Affordability and Student Loans

Adamr34

My daughter and her husband have recently applied for a mortgage and their student loans have been included in the affordability assessment. I had not heard of this before. Is this a recent inclusion?

gjs6385

I’m sure I had to declare mine back in 2018 so I don’t think it’s a recent inclusion.  If I recall correctly I think they may be asked if they’re paid automatically from their salaries or not but either way it’s a regular outgoing so would impact on their mortgage affordability just like any other loan would.

housebuyer143

Student loan repayments are included. I don't believe the actual loan balance is deducted from affordability 

HampshireH

Yep included.

When we got ours I was paying my loan by DD not via my job because it was in the last year and my provider insisted it was paid in full, cleared and I had written confirmation from Student loan company.

Anyone who has ever dealt with SLC know they still use Fax, don't use email and cannot communicate between departments. 

Getting a confirmation letter it was paid off was the most stressful thing about buying our house.

housebuyer143

HampshireH said:

Yep included.

When we got ours I was paying my loan by DD not via my job because it was in the last year and my provider insisted it was paid in full, cleared and I had written confirmation from Student loan company.

Anyone who has ever dealt with SLC know they still use Fax, don't use email and cannot communicate between departments. 

Getting a confirmation letter it was paid off was the most stressful thing about buying our house.

Strange. I have applied for my fair share of mortgages and none ever took the outstanding loan into account for me or my husband.. Between us it's probably £60k outstanding. 

They have always however deducted the monthly payments made from affordability.. that's why the student loan is so good, it doesn't really have any adverse effects for credit like taking the same loan from the bank would. 

ACG

They dont take into account the balance, just the repayments. They would not know what the balance is as it is not reported anywhere. 

TheJP

Yes as like others my monthly payment was used for affordability. 

FashionHeart

Adamr34 said:

My daughter and her husband have recently applied for a mortgage and their student loans have been included in the affordability assessment. I had not heard of this before. Is this a recent inclusion?

Not that recent because when I applied back in late 2021 I had to include my student loan too.

london21

They do take the monthly amount into consideration.