Getting a student loan will stop you getting a mortgage!!

ericctheking

Take a look at this article;

http://www.dailymail.co.uk/news/article-2838631/Graduates-facing-mortgage-timebomb-university-debts-having-applications-turned-9-000-year-tuition-fees-saddle-high-debt-repayments.html

It is a bit different from all the promotional material that says student loans won't stop you getting a mortgage isn't it!!

Lokolo

What promotional material? Ridiculous thread title as well. Having a student loan will not stop you getting a mortgage. However repayments, as with any loan, will have an impact on the amount you can borrow (from affordability checks).

Loan capital won't make a difference to a mortgage application, the repayment amounts do. For example, someone with a £50k loan paying back £100 a month will have the same affordability with a £20k loan paying back £100 a month.

This is no news, student loans have been available over a decade and this has been the situation since they have been available!

jamesmorgan

Student loan repayments are handled in a similar way to income taxes. The mortgage company will want to look at your net income. Annual payments with the new student loans are lower than the previous system (as the income threshold is higher) so graduates should be able to secure a higher mortgage. This is a simple scaremongering non-story.

agrinnall

Shock, horror! Daily Fail claims to have uncovered some issue that everyone else in the country has known about for years and isn't what they claim it is anyway. No news here, move along please. And OP, exercise a little critical judgement next time please.

ericctheking

agrinnall wrote: »

Shock, horror! Daily Fail claims to have uncovered some issue that everyone else in the country has known about for years and isn't what they claim it is anyway. No news here, move along please. And OP, exercise a little critical judgement next time please.

And it is also reported in quality broadsheets "The Telegraph" "The Guardian" and "The Independent.!

bluenose1

agrinnall wrote: »

Shock, horror! Daily Fail claims to have uncovered some issue that everyone else in the country has known about for years and isn't what they claim it is anyway. No news here, move along please. And OP, exercise a little critical judgement next time please.

How condescending.

Thanks OP. I can remember when they were first announced it said it wouldn't affect mortgages etc. There are going to be a significant proportion of middle income earners owing massive debts for 30 years after they qualify.
One of my sons is due to go to University next year to study Mechanical Engineering. We will have to think long and hard about the best way to finance his studies.

agrinnall

bluenose1 wrote: »

How condescending.

Have you actually read any of the other postss that explain why the article is incorrect and that the underlying point regarding affordability of mortgages has been known from the point at which student loans were introduced?

The_Jakal

This is not new news at all. It's been known for a while that many mortgage providers ask if you have a student loan/debt.

It doesn't affect your credit rating though.

ericctheking

bluenose1 wrote: »

How condescending.

Thanks OP. I can remember when they were first announced it said it wouldn't affect mortgages etc. There are going to be a significant proportion of middle income earners owing massive debts for 30 years after they qualify.
One of my sons is due to go to University next year to study Mechanical Engineering. We will have to think long and hard about the best way to finance his studies.

Yes, I recommend anyone thinking about a student loan to check out the threads "erudio student loans" and "miss-sold a loan by the government"
Just wait until the loans are sold off (which is the plan)
Also when you are taking out a student loan the terms and conditions say they can change the regulations anytime! What an unfair loan. That means that when people start complaining about loans not being paid back fast enough and loans being written off then they might change the terms! scary stuff.
Think about it, loans are sold as "not like other debts" yet when the debt collecting agencies who they plan to sell the loans off to get them you have a world of hassle! And they sell these loans off to debt collecting agencies when people have been sticking to the terms of their loans!
If it looks too good to be true (as the terms do) then it is!
Be-prepared for this debt to be turned into real millstone debt in the future.
Martin Lewis is against the selling-off of the rest of the student loan book because when that happens! (well see "erudio student loans" thread)
The plan is to sell the loan book off! It is already in motion!
Your nice safe government issued loans will soon be owned by a nasty debt collecting agency.
Do not be so blase about this!
People argue that current loans are different (ie. no deferment but collected by the tax system and deducted from your pay-check) but could you imagine a company worse than Wonga being able to dip into your pay-check? Scary! Because this is what a debt collecting agency will be able to do when your loans are sold off!
The government also interprets the terms and conditions in one way, after selling the loans off they let the debt collecting agency interpret the terms and conditions in ways that benefit the agency! Any complaints the govenment just washes it's hands and says not our business anymore!
Be afraid be very afraid!

ericctheking

The_Jakal wrote: »

It doesn't affect your credit rating though.

Well people who had their loans sold off to Erudio had loans that didn't affect their credit ratings too.
That was until the debt collecting agency Erudio illegally blackmailed people into signing away their rights and changing the terms and conditions of the original agreement!!

ericctheking

A serious debate is needed about student loans anyway!