Any mortgage advisers online?

littlegreenfrog_2

Any idea why the Nationwide calculator says I could borrow £190,000 if I enter my student loan repayments and £222,000 if I don't? I know it comes down to the affordability of the monthly payments, but that seems like a huge difference. I currently pay off £228 per month, have around £4,500 outstanding and should clear it within two years. If I applied for a mortgage with Nationwide, could a human being take that into account or would it be a case of computer says no? I need more than £190,000, so if it's going to be the latter then there is no point me even applying.

Thanks!

ACG

I would find a new lender.

csgohan4

you need a broker

littlegreenfrog_2

I am planning to use a broker. It's just annoying because I would qualify for all the cashback offers if I went with Nationwide. I know that shouldn't be the deciding factor but their rates look competitive as well.

Thrugelmir

If you borrowed £32k at 7% over 25 years. The monthly repayment would be £226.17p.

littlegreenfrog_2

I know, it's just really annoying because I will only be paying off £228 per month for the first 18 months or so (after I take out the mortgage). So I was wondering if a human being at Nationwide would be able to take the relatively short time left to repay into account when assessing how much I can borrow.

alchemist.1

They can only assess on the basis of what you are paying now not in the future.

Alternatives are:

Waiting 18 months
or
Finding a lender who doesnt take the repayments into account/

littlegreenfrog_2

Well, another alternative is that I could pay off the student loan and then be able to borrow more. But that would be swapping a cheaper debt for a more expensive one, which doesn't make a huge amount of sense.

ACG

Typically anything with less than 12 months will get ignored with some lenders.

Dont worry about it, there are other lenders who have competiive rates and cashback.

littlegreenfrog_2

If I am reading their rules correctly I could be entitled to a whopping amount of cashback though because they offer £500 for first time buyers, £250 for current account holders and £1,000 for people holding more than £5,000 in certain savings products with them at the time of application. (All my deposit is currently held with Nationwide.) The T&Cs say you can cumulate any cashback you're entitled to. So if their rates are close to the most competitive ones, it could be worth it for the cashback. But not if I can't borrow the amount I need.

Perhaps I could pay off part of my student loan to take my repayment period under 12 months.

kezzygirl

are student loans considered in mortgage applications?!