Getting a student loan will stop you getting a mortgage!!
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ericctheking wrote: »A serious debate is needed about student loans anyway!
Engage with your MP then and start the debate.0 -
ericctheking wrote: »People argue that current loans are different (ie. no deferment but collected by the tax system and deducted from your pay-check) but could you imagine a company worse than Wonga being able to dip into your pay-check? Scary! Because this is what a debt collecting agency will be able to do when your loans are sold off!
You don't really get it do you. Not even the Student Loans Company take the money from your pay now. HMRC do, according the agreed repayments. HMRC then pass the money onto SLC once a year. SLC can't even tell HMRC oh can you take £200 from this person this month, they will only take 9% over the threshold. Thats why they recommend switching to direct debit when you reach the end of repayment.0 -
This is not new news at all. It's been known for a while that many mortgage providers ask if you have a student loan/debt.
It doesn't affect your credit rating though.
Erudio student loans have reported that they will register the loans with a CRA as a 'payment holiday' - so as long as this doesn't effect your credit rating then that is ok.
No, wait, isn't a 'payment holiday' on a credit rating file a bad thing? Where someone can't afford their repayments?
I am assuming this is a threat by Erudio and they won't actually go through with it but I think you are being naive to be so trusting. I was once, but now I have been sold out to the private sector DCA from my 'safe' government loan, I will not be advising my children to get one - and my loans are considerably less than theirs will be.0 -
interesting thanks0
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The SLC held the loans and no problems for 20 odd years.
The moment they were sold off we have one of the longest threads of people complaining about problems ever on here! ("Erudio student loans" thread)
Might be the same with the plan to sell off the rest of the student loan book0 -
Apparently though, having a student loan will increase the size of your penis/breasts and significantly improve your chances of owning a Rolls Royce, so swings and roundabouts...0
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ericctheking wrote: »How flippant!
Not really any different to your own post though, I'm afraid.0 -
To resurrect this post, has anyone/ does anyone know of anyone who has applied for a mortgage since the MMR came into force, with a pre 2012 student loan and had problems?Not really any different to your own post though, I'm afraid.
I say pre 2012 as the next lot of students will owe thousands more even tho as already pointed out the actual repayments will be less. When taking out a mortgage a large proportion of students will have the debt for the duration of their loans ...they'll be 50 ish?
http://www.bbc.co.uk/news/education-269549010 -
If you take out a student loan to support a good degree; then your income is likely to be higher - increasing your ability to take out a mortgage (not reducing it).
And, student loans aren't the problem with getting a mortgage (as income/risk based assessment and the way in which repayment is linked to income). The ratio of income to house prices is (and not just for ex-students).0
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