Self employed and student loans

Xoroi

Hi there

My daughter is a FTB, she has been self employed over 14 years in the same profession, full accounts, no breaks.

Her mortgage loan is 75% LTV, she passes on the lenders affordability calculator with no problems.   

The lender is Nationwide, the mortgage adviser did the full AIP himself, she went through absolutely fine. The full mortgage application has been submitted,   survey has been paid for and instructed,  However she has been contacted today to say  Nationwide are not able to give her the amount of mortgage she requires as she has a student loan.  The amount Nationwide are offering her now has been reduced by £ 9,500, as a result of the student loan. 

She does have a student loan, however, as she is self employed the annualised payments are deducted from her net profit, meaning there are no monthly payments going out to affect affordability. The annual student loan payments are £ 900 pa.

On her SA 302s it states clearly the annualised student loan repayment

Does anyone know how lenders treat a student loan if you are self employed please?

She has done so well in saving her 25%, we understand about loan monthly loan repayments and affordability, but felt confident that as the student loan is paid in one annual payment alongside her tax, that this would not be a problem. 
 

anselld

Student loan repayments are going to be taken into account in assessing affordability.  Why would that be any different if the payments are made annually or monthly?  Presumably the advisor should have included the repayments in applying the AIP in the first place.

MattMattMattUK

My understanding is that Nationwide are not particularly helpful towards those with non-PAYE employment. When you say advisor, do you mean Nationwide's in house advisor? Your daughter would likely be able to borrow more and at a lower rate if she went via a independent broker who has access to the whole market.