Student loan and mortgage

Frostypops

Hi, I am employed and am trying to get a mortgage.
I have a heathly basic salary that is all I want to borrow against. I also get a variable amount in each pay packet from private extra work with the same company, this gets taxed at source and my student loan contribution changes accordingly.
My mortgage chappy now wants all sorts of information on my contributions for student loans, and what they will be over the next few years. My questions is.....why is this the case when I only want to borrow against my basic salary. Its seems odd to take and student loan into account when the contribution has a direct relationship with my earnings?

Any help or advise would be amazing,
Thank you in advance

kingstreet

Some lenders want information on student loans and take them into account, others don't.

Nationwide, for example, will deduct the highest amount paid to SLC it sees on a payslip and annualise that, even if that amount was a one-off caused by (eg) a bonus payment.

clippy_girl

thats interesting as i have a remortgage app with nationwide in two weeks and she has emailed me and only asked me to bring my last payslip (and p60) so wouldnt be able to work it out (had a payrise since p60 so slc will be less on there).also only wanted 1 bank statement which i thought was odd (have 6 months to take anyway)

kingstreet

Low loan to value?

Gentoo365

They have to run an affordability check to ensure you can afford the mortgage payments from your net pay.

To do this they take all outgoings that are 'fixed' (i.e. things you cannot cancel or cut down on) and subtract them from your net pay (or estimated net pay).

Although your student loan is linked to gross pay it is still something that you have no option but to pay. So it has to be deducted.

This is not likely to mess up the application. They are just showing that they are property considering your affordability. In case they are audited.

Caladan

I'd also add, because Gentoo365 mentioned auditing, that even if you're only asking them to take your basic salary into account, if you often receive more than the basic pay and/or sometimes have higher out-goings - If an auditor comes along and looks at the application, notices this but can't see any record of why then they could potentially fail the account because the information is incorrect.

I might be a bit extreme there, because there is no additional risk, but auditors work with absolute facts in my very painful experience and they don't like missing information