Student loan and mortgage affordability (UK): a practical guide
In the UK, a student loan usually doesn’t work like a “normal” debt (it’s income-linked), but lenders still factor the monthly deduction into affordability. Use the quick checker below to understand what matters most in your situation.
Quick checker
This checker is not a lender decision. It helps you prioritise the next step (budgeting, broker chat, deposit focus, or reducing other commitments).
Next Steps
What lenders often look at
- Affordability: your income minus committed outgoings (student loan deductions can reduce this).
- Credit file: missed payments, high utilisation, recent credit searches.
- Stability: consistent income, employment history, and manageable regular payments.
- Deposit & LTV: bigger deposit typically means more lender options and better rates.
General information only. Not financial advice. Lenders use different affordability models and criteria.
Key points
- UK student loans are income-linked – repayments are a payroll deduction once you earn above a threshold (plan-dependent).
- Lenders typically treat the repayment like a monthly commitment, which can reduce the amount they’re willing to lend.
- Other commitments often matter more (car finance, credit balances, dependants, childcare).
- Paying off a student loan early is not always the “best” move – it depends on your plan, income trajectory, and goals.
Should you pay it off to get a bigger mortgage?
A simple way to think about it: if paying off your loan reduces your monthly outgoings by £X, some lenders may be willing to lend “roughly” more — but it’s rarely 1:1 and differs by lender. Often, improving your deposit, reducing expensive credit, or clearing car finance can move the needle more.