Could I mortgage a house while studying?

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    Yes, it's do-able. There's an article from the Telegraph I believe, where someone mortgaged a house and rented the rooms out in student-style accomodation. The rent from each bedroom was more than the houses mortgage so as well as paying off his mortgage he was making a few hundred £ surplus a month. It's only possible in cities eg Leeds, Sheffield, Nottingham. You definitely could not do it in London.
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    (Original post by hevbow)
    Yes, it's do-able. There's an article from the Telegraph I believe, where someone mortgaged a house and rented the rooms out in student-style accomodation. The rent from each bedroom was more than the houses mortgage so as well as paying off his mortgage he was making a few hundred £ surplus a month. It's only possible in cities eg Leeds, Sheffield, Nottingham. You definitely could not do it in London.
    The issue is the deposit, not everyone has the necessary £20K+ available. Then there is the question of your suitability as a borrower - unless you have a big percentage of the asking price, the mortgage lender is going to want evidence of your ability to pay long term, which usually means a good regular salary.
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    (Original post by Fullofsurprises)
    The issue is the deposit, not everyone has the necessary £20K+ available. Then there is the question of your suitability as a borrower - unless you have a big percentage of the asking price, the mortgage lender is going to want evidence of your ability to pay long term, which usually means a good regular salary.
    Bath Building Society actually lend 100% of the cost up to £300,000 - so the deposit barrier is broken down.
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    (Original post by hevbow)
    Bath Building Society actually lend 100% of the cost up to £300,000 - so the deposit barrier is broken down.
    Not if they dont believe the person offers a secure risk. A student just out of college is going to have to be earning a lot form a pt job to secure a £300k mortgage.
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    In short - no.

    Students are not offered mortgages by high street lenders. You'd need to go to a speciality lender - but these places are for people with rich daddies.

    Your ability to pay a mortgage is measured by a few things including your ability to hold down a full time job, your wage, your deposit, your previous experience of making monthly repayments, your ability to pass the stress test (they test your stats should the interest rate go up to about 11% or something). Your likelihood of gaining a wage increase, your realistic monthly outgoings. Etc etc *A young student of normal means would not be able to pass this. I got my first mortgage at 23.
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    (Original post by 999tigger)
    Not if they dont believe the person offers a secure risk. A student just out of college is going to have to be earning a lot form a pt job to secure a £300k mortgage.
    It's not for a student just out of college - its for one currently studying. Have a look at the article from the Guardian
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    (Original post by hevbow)
    It's not for a student just out of college - its for one currently studying. Have a look at the article from the Guardian
    I thought the OP was still at school?
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    (Original post by mphysical)
    Are you sure you are intelligent enough; work full time while studying?
    Yes, I suppose so if you work a night shift.
    **** yeah. I'd like a challenge lol.
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    (Original post by Fuzzpig)
    In short - no.

    Students are not offered mortgages by high street lenders. You'd need to go to a speciality lender - but these places are for people with rich daddies.

    Your ability to pay a mortgage is measured by a few things including your ability to hold down a full time job, your wage, your deposit, your previous experience of making monthly repayments, your ability to pass the stress test (they test your stats should the interest rate go up to about 11% or something). Your likelihood of gaining a wage increase, your realistic monthly outgoings. Etc etc *A young student of normal means would not be able to pass this. I got my first mortgage at 23.
    So you got a bachelor's degree then got a full-time job? you didn't star for a master's?
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    (Original post by 999tigger)
    I thought the OP was still at school?
    I am lol
    just thinking out the future
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    (Original post by Fuzzpig)
    In short - no.

    Students are not offered mortgages by high street lenders. You'd need to go to a speciality lender - but these places are for people with rich daddies.

    Your ability to pay a mortgage is measured by a few things including your ability to hold down a full time job, your wage, your deposit, your previous experience of making monthly repayments, your ability to pass the stress test (they test your stats should the interest rate go up to about 11% or something). Your likelihood of gaining a wage increase, your realistic monthly outgoings. Etc etc *A young student of normal means would not be able to pass this. I got my first mortgage at 23.
    I plan on getting a bachelor's, then working a job as well as studying for a master's degree
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    (Original post by ExamsAreOver)
    So you got a bachelor's degree then got a full-time job? you didn't star for a master's?
    Yep. I wasn't prepared to pay £9000 for a masters, at the time there was no student loan available for post graduate study, leaving me with the potential to get a massive loan which I would need to begin paying back as soon as I graduated from the masters.*

