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How Does A Student Debt Affect Getting A Mortgage?
Top_Banana_2
Posts: 306 Forumite
When I graduate, I will have a student debt of around £6,500.
I assume I will want a mortgage sometime in the future. How will such a student debt affect my chances of getting a mortgage? I've been told different things.
Am I right in thinking that it is not taken into account as it is taken with tax and is a govt loan?
Thanks.
I assume I will want a mortgage sometime in the future. How will such a student debt affect my chances of getting a mortgage? I've been told different things.
Am I right in thinking that it is not taken into account as it is taken with tax and is a govt loan?
Thanks.
0
Comments
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It will generally be taken into account as a credit commitment when applying for a mortgage.
Don't understand how you think it wouldn't be. It is a loan which is being repaid.
It should show on payslips which will need to be provided for the lender.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Yet another reason why house prices are FUBARed in the UK for many years to come... they will also never get back to the multiples of 2007 as the new level of student debt puts a lower ceiling on what banks will lend.
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But it does not rule out the possibility of getting a mortgage? Lenders will still lend?0
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Top_Banana wrote: »But it does not rule out the possibility of getting a mortgage? Lenders will still lend?
Subject to meeting all criteria you could be considered. The student loan would not stop you applying, but it may reduce the amounts available to youI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
So does this mean (I'm guessing that it has to), that these future students subject to £9,000 fees, plus subsistence costs of around £4k-ish, will now have a debt of £40k, reducing their ability to borrow?
Or does the fact that it's unsecured, written off after 30 years, and never going to demand more than 9% of salary, impact how much it affects any mortgage application?0
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