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?

No I don’t think so as the bursaries and student finance won’t be classed as income.
Back in the 90s I bought my first flat in Kingston as a student, mortgages were so much easier to get then though.

What are you taking money from charities when you don’t need it? Do all these charities etc giving you money know about the others?

That's not how guarantor mortgages work - the debt holder is still assessed for affordability, so an income of £900 a month won't allow a mortgage in the OP's sole name, no matter how well off her parents are (also, given her bursaries are directed at students from low income families, presumably her parents are not that well off!)

Surely the point of charity help and bursaries is to limit your financial burden. Why take out a loan?

You do know interest is charged on student loans?

I hope to God it's not possible. A taxpayer funded mortgage, pah! I work for a living and can't get a mortgage but pay tax. I'm livid at OP's suggestion.

Yes, what point are you making?

I’m saying that it’s better to get in the property ladder early (after her course) and with as big deposit as possible. If she spends her savings on uni fees then it could take her years before she can get her savings back up to a reasonable amount.

But if she has a student loan to repay, that will be taken into account for mortgage affordability

I know your PIP will count as income and your p/t job as others have said approach a broker. I’m also interested in how you got bursaries and scholarships with that amount of savings? My DD went to uni this year and gets full rate PIP. She has 7k savings so we never even thought to look for bursaries etc. She does get some DSA.

Ypur regular wage is only 900 a month. Save what you can so in three years you have a much bigger deposit and you get a full time job. Depends where in country you are for a house

Just out of interest.. how do you qualify for these bursaries with 25k savings and living with parents?

I think mortgage lenders would be looking longer term than uni bursaries and you'd need to ensure you had the means to pay post graduation. Good luck!

Do you need a 10k maintenance loan if you're getting a 30k/year bursary?
What expenses is the money meant to cover? 30k a year would likely meet the expenses of most students even if you're living/renting in central London

I won’t comment on the affordability side as I don’t know, but given that no one else on here seems to have any first hand experience - I got a mortgage back in 2014 when I was a student. It was based on my tax-free PhD stipend, which was £15,000 a year, for 4 years. We used a mortgage broker and she found a lender (Halifax) that would take into account half of my income (so £7.5k per year), plus my partner’s salary.

So the best advice is speak to a broker and find out which if any of your sources of income might be counted. Things might have changed since 2014 though! Just ignore all the other noise on here about how much income you have as a student, it’s not relevant to your question.

Things have changed a lot since 2014 mortgage wise . What job will you have after uni op? Where will you be living? How much is a house there?

So you got a mortgage, over 10 years ago, essentially based on a two person income? It’s nothing at all like the OP is suggesting.

What happens if you stop receiving PIP.

Have you thought about that.

Yo may need to.

Well yes, but my income was less than half of what the OP’s adds up to. I also live in a very expensive part of the country - houses might be much cheaper where the OP lives. I didn’t say they would be able to get a mortgage - I advised speaking to a mortgage broker about whether any of the income could be used towards a mortgage. That is literally the only applicable advice to this situation - unless some of those commenting on here are mortgage brokers themselves and can confirm this kind of income is no longer considered?

Let us know whether you're successful OP.