We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Mortgages and Student loan debts/monthly payments
Camp_Freddy
Posts: 242 Forumite
Apologies if this has been posted before.
I'm a first time buyer and I am in the process of organising my finances with a view to begin the house-hunting/mortgage application process.
I'm unaware of my credit rating, but I have enough cash set aside for a 10% deposit for the top end of my price range (£100k), more savings on top of that for moving expenses and furnishing a new place (I'm currently renting).
The important bit (or rather the reason for this question) is that I have no debt apart from a student loan sitting at about £9k that I've been deferring since I left uni about ten years ago. As it's currently deferred, I have no active payments on it.
I'm also paying into an ISA that's due to mature this year in November and would wipe out about 85% of the Student Loan (that's what the ISA was for all along).
I've been reading varying stories about how much the banks account for student loans when calculating mortgages - whether they look at actual debt amounts or monthly payments (obviously, I have £9k of debt, but no current monthly payments) and I'm not entirely sure what is actually correct.
This would obviously have an impact on my timelines as I was very much hoping to start househunting/mortgage shopping within a few weeks.
Can anyone shed any light on this?
I'm a first time buyer and I am in the process of organising my finances with a view to begin the house-hunting/mortgage application process.
I'm unaware of my credit rating, but I have enough cash set aside for a 10% deposit for the top end of my price range (£100k), more savings on top of that for moving expenses and furnishing a new place (I'm currently renting).
The important bit (or rather the reason for this question) is that I have no debt apart from a student loan sitting at about £9k that I've been deferring since I left uni about ten years ago. As it's currently deferred, I have no active payments on it.
I'm also paying into an ISA that's due to mature this year in November and would wipe out about 85% of the Student Loan (that's what the ISA was for all along).
I've been reading varying stories about how much the banks account for student loans when calculating mortgages - whether they look at actual debt amounts or monthly payments (obviously, I have £9k of debt, but no current monthly payments) and I'm not entirely sure what is actually correct.
This would obviously have an impact on my timelines as I was very much hoping to start househunting/mortgage shopping within a few weeks.
Can anyone shed any light on this?
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards