Kings Student Money Mentors

Housing, mortgages and council tax

“Buying a house after graduation”

I don’t know about you, but when I hear the words ‘mortgage’ and ‘council tax’, it makes me nervous about going into the adult world. After university, I am planning to get a house, but in this current economy, houses seem too expensive to afford. Not only do you have to have enough saved for a deposit, but you also must have a good enough credit score to get a mortgage in the first place. Even when you do have enough saved and a good enough credit score to get a mortgage and finally get your house, you must now worry about issues like bills and council tax. Ughh. Am I really ready for this adult life? Well… I can be. How can I be more prepared for ‘What Comes Next?’. As a student at KCL, there are lots of resources out there that can make us more informed and more prepared to get our first-ever property.

Firstly, what are mortgages and council tax?

A simple definition of a mortgage, also referred to as a mortgage loan, is an agreement between you (the borrower) and a mortgage lender (usually a bank) to buy or refinance a home without having all the cash up front.

Council tax is a fee you pay every year to your local council if you are a homeowner or a tenant. The amount you pay is set by your council and goes towards funding local services like the police and fire service, libraries, bin collection etc.

(If you have more questions about council tax, you can always make sure to contact your Local Authority).

If you are a current KCL student, you can start getting more informed about housing, so you feel more prepared for the adult world once you graduate. Platforms such as Blackbullion are brilliant educational resources to teach students like us about finances, so you can learn about building a good credit score, saving up for a mortgage and so much more. There are also services outside of KCL like Citizens Advice and the fantastic MoneySavingExpert and Money Saving Advice (including its mortgage calculator) websites, which can provide you with more information on council tax and mortgages.

“London is too expensive… how can I get a house?”

If you currently live in London or are planning to live in London, you might notice the costly housing prices. if London doesn’t feel like the right fit for you, don’t be afraid to branch out to other places outside of London, as houses are likely to be cheaper, with a lower council tax rate! You can use websites like Right Move, which allows you to compare house prices and find affordable housing across the UK, apps like Nude and Principality that allows you to save more efficiently in order to purchase your first property, and also guides to some schemes such as shared ownership or help to buy like those from the Mayor’s Office.

You should also conduct your own research before using any housing-related apps or websites, for example by looking at the reviews, to see if it is best for you.

Ahh… I feel more prepared to go into the adult world now after graduation

The world of mortgages, council taxes and house-hunting in adult life after graduation might seem scary, but trust us, it’s not as bad as it first seems! Hopefully, reading this blog will have given you a little bit of help and set you on your way to building a fantastic future after graduation!

We hope that by using all the resources available to you, including those suggested in this post, you’ll be able to make some more sense of mortgages and council tax. Don’t worry if you don’t understand all of it just yet, King’s Student Money Mentors are always here to help you on your financial journey, both while you’re here with us as a student, and after you graduate, as well as KCL Money and Housing Advice.

Best of luck with What Comes Next!

Miriam Okotie Tomas
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.

Finding opportunities after graduation

What happens after graduation

Well done on graduating, but now what?

Well, you may fall into one or more of these camps: you have a job lined up, you don’t have a job lined up, you’re going to pursue PG or alternative study, or you just don’t know. Whichever camp you’re in, there are multiple different opportunities and facilities to help you reach or even find your goals.

The I don’t know camp/ I don’t have a job camp

Kings CareerConnect provides a great service available to king’s alumni for up to 2 years from when you finish your course where they can help you through the process of discovering what you want to do with your degree and what you find interesting to the point where you can focus and take action to get the career you want. They can help you discover your passion through panels and the discover page on KEATS. Moreover, they can help you narrow down your options and help develop your skills and experiences to make it easier for you to get your dream job. Finally, kings provide application advice and practice interviews via kings connect to maximize your chances.

Furthermore, if you want more general help KCL also gives you access to digital career education resources, recordings, and guidelines on Keats.

Here is the link to KCL CareerConnect.

Pursuing postgraduate or alternative study camp

Pursuing PG degrees can be a fantastic way to increase your skills and make you more specialized for the job or career path you would want in the future. However, it is important to note it does come at a price and a time/opportunity cost and so before pursuing it, it is important to know how you are going to fund the degree and you’re living whilst doing the degree. SFE gives a maximum loan of up to £11,836 which include both living and degree costs In London bundled into one. There are also funding bodies that provide grants for certain degrees and specialities, but they can be rare. Thus, it’s important to budget before starting your course.

Alternative studies such as short courses on specific things and online courses can be a great way to beef up your CV and help make it more specialised for the career path you are going down. These often come at a lower cost than postgraduate study and might be good to look at if the career you want doesn’t mind about postgraduate studies.

You have a job lined up at camp

Congrats! But you will need to bear in mind that your student loan repayments are taken out of your paycheck automatically if you are an employee and pay tax and NI (national insurance) through the pay as you earn (link payslip blog) scheme based on your earnings for that period the April after you graduate depending on how much you are earning. It is also important that you check your payslip tax code – more about that here.

Conclusion

Each of these pathways has its benefits and costs and so you must weigh the pros and cons for each one.

Yahye Mohamud
King’s Student Money Mentor
Part of Money & Housing Advice

Online Banking

Banking these days has become a lot easier, thanks to the digital revolution. You no longer need to physically visit the bank to make simple transactions such as fund transfers and checking your bank balance. These services can now easily be accessed at your fingertips, online or on your phone. The added benefit of mobile banking is the ability to instantly block your card in the event that it is lost or stolen.

Mainstream banks, such as Barclays, Santander, Lloyds and Nationwide, offer apps that can be downloaded from the Appstore or Play Store to access their services. Alternatively, newer banking methods include apps like Monzo and Revolut that exclusively operate online. Monzo requires you to load money onto the card, usually by a fund transfer to be able to make payments as you would with your usual bank card. This is an excellent way for you to budget, as a limited amount of money loaded onto your card enables you to restrict your payments to essential spending. These newer alternative banking methods also allow purchases in several countries abroad without worrying about paying a charge for these transactions. Therefore, these app-based online banking services provide a secure and hassle-free method of making payments.

Nevertheless, it is important to be always aware of scams and use your money with caution. If in doubt about the services being offered or the service provider, investigate and report any suspected scams immediately! 

Please see the articles (with links) below for more information on banking: