Lib Dems Deny Student Debt Affects Ability To Get A Mortgage

[1929crash]

There is an interesting discussion going on at the Lib Dem Voice website, and basically the fact that student debt affects ability to get a mortgage is being denied.

Please note the comments of the thread poster Paul Walter, a Clegg loyalist.

http://www.libdemvoice.org/opinion-tuition-fees-not-the-crime-of-the-century-41178.html#comments

He first posted advice from moneysavingexpert, but when challenged admitted that it was out of date based on the MMR.

However, he is posting links to several university websites which deny any adverse effect.

The current advice on the University of Leicester’s website says:

“Will loan repayments affect my ability to get a mortgage?

The Council of Mortgage Lenders has advised that a tuition fee loan is very unlikely to impact materially on an individual’s ability to get a mortgage. The amount of mortgage available may depend on net income.”

http://www2.le.ac.uk/departments/lifelong-learning/funding/Tuition%20Fee%20Loans%20

University Which says:

“Student loans won’t count against a mortgage application

The Council of Mortgage Lenders (CML) has said: ‘A student loan is very unlikely to impact materially on an individual’s ability to get a mortgage, but the amount of mortgage available may depend on net income (ie your “take home” pay after tax and expenses).’”

http://university.which.co.uk/advice/parents-what-you-need-to-know-about-student-finance

Manchester University website says:

“Loan repayments and your credit rating
The Council of Mortgage Lenders has advised the government that a student loan is very unlikely to impact materially on an individual’s ability to get a mortgage, although the amount of mortgage available to you may depend on your net income.
Whether student loan repayments affect your ability to take out other loans would be a decision for the loan provider, but student loan information will not be shared with credit reference agencies by Student Finance England.”

http://www.manchester.ac.uk/study/undergraduate/student-finance/uk-eu/funding/government-support/

Any comments? aAnyone want to post on that thread? It's not just for Lib Dems.

I rely on the superior knowledge of HPCers.

[SarahBell]

If you are paying off debt then you have less to pay off a new debt.

[Wurzel Of Highbridge]

I pay about £200pcm from a loan between 2000 and 2004 (foundation year, first year, second year, 1/2 loan during poorly paid placement and 3rd and final year) about £20k all in all. It dosen't worry me too much because I know it would otherwise be spent on rent mortgage payments + younger generations will be painyg more than me so in effect less competition, I suspect that what Boomers think about house prices and equity - conquer and divide by using debt.

[wonderpup]

If true it makes a nonsense of the idea that mortgage applications are subject to a serious stress testing- if they are factoring in such things as how much people spend on fags and booze then to ignore a large ongoing loan liability would be ridiculous.

[wherebee]

If true it makes a nonsense of the idea that mortgage applications are subject to a serious stress testing- if they are factoring in such things as how much people spend on fags and booze then to ignore a large ongoing loan liability would be ridiculous.

It is obviously complete ba&&ls by the lib dem nutters to claim it will not be taken into account. Any bank that lends without taking it into account immediately opens the door to massive misselling claims by the ex-students down the line, when they fall into default. Unless there is primary legislation protecting the banks from this (which there isn't!), they have to take all ongoing obligations into account.

Go post on the libdem thread and ask whether a bank that gave a a graduate an unaffordable mortgage would be protected from mis-selling claims or not if the grad lost thier house later on through not being able to service the debt. Then if they say 'yes' ask which law states that. If they say no, ask which bank will open themselves up to multi million claims so soon after PPI.

Idiots.

[renting til I die]

If you are paying off debt then you have less to pay off a new debt.

Exactly, I sure they must understand this. Maybe they just want to try and say that it didn't matter that we voted to increase student debts, Everything is fine, smile all around, please don't vote for anyone else!

[The Knimbies who say No]

I'm not sure the finer points of loan stress testing should be the Lib Dems' prime concern at the moment.

[MARTINX9]

You do wonder how ignorant people can get.

If you have other debt mortgage lenders will surely take this into account in deciding what to lend you.

If you are paying interest on other debts - you surely have less money each month to pay a mortgage.

Its common sense!

[Dames]

Its common sense!

Something politicians don't posses to be honest.

[Bloo Loo]

As the replies from the CML state, the ability to get a mortgage wont be affected, but the amount you could borrow will be.

[oracle]

I pay about £200pcm from a loan between 2000 and 2004 (foundation year, first year, second year, 1/2 loan during poorly paid placement and 3rd and final year) about £20k all in all. It dosen't worry me too much because I know it would otherwise be spent on rent mortgage payments + younger generations will be painyg more than me so in effect less competition, I suspect that what Boomers think about house prices and equity - conquer and divide by using debt.

it's still too frikkin high.

those of you who have studied courses that can add tangible benefit to theeconomic and physical welfare of the country as a whole should not be paying tuition fees at all.(the country will make it's money back by the application of those studies into something exportable).

I'm in favour of a multi-tiered approach to uni tuition for UK students.

science/engineering etc should be subsidised, but dance with golf-course managment with a minor in x factor should be charged at full whack.

at the very least,our illustrious corporate leaders should be putting a bit back into the system and funding bursaries for the best and brightest of the former.

it gives everybody(comprehensives included) a bit to aim for.

ie everybody does GCE A level/HNC before uni, bonus for A/A* is perhaps £10000pa, B= £4000p.a, C=£2000p.a Toward further education.

[oracle]

it's still too frikkin high.(most of northern EU university is free..so if you have kids approaching that sort of age, tuition this way would also be a very,very good option..scandinavian universities in particular are exceptionally good quality)

those of you who have studied courses that can add tangible benefit to theeconomic and physical welfare of the country as a whole should not be paying tuition fees at all.(the country will make it's money back by the application of those studies into something exportable).

I'm in favour of a multi-tiered approach to uni tuition for UK students.

science/engineering etc should be subsidised, but dance with golf-course managment with a minor in x factor should be charged at full whack.

at the very least,our illustrious corporate leaders should be putting a bit back into the system and funding bursaries for the best and brightest of the former.

it gives everybody(comprehensives included) a bit to aim for.

ie everybody does GCE A level/HNC before uni, bonus for A/A* is perhaps £10000pa, B= £4000p.a, C=£2000p.a Toward further education.

[otters]

This is typical politician double speak.

No it won't affect your ability to get a mortgage, assuming you earn enough.

However, they do say that your mortgage application will probably be assessed on your net income.

So it will have an effect on the amount you can borrow, and it is possible that your payments may not leave you enough net income to even be eligible.

.

[oracle]

This is typical politician double speak.

No it won't affect your ability to get a mortgage, assuming you earn enough.

However, they do say that your mortgage application will probably be assessed on your net income.

So it will have an effect on the amount you can borrow, and it is possible that your payments may not leave you enough net income to even be eligible.

.

interest rates are very low at the moment,so no need to worry.

but when they get raised you better be prepared to pimp your daughter(and/or wife) to make ends meet.

very "sodom and gommorrah"

i still have a bit of trouble with that story though...he invites two stranger(angel things) in for coffee, but when the rowdy mob are outside wanting some hanky-panky he says "well go and screw my daughter senseless instead ..she's not popped her cherry yet...knock yourselves out"

can't think of any father who would willingly do that.

Edited June 28, 2014 by oracle

[Tiger Woods?]

ie everybody does GCE A level/HNC before uni, bonus for A/A* is perhaps £10000pa, B= £4000p.a, C=£2000p.a Toward further education.

I can guarantee that this policy would end A-level grade inflation overnight.

Edited to add: Just read the original article and comments. I wish I could contort my mind into such tendentious thinking. lt would allow one to go far.

Edited June 28, 2014 by Tiger Woods?

[Pedantic Tw@t]

Any comments? aAnyone want to post on that thread? It's not just for Lib Dems.

I rely on the superior knowledge of HPCers.

Lib Dems trying a Goebbels.

[little fish]

Of course a loan will affect the amount you can borrow. Stupid to say other wise.

Debt management consortium Erudio Student Loans paid £160 million (around that) to buy loans taken out by 250,000 students who began courses between 1990 and 1998. If in arrears now they can be chased by debt collectors and adverse info recorded on credit files. Subsequent & current loans have no guarantee that this will not happen to them in the future. Daresay that will have some effect on the likely hood of mortgages being approved.

Lib dems should really just shut up and do their remaining time in silence. They should be too embarrassed to be seen or heard.

[wherebee]

interest rates are very low at the moment,so no need to worry.

but when they get raised you better be prepared to pimp your daughter(and/or wife) to make ends meet.

very "sodom and gommorrah"

i still have a bit of trouble with that story though...he invites two stranger(angel things) in for coffee, but when the rowdy mob are outside wanting some hanky-panky he says "well go and screw my daughter senseless instead ..she's not popped her cherry yet...knock yourselves out"

can't think of any father who would willingly do that.

You not got any mates from Liverpool then?