Mortgage application & postgraduate student loan

Kreacher

Hello all,

If our savings continue as expected we'll be looking at buying in around May next year.

In September I may be starting a MSc for which I'd like to apply for a postgraduate loan - https://www.gov.uk/postgraduate-loan/eligibility

As the course is delivered through distance learning I will continue to earn the same salary.

I know that generally undergraduate student loans don't effect mortgage applications but is it likely that an additional postgraduate loan will?

I'll be repaying it alongside my undergraduate loan from the April after it finishes.

Thanks for any advice.

kingstreet

Student loan payments are an afforadbility cost, regardless of the purpose.

Kreacher

kingstreet wrote: »

Student loan payments are an afforadbility cost, regardless of the purpose.

I get that my repayments will be taken into account but surely they don't view my £30k of student loan debt in the same way as they would view £30k of credit card debt? Otherwise no graduates would be able to get mortgages?

kingstreet

Loans/HP/maintenance/childcare/school fees/ground rent & service charges - lenders typically take the monthly payment into account.

Credit cards/overdrafts - lenders typically take 3% - 5% of the balance into account.