If you’re saving to buy your first home, you’ve probably checked your credit score already. It’s a good way to see what a mortgage lender might look at when deciding how much to lend you.
But what about your student loan? You won’t see it on your credit report. So, does that mean it won’t affect your mortgage application either? Let’s find out.
Yes, your student loan can affect your mortgage – but not in the way you might think.
Your student loan doesn’t show up on your credit report, and it won’t lower your credit score. But lenders will still ask about it because your repayments reduce how much you’re left with each month.
When a lender checks what you can afford, they look at your income and all your regular outgoings – including your student loan repayments. This means that while the total amount you owe on your student loan doesn’t directly impact your debt-to-income ratio, your monthly repayments do. This could reduce how much you can borrow.
But don’t worry – it’s there to help make sure you don’t borrow more than you can afford. That way, your mortgage payments stay manageable and your home stays safe.
Yes, your student loan is a type of debt – but it’s treated differently from other loans.
Personal loans or credit cards show up on your credit report, and lenders check these when you apply for a mortgage. If you already owe a lot or have lots of credit available, they might worry you’re borrowing too much.
Your student loan won’t show on your credit report, and it doesn’t lower your credit score. But lenders still count your repayments when working out what you can afford.
No, a student loan does not count as a form of income when applying for a mortgage.
While it may seem like extra money, a student loan is essentially debt, not income. Lenders are looking for reliable income sources that you can use to pay off your mortgage, not money that needs to be paid back. Since you’re required to repay your student loan, it doesn’t boost your borrowing capacity in the same way that actual income would.
There have been a few updates around student loans and mortgage rules that are worth knowing:
✅ Student loan repayment thresholds are rising
From April 2025, the amount you need to earn before repaying your student loan is going up:
This means some people might pay a bit less each month – or nothing at all – which could help when applying for a mortgage.
✅ Mortgage rules may be changing
The UK’s financial regulator (the FCA) is reviewing mortgage rules in 2025. They want to make sure lenders don’t make it harder than it needs to be for people to get a mortgage.
One thing they’re looking at is how lenders check you can afford the repayments – especially when it comes to things like student loans and other regular bills.
👉 It’s still early days, but if changes happen, it could help more people get on the property ladder in the future.
Before you apply, work out how much you can afford to pay each month. A mortgage calculator can help you do this.
Be honest about your spending, and don’t forget to include your student loan repayments. Even though you don’t physically see these payments in your account, they still reduce your take-home pay. The more your student loan reduces your disposable income, the less a lender may be willing to let you borrow – especially if interest rates go up.
It might mean you can’t borrow as much as you hoped, but that’s not a bad thing. It helps prevent you from taking on too much debt and struggling with payments later. After all, if you can’t pay your mortgage, your home could be at risk.
Your deposit also affects how much you can borrow.
The bigger your deposit:
✅ the less you need to borrow
✅ the better the mortgage deal you could get (with lower interest rates)
Saving a little more can make a big difference.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
Sign up for tips on how to improve your credit score, offers and deals to help you save money, exclusive competitions and exciting products!
