Back to education mortgage issues

Hi All,

I hoping to get some advice on what options are available with mortgage. I am planning to return to college to do a phd in the next few months. The position has a stipend of 16K a year to live on and is expected to last four years. My morgage at the moment works out about 10,000 a year. Although the stipend could cover it there won't be enough left in the pot to pay for essentials such as food! Does anyone have any suggestions on how I can take up this course without losing my home? ANy help appreciated.

What are the mortgage details - i.e. original amount and start date, term, outstanding amount, rate and type (fixed, variable, tracker) etc.? What is the house currently worth?

Would your lender perhaps allow you to go interest only for a while?

Could you avail of the rent a room scheme to collect up to €10K in rental income tax free thereby covering the mortgage?

Do you have other income, savings/investments, debts etc.? If you have other income will the stipend be assessable for income tax?

I have owned the property for five years. Last year I changed lenders to Halifax and the amount outstanding is 168000, with 25 years left. At that time the property was valued at 280,000 but a really don't think it would actually achieve that price. I think 240,000 would be a fairer estimate of the value. The property is a onebed apartment so no additional rooms to let, unfortunately. Intrest only would reduce the outgoing for a while but would still leave things very tight indeed!

Sorry, forgot to mention that the mortgage is a tracker.

If the rate (which you don't post) was say 5% then interest only would be c. €700 p.m. or €8.4K p.a.

Are you sure that this return to college while maintaining the mortgage is actually viable?
Can you work part time while back in college?

No I'm not sure its viable at all. But it is happening regardless. I know that seems like a very careless attitude but over the long hall it will be worth it. As it stands I have two options. I can move back with my folks, rent the property and get by. The only down fall to this is an extremely long commute which I'm dreading. Also my family have offerd me a loan which would partially cover the costs. While I'm sure that they mean well I would rather not leave them short just to cover my costs. Option C which I don't know if the lenders would sign up to is to try release some of the equity and use this to cover the mortgage payments during my leave of absence from the work force. Any opinions?

You are in a bit of a sticky situation alright.

When are you starting the Phd? You can try to save as much as you can in the meantime. Also, you might be able to get a moritorium from your bank for a few months to allow you save a bit extra. Also, can you pay interest only? If you explain your situation to the bank they might be very accomodating. Aslo do you have any savings at present to fall back on?

Will you be entitled to any grants? Can you do tutoring in college while you are studying? Also, can you take up any other part time job? bar work etc?....

I think you should try to stick it out for as long as you can. You do always have the option of moving out to your parents and renting it if it does get too much.

daragh8008 said:

over the long hall it will be worth it.

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You mean your apartment is above the pub in South Great George's Street?

Option C which I don't know if the lenders would sign up to is to try release some of the equity and use this to cover the mortgage payments during my leave of absence from the work force. Any opinions?

Click to expand...

You would be better off going to interest only or a repayment break if possible. Releasing equity to pay the mortgage makes little sense to me.

YEa saving are fair non existant at the moment. I'm starting on the 24th of March and finishing work on the 14 of March. So I probably won't be able to make a huge difference even if I managed to save every cent.

I wish the location was so central but no its not the over the pub! lol. Over the course of my career it should be worth it. I think its time to talk to the lenders and see what they will be willing to do.

Hi
Was just reading posts from 2006 about apprentice solicitors trying to get mortgages and was wondering if anyone has had any joy on the matter. Just ran it by my usual bank and they said b/c I was still "in training" and because there is no definite job offer at the end of the apprenticeship that i'm ineligible despite my potential earning capacity in 12months?
Cheers