Hi everyone,

I'm a student looking to buy either a house or a flat. I don't have a clue on how to go about it or what to do or where to look, so any advice is appreciated.

but i dont think i can get a mortgage as a student though :(, can anyone else confirm or help?

thank you.

Bob

In order to get a mortgage you gotta be earning money. The banks will lend you up to something like 4.5 times your annual salary. So if you want to buy a house costing £80,000 you need to be earning up to £20,000 a year. If you can do that and be a student at the same time then I'm impressed!
On the other hand, you have a vast down payment, then you won't be needing to earn as much.

earning £20, 000 a year?

well thats not going to happen.

:(

Well you gotta buy the house with something!

You could do it with less than that, but you'd have to be able to guarantee your income to the bank. The other option is to get a guarantor. A parent or someone who legally binds themself to your mortgage and assumes responsibility for it if you can't pay it.

Can you get youre parents to help? I know a few people who's parents have payed the deposit and sorted the mortgage in their name then the student lives in the house and rents some of the rooms so that the rent covers the mortgage! Then you just have to pay back the deposit to mum and dad. I'm a student but living at home and saving my money so that hopefully when I graduate I can afford the deposit for a house.

Wait a couple of years and buy when prices are a lot more affordable. Start saving for a deposit while you rent.

Don't get your parents locked into debt. It's your problem not theirs.

Originally posted by jimmy
Wait a couple of years and buy when prices are a lot more affordable. Start saving for a deposit while you rent.

Don't get your parents locked into debt. It's your problem not theirs.

Yeah but on the other hand if you can somehow get on the property ladder earlier, you're only going to do yourself a favour in the long run. You just gotta be sure you can make the payments.

Originally posted by bob_shamrock
Hi everyone,

I'm a student looking to buy either a house or a flat. I don't have a clue on how to go about it or what to do or where to look, so any advice is appreciated.

but i dont think i can get a mortgage as a student though :(, can anyone else confirm or help?

thank you.

Bob

Bob

Seriously - how are you proposing to actually meet your mortgage payments?

d

Nicola: I tried that and I asked my dad, but thats just not going to happen. The guys never helped me out with anything in life and hes not going to help me out with this.

Timmy R: any part time job is not going to get me close to £20,000 and i hate doing part time jobs...cant multi task at all!


how much will the payments be and will they be monthly?

payments are dependent on what type of mortgage you go for. click here (http://www.hsbc.co.uk/1/2/personal/mortgages) and click on "What will my repayments be" to do some estimations.

You wont get a house for much less than £60,000 unless you want burning cars outside your window.

Is this post a wind up or something?

To clarify, as a student you're wanting to buy a property, taking out a mortgage with no help from your parents and no income??!!

LMAO @ burning cars

erm, Timmy, do you think i can take out a loan for £20,000 and use that to fund the mortgage?


Bob

No they take loans into account. You have to pay that back as well you know! I think you'll just have to rent till you get a full time job...

:(


this sucks....

In your circumstance, you shouldn't be able to take out a £20k load either.

Originally posted by bob_shamrock


erm, Timmy, do you think i can take out a loan for £20,000 and use that to fund the mortgage?



Think this is proof of falling education standards...

Don't mean to be funny mate but seriously - common sense bypass or what! I've graduated and got a half decent job and I can't afford to buy yet - the only students that buy are one's with daddy's credit card!. Also a bit of genuine advice - using one debt to pay off another is a bad idea...a mortgage is just a loan to buy a house so paying it off with another loan doesn't make any sense.

You'll just have to rent in a student house like everyone else.

Mate, I dont really appreciate you comment on falling education standards.

you dont know me and you dont know anything about me.

I'm not going to disclose my financial dealings, but what I've achieved is impressive for a 20 year old...


hmmm, its interesting to note you dont mention where you studied at...and you dont mention what you studied.....

so in essence, im saying STFU keyboard warrior!

Originally posted by bob_shamrock
Mate, I dont really appreciate you comment on falling education standards.

you dont know me and you dont know anything about me.

I'm not going to disclose my financial dealings, but what I've achieved is impressive for a 20 year old...


hmmm, its interesting to note you dont mention where you studied at...and you dont mention what you studied.....

so in essence, im saying STFU keyboard warrior!

Took me a while to work it out as I've never heard of it but I figured out what STFU stands for! Very civilised....

Not quite sure why my academic background is of interest but I'm a SHU computing grad. Not quite the London School of Economics but I learnt enough to get by.

As for your finances - I'm very happy for you, not sure how you did so well while being unable to understand the basics of the finance system though.

Any way if people don't say silly things like "do you think i can take out a loan for £20,000 and use that to fund the mortgage?" then I won't get the urge to post a sarcastic reply!

Just for explanation for people

A mortagage is also a 'loan'

However the difference between a normal loan and a mortgage is the interest rate is much lower.

So taken out a normal loan to cover the mortgage would be pointless :confused:

I'm not sure quite how appropriate Barney's comments on education were, but have to say that you have shown incredible niaivity in the workings of mortgage lenders, Mr Shamrock.

Would it be possible for you to go into say the Halifax and pose your original question and the follow-up loan question to them. I'd love their responses to be posted up here to be used as a direct comparison to Barney's... Cheers fella and let us know how you get on :heyhey:

Stick with it Bob, don't let them gring you down

I wouldn't want to live in Sheffiield anyway, even if they paid ME £20,000 a year

Originally posted by Mundo
Stick with it Bob, don't let them gring you down

I wouldn't want to live in Sheffiield anyway, even if they paid ME £20,000 a year

Stick with what! Unless the guy has enough cash to buy a house outright then, given his current situation, he has no chance of getting a mortgage.

Thanks for the constructive contribution to this thread anyway.

Like the Council could afford that :D

Originally posted by Mundo
Stick with it Bob, don't let them gring you down

I wouldn't want to live in Sheffiield anyway, even if they paid ME £20,000 a year

What does gring mean?

Why are you on a sheffield forum if you don't like sheffield?

The guy's obviously going through a cashflow problem at the moment, either that or he does not know what one is

BTW
I am sure the council could afford to pay me £20,000, especially as I have to put up with Biffa Bacon type character every day at work

Anyway, back to the subject

Bob, you need to decide why you want to buy a house and be prepared to sacrifice certain things to get it e.g. weekend work, or changing your career aims to something that can realistically help you realise your goals

Originally posted by Mundo
The guy's obviously going through a cashflow problem at the moment, either that or he does not know what one is

BTW
I am sure the council could afford to pay me £20,000, especially as I have to put up with Biffa Bacon type character every day at work

Anyway, back to the subject

Bob, you need to decide why you want to buy a house and be prepared to sacrifice certain things to get it e.g. weekend work, or changing your career aims to something that can realistically help you realise your goals

I'm sorry but have you read the thread? The guy is a student, no job, no backing from parents and wanting to take out a mortgage when he gets a part-time job??!!

Originally posted by bob_shamrock
Mate, I dont really appreciate you comment on falling education standards.

you dont know me and you dont know anything about me.

I'm not going to disclose my financial dealings, but what I've achieved is impressive for a 20 year old...


hmmm, its interesting to note you dont mention where you studied at...and you dont mention what you studied.....

so in essence, im saying STFU keyboard warrior!

i'm surprised you've achieved anything financial if you're asking about how to get a mortgage with no income, no help and no plan on how you would actually service the mortgage.

The only possibility might have been a buy to let mortgage, but without putting anything of your own at risk there's no way anyone would lend to you.

I asked a simple question.

No need for you guys to post the messages you did.

I'm at Sheffield University doing law.

At age 18, I invested in a FTSE 100 index tracker.

At age 19, I started buying shares via barclays stockbrokers.

The last few years I have opened many high interest savings accounts and saved my money.

I just asked a simple question because I didn't know how the system worked.

Now I understand and I want to say thank you to all those people who offered me genuine advice.

As for the rest of you guys, there was no need for you to post the messages you did, I had no idea of how it worked. If I knew and still asked for another way round, then, yeah you can take the mick out of me all day long.

But I didn't know.

Bob

Bob, if you've saved already then you'll already be well on your way, but if yur dad won't help you it sounds like you'll have to keep saving til you graduate and then if you have enough for a deposit (10% of the property price) you should be able to get a mortgage when you have a full time job.

It depends how much you've managed to save really, if you've managed to save a lot you might be able to get one of those properties where you buy a third or half of it and then pay a bit of rent then when you have more money you can buy the rest. But if you were going to do that you might aswell just save your money so that when you do buy you just have to pay the mortgage, not rent aswell. It's annoying, my boyfriend wanted to get a house but he didn't have a clue about mortgages either, he hasn't saved any money and soon realised that theres no way he could do it. I don't think that many students know a lot about it really. Would any of your mates be able to buy with you?

thanks Nicola. I'm always saving money, Im not into going out and stuff...I like being by myself a lot.

