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Spending my uni money on a house to put on rent...?

Jerry

Deleteed

(edited 8 years ago)

BUMP

Which mortgage provider do you think will give you a mortgage based on an income which is derived from student finance? - and one that you have to get a loan for the deposit for?

(edited 8 years ago)

Reply 3

pmprin

Original post by Jerry

SO. i'm getting quite a bit of money when i start uni (i'm not in my first year!) around £4800 from one place and £3000 from another that adds upto £7800. and i don't have to pay any of this money back! Also, i'm living at home for free so i don't have accommodation costs. Do you think it's a good idea to use this money and probably a bit more (might get a loan out to help with this idea) to buy a small house to put on rent that way i'll be getting more money out of it somehow..?! Just a thought ... and i really don't know if this will work need a second opinion on this

You won;t be able to get a mortage.

Reply 4

Jerry

Original post by ViewOnlyMum

Which mortgage provider do you think will give you a mortgage based on an income which is derived from student finance? - and one that you have to get a loan for the deposit for?

Well if i buy it under my sisters name she works?

Reply 5

Jerry

Original post by pmprin

You won;t be able to get a mortage.

why not i can buy it under someone else's name like my sister she works..?

Reply 6

DiddyDec01

Are you going to be instructing solicitors and do you know how much their fees will be?

Reply 7

username1862217

Where can you buy a house for £8k? An eroding beach hut on the far side of the shetland islands maybe?

Reply 8

ViewOnlyMum

Original post by Jerry

Well if i buy it under my sisters name she works?

So you sister has sufficient income and proof of where the deposit came from (money laundering rules compliance) and credit rating to get a mortgage (possible even additional mortage) in her sole name, for which she would be legally and financially responsible for up to 30 years, so you can pay the mortgage for a year or two, after which you may not have a job or any student loan to pay the mortgage and she would be responsible?

Not only that, she would also be legally responsible for declaring any income sourced from renting the property and paying tax on the same.

Reply 9

Duncan2012

A Monopoly house perhaps.

The lowest risk option would be in a cash ISA. You're not going to get rich quickly off £7800.

Reply 10

username1221160

You can get some fantastic investment opportunities with that sort of cash.

Reply 11

SophieSmall

It's just not going to happen, you won't be able to buy under your name. No one would be irresponsible enough to give you a mortgage, And it would be very silly of your sister to let it happen under her name, not to mention I think the arrangement you propose with your sister is illegal.

It's just not going to happen. You're better off saving it. And this is precisely why these sorts of things need to be taught in schools, it's very clear no one has a clue any more.