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Student Loan and Mortgages - very confused with information I have found out...

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    I always was told by my tutor that the new student loan system will not affect your credit history including getting a mortgage.

    (As it says so here too: http://blog.moneysavingexpert.com/20...ng-a-mortgage/ )

    But when I went on NationWide to see what type of mortgage I could possibly get after university (after getting a job and saving etc), the mortgage calculator states that I have to include any student repayments into the calculator to get a quote. So I did and then got an offer of £94,000 ish (based on sole mortgage, £25,000 salary and £5000 deposit etc). However when I did another quote without the student loan repayment at all it gave me a figure of £99,000 ish.

    So obviously mortgage lenders do take into account your student loan. So have I been lied to, if I had known this before I wouldn't have so willingly accepted and gone into starting university this year.

    (Another thing, my brother has a student loan and his credit card company wouldn't raise his limited as a result of having a student loan even though he has more than enough money to pay his stuff back if needed to. But his other credit card company have no issues with raising his credit limit. So is this another thing which all students had been mislead by?)
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    (Original post by Bettypratchit)
    I always was told by my tutor that the new student loan system will not affect your credit history including getting a mortgage.

    (As it says so here too: http://blog.moneysavingexpert.com/20...ng-a-mortgage/ )

    But when I went on NationWide to see what type of mortgage I could possibly get after university (after getting a job and saving etc), the mortgage calculator states that I have to include any student repayments into the calculator to get a quote. So I did and then got an offer of £94,000 ish (based on sole mortgage, £25,000 salary and £5000 deposit etc). However when I did another quote without the student loan repayment at all it gave me a figure of £99,000 ish.

    So obviously mortgage lenders do take into account your student loan. So have I been lied to, if I had known this before I wouldn't have so willingly accepted and gone into starting university this year.

    (Another thing, my brother has a student loan and his credit card company wouldn't raise his limited as a result of having a student loan even though he has more than enough money to pay his stuff back if needed to. But his other credit card company have no issues with raising his credit limit. So is this another thing which all students had been mislead by?)
    You're not being misled at all. It doesn't affect your credit history, as in they don't go 'wtf, you can't have this mortgage, you're so in debt!'.

    When you get a mortgage, they look at what your outgoings are. So if you have loans to pay back, they will give you a *slightly* lesser mortgage as you have extra money coming out of the bank each month.

    It's nothing to do with credit history.

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Updated: June 28, 2012
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