Student Loans & Mortgages

Ben1001

I have a 7k student loan debt that I am slowly paying back through my pay. I pay usually about £20 to £40 a month automatically from my payslip. Do Student loans have any affect on a mortgage application?

I have good credit with a credit card that i use regularly and never miss payments plus I have a phone contract that i pay off monthly and that is really the only debt that I have to my name. My only concern is this student loan.

jennhg88

In my experience it hasn’t been taken into consideration. I don’t know if they would if affordability is tight though?

middleclassbutpoor

I have noticed on some affordability calculators that it asks for the information. I'm not sure how it impacts on the affordability though.

GoingOn30

I earn enough that I have £220 taken in repayments every month through PAYE which clearly does have a significant impact on what I can afford to pay monthly towards a mortgag.
So the more you earn, the more impact it will have.

moneymort

Im currently going through an application with Metro bank. Their mortgage advisor was not particularly concerned with my student loan, he did ask how much it was and then placed it under secondary expenses.

moneymort

GoingOn30 wrote: »

I earn enough that I have £220 taken in repayments every month through PAYE which clearly does have a significant impact on what I can afford to pay monthly towards a mortgag.
So the more you earn, the more impact it will have.

The repayments are something like 7% of your earnings when you earn over a certain amount so its all relative. If your paying back £220 a month then it means your income is a lot higher then someone only paying back £40 a month.

adamh87

I think it restricts the amount of credit they'll give you access to (ie if you weren't paying a SL you could have the equivalent amount added to your take home pay and used as part of the multiplier to see how much mortgage you could get).

I don't think it affects you any more than that, and isn't considered in the same way as 'proper' unsecured lending like a loan or CC debt. It's not on your credit score and because the government picks up the bill at 65 isn't fully thought of as your debt... I think?! Can someone else confirm?