How Do Mortgages Work for Applicants with Student Loans?

Students often find themselves in a tricky spot, needing a mortgage but reliant on student loans - or still repaying a student loan some years later. Here we look at whether student loans impact your credit assessment and how a lender might treat this outstanding obligation.

About your mortgage

Error: Yearly income income must be between £1 and £10,000,000.

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Based on your yearly income, you may be able to borrow:


Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

How Do Mortgages Work for Applicants with Student Loans?

Student debt is very common, and millions of university graduates have this debt on their records for many years.

The business loan broker team has compiled this guide to explain how student loan debt impacts your mortgage application, and what key factors you need to be aware of.

For independent help with finding the most competitive mortgage offers, with student debt, give us a call on 0330 304 3040, or email the team at

Can I Get a UK Mortgage if I Still Have Student Debt?

Yes, having a student loan isn't a reason to be rejected for a mortgage. However, the amount owing will impact your affordability calculations.

Student loans do not show on your credit file, but the lender will need to consider how much you need to repay each month.

The best option is to offer as much deposit as possible and have a clean credit record otherwise.

How Much Do Student Loans Impact a Mortgage Application?

Student debt isn't treated the same way as other loans, but a lender will still need to know how much you repay each month and the outstanding balance.

The lender needs to know the monthly repayment and see payslips to show this since it reduces your net income and how much you can afford to repay on a mortgage.

Your outstanding balance is also essential since it is an outstanding debt that will likely need to be repaid over time, although it doesn't show on your credit file.

Do I Need to Declare a Student Loan on a Mortgage Application?

If you are in PAYE employment, your student loan repayments will show on your payslips, and therefore you must declare the debt since your lender will soon know about it even if you don't!

You should still include your student debt on the application for self-employed applicants since, although it will not show on your invoices, you need to disclose your debts and it will usually be shown in your accounts.

Is it Worth Waiting to Pay Off My Student Loan Before I Get a House?

There isn't any reason you can't get a mortgage with an outstanding student loan - and if you prioritise one debt over another, you'll always pay more interest longer-term over whichever debt you do not pay back first.

If you postpone buying a property, there is also the risk that property prices continue to rise, and you end up debt-free but without the finances to purchase a property.

Usually, it is not advisable to take out a bank loan to pay back a student debt faster, as student loans typically have much lower interest rates.

Am I Less Likely to Get a Mortgage Because of a Student Loan?

No, not necessarily. As a graduate, your long-term employment prospects are better, and your student loan will be wiped from your records in 30 years, whether you have repaid it or not.

Student loans are charged at £0.09 interest for every £1 earned, provided you earn over £25,000 a year, so they are a low-cost form of lending.

Most mortgage lenders will be more interested in credit cards or unsecured debt than a student loan. Therefore a default is less severe than against a different form of borrowing.

Can I Use My Student Loan as Income Towards Mortgage Affordability?

Some students use a student loan towards their deposit - but there are ramifications to using your loan for anything other than living and studying costs.

It is usually better to think about other support schemes for first time buyers, such as Help to Buy. This scheme means that you need a 5% deposit, and the government will lend you a 20% equity loan to reduce the amount of mortgage you need.

Give us a call if you're thinking about using a student loan towards a house deposit, and we'll run through a comparison of the options for you!

Can I Consolidate a Student Loan with a Mortgage Application?

Technically yes, you can take out a mortgage and use some of the capital to consolidate debts. The advantage is that you reduce the number of monthly outgoings into one payment.

The likelihood of getting lender approval to consolidate other debts into a mortgage depends on your income, credit score, and property value.

It's worth remembering that student debt is unsecured, and if you choose to repay it by consolidating the debt into a mortgage, your home could be repossessed if you don't keep up with the repayments.

Can I Get a Mortgage in Scotland with a Student Loan?

The rules in Scotland are slightly different, but there aren't any significant variances in student loans. This type of loan doesn't impact your credit history, so won't make much difference to your overall financing profile.

What Can I Do If I Can't Get a Mortgage Due to Student Loans?

There are always alternative lenders, so don't be disheartened if one mortgage provider has rejected your application.

The best course of action is to work with a whole-of-market broker who can recommend the right lenders, and know which provider's eligibility criteria you can meet.

It is never wise to make repeated speculative mortgage applications, and multiple rejections may show on your credit file and create further problems.

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If you can repay one debt, it's worth thinking about which is more manageable. Student loans from a high street bank are usually higher interest, so you should repay them first as they cost more in terms of interest. An undergraduate student loan tends to be low interest, so is likely the better option to leave pending, paying off the debt with the higher interest charges.

Although most UK lenders will need you to have at least a 5% deposit, there isn't a fixed deposit requirement. The higher the deposit, the better the rates you will be offered. Help to Buy is an excellent option if you have a 5% deposit, as you can borrow up to 20% of the property value with zero interest payable for the first five years.

Yes, your lender will need to calculate your debt to income ratio, and look at your net monthly income - after your student loan repayment - to work out what they can offer to lend.

Potentially - Virgin Money lends to applicants with student debt, provided you meet the affordability requirements.

Yes, you can - but it is vital to apply to the right lender who has experience lending to people with your circumstances.

For independent support with finding the best student loan mortgage, get in touch with the Revolution Brokers team at 0330 304 3040, or via email at Our team are whole-of-market experts in the student debt sector and can negotiate competitive deals to help you get the borrowing you need.

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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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