyone would envy bursaries that enable someone to go to uni and study when they'd be otherwise unable or PIP that's used for anything to help with the disability, but that's not what's going on here. OP is saying she's got free £££ going spare so can she get a house with it. We get it, fair play to her, but other people's reactions are understandable too.

I’d say the bank would laugh you out

You might be able to get a mortgage if your parents can be guarantors or a buy to let mortgage and then rent out to friends

But then she wouldn’t be able to buy a property soon after she finishes her course when she gets a full time job. Or she could buy somewhere but not for a long time after saving again for hid knows how long. Better to take out the loan, stash the savings away to let the interest compound and add money to it every month.

Even if it were possible then consider the figures. Let's say you had a £200,000 mortgage. That is 10k a year just on interest (presuming 5%). Plus mainenance costs on top of that. I'm sure you could rent a room for less that than that if you were desparate to leave the family home. Either that or stay at home and build up a really good deposit.

Buying property can end up being a ball and chain. Imagine graduating then being offered your dream job 200 miles away. You have to faff about selling up etc. You might even lose money in the process.

I would personally save the money in an ISA and then use this to pay off the loan at the end or put it as a deposit for a flat after leaving uni - home ownership is expensive , you need to budget for the insurance and bills , new boiler or new roof etc

OP the first step is to see if you can get an 'Agreement in Principle'. You can choose a lender and do it quickly and easily online. It'd be surprised if they would give a mortgage to someone without a fulltime job tbh.

How can that be a thing?