Can You Get an Accommodation Loan in the UK?
17 November, 2022
2 mins read
So just like that, you've got your future all planned out, you’ve chosen your dream university in the UK, and you're looking at securing student accommodation in the UK. There's just one teeny tiny problem: you're a student and you can't afford to rent an apartment. Fortunately, there's a way to get around that. Accommodation loans are quite a common thing in the UK. Find out what it is and how you can get one; let’s dive in!
So, What’s a Student Accommodation Loan, Anyway?
Student loans, also known as accommodation and maintenance loans, make students' lives in the UK a little easier. Accommodation loans are a quick and easy way to fund a temporary home in the UK. Your student loan covers more than just your tuition and living costs; it also covers things like rent for accommodation.
This implies that it is feasible to pay rent with student loans. Depending on the terms of your loan, the money will either be provided to you immediately or to the university, where it will be given to you after the tuition has been paid. Students can later use their student loans to pay for extras or housing, depending on their preferences.
How Do I Apply for an Accommodation Loan in the UK?
The first step is to apply for college loans if you plan on using your student loan to rent an apartment. You can submit an application through GOV.UK and make sure you have access to all of your personal information. You will need to complete a free application for student aid form with information about yourself, your family's monthly income, and the specifics of the university you want to attend. An accommodation loan in the UK also requires a guarantor and a spotless credit history.
How Much Do I Get as a Loan?
Your eligibility for a loan depends on two things:
1. Whether you reside in London or not -students there can obtain larger loans to account for the increased cost of living there.
2. How much money your parents (or household) make.
Your income can place you in one of several categories, which range from £25,000 (combined income) to £62,215 (the cutoff).
Okay, So When and How am I Expected to Pay Back My Loan?
The April after your course’s completion is when you must begin making payments on your student maintenance loan or accommodation loan. You are only required to pay once you earn £25,725 per year. Once you find work, the loan will be deducted from your income automatically, just like taxes. When you file your taxes each year as a self-employed person, you must disclose any student loans you have and pay any outstanding balances.
Also, keep in mind that your student loan will accrue interest just like any other loan would. Fortunately, though, student loan interest rates are often lower than those on other types of loans, but this is subject to change if the government's policies change.
And there you have it! That was your ultimate guide to accommodation loans in the UK. If you have any further inquiries on securing your student accommodation in the UK, just reach out to us and we’ll offer a helping hand!
So yeah, moving away to study abroad is quite a bold and expensive move, especially if you’re planning on studying in the UK. There are plenty of things to consider, from your university’s tuition fees to your living expenses, so you need to set a decent budget.