Mortgage Application

mac123

Hi

I am making a first application for a mortgage soon and was wondering if the lenders take into consideration a student loan when deciding to lend or not?

What I'm saying is - Can I hide this from them as it doesn't show on Experian/Equifax credit checks.

NB - I'm not paying it back yet as have to earn over £22k

Cheers

Banana_3

I have just gone through a mortgage application with a Financial Adviser and was told would have to declare student loan.

cloud_dog

mac, its really your choice but, I think your best policy is to be honest with them and state that you have a student loan. You can caveat this by stating that repayments will not start until you start earning over £22k and that the repayments will be £nn pm (I understand that these repayments can be spread out over a long period of time and therefore a relatively low £pm).

I had a situation where I was entitled to a company car. They did this by me taking out a loan (£18k) on the vehicle and all the payments came out of my salary but the company paid me additional monies to exactly cover the expense - net result nil difference. On my mortgage application I added the loan amount / repayments but added the above caveat - net result not a problem.

cloud_dog

herbiesjp

Agree with the above post. Be as up front as you can, because at the end of the day the lenders will try and offer you a deal if they know the full picture. However, if they find out later, they will probably think you are trying to pull the wool over their eyes and maybe not be as flexible as they could be.

brannyrhino_2

And if you do get caught out they may make a CIFAS entry against you and you will be up the creek getting a loan from many lenders for the forseeable future.

Robert_Sterling_3

Tell the truth because it is the truth.