Financial Help...

[TheDangerousQuietOne]

Morning all. I'm hoping a few people on here have experience of what I'm going through atm.
Basically, my landlord for next year is one of my friends parents. They have bought a large house for 8 of us to live in. They had problems with the purchase and so didn't tell us how much they would be charging us until approx 4wks ago. Then they dropped the bombshell that the deposit would be £325 as would each months rent. They want the deposit and first months rent (£650) before we move in in 2 weeks. I also have to pay the uni £350.
Ever since they told us this I have been going into my two banks, NatWest and Halifax to try and get the money. Unfortunately because I'm a student Halifax immediately said "NO" to everything straight off. NatWest refused me this morning because of a low credit rating eg. I have no regular income as a student. They won't give me a penny.
Now I have to somehow guarantee the money by today or my landlord will find someone else for the house and with the shortage of housing down here I'll be living on campus for the next two years :?
From the 1st July I will be working on campus earning approx £250pw AFTER tax so paying back money over the summer is not a prob. However, my question is, where can I get it in the first place??
I could:
a) sell my motorbike, it's worth approx £1200 except atm its MOT is nearly up and the chain and sprockets need replacing to get the MOT, needing approx £150-£200 to do this. I'd be lucky to get £800 atm. It will also take several weeks to get the money through.
b) beg my landlord to let me move into the house having given them £0. I can tell you now this won't work.
c) find a local loan shark....
d) kill myself...JUST KIDDING!!!!
So what can I do?? Any quick fix suggestions??

[richbeales]

I left uni 5 years ago, and am still struggling with the amount of (personal, not student loan) debt I got into, so all I can say is if you can avoid using credit to do anything, then do.

You always promise yourself that you'll pay it off as soon as you're earning, but the temptation is always there to keep living off the credit.

I can't be much help other than that.

[Dan]

Morning all. I'm hoping a few people on here have experience of what I'm going through atm.
Basically, my landlord for next year is one of my friends parents. They have bought a large house for 8 of us to live in. They had problems with the purchase and so didn't tell us how much they would be charging us until approx 4wks ago. Then they dropped the bombshell that the deposit would be £325 as would each months rent. They want the deposit and first months rent (£650) before we move in in 2 weeks. I also have to pay the uni £350.
Ever since they told us this I have been going into my two banks, NatWest and Halifax to try and get the money. Unfortunately because I'm a student Halifax immediately said "NO" to everything straight off. NatWest refused me this morning because of a low credit rating eg. I have no regular income as a student. They won't give me a penny.
Now I have to somehow guarantee the money by today or my landlord will find someone else for the house and with the shortage of housing down here I'll be living on campus for the next two years :?
From the 1st July I will be working on campus earning approx £250pw AFTER tax so paying back money over the summer is not a prob. However, my question is, where can I get it in the first place??
I could:
a) sell my motorbike, it's worth approx £1200 except atm its MOT is nearly up and the chain and sprockets need replacing to get the MOT, needing approx £150-£200 to do this. I'd be lucky to get £800 atm. It will also take several weeks to get the money through.
b) beg my landlord to let me move into the house having given them £0. I can tell you now this won't work.
c) find a local loan shark....
d) kill myself...JUST KIDDING!!!!
So what can I do?? Any quick fix suggestions??

Can you not get a short term loan with your parents or someone who trusts you acting as guarantor?

[MiniMatt]

How comparable are rents down that way? £325 * 8 = £2600 so either that's one hell of a mortgage they've got or they're making a nice fat wedge of the back of their son's friends.

If the rent is out of order then I'd start looking around and start making noises along the lines of, "sorry, I'll have to go elsewhere then". Don't start thinking they're doing you a favour or anything, one way or another they're going to get nicely wealthy off your back. If they can't fill your room for a month, that's already lost them £325 so it's probably in their interest to give a bit of leeway and get you in.

[MiniMatt]

Oh, also remember that deposit money has to be held by a third party now (to stop landlords pulling the "ooh, look, fluff on the carpet, that'll come out your deposit" trick). I'll dig around and find Teh Law someplace.

[BristolMatt]

How much of your overdraft have you used from your Natwest account? If it's a student one you can get up to £2000 interest free overdraft depending what year you're in. Because it goes up each year, you may not have maxed it out yet - hopefully.
Have a look here: http://www.natwest.com/personal02a.asp?id=PERSONAL/BORROW/OVERDRAFTS/STUDENT_OVERDRAFT

[TheDangerousQuietOne]

My natwest is a normal account, my halifax is the sudent account. Neither will extend my overdraft.

My parents can't help me out any more, they are as skint as I am.

Will call them today and see what they can do, cus if I pull out of the house then so will one of my friends, leaving them £650 a month out. One thing that does really annoy me is that their daughter is not paying rent so effectively we are subsidising her portion of the rent.

[TheDangerousQuietOne]

Oh and its a 12 month contract so will cost me £3900 over the year///

[sarah]

Oh and its a 12 month contract so will cost me £3900 over the year///

omg that's loads. where are you at uni?

[Warthog]

As others have said, for an 8 person house that rent seems very high...

[Keith1983]

dont worry about leaving them out of pocket, sure it sounds like a big house but it sounds to me like they're making an absolute killing out of their kids mates. I can appreciate that the idea of staying on campus for a couple of years isn't a particularly attractive one but it might be the best idea financially, especially if you want to keep your bike! which ofcourse you do!

[Baph]

As others have said, for an 8 person house that rent seems very high...
+1. Your rent alone is greater than the mortgage on my house, nevermind multiplying it by 8!!

I was in a similar situation at Uni, only there were 3 of us, and I wasn't paying nearly that much. In fact, I think I was paying a 3rd of what you are, which for the house, was pretty reasonable.

The only reason I can see for them charging so much, is because they've had high costs with buying the house and furnishing it for your use (up to standards of the Universities housing board).

Other than that, I can't be much help either I'm afraid.

[Gazza77]

How does what they are charging per month compare to other similar student properties in the area? That's the key bit!

[TheDangerousQuietOne]

It's not the highest in the area by far. It is in the top 20% of house prices tho. Basically I'll be paying for a massive victorian house, done up to a high standard, in my own 2 bedroom flat with a large kitchen and bathroom. The other 6 are upstairs.

There is quite a housing shortage in falmouth thanks to the influx of students and it'll be even worse next year when another 1000 descend on the town so getting this house sorted for 2yrs will be a massive bonus. They are currently doing the house up to a high standard because they want their daughter to have a nice house.

I've just called my landlord and have told him that if he gives me an extra week then I can sell my bike and pay him everything I owe him. He asked me about my earnings over the summer etc and seemed fairly happy that I will be able to keep paying him every month. Unfortunately his wife is far less generous and if she says no then its no.

I was planning on selling my bike in 3 months or so when I pass my test anyway but looks like I'm gonna have to sell it now and buy another cheaper one to do my test on. I really don't want to get rid of it but I know I will be relatively raking it in over the summer when my £300 deposit and £400 tax rebate arrive so it will only be a short break.

[Ed]

There is quite a housing shortage in falmouth thanks to the influx of students and it'll be even worse next year when another 1000 descend on the town so getting this house sorted for 2yrs will be a massive bonus.

My MIL lives in Falmouth, you could go and live with her:D

[gettin2dizzy]

So you aren't moving in until september and they want the first months rent now?!

[TheDangerousQuietOne]

No I'm moving in on the 1st july...though thats looking dodgy now.

[Tomcat]

They have pulled a blinder here! But that doesnt help you, you need to live somewhere...... what if you loan him your bike so he can run away from his dragon Mrs for a couple of months .... not much help sorry

If it is for the deposit, could you not explain the situation to him, write him a cheque, which he will not bank unless you leave/damage the property (which will be in 12 months time ....when you will have the funds) Does it HAVE to be cash?

[TheDangerousQuietOne]

Yeh it has to be cash and i'd still have to find the £325 for the first months rent. I can live on campus for £50 a week over the summer but it'll be even more of a hassle. Then I'd have to find somewhere else for next year.

[Tiger 55]

I'll be living on campus for the next two years
Problem solved, live on campus. OK, it's not a two bedroom flat but there are quite a lot of people out there (and on here) who work for a living and don't have two bedrooms and they seem to survive OK. Besides, campus is fun :rave:

[Alpinestarhero]

My uni (kingston uni) have a service which can get some extra money for students who have nothing, and need something...

..does your uni provide this?

Do you take a student loan?

