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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
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
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards