Worried That Your Past Student Loan Debt Might Delay Buying a Home? Here's What to Do

Whether you are just about to graduate or you have been out for a few years, there's a good chance you're carrying some amount of student loan debt. It seems that news headlines are regularly pointing out that the nation's graduates are suffering from the stress of student debt. Moreover, that pressure can be even worse for those who are looking to buy a home and start putting some roots down in the local community.

A student loan cannot stop you from getting a mortgage, but it can influence the lender on how much they do approve the mortgage via their affordability checks. Although the BOE has scrapped affordability checks banks will still have to abide by the loan-to-income framework so no it's not going to turn into a free for all on lending.

So if you are worried that past student loan debt will affect your chances of buying a home? Let's run through a few tips that can help put your debt worries at ease.

Start A Budget And Embrace Using It

The first and most important step anyone with debt can take is to commit to a monthly budget. Managing your debts means living within your means. In turn, that requires careful examination of your income and expenses to ensure your debts are being paid down.

Also, in most cases, interest is being charged on outstanding student loan debt which makes it a high priority for repayment. The faster you can pay your student loan debt off, the less interest you will pay on top of it.

Check In With An Expert Advisor

If all of this seems confusing, you're not alone. The good news is that there are expert debt and financial advisors that can help you to make sense of it all. They will help you to understand exactly where your money is going each month and what kind of financial discipline, you'll need to clear the path to home ownership.

Reach Out To Friends And Family

Don't forget that friends, colleagues, and family members can be great sources of advice and support. Close family members may also be willing to lend a hand financially to get you out of renting and into your own home.

In closing, while past student loans and other debts can crimp one's finances, they are no reason to put off home ownership indefinitely. For more information and to view affordable starter home options in the area, contact us today on 0330 113 5535. Our professional team of advisors will be happy to help.