I'm not anywhere near to £20,000 though!

I've never asked anything of my family in terms of money or anything. I don't like asking them, plus I know my dad won't help me out. As for friends, I don't think they'd be interested.


I'm gonna work on it though Nicola. Thanks again.

Bob

Bob, I graduated a few years ago from Sheff and am only just in the position to feel comfortable buying. I knew one guy who bought while at uni, but that was with his parents as guarantors. Worth doing though if affordable.

You're looking at at least £80,000 (absolute) minimum for a place anywhere decent near the uni(s). Say you've got £15,000 deposit, that leaves £65,000 mortgage. If (and TBH, it's a long shot) you could get a mortgage, you'd be looking at about £350 per month. Don't forget the several grand in fees (solicitors, surveys, valuations, etc).

Personally, I'd leave it unless I could get backing. Perhaps leave it a year and see how your finances go?

thanks Herbaliser,

I'm going to take your advice and leave it for now. I'm going to keep looking/working/thinking about it.

right now ive got a lot on my plate and life isnt treating me well...and neither are some of the guys who post on here!

Soz Bob, it did all get a bit vicious ;) . Good luck getting rid of the other place :thumbsup:

One more thought- do you know anyone who is looking to do the same as you?

I'm buying a place with a friend to ease the pain of paying a mortgage for the first time. Also, we could afford better houses in places we actually wanted to live, rather than just somewhere we'd be forced to live if we'd have bought individually and had less to spend.

If you could find someone else who also has a decent deposit (or generous parents!) then you'd have a much better chance of sorting something out. Highly likely you'd still need a guarantor (who to be clear, doesn't guarantee any money up front, but guarantees to pay repayments if for any reason you can't- apologies if this is already obvious to you).

cheers sirtommo and herbaliser.

herbaliser i dont know anyone who wants to buy, but given my circumstances I.e. no income, i dont think anyone would.

but this buying a house thing has a lot to do with my mental problems...erm, buying a house so i can call it my own etc etc.

im still going to be thinking about it though.

thanks again everyone.

the difference is that one is secured and the other isn't

Originally posted by Skatiechik
Just for explanation for people

A mortagage is also a 'loan'

However the difference between a normal loan and a mortgage is the interest rate is much lower.

So taken out a normal loan to cover the mortgage would be pointless :confused:

will this be the next SlimSid2000 in 10 years' time?

Originally posted by bob_shamrock
thanks Nicola. I'm always saving money, Im not into going out and stuff...I like being by myself a lot.

I'm not anywhere near to £20,000 though!

I've never asked anything of my family in terms of money or anything. I don't like asking them, plus I know my dad won't help me out. As for friends, I don't think they'd be interested.


I'm gonna work on it though Nicola. Thanks again.

Bob

You'll probably do better to hold off the property game and concentrate on your studies and save a bit in the tracker fund for the next 3 years.

Why buy ina static / declining property market when you could earn 5-10% fairly safely in a tracker if the fund manager is half good and then buy a house when the market has bottomed out? Although there are still good property deals out there they are unlikely to come on the open market...

yeah, you're right dudu.

bigdipper: whos slimsid?

Bob

'bigdipper: whos slimsid?'

I don't think you want to know, ignore em!

I think everyone wants a house really, I'd love one but theres no point getting one if you can't really afford it and it'd be a struggle and make life harder. Anyway good luck!

The likeness to slimsid is unfair! But you should probably know who he is! He's pretty ubiquitous on this site. These are some of the favourite threads:

What should I do? (http://www.sheffieldforum.co.uk/showthread.php?s=&threadid=53458)

Which bar should SlimSid get a girlfriend in? (http://www.sheffieldforum.co.uk/showthread.php?s=&threadid=41258)

Would you go out with SlimSid? (http://www.sheffieldforum.co.uk/showthread.php?s=&threadid=45957)

Have you ever had a girlfriend? (http://www.sheffieldforum.co.uk/showthread.php?s=&threadid=43968)

thanks Nicola and TimmyR.

I feel bad about slimsid....im not on anti-depressant as i decided it was better to work things through with my doc. :(


and i dont have a gf either..:(