Mortgage turned down - any advice?

meds12_2

Hi All!
Applied for a mortgage with TBS, just to see what sort of amount I could borrow, and at what cost. Thought I was in a fairly good position - no credit card debt, no personal loan debt, a deposit saved, and both myself and my partner have fairly safe jobs (I'm a teacher, partner works for Sky).

Found out earlier today that we have been turned down, due to my outstanding student loan balance. Can this be right? Surely this means that the majority of people leaving Uni will be unable to access mortgage products for a very long time?

Are all mortgage lenders like this? I had thought that mortgage offers could be reduced due to monthly student loan commitments, but not withdrawn altogether? And this was with a 15% deposit too!

Cheers
A

Comyface

I don't think all mortgage lenders are like this. Have you defaulted on your Student Loan? Or missed any payments? Very weird if not.

I'd get a copy of your credit file to see what's been registered.

meds12_2

Hi, thanks for the reply! No defaults no - its the repay as you earn scheme, and they didn't get it from my credit file - they asked me and I told them. I suppose my student loan is fairly high, as I did a 4yr degree with a foundation year, and then a PGCE, but as I only pay 9% on my earnings over £15k I didn't think it would matter - I would pay the same whether I owed £2k or £20k.

Comyface

I wouldn't have thought it would matter either. As you originally said, it may reduce the amount they would lend you, but shouldn't cause them to refuse you altogether.

There must be something else going on, maybe it's just their own policy or there's some other reason they've declined that they're not telling you.

I'd try somewhere else.

meds12_2

Thanks Comyface - I really don't think that there was any other reason...the girl I spoke to said to try again in a few months as the economic situation may have improved...I think they are trying to find any reason NOT to lend at the moment.

Thanks for your help!