Saturday, Jan 10, 2015

It scares me how little has been learnt in the years since the financial crash

Guardian: The mortgage that allows students to buy their own homes

At the age of 20 he was granted a 100%, £183,000 mortgage, to be repaid on an interest-only basis, by Bath Building Society to buy a three-bed home in Chelmsford, Essex, where he has been studying architecture and technology at Anglia Ruskin University. He turned the lounge into a bedroom for his own use, and rented the three bedrooms to other students at his college. Pearson does not pretend to be a financial whizz-kid. “To be honest, my mother had been dealing with a financial adviser, who told her about this scheme when he knew I was going through university."

Posted by wanderinman @ 12:43 PM (15642 views)
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6 Comments

1. khards said...

Might not be a bad idea if he wants to spend the foreseeable future in his owner occupied non BTL mortgage house in Chelmsford. I think most people who have been to uni will know what happens when he graduates and need to find work.

Saturday, January 10, 2015 02:40PM Report Comment
 

2. hpwatcher said...

Lovely. I wonder what the other debts from his studies will be like.

Saturday, January 10, 2015 04:10PM Report Comment
 

3. khards said...

About £60k I should think.

Saturday, January 10, 2015 05:07PM Report Comment
 

4. libertas said...

This is FANTASTIC. If only I had owned the place I had at University, I'd be loaded by now. You could potentially pay off £15k of your mortgage over three years at Uni, helping to off-set tuition fees.

Sunday, January 11, 2015 01:10PM Report Comment
 

5. libertas said...

You will either take pay down your own debt or that of somebody else's. Renting is a life in debt.

Sunday, January 11, 2015 01:11PM
 

6. Blissex said...

«turned the lounge into a bedroom for his own use, and rented the three bedrooms to other students at his college [ ... ] enjoyed a month-on-month profit of around £200 – while living rent-free.[ ... ] “It’s worth about £220,000 now – if not a bit more,” he says, which suggests a paper profit of around £37,000.»

That can happen only in the South East, and only to one person in four, because that person needs 3 renters to pay for their mortgage and rent and give them a profit. This si exactly the system that the South East middle classes want and vote for, until the system collapses.

Sunday, January 11, 2015 09:34PM Report Comment
 

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