Full mortgage application then realised I have a student loan...

fforsythuk

Hi all,

I have applied for a joint mortgage with my partner using his income only (we have already had a DIP from TSB).

After submitting the full mortgage application via an IFA, I then realise that I still have an outstanding student loan with a balance of approx £ 8k which I forgot to mention at the time!

Does anyone know whether this undeclared loan will cause an issue in the mortgage process?

We are using my partner's income only (but remains a joint application) as I am currently on maternity leave and not planning on going back to work.

My thinking is that if I am not returning back to work, then there is no obligation for me to continue paying off the loan, hence I can't see this causing an issue with the mortgage offer( I could be wrong though).

Any advice would be greatly appreciated!

AnotherJoe

If it's his income only then I can't see why you'd declare any debts that are yours only and I'd have thought there was no place on any forms to note them since you aren't declaring your income either. Plus, as you say you only repay when earning so there aren't any repayments.

I'd suggest you let sleeping dogs lie.

rtho782

Student loans (with the exception of some old schemes possibly I think, but certainly all the recent ones) do not show on credit files, so the bank won't find it, and it's not relevant as it doesn't affect your affordability unless you start working and earning - in which case your affordability is positively impacted.

Contemptuous

If you're not paying it back, then it doesn't need to be taken into account for affordability.