    That would leave me with no more possibility of gaining full-time employment, no possibility of getting a better paid job, and with absolutely no possibility of getting a mortgage with that level of debt.
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    (Original post by ExamsAreOver)
    I plan on getting a bachelor's, then working a job as well as studying for a master's degree
    Good luck finding full-time employment that will let you do that. Many people go straight into full-time work after their undergraduate degree, then some may go for a part-time, part or fully funded masters degree, agreed by their place of work. That will be a two-year course.**
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    Erm.......NO!!!
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    (Original post by ExamsAreOver)
    so I'm still in school but I was wondering would I be able to mortgage out a house ~500k $(Canadian) while studying? If I worked part time? Lets say I wanna get a house by 24… is it possible to mortgage a house while I'm doing my majors? Would i work full time or part time?
    thanks
    I just got a mortgage and I'm 21 and that's for a £650,000 penthouse which is easy when I make what I do
    but that is impossible for you to do on a degree for a fact no bank would touch you not since '08 unless you have like 60% up front
    Spoiler:
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    I make £4,000 a week and plan to pay my place off in about 5 years, rent it out and buy a bigger place
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    (Original post by jamesthehustler)
    I just got a mortgage and I'm 21 and that's for a £650,000 penthouse which is easy when I make what I do
    but that is impossible for you to do on a degree for a fact no bank would touch you not since '08 unless you have like 60% up front
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    I make £4,000 a week and plan to pay my place off in about 5 years, rent it out and buy a bigger place
    :rofl: I love your posts, james! But you must make your fantasies more believable. £4,000 a week requires a gross income of £390,000 per year...

    If you'd gone for £1000 a week, some people would have fallen for it!
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    (Original post by hevbow)
    Yes, it's do-able. There's an article from the Telegraph I believe, where someone mortgaged a house and rented the rooms out in student-style accomodation. The rent from each bedroom was more than the houses mortgage so as well as paying off his mortgage he was making a few hundred £ surplus a month. It's only possible in cities eg Leeds, Sheffield, Nottingham. You definitely could not do it in London.
    This is rubbish. Buy to let mortgages have all but disappeared now, and the deposit you'd need would be vast. A mobile and impoverished community of prospective tenants such as students would set alarm bells ringing even further at the bank. The notion that you could just waltz into the bank and say 'I'm a student, but I want to buy this house and then rent it out to other students - gimme a morgage' is, frankly, laughable.
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    (Original post by Reality Check)
    This is rubbish. Buy to let mortgages have all but disappeared now
    Not as rubbish as this.

    (Original post by Reality Check)
    A mobile and impoverished community of prospective tenants such as students would set alarm bells ringing even further at the bank.
    I can assure you that this is not the reason the bank would decline the application.

    (Original post by hevbow)
    Yes, it's do-able. There's an article from the Telegraph I believe, where someone mortgaged a house and rented the rooms out in student-style accomodation. The rent from each bedroom was more than the houses mortgage so as well as paying off his mortgage he was making a few hundred £ surplus a month. It's only possible in cities eg Leeds, Sheffield, Nottingham. You definitely could not do it in London.
    1. Residential Mortgages are based entirely off your own personal income. Generally lodger income does not count as your income and in this case, it would be prospective income at best. Lodgers do not sign Assured Shorthold Tenancy contracts, where the minimum term is 6 months and guarantees income. Seeing as you cannot guarantee Lodger income, nor are you obliged to rent to Lodgers, it cannot count as an income source when getting a mortgage.

    2. BTL mortgages are different. In that you can borrow an amount based on the rental value. However, there are some general rules.
    1. You, the owner, cannot live in a BTL property
    2. You cannot be a first-time buyer
    3. You must have at least a 25% deposit.
    4. The rental income is stress tested against a minimum of 5.5% interest rate.
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    (Original post by NX172)
    Not as rubbish as this.


    I can assure you that this is not the reason the bank would decline the application.


    1. Residential Mortgages are based entirely off your own personal income. Generally lodger income does not count as your income and in this case, it would be prospective income at best. Lodgers do not sign Assured Shorthold Tenancy contracts, where the minimum term is 6 months and guarantees income. Seeing as you cannot guarantee Lodger income, nor are you obliged to rent to Lodgers, it cannot count as an income source when getting a mortgage.

    2. BTL mortgages are different. In that you can borrow an amount based on the rental value. However, there are some general rules.
    1. You, the owner, cannot live in a BTL property
    2. You cannot be a first-time buyer
    3. You must have at least a 25% deposit.
    4. The rental income is stress tested against a minimum of 5.5% interest rate.
    This is not going to happen for a student. It's nonsense. Plus you're about 2 years out of date in your 'information' about buy to let mortgages. For instance, HSBC:

    Borrower Eligibility

    Our Buy to Let mortgages are available to:New and existing HSBC customers with a minimum annual salary of £25,000You must have owned and lived in your existing property for at least 6 months

    Student doesn't have a minimum salary of £25K, neither does he own a property. Not eligible.

    Or this, from Lloyds:

    You are at least 25 years oldYou will not be over 75 years old at the end of your mortgage termThis is not your first mortgageThe property is in good condition and not divided into separate unitsYour property is being used for rental purposes

    Again, fails on not having a mortgage already and <25 years old.

    Or Santander:

    At least one borrower must have a UK residential mortgage.No first-time buyers (never owned a property before).First applicant must be earning a minimum basic income of at least £25,000 per year. Evidence of income is required in all cases
    Applicants who are self-employed are acceptable by Abbey

    Again, fails at multiple hurdles.


    Your buy to let information is from about 2007. The main incorrect information is your suggestion that personal income is not taken into account for a buy to let mortgage which is, as you can see, nonsense.
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    (Original post by Reality Check)
    This is not going to happen for a student. It's nonsense. Plus you're about 2 years out of date in your 'information' about buy to let mortgages.
    It's been 2 years since I bought my last BTL. Please enlighten me.
 
 
 
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