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stokiescum

student debt

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how does it actualy affect a morgage,how do they calculate its impact.the only reason i ask is the lodger has earnt 2200 quid in the last 4 weeks and he has paid a huge 20 quid off his debt its normaly nothing.he is on about saveing up for a house deposit and him asking this question stumped me a bit....i simply dont know.

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11 minutes ago, stokiescum said:

how does it actualy affect a morgage,how do they calculate its impact.the only reason i ask is the lodger has earnt 2200 quid in the last 4 weeks and he has paid a huge 20 quid off his debt its normaly nothing.he is on about saveing up for a house deposit and him asking this question stumped me a bit....i simply dont know.

Martin Lewis does a lot on the student loans and it is essentially a tax payable after you graduate and earn above a certain amount, section 12 in the link talks about the effect on mortgages. But it is essentially an extra tax so graduate pay Nat Ins, PAYE and 'Graduate tax'.

https://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes/

 

Edited by satch

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The income used for the affordability calc is considered as 'wage after deductions' which includes student loan payments.  The outstanding sum isn't relevant (to this).

Edited by dgul

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Just now, dgul said:

The wage used for the affordability calc is considered as 'sum after deductions' which includes student loan payments.  The outstanding sum isn't relevant (to this).

Yes not relevant in terms of current affordability.
The outstanding amount does affect how long you will have a reduced wage which will probably be until it is written off for most graduates?


I owe 2k more now than the sum I borrowed and have to pay until I am 65 :CryBaby:

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2 minutes ago, maudit said:

Yes not relevant in terms of current affordability.
The outstanding amount does affect how long you will have a reduced wage which will probably be until it is written off for most graduates?


I owe 2k more now than the sum I borrowed and have to pay until I am 65 :CryBaby:

Really i thought the outstanding sum was written off once you hit 40 or was it 50 ;)

Edited by Long time lurking

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Just now, Long time lurking said:

Really i thought the outstanding sum was written off once you it 40 or was it 50 ;)

 

Not for those who started 1998-2005 it is written off at age 65.
If I had started a year later then it would be written off 25 years after graduation.

Rubbish as a woman if you have children young as during maternity leave and part time work lots of interest accrued then have big sum to pay off when working aged 40-65.

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36 minutes ago, stokiescum said:

how does it actualy affect a morgage,how do they calculate its impact.the only reason i ask is the lodger has earnt 2200 quid in the last 4 weeks and he has paid a huge 20 quid off his debt its normaly nothing.he is on about saveing up for a house deposit and him asking this question stumped me a bit....i simply dont know.

Their joint honours in media studies and anthropology guarantees them a starting salary of £75k a year, rising to £9999999999999999999999 after the first 3 weeks.

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35 minutes ago, maudit said:

Yes not relevant in terms of current affordability.
The outstanding amount does affect how long you will have a reduced wage which will probably be until it is written off for most graduates?


I owe 2k more now than the sum I borrowed and have to pay until I am 65 :CryBaby:

The calcs don't particularly care about what happens in the future, beyond the assumption that income won't actually go down ever.

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46 minutes ago, blobloblob said:

Their joint honours in media studies and anthropology guarantees them a starting salary of £75k a year, rising to £9999999999999999999999 after the first 3 weeks.

you cynic sir,but i did point out it might be better if he just takes the ten quid an hour at our place and look at the posatives ie we do fuck all and no mental preasure at all just dive on the patents ocasionaly.obviesly thats not the official speel we do all sorts of thinking and engageing honest.

35 minutes ago, dgul said:

The calcs don't particularly care about what happens in the future, beyond the assumption that income won't actually go down ever.

thats the problem he might have to take a paycut to get his degree to start to work for him and progress up the ranks,its not going to be computer says no more like girlfriend says no lol.

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8 hours ago, stokiescum said:

how does it actualy affect a morgage,how do they calculate its impact.the only reason i ask is the lodger has earnt 2200 quid in the last 4 weeks and he has paid a huge 20 quid off his debt its normaly nothing.he is on about saveing up for a house deposit and him asking this question stumped me a bit....i simply dont know.

Ah fun with MMR.

You apply for a mortgage.

You submit your P60 income, your last years bank statements (you really dont want to go thru this exercise with a bank other than your own).

The bank looks at your proper income, then they discount all regular bills and payments. Student debt is one of those- assuming you actually earn enoguh to pay it back (which is another topic that needs looking at).

Then the bank will offer you a max of 4.5x (normally its 5x) of household income net of regular payment.

They also stress the payments by putting 6% (which is not far off the SVR) and ensuring that the mortgage repayments - and you are not allowed IO mortgages now - dont take more than 30% of the money.

The UK mean wage is ~28k. And mean UK worker has a car loan, credit card and OD.

Back to your lodger, once you start earning above ~25k, its 10%.

Unless lodger has OT hes got his numbers very wrong - common trait with todays graduates .....

 

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he is busy clearing debt at the moment but not his student debt,i think he only has 1500 worth of debt now.its his partner pushing for this she is 21.now it got interesting when i asked how much benifits she gets.she gets £116 a week then 20 quid for her child .so im like your going to loose 480 a month straight off.she lives with her parents not any room for a real promation based wage increases she is a nursery nurse.one advantage she has is that her mum can child mind for free.

at the moment they should be able to save at least 1500 a month between them,thats if they put there minds to it and if the overtime doesnt dry up at my place.but i think they are going to take a huge financial hit.she simply thinks its going to be easy has she pays 200 a month board and the lodger 220 at mine.ie 420 will cover the morgage and she apears to be struggeling to grasp the concept of her bennies geting cut and other house hold bills.she even walked off when i pointed out she would then want another kid lol.

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43 minutes ago, stokiescum said:

he is busy clearing debt at the moment but not his student debt,i think he only has 1500 worth of debt now.its his partner pushing for this she is 21.now it got interesting when i asked how much benifits she gets.she gets £116 a week then 20 quid for her child .so im like your going to loose 480 a month straight off.she lives with her parents not any room for a real promation based wage increases she is a nursery nurse.one advantage she has is that her mum can child mind for free.

at the moment they should be able to save at least 1500 a month between them,thats if they put there minds to it and if the overtime doesnt dry up at my place.but i think they are going to take a huge financial hit.she simply thinks its going to be easy has she pays 200 a month board and the lodger 220 at mine.ie 420 will cover the morgage and she apears to be struggeling to grasp the concept of her bennies geting cut and other house hold bills.she even walked off when i pointed out she would then want another kid lol.

Thats sensible.

PITA as studet d3bt is, uless you can clear it in one big swoop. its best just to take the hits to earning.

Debt like credit cards and shrt terms loans are much more dangerous.

 

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2 hours ago, spygirl said:

You submit your P60 income, your last years bank statements (you really dont want to go thru this exercise with a bank other than your own).

A years worth of bank statements... really? Never been through the process but usual advice seems to be 3 months (which is the ‘stop using Bet365’ rule of thumb I was working to).

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Women - and it is always women - tend to take their bennies for granted.

The shock when their life easy lifestye ends when their kids get to 18.

Pre tax credits, to sruvice yo had to go the full scummer - basically live where the ocuncil put you, put your kids in the shittiest schools i.e. live off benefits and whatever cash in hand work you could get, hard as most council housign was away from working places and youd struggle to run a car.

Basically, you chuck your childrens lives under the bus so you dont have to take a low paid job. Especially true for boys. Girls just folow their mums foots steps - get knocked up, get council house.

Tax credits allow a veneer of espticbilty - Oh Im working in my [cupcake shop | nail bar | hardresser | dog walking]. ANd people kid themselves that their ~2k/month income is from doing 16h/w of some pointless crap.

Then the kids get to 80. bang. Right on JSA.

Go from pretned job to having to work 2 x NMW just to keep head above warer.

 

4 minutes ago, Lavalas said:

A years worth of bank statements... really? Never been through the process but usual advice seems to be 3 months (which is the ‘stop using Bet365’ rule of thumb I was working to).

Deopends how much they kitchen sink it.

Ive a rapdily shrinking mrotgage with HSBC, fied at 1.4% for 5 years. hey wanted yaar of bills, 2 years of bank statesments for both me + mrs.

HSBC had read the MMR rules.

Any bank not doign this is winging it and will be in shit shortly.

 

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5 minutes ago, spygirl said:

Deopends how much they kitchen sink it.

Ive a rapdily shrinking mrotgage with HSBC, fied at 1.4% for 5 years. hey wanted yaar of bills, 2 years of bank statesments for both me + mrs.

HSBC had read the MMR rules.

Any bank not doign this is winging it and will be in shit shortly.

Right, well I suppose I’ll have to call time on my successful gambling career then o.O

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19 minutes ago, Lavalas said:

Right, well I suppose I’ll have to call time on my successful gambling career then o.O

98% of gmablers loose money.

Why try and assume that you cna pick the 2% who dont.

Best avoid lending money to all gamblers.

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1 hour ago, Lavalas said:

A years worth of bank statements... really? Never been through the process but usual advice seems to be 3 months (which is the ‘stop using Bet365’ rule of thumb I was working to).

are you close to stoke then the lodgers on about trying to get on there ironicly.

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3 hours ago, Cunning Plan said:

Why not just get a prepaid debit card and run it though that - I think they are 'off record'

I’ll have a look sometime, cheers.

2 hours ago, spygirl said:

98% of gmablers loose money.

Why try and assume that you cna pick the 2% who dont.

Best avoid lending money to all gamblers.

Just because it makes watching soccer Saturday more fun, to be honest.

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2 hours ago, Lavalas said:

Just because it makes watching soccer Saturday more fun, to be honest.

I always put money on horses when I go to the races for the selfsame reason; it makes it a much more exciting day out and I see it as part of the price of the day out: £25 to get in, £20 beer and food, £30 in losing bets.

I haven't bet on a horse when not at the races for about 25 years; I know that I'm going to lose.

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23 minutes ago, Frank Hovis said:

I always put money on horses when I go to the races for the selfsame reason; it makes it a much more exciting day out and I see it as part of the price of the day out: £25 to get in, £20 beer and food, £30 in losing bets.

I haven't bet on a horse when not at the races for about 25 years; I know that I'm going to lose.

Exactly the same the few times I’ve been to the races. With football on a Saturday it’s small stakes, I don’t do too bad, probably a loser over all but it doesn’t matter as I’m happy to lose it all for the added interest it gives. Some ups and downs, some hope of a big win, maybe a tricky decision on whether to cash out or not. Had proper gamblers baffled before wondering what I’m doing to give myself a winning edge, what’s the system etc. Nothing pal. Literally just laying on the sofa watching football.

I guess I’m lucky to not be the type to get carried away.

Anyway, student etc :D

 

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