Student loans & mortgages

How student loan repayments affect mortgage applications and simple steps to improve your chances.

Last updated: December 2025

On credit report

No

Usually not recorded

Affects affordability

Yes

Monthly repayments count

Make a difference

Deposit

Larger deposit helps

Student loans and your credit report

ℹ️Credit report

One of the biggest factors for mortgage acceptance is your creditworthiness, shown on your credit file. Student loans don’t normally appear on credit reports, so having a student loan won’t usually harm a standard credit check.

That said, it remains important to check your credit file before applying — missed repayments and County Court Judgments (CCJs) can appear on your record and may affect mortgage offers. See our guide on checking and improving your credit file if you need to tidy things up.

How student loans affect affordability

⚠️Affordability checks

Lenders run an affordability test to see if you can afford mortgage repayments now and after interest rate rises. Your monthly student loan repayment is treated like any other regular outgoing and will reduce the amount a lender is prepared to offer you.

📝 Example: Similar salary, different repayments

Andy (no student loan)
Salary £40,000
Higher mortgage borrowing potential
Samira (Plan 2)
Salary £40,000 — repayments £95/month
Moderate reduction in borrowing
Tam (Plan 5)
Salary £40,000 — repayments £113/month
Slightly lower borrowing than Samira

Monthly repayment size — not total loan — is what matters for lenders.

Key point

It’s not the size of your student loan that matters for mortgages — it’s how much you pay each month. Bigger total debt can be irrelevant if your monthly repayments are small.

How to boost your mortgage affordability

Before you apply

Check your credit report and fix any missed payments

Build a larger deposit to reduce loan-to-value (LTV)

Consider a Lifetime ISA to boost savings with a government bonus

Cut discretionary outgoings in months before you apply

Get payslips and bank statements ready to show stable income

Deposit matters

The bigger your deposit, the lower your LTV and the wider the choice of mortgage deals and rates available. Lenders typically improve pricing at common bands such as 90%, 80% and 60% LTV.

Try our calculator

Play with deposit, income and outgoings to see how much a lender might offer you.

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