The Student Room Group

Does student debt affect getting a mortgage

Does student debt affect getting a mortgage? or do you get less?
Bookmarking because I do care.

From the top of my head, I know it doesn't impact your credit score. Then again I don't know how it affects calculated income.
Reply 2
Original post by vicvic38
Bookmarking because I do care.

From the top of my head, I know it doesn't impact your credit score. Then again I don't know how it affects calculated income.

because I will have a crazy amount of debt to pay at the end of uni and it will take time? who ever I asked gives different answer
AFAIK Official student loan won't, but other debts accumulated as a student (overdraft, other loans, credit card) might well do.
From what I'm reading it seems like they will ask about it, but only to get an idea of your disposable income (e.g. income available to pay mortgage.) It might affect the amount you can take out, but because you will be paying the same proportion of your wage as anyone else (for the government student finance) it shouldn't affect you any more than anyone else with these loans? But as @Dee-Emma says for anything traditionally borrowed will impact your credit score.
It needs to be declared on mortgage applications because student loan deductions affect your monthly income, in the same way that other commitments (e.g. money spent on groceries, dependents like children, if you have divorced and need to pay your spouse each month etc.) also have to be declared because they affect what you can pay each month.

But it doesn't really have any impact. For most people, disposable income is not the limiting factor. Especially if you don't have kids. For most people the limiting factor is going to be that the size of the mortgage can only be up to 4.5x / 5x your gross annual income.

If you have a reasonable credit history it's quite easy to get a loan in that range, whether you've got a student loan or not.
(edited 3 years ago)

Quick Reply