Matt

[Tomcat]

Take it the bank didnt offer you a loan. Not sure what you can do here mate. Sometimes the hard way is the only way. Think I would sell the bike, and then promise myself I will buy another, when I have the money. Its better then being in debt before you even start out. Debt has a habbit of just growing, so the longer you wait before starting it the better. All in good time you will get what you want.

[plowsie]

325*8*12=£31,200 Now that is a hefty bloody mortgage a year, i'm a financial advisor, but i dont need to be one to tell you that.

How many rooms is that?

[Warthog]

Basically I'll be paying for a massive victorian house, done up to a high standard, in my own 2 bedroom flat with a large kitchen and bathroom.

There's the problem! What are you doing in a house like that as a student!? I was in a sh*thole for 7 years of higher education :p

[Paws]

jeez mate thats a joke!
Where me and my bloke live is quite a posh little country village, house prices are sky high (house down the road sold for half a mill!!), we have our own little flat-kitchen/bathroom/living room/bedroom and we only pay £280 a month!
Id live on campus, can be a good laugh hun, plus you wont be getting in debt.

[NastyNick]

As everyone else has already stated, that does seem like a lot of pennies to be coughing up. There must be much cheaper places around, and it also sounds like your landlords aren't as friendly as you would perhaps hope - could potentially cause issues down the line!

Are you intending to stay there for the full 12months? All my accommodation during my Uni years were on a 9/10month contract, which naturally suited everyone much better.

I have found paying upfront for first months rent and deposit is very common and to be fair, you can understand why the landlords are a little cautious to ensure that you (and the other 6+1daughter) are going to be good for the money, as it's unlikely they'll find a substitute for you mid-term. That said, given the short notice they've given you - i think it's only reasonable that they give you half a chance to find the funds!

The very best of luck

[TheDangerousQuietOne]

Problem solved, live on campus. OK, it's not a two bedroom flat but there are quite a lot of people out there (and on here) who work for a living and don't have two bedrooms and they seem to survive OK. Besides, campus is fun :rave:

Unfortunately they can't guarantee me a space on campus once the academic year starts, I would have about 1 weeks notice if they didn't have space for me.

[ASM-Forever]

TBH it all seem fairly regulation to me, from my experience of having seen my parents rent out a few of their houses. I'm lucky enough to flirt between my parents house in Marlow and if i need to their appartment in London.

That said i have mates who go to uni in London and they pay circa £100 per week rent in a shared house and then utilities on top of that. So there are people in a similar position to yourself. I have a mate who is not that well off and he quickly learned that he had to get a job to pay the bills.

As it seems you are strapped for cash, have you gone through all the obvious sources like:

Student Loan
Tuition Fee Loan
Student Overdraft(although i never go into overdraft..****e long term)

Assuming the tuition fee loan is used, that leaves you with a student loan that should roughly cover a years housing. You then have an overdraft to live off but like a lot of students getting a part time job seems inevitable.

I confess that i dont have a clue where Falmouth is, but you could easily end up paying higher in London.

Most obvious solution is to find somewhere more affordable to live, you have a bike so although its not ideal you could "commute" to lectures. If you dont have the £'s then a big victorian house....seems a bit extravagant.

You said the landlords are your parents friends, could they not have a word? At then end of the day you may find they have overextended thmselves to buy to let, and need the cash to cover the mortgage...so they cant afford to be flexible, when they might normally have been.

I dont see how you can have any grievance with them letting their daughter live there rent free....she is family and its their house. You might also find that they would of paid her accomadation fees anyway and there is no point them giving her money for rent only to be taxed on it!

As people have said it is standard for a deposit and an agreed amount of rent to be paid before you move in. My parents ask for £1k deposit, which the letting agent keeps, and three months rent upfront...so it could be worse :). Students are also notorious for being a greater risk letting wise. They actually make the insurance more expensive and my parents from past experience wont rent to them.

As for solutions it seems that the house is too expensive, live on campus or find somewhere to live off campus that is cheaper....little help i know.

[TheDangerousQuietOne]

Cheers for your help guys an gals.

I'm calling my landlord tomorrow with a full list of incoming cash over the next six months to show I can afford it. Also going to look at Abbey National as they are very good with loans. A girl I know got a £2k loan repayable over 8yrs and she is a full time student earning just £70 a week!!

[ASM-Forever]

Just be careful with loans and credit...they are a money pit and you can spiral into major debt....borrow as little as possible and pay it off ASAP :)