Can I Get a Mortgage with a Student Loan? What We Learned (and What You Should Know)
Getting a mortgage with a student loan might seem impossible at first — especially if you’re still repaying it or your take-home pay feels smaller than friends who didn’t go to university. But the truth is, a student loan rarely stops you getting approved for a mortgage. It’s all about how lenders assess your income and outgoings.
At Mortgage Bridge, we help first-time buyers, graduates, and professionals every day — including many who still have student debt. Here’s what really matters when it comes to getting a mortgage if you’ve got a student loan.
Does a Student Loan Affect My Mortgage Application?
In short — yes, but not in the way you might think.
Lenders don’t view a student loan as traditional “debt” like a credit card or personal loan. Instead, they see it as a regular monthly deduction from your income, just like tax or National Insurance.
When lenders assess your affordability, they’ll look at your net income (what you take home after all deductions) and your monthly commitments. So, your student loan repayments reduce your disposable income — but they don’t count as negative credit history.
In most cases, this means you may be able to borrow slightly less than someone earning the same without a student loan, but it’s rarely a deal-breaker.
How Do Lenders Assess Affordability If You Have a Student Loan?
When you apply for a mortgage, lenders use an affordability calculator that looks at:
- Your gross and net income
- Your regular outgoings (rent, credit cards, loans, childcare, etc.)
- Your student loan repayments
- Your deposit size and loan-to-value ratio
- Your credit profile
They’ll check your payslips or tax returns to see if you’re repaying a student loan — and if so, how much is deducted each month.
For example:
- If you earn £40,000 and pay £100 per month towards your student loan, lenders will assess your income as if it were £39,900 annually after deductions.
- That difference can reduce your borrowing slightly, but usually not by a huge margin.
Will Having a Student Loan Affect My Credit Score?
No — student loans don’t appear on your credit report.
That means lenders can’t see the balance or repayment history, and it doesn’t impact your credit score directly.
However, if you’ve taken out other debts — such as credit cards or car finance — those will appear and can affect affordability. What matters most is that your credit history is clean, with no missed payments or defaults.
If your credit file looks healthy, a student loan won’t hurt your chances at all.
How Much Can I Borrow If I Have a Student Loan?
Most lenders will still offer around 4 to 4.5 times your income, depending on your situation.
Here’s a simple example:
- Without a student loan: £35,000 salary × 4.5 = £157,500 borrowing potential
- With a student loan: roughly £35,000 minus £1,200 in annual repayments = £33,800 × 4.5 = £152,100
That’s about a £5,000 difference — noticeable, but not dramatic.
Lenders will also look at your deposit, job stability, and other commitments. If everything else is strong, your student loan is unlikely to hold you back.
What If I’m Self-Employed and Have a Student Loan?
If you’re self-employed, lenders assess your net profits or salary plus dividends using your tax calculations and overviews.
Student loan repayments are based on those same figures, so they’ll already be deducted through your tax return. Lenders take that into account automatically when reviewing your affordability.
It’s still a good idea to have your SA302s and business accounts ready. If you’re unsure how your student loan affects those figures, we can go through them with you and clarify what a lender will see.
Can I Get a Mortgage While on a Graduate Scheme?
Yes — many people secure mortgages while still on graduate schemes.
Lenders generally look at your current income and the stability of your employment. If you’re on a fixed-term contract but likely to stay in your role or move into a permanent position, some lenders will take that into account.
We often help graduate applicants explain their situation clearly — for example, showing a contract extension or letter of intent from an employer — to strengthen their case.
Will Paying Off My Student Loan Early Help Me Get a Mortgage?
Not necessarily.
While paying off your student loan can feel like a weight lifted, it rarely makes a major difference to mortgage approval. Because repayments are income-based, lenders already account for them proportionally.
In many cases, it makes more sense to save for a bigger deposit instead of clearing your student loan early. A larger deposit directly improves your loan-to-value ratio and can get you a better interest rate.
We’ll happily run the numbers with you to show which option helps most.
How Can I Improve My Chances of Mortgage Approval with a Student Loan?
Here are a few steps that make a real difference:
- Save as much deposit as possible. A bigger deposit always helps offset any affordability limits.
- Keep your credit clean. Pay bills on time and avoid new credit before applying.
- Reduce other debts. Clearing credit cards or loans can improve affordability.
- Stay in stable employment. Lenders like to see consistent income and job history.
- Work with a specialist broker. We know which lenders are most flexible for applicants with student loans.
We’re happy to talk you through the best ways to strengthen your application before you apply.
Can I Get a Mortgage If I Have a Postgraduate Loan Too?
Yes, you can — postgraduate or Plan 2 loans work the same way. Lenders will factor in your monthly repayments when assessing affordability, but they don’t see the loan balance itself.
If you have both undergraduate and postgraduate loans, your total monthly deduction will be slightly higher, which could reduce your borrowing limit a little — but it won’t prevent approval.
Key Takeaways
- Having a student loan doesn’t stop you from getting a mortgage.
- It can reduce your borrowing power slightly, but it’s rarely a major barrier.
- Student loans don’t show on your credit file.
- Focus on a strong credit history, stable income, and healthy deposit.
- The right lender can make all the difference — and we can help you find one.
If you’re thinking about applying for a mortgage with a student loan, we’re here to help. We’ll assess your affordability, explain how lenders view your repayments, and match you with lenders that fit your situation.
Let’s explore your options together.