A student says she is saving money by buying a three-bedroom home instead of living in pricey university housing.
Charlotte Sprason used a ‘Buy for Uni’ mortgage scheme to get on the property ladder, after previously paying £786 on rent and bills per month at Lancaster University’s halls of residence.
Now, her mortgage and bills come in £93 cheaper per month on her interest-free mortgage.
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The PhD student is now the proud owner of a three-bedroom home at a time in life when most people would consider getting a foot on the property ladder impossible.
Charlotte’s home, which cost £130,000, was purchased with a £30,000 deposit.
This money was obtained from Charlotte’s own hard saving into a LISA from the age of 18, which had grown to £25,000, as well as an additional £5,000 she was gifted from her grandmother.
And thanks to taking on a lodger, who pays her £550 a month, Charlotte is £643 better off, Need To Know reports.
“I’ve got a lovely house north of Lancaster, which isn’t just cheaper than renting but also an investment that I hope will go up in value,” she said.
“Plus, now I’ve been able to fulfil a second bucket list item and got two cats.”
Charlotte explained that her mortgage was unique because the assessment of her eligibility included her £18,622 annual stipend.
She said: “During my research, I found out I would need a guarantor mortgage because my annual income was a £18,622 stipend, which is a non-repayable grant provided to doctoral students to help support their studies.
“The Vernon was one of just a few building societies that would consider my stipend in its assessment of my eligibility and thus could offer me a £100,000 mortgage with £30,000 deposit based on just my stipend income.”
While Charlotte admits that had she lived alone, it would have ultimately been more expensive to take on a mortgage – she was able to offset the cost by taking on a lodger.
She said: “Plus, by having a lodger, I am now 15% financially better off compared to sharing rented accommodation – and not only that, but obviously the larger income is paying the mortgage interest.
“So essentially everything I put in that’s of my own money is paying into an investment.
“Now I’m only saving rather than spending on accommodation.”
And by doing this, it also made life cheaper and more spacious – especially compared to her past accommodation.
She said: “In first year I had black mould in the window that could not be killed as it ran so deep and the walls were thin so you could hear everything your flatmates were up to be it 2pm or 2am.
“At one point we even had a moth infestation
“Second year was less signs of mould but a much smaller space.”
And now she’s even ahead of her peers.
She said: “I am excited about the prospect of future financial security.
“Like most, I dream of the day that hard work and long hours is not a thing of survival but a choice made for passion.
“Owning property has a been a key step towards this for many people who came before.”
Charlotte’s mortgage application also had the support of her mum, Tracey Sprason, who acted as her guarantor.
The Vernon Building Society said that after uni, students like Charlotte can then switch to a residential or buy-to-let mortgage, providing that they are eligible.
Charlotte said: “This was my only option unless I had a partner with a full-time job, that they’ve been in at least six months – there was no chance.
“Obviously, I could have waited four years and then got a normal mortgage, but by then I’d have been 26, so I’ve kind of jumped a step.
“My mortgage is on interest-only for 13 years due to my parents’ retirement age, but I overpay what I can afford every month and don’t get penalised.
“When I finish my studies in four years, I can either stay in the house and transfer to another mortgage free of charge, or I can sell it.”
Charlotte’s mum said she is confident of her daughter’s ability to take on home ownership while she is still a student.
She said: “Charlotte is both methodical and determined, and once she’s made up her mind to do something, she does it.
“Her stipend is guaranteed income until she finishes her PhD so we’re happy she can pay her mortgage and bills every month.”
The student’s attitude towards her own living space has also been transformed by home ownership and she is enjoying putting her own stamp on the property.
Charlotte added: “I’ve never been one that cared too much about being able to decorate things, but now it’s my house, it’s so different.
“I didn’t realise initially how much of a difference it would make to my life.
“I’ve gone from living out of one room in student accommodation and having half my stuff stored somewhere to being able to have everything I’ve ever owned in one building!”
Charlotte studied Biochemistry with genetics for undergraduate ad is now doing a Biomedical and Life Sciences PhD.
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