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Student loan affect on mortgages
number249foot
Posts: 5 Forumite
Hi,
My partner and I are planning on applying for a mortgage soon. I am employed, he is self employed and together earn around £45k/year. We do however have a combined £65k student loan, how will this affect the amount we can borrow? We have a £50k deposit.
My partner and I are planning on applying for a mortgage soon. I am employed, he is self employed and together earn around £45k/year. We do however have a combined £65k student loan, how will this affect the amount we can borrow? We have a £50k deposit.
Many thanks
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Comments
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The monthly contribution (or tax as i like to see it) will be taken into account as a monthly outgoing for affordability, not the whole sum owed, etc - which is why i see it more as a tax1
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Payments on the Student Loans will reduce your maximum affordability. The payments are key, the balances, not.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.2 -
When you complete the online affordability calculator on nearly all the mortgage lenders they will ask what loans you are paying each month.
So if it's £250 a month PCP on a car or £120 a month student loan they will take that into account.
If your partner is self employed has he got 2 years of accounts ?
Is he making full use of the allowances available in his trade1 -
Thank you, do you know how much it’ll affect the maximum affordability by? For example if we can currently borrow £200k, will the student loan decrease it by £10k?amnblog said:Payments on the Student Loans will reduce your maximum affordability. The payments are key, the balances, not.0 -
Thank you, our only monthly loan payments are the student loan and a 2 year furniture credit loan, we both have excellent credit scores. My partner has 2 years accounts and makes use of the allowances, I read the mortgage lenders only focuses on the profit, not turnover when deciding affordability, does this apply for all lenders?dimbo61 said:When you complete the online affordability calculator on nearly all the mortgage lenders they will ask what loans you are paying each month.
So if it's £250 a month PCP on a car or £120 a month student loan they will take that into account.
If your partner is self employed has he got 2 years of accounts ?
Is he making full use of the allowances available in his trade0 -
How does he structure his self employment? Sole trader, Ltd company, contractor etc0
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Sole traderDeleted_User said:How does he structure his self employment? Sole trader, Ltd company, contractor etc0
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