Student loan as part of Deposit

jamieslucky7

I received £14k~ from the student loan company that I put in to savings accounts rather than spending. This money accounts for half of my deposit. Will mortgage lenders disregard this £14k because I still owe the student loan company £13k~? Or will they see it as a good thing because the amount I pay each much is predictable and controlled.

GMS

You will need to declare the source of your deposit.

The lender will take it as a credit commitment which will form part of your affordability calculation.

Some lenders may have an issue with a borrowed deposit.

Soeak to a 'Whole of Market' broker to see best option, or research yourself checking if the deposit will be ok

sarahevie

I used mine as my deposit when I bought in 2007 - it's cheap finance.

GMS

sarahevie wrote: »

I used mine as my deposit when I bought in 2007 - it's cheap finance.

The mortgage market today is unrecognisable from the one of 2007. Like comparing a gramophone with an ipod.

jamieslucky7

Thanks for the input. I have £28k deposit £13k left on student loan and the property I want is £116,000.

Another question, do I get a mortgage first, then find a property, or find a property and then try and get a mortgage for that property. Thanks.

lyndasharp

Yuo need to get an agreement in principle, then look for a property. When you find one you can then do the full mortgage application.

I used my student loan for a deposit (2009), and they didn't need to take my student loan repayments into account.