FAQs

How to deal with student debt after graduation?

Most of the graduates are in student debt after graduation because of graduate loans, so it is always better to start planning as early as you get your first graduate job.

Can you get a mortgage on a graduate scheme?

Yes! You can apply for a mortgage on any kind of house or flat provided that you meet the criteria set by the mortgage lender. As you have a permanent contract and lenders are convinced that you can pay the monthly payment of your loan amount, you can apply for a mortgage. 

How does a student loan affect getting a mortgage? 

Student loans are one of the most common reasons why students cannot buy a house before graduating. However, some lenders allow applicants to borrow more than what they would normally qualify for without considering their student loan debt. This means that even though you might still owe money on your student loan debt, you could potentially afford to put down a larger deposit and fulfil student loan repayments.  

What happens if I am unable to repay my student loan?

Student Loans are very helpful during college years; however, once you complete your studies, you need to repay all the money back within 10 years. This means that you cannot take out a mortgage until you have repaid your entire student loan balance. However, some lenders allow students to borrow more than what they owe, allowing them to put down a larger deposit. 

What happens if I default on my student loan repayments?

Student Loan repayments are one of the biggest problems faced by students today. They often cause financial difficulties during college years and even afterwards. However, most lenders won’t consider them as an asset against a borrower’s ability to repay his/her debts. Lenders look at how much money you earn each month and compare it to what you owe. If you have no assets, then you might need more than 30 per cent equity before being considered for a mortgage.

How do student loan repayments affect my pension contributions?

Student loan repayments are taken from your salaries before or after a student make the pension contribution. Student loan repayments are paid on the same income as the employer pays national insurance, so if your pension contributions reduce this figure, this one will be assessed for student loan repayments.  

Are there graduate mortgages for certain professions? 

Yes! There are specialised loans available for people who work in certain fields. 

Can I get a graduate mortgage with a bad credit rating?

Yes, you can get a graduate mortgage with a poor credit score to fulfil the mortgage payment. The best decision here is to contact a market broker before starting your application.