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Getting a mortgage with student debts

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
ok, i know this may be a really stupid question, but;
can you get a mortgage with a partner, when 1 of you has a student loan (but have graduated+finish uni)???
If you can, does the Student loan affect the amount you can get for a mortgage?
thanx

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I can't see why not. HSBC for instance offer 100% grad mortgages, presumably they expect grads to have student debt.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    yay!!! good good!!

    Does anyone know how much they take out of your wages, per month, to re-pay your student loan. Assuming you're earning the £15,000 minimum?
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Yes, of course you bloody can. You can ahve a mortgage with shedloads of debt if you want, all the bank care about is whether you can pay it all back.

    SLC loans are not loans anyway, they're more of a tax, taken out via PAYE. Think of it that way, you don't notice that it's gone.

    Why don't you try looking on the SLC website to find the answer to simple questions?
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    sugar_mouse wrote:
    yay!!! good good!!

    Does anyone know how much they take out of your wages, per month, to re-pay your student loan. Assuming you're earning the £15,000 minimum?

    They take a percentage of your wage at 9% for everything earned over 15k(1250 per month or 288 per week) a year.

    To give you an idea for 25k a year earnings you will pay £75 a month back. \it is deducted straight from your wages just like NI and tax.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    erm yes. think about how many people are at/have been at uni and therefore get student loans. it would render us all homeless!
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    i think, dont quote me but i think, the mortgage company take the amount of the debt you pay back in total in one year, off your salary before they do the multiples to give you what you can borrow. my friends has student loans and when her and her partner got a mortgage im sure thats what they said happened. its the same with other debts too.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Banks ask what your outgoings are before they give you a mortgage, that's true.

    This is because they don't work in simple multiples anymore. They do a cost assessment, and basically they are testing for affordability. If they think you can pay the monthly payment they will give you a mortgage, and if they don't think that then they won't.

    However the student loan will not affect your credit rating in any way, as it is deducted PAYE. Some people are foolish and add the student loan from the SLC to their debt on the application form, but you do not have to do this. We were not asked at any stage about our SLC debts, and we were given a mortgage.

    Instead of fretting, why don't you go and talk to an independent financial advisor?
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