Student loans and Mortgages

kilofarahs

Does anyone know if having a student loan will affect your chances of getting a mortgage? As if you think its a pretty benign debt as they only take a low fixed amount and if you lost your job they just freeze the debt. Its just its a fairly substantial one even though im only paying 30 quid and it comes straight from my gross - it doesnt even appear on my payslip. Should i just not mention it?

Heth_2

We are ftbs, we tried to buy a house last autumn (it fell through) but anyway when we applied for the mortgage they didn't seem bothered by my husbands student loan at all. They did want to know about the car loan though, and how much was left on that.

mr_fishbulb

I don't think it matters (well I hope not anyway). But you have to take it into account when you work out how much you can afford to repay each month.

dennyboy

Student loans do not show up on your credit file. So even if u had one and kept defaulting on it this would not show on your credit record. If you default on it though they can get the baliffs so not really a good idea. But just thought i'd mention the credit file bit, ie if you don't mention it the lender won't even know about it. Read this on the web recently can't remeber where though sorry!! Student loand are fighting for this to be changed though.

dennyboy

Heth wrote:

they didn't seem bothered by my husbands student loan at all.

I know A&L take student loans into account so i suspect other lenders do to. The A&L has an online facility which works out how much you can borrow, they seem to lend more than most companies if you want to try it click on this link http://www.alliance-leicester.co.uk/mortgages/index.asp?page=affordabilitycalc&buyertype=unknown&ct=mortgagesellmenu

zag2me

My student loan didnt count at all, it was ignored.

mr_fishbulb

dennyboy wrote:

Student loans do not show up on your credit file. So even if u had one and kept defaulting on it this would not show on your credit record.

How can you default on a student loan? Mine comes straight out of my payslip.

kilofarahs

mr_fishbulb wrote:

How can you default on a student loan? Mine comes straight out of my payslip.

Thats a pretty new style of - a few years ago you just paid by direct debit, so probably means that.

Cheers for the help all - i will keep quiet and my fingers crossed