Can You Get a Mortgage with a Student Loan?
Many people assume that having a student loan will make it harder to get a mortgage — but that’s not the case.
You can absolutely get a mortgage with a student loan, and thousands of first-time buyers do it every year.
What matters most is how that student loan affects your affordability — how much you can borrow based on your income and outgoings. Let’s break down how it works, what lenders look for, and how you can strengthen your application.
Does a Student Loan Affect Getting a Mortgage?
Quick answer:
A student loan won’t stop you from getting a mortgage — it just slightly reduces how much you can borrow, because repayments count as part of your monthly expenses.
When lenders assess your application, they use an affordability check. They look at your income, regular commitments (including your student loan repayment), and any existing debts.
Your credit score isn’t affected by your student loan — it doesn’t appear on your credit file — but it does appear on your payslips, and that’s where lenders notice it.
How Do Student Loan Repayments Work in Mortgage Calculations?
Lenders calculate affordability by looking at your net income after deductions.
If your student loan repayment is, say, £80 per month, that £80 is treated as a regular outgoing.
So, instead of being able to borrow four or five times your gross salary, they’ll slightly reduce the total to reflect that expense.
For example:
- Without a student loan: £35,000 income × 4.5 = £157,500 potential borrowing
- With a £100/month student loan: affordability might drop to around £150,000
It’s not a massive difference, but it can make a small dent in your borrowing power.
Do Student Loans Affect My Credit Score?
No — your student loan does not appear on your credit report.
That means lenders can’t see it through credit checks, and it won’t harm your credit score directly.
However, lenders will see your student loan deduction on your payslip or P60. They don’t mind that it exists — they just factor it into affordability, the same way they would with a car loan or childcare payment.
If you’ve kept your other finances tidy — paying bills on time, avoiding missed payments, and managing your credit sensibly — your score will still be healthy.
How Much Can I Borrow with a Student Loan?
Most lenders offer between 4 and 4.5 times your annual income, even if you have a student loan.
The key difference is how much disposable income you have after regular commitments.
If your student loan payment is small compared to your earnings, it will have very little impact.
Here’s a simple example:
| Salary | Monthly Student Loan | Estimated Borrowing |
|---|---|---|
| £30,000 | £0 | £135,000 |
| £30,000 | £80 | £130,000 |
| £40,000 | £100 | £175,000 |
| £40,000 | £200 | £165,000 |
These are only examples — each lender uses their own affordability model. We can calculate your exact borrowing power for free before you apply.
What Do Lenders Look for If You Have a Student Loan?
Every lender checks three main things:
- Affordability – Can you comfortably afford repayments, including your student loan?
- Income stability – Is your income consistent (through employment or self-employment)?
- Credit behaviour – Are you managing your other finances responsibly?
The student loan itself isn’t viewed negatively — it’s normal and expected, especially for younger buyers or graduates. What matters is the bigger picture: your ability to manage commitments responsibly.
We cover similar lender behaviour in our guide on what lenders look for on bank statements.
Can First-Time Buyers Get a Mortgage with a Student Loan?
Yes — most first-time buyers we help still have student loans.
Lenders are used to it, and it rarely causes problems if the rest of your application is strong.
As a first-time buyer, the more important factors are:
- Size of your deposit
- Your credit history
- Stability of your job or income
- Overall debt-to-income ratio
A student loan is just one small part of that.
We explain more in our first-time buyer guide, including how to prepare your documents and budget for extra costs.
What If You’re Self-Employed with a Student Loan?
If you’re self-employed, your student loan repayments come out through your Self Assessment each year, rather than a payslip.
Lenders will review your tax calculations and overviews (SA302s) to see your net income and any student loan repayments. Again, it’s treated just like any other outgoing — not a reason to decline your application.
Having up-to-date accounts and a good repayment record makes a big difference. If you’re unsure what documents you’ll need, we can guide you through the process.
How Can You Improve Your Mortgage Chances with a Student Loan?
There are several smart ways to strengthen your application:
- Save a larger deposit – The more you put down, the less risk to the lender.
- Reduce other debts – Pay down credit cards or personal loans before applying.
- Keep your bank statements tidy – Avoid overdraft use and unnecessary spending.
- Stay in stable employment – Consistency reassures lenders.
- Work with a broker – We know which lenders are most flexible with student loans.
Even if you’ve been told “no” elsewhere, there are lenders who take a fairer view of your overall picture — and that’s where we come in.
Can I Get a Mortgage with a Postgraduate Loan?
Yes. Postgraduate loans are treated the same way as undergraduate loans.
They’re included in your monthly outgoings but don’t appear on your credit report.
Because postgraduate repayments are often smaller, the impact on affordability is usually minimal.
Should I Pay Off My Student Loan Before Applying for a Mortgage?
In most cases — no.
Student loans are designed to be repaid gradually and only when your income reaches a certain level. They don’t carry the same weight as personal or credit card debt.
Paying it off early might reduce your savings for a deposit, which could actually harm your mortgage options. A bigger deposit typically improves your rate more than losing a small monthly loan repayment.
If you’re not sure which route makes more sense, we can help you calculate what’s best for your long-term goals.
Final Thoughts
Having a student loan doesn’t stop you from getting a mortgage — far from it.
It’s just one part of your financial picture, and for most buyers, it only makes a small difference to how much they can borrow.
At Mortgage Bridge, we help graduates, professionals, and first-time buyers every day — including those balancing student loans with other commitments. We’ll find the right lender for your situation and help you make a confident move towards homeownership.
If you’d like to see what could work for you, we’re happy to help.