I have 30,000 uk pounds and would like to buy a 50,000 pound flat

I have 30,000 uk pounds and would like to buy a 50,000 pound flat.

I'd like to take out a 25,000 loan/mortgage to pay for this, however I'm a 18 year old uni student and my main source of income is studentbux (10,200 for housing, food etc a year), and I could get about 4,000 working through the holidays.

Would I be able to take out a mortgage and pay it back using studentbux (or do you have to have a job even though student bux are exactly the same)?

Being able to borrow from family is unlikely.

Please respond, I don't want to waste any money on rent if I don't have to.

How hard would it be to get a token part time job? Or does that ruin student welfare?

Easy but either the pay is ridiculously shit compared to student bux, or they give you 3 hour shifts which waste hours in travel.

I already work one in the holidays which is where the 4,000 comes from, giving me a total income of about 14,000 tax free a year.

I'm looking for any bongs who've bought a flat during uni without having a rich family, to see if it's actually possible or if I'm going to have to give in to paying rent.

where abouts/what kind of apartment are you looking at?

Nottingham, uk. Looking at 1 bed apartments close to the uni.

Should of mentioned this is op posting at a different house on phone

Your student loan is yours to use as you please, and if you can get a mortgage, you can of course use the loan to pay off the mortgage.
Remember to think about how you will live day to day too, will using the loan deprive you of your ability to live? Can you ration that well? Can you actually get an apartment at that price? Where is the apartment located, is it worth buying?

All things to consider before rushing into this, but in the long term having such an asset could be very beneficial to you, you'd save a fortune on rent and if you get one with a few rooms/you aren't living in it, you can make money (beware of associated costs - maintenance rates etc). I would recommend thinking of some weekend work if you can spare the time. Make sure your degree isn't shit tier too. Any questions, fire away.

Why? Just wondering. Why not live in halls while you can and then buy a flat after you get a job as a graduate? Not sure how long you can stay in halls at nottingham though.

Thank you for the well thought out reply.

Main reason for buying one would be to save money on rent, and i have very bad relations with family so would like to be completely self reliant.

>will using the loan deprive you of your ability to live?

I get the absolute maximum amount of studentbux/bursaries due to low family income and that is way more than you need to live on. Realistically i'd get about 14000 (no tax) if i got a job over holidays, and 10000 if i didn't

>Can you ration that well? Can you actually get an apartment at that price? Where is the apartment located, is it worth buying?

You can get shit tier apartments for about 50,000 close to the uni, and I've factored in 5000 for legal fees.

I also did work a lot before coming here (why I've got so much money for someone my age) and would be happy to work again if i could find a job which isn't shit, or if i needed money desperately.

>Any questions, fire away

Do banks consider student loans in the same way as income? I've had a hard time finding the answer to this with a few of the mortgage calculators counting it separately.

I want to save money on rent, and have somewhere to live at the end. I don't have any friends either so wouldn't miss out on the social aspect in halls

Saving money on rent and future self reliance, combined with the fact that a future asset beside a university has it's own intrinsic value, makes getting an apartment (if you can afford it, like you can due to savings) a great notion, especially if the uni is a good one, or there is plans to invest loads of money into it in the future, which will draw in students (i.e. future tenants - when you've moved onto greener pastures due to your high flying qualifications and reluctance to spend your entire life in a meh at best 50G apartment - may be worth investing more for slightly better/rooms - ask yourself if you'd be proud of this place).

Don't use your family if your relationship is poor, it really isn't worth not only the begging for a chance at money but the future complications. Investigate credit unions for options, hit up as many banks as will talk to you, don't rush into it and choose a home and a bank that you think is viable for the best future. If you're not going to work during the year, doing up a living space is a great way to occupy your days, but don't rush into mount bedbug out of carelessness, get someone who is practically minded or has experience in this field to go with you to viewings to pick out this investment. 14g is more than enough for student life, I've made do on about 4g, but my city has a very low cost of living, so do be reasonable on how you'll live day to day. Maybe get the job to do you through the weekly expenses. I hope you have a decent credit rating too, and remember a house doesn't just cost the mortgage - factor in electricity, internet, heating and other taxes.

As far as I know, loans are counted as income only sometimes, never taxable defo, but if you have the 30k capital and show your intentions with the loan, you won't be refused - remember you're in a country where the down payment is relatively small,

Two questions if you don't mind - whereabouts in the UK? And are you a long term resident/citizen?

>whereabouts in the UK?

Nottingham, at Nottingham university (there's another one nearby called Nottingham trent)

>And are you a long term resident/citizen?

Yeah I was born in the UK and have been here all my life.


Ideally after uni I'd like to rent out the apartment if I moved to another city, or live in it until I can afford somewhere better if I decide to stay in the UK.

Thanks for all the advice so far.

You should really speak to a mortgage specialist at your bank or a nearby estate agent. Unless a mortgagefag bonglander happens to be browsing Veeky Forums on Christmas day (how sad would that be....)

I'm going to but I wanna get a better idea of what to do first. Don't want to get ripped off too hard, and it's very hard to find advice for students on buying a flat (without having parents to help you) on the internet

just noticed a typo

>afford somewhere better if I decide to stay in the UK.

Should be

afford somewhere better if I decide to stay in the Nottingham. (I have no plans on leaving the UK)

Right ho, in Belfast myself and sitting on a smaller significant sum so thinking about a similar plan - keep on rightmove sorting low to high and check for decent ones within your budget (near the unis) regularly, no shared ownership shite.

As said, go into banks etc and tell them your plan, how it makes more sense then rented accommodation. When you find potential homes, make sure to email and call within the day. When making an offer try lowball agent with - this is all I have, if you think the owners are desperate or the like. If trying to beat an offer, go above by an unusual number like 6.5g to win, just like ebay. Check out local auctions too.

Have multiple accounts, one for 30k, one for loan and one for disposable. Transfer from loan to disposable at the start of the semester if needs be. Plan your weekly budget by starting the week with an ATM trip to lift cash once, and never take that card out again. Never use or touch the other accounts. Work the summer or you'll go insane.

How long is your course (how much loan money will you have coming in)?


Couldn't blame you either way, there are brighter fields away from Nottingham!

I do hope you're doing a course that is worth the monies.

I see there that 2 bedrooms start at about 60k in Nottingham, for the sake of 10g you could rent one room when living there and two when not, that's decent money.

Be firm when at the bank, truth be told they barely can believe it when they see a student with over 10k earned, use that for momentum. Get credit please.

>How long is your course?

3 years (I'm 1st year and in uni accomodation for this year). Could easily be extended to 4 though.

>(how much loan money will you have coming in)?

8,200 from student loans company (maxed out)
2,000 bursary for low income home from Nottingham uni (guaranteed each year)
500 for getting 2:1 or above each year

>Be firm when at the bank, truth be told they barely can believe it when they see a student with over 10k earned, use that for momentum

Kind of relying on this to be honest, can't see it working out otherwise.

>Get credit please

Credit score? I'll try finding that out on the internet now but aren't a expert on this sort of stuff.

However I have never taken out a loan before.

My credit score is about 500 which is in the "bad credit score" category. Apparently this is because I've never had to use my overdraft before (I don't know much about this sort of stuff since I never have to borrow money).

I guess I could borrow money for no reason on my student bank account (no fee for borrowing money) and then pay it back on time to improve my score.

Only do the extra year if the masters is worthwhile - if your degree is worthwhile (pls say it's good, pls)

How much do you have left from this year so far (if you maintain your life could you afford the mortgage - uni accommodation is obvs a rip off)? Try figure out ways to be frugal when possible - cook more than eat out, don't waste a fortune on disposable razors and fast fashion, pre drink more than buying in clubs, and so on.

Enjoy your life a bit too.

If you get the right bank, they'll understand a bit. The best piece of info they can have about you is that credit score, and your score isn't great. It's time to get that boosted - if you've got a contract phone get the contract in your name, join a gym with direct debit from your account, if there is a internet bill for your house take the dollar from your account (don't let your mates exploit you either), get a credit card for your daily spends instead of using a debit card (but be just as responsible with your money), and pay it back every month. Show the bank you're responsible with monies and you'll reap rewards. Your overdraft idea is a good one - use it for not no reason, but whenever you could have just used your savings, use the banks and pay them back from your own cash later with no penalty.

Otherwise it's time to brainstorm a way to make another 30k. Whatever you did last time must have worked, but now you have time, a degree (eventually) and money to use to make more. Good luck man, a part time is probs the best way (factory work can pull in 600£ a week if you're for it, but there is so much more you can do like web design, reselling or streaming.


>Worst case, you can always suck some dicks like your dad did

You may need to put more cash up front for a down payment than a full timer btw

>if your degree is worthwhile (pls say it's good, pls)

It's physics so pretty good.

>Try figure out ways to be frugal when possible - cook more than eat out, don't waste a fortune on disposable razors and fast fashion, pre drink more than buying in clubs, and so on.

I have accomodation with food paid for and I LITERALLY spent about 20 pounds this term on other stuff.

>Your overdraft idea is a good one - use it for not no reason, but whenever you could have just used your savings, use the banks and pay them back from your own cash later with no penalty.

Think I'll have to do that

>Otherwise it's time to brainstorm a way to make another 30k

That would be real easy soon as I've graduated and can get a real job, but otherwise there's no way I could do that by the end of the year.

Thank fuck. Physics can be a real money maker, just keep up that 2.1 and you'll be sweet country boy.

You'll find it different when you are cooking for you, but if you didn't mind catered food you'll tolerate most shit anyway, buy big packs of pasta and rice and use that to survive. 20£ is an economic miracle, I haemorrhage cash when at uni, try to have fun too and get your dick smelling like pussy or what's the point? Your uni life should be fun as well as fiscally responsible.

Overdraft defo, credit card if you think you can handle it (although if you're only spending 20£ a semester it may not make much of a difference haha)!

Student life man, even without real money you've got plenty to make this work if possible, well worth doing the masters too if you can be bothered. Take the rent out of your expenses and your house could easily become a reality. Just try not to have a terrible time at uni, reinvent yourself if needs be, hit the gym and make friends for life when you're there, remember that you're getting the bonus of a successful potential future career out of uni when many simply go for the experience, but that doesn't mean you should deprive yourself of the experience!

Again, summer job. Especially if you don't want to lick around your family on the holidays.

Yeah I'll look into all that. I've got a feeling getting a flat is gonna have to wait until I get a proper job.

With 30 in the bank, and after 3 more years of uni with careful saving maybe the same again, it really shouldn't be.

Keep at it horse

incredibly unlikely that you will get a mortgage.

Part of the application now is an affordability test. Without a job you will fail.

If I have £40k in an ISA would that help to secure a mortgage?

I am self employed, on £38k a year

I dunno whether to buy and let a flat or just keep doing what I'm doing, saving as much as I can into index funds

Didnt read thread but here's my input:
In the States at least yes this should be feasible. One way to work it is buy a place that could be rented out, as long as you put 20% down (which you have) you can have the bank consider it a rental property where you can estimate your rental income and they use that in leiu of your own personal income.

they do gov backed home buying ISAs you dolt

the bank will be more than happy to give you one since its literally free money

Wait till you get your own money to do it.

If things go south you will put yourself in a predicament you wish you would have stayed away from.

What's the rush?

You should be trying to buy a 20k uk poundo flat. Don't buy above your means.