Student loans / Mortgages

[JEREMY HAWKE]

I was told by an FA five years ago that student loans are not included on mortgage applications

Is this correct ?

 

[IanSuth]

Your monthly payments are deducted from your income for assessing ability to pay BUT the total size of the loan is not included in debt liabilities (hope that makes sense)

 

[tony84]

Whatever your monthly repayments are on your payslips goes down as a commitment.

 

[Finance Store]

Lenders would request commitments to be added to an application. Both Net and Gross figures are taken into consideration depending on the lender the apppli ation is being placed with.

 

[UKSBD]

Whatever your monthly repayments are on your payslips goes down as a commitment.

Does that effectively mean the balance of the outstanding loan isn't taken in to consideration but the repayments being made are?

 

[tony84]

Does that effectively mean the balance of the outstanding loan isn't taken in to consideration but the repayments being made are?

Yup. But the same goes for any loans.

With Credit cards lenders are usually more concerned with the balances.
With Loans lenders are usually more concerned with the monthly repayments.