The Student Room Group

do student loans count towards your chance of getting a mortgage?

if you've not paid back your loan or something will they give your worse rates?
They will ask if you have one and take it into consideration for affordability.
They didn't used to, but they are getting very tight on loan criteria now.
Hi,

I remember that when they were introduced the government said that this will not affect your credit rating and your ability to get a mortgage. I am not aware it has changed. Has it changed? does anyone know?
Yes it has
The govt lied over something they had no control
Original post by balotelli12
Yes it has
The govt lied over something they had no control



Oh no:frown: When did this happen? Why did students and parents not kick up a fuss over it like last time? What are the new rules around this now?
There never was a rule. It was the govt commenting on things they had no control over. At the time the banks were not as strict as they are now.
It's just that under the new tightening up of mortgage applications they will ask.
Let's face it if they are going to ask how often you get your hair cut (and they do!) then a student loan is a significant chunk of income.
It doesn't affect your credit rating.

However, you may have to put it down on your application as more and more mortgage companies are asking if you have a student loan.
Reply 7
Avatar for Quady
Quady
20
Original post by balotelli12
Yes it has
The govt lied over something they had no control


Its not effected anyone's credit rating.

It effects their take home pay, but not credit rating.

Edit
Experian etc have no idea if I've paid off my student loan or not.
(edited 9 years ago)
I've just had a mortgage approved and it didn't make a difference (From what I can tell.) We both earn low salaries. Our outgoings aren't very much so that helped.
Original post by Quady
Its not effected anyone's credit rating.

It effects their take home pay, but not credit rating.

Edit
Experian etc have no idea if I've paid off my student loan or not.


I did not mention credit rating

It is now asked by mortgage companies when you apply whether you have a student loan.

Ever wondered why?
Reply 10
Avatar for Reue
Reue
20
They don't care how much your student loan is in value, only how much it costs each month in repayments so they can judge affordability.
I found this story just the other day that got me a bit worried, as I'd previously thought that student loans had no effect on getting a mortgage. It's another thing that's concerning me a bit about getting a degree. I'm kinda surprised I didn't find a bigger thread on this tbh, as I thought this might be a big issue on TSR.
Student loans have no effect on your credit rating.

Student loans do however affect your income and expenditure calculations meaning that you may need a high er salary to cover the reduced income than somebody without since it is a 9% tax.

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