Mortgages

Any recommendations?

Thanks,

Hi,

I am a mature student (21) who is going to Medical school this September - I have about 70k in savings atm and am looking to use these to make my time at uni cost-neutral (Excluding student loan debt)

I was hoping to take out a residential mortgage on a property and then pay the monthly payments using the rent from fellow students I would share the property with (Following maths and research am expecting approx 15k per annum in rent) then use the surplus to live off

The problem is, without a sustained employment income - I can't get a residential mortgage, and I can't get a buy-to-let because I intend to live in the house!!

Any recommendations?

Thanks,

I'd advise you wait til after you've finished university and you know where you'll be working next to buy any property. No point buying a house only to find 5/6 years later that you're moving somewhere else to work. And personally I wouldn't want to rent a house I was living in to students (and I am one!)- many have no idea how to treat a house in terms of being clean and tidy.

My thinking is that in 5/6 years time I can either sell the house (assuming it hasn't lost value) - meaning I've had free accommodation for 5/6 years (bar interest - but even that should be covered by lease income)

Or just start renting in a new place and let the property pay itself off with tenants, and take the value out when the price recovers (if it drops significantly)

My thinking is that in 5/6 years time I can either sell the house (assuming it hasn't lost value) - meaning I've had free accommodation for 5/6 years (bar interest - but even that should be covered by lease income)

Or just start renting in a new place and let the property pay itself off with tenants, and take the value out when the price recovers (if it drops significantly)

Bar stamp duty (if you're thinking you're going to be getting £15k rent it'll be into the stamp duty threshold
Bar solicitors fees
Bar estate agent fees
Bar costs of furnishings

At a typical Manchester student rent of £75, you would need seven tenants for a full 30 weeks each to gross £15,000 (from which there are significant costs and deductions). This means (given that it is normal to have a bedroom each, usually with a double bed it seems) having an eight-bedroom house with two or three bathrooms, which would cost a great deal of money. This is not a feasible project, even if a mortgage could be obtained.

At a typical Manchester student rent of £75, you would need seven tenants for a full 30 weeks each to gross £15,000 (from which there are significant costs and deductions). This means (given that it is normal to have a bedroom each, usually with a double bed it seems) having an eight-bedroom house with two or three bathrooms, which would cost a great deal of money. This is not a feasible project, even if a mortgage could be obtained.

The property in question already has tenants signed until 2015 (5 of them) paying a total of 18k per annum.

My intention was to move in in second year (2015) and sign 4 new tenants on a similar price package.

What I don't get is that If I don't live in the property, and live elsewhere, even without an income I can get a buy-to-let mortgage, it's the fact that I want to live there that seems to be causing a problem.

The property in question already has tenants signed until 2015 (5 of them) paying a total of 18k per annum.