First-Time Buyer with Student Debt and Complex Income
£195,000 · 35 years · 4.99% fixed 5 yrs. A 29-year-old teacher in her third year of employment had a student loan (Plan 2), a small credit card balance, and a salary supplemented by regular tutoring income.
The Client
29-year-old teacher
The Challenge
A 29-year-old teacher in her third year of employment had a student loan (Plan 2), a small credit card balance, and a salary supplemented by regular tutoring income. Some lenders include student loan repayments as a committed expenditure in affordability, reducing the mortgage available. Her tutoring income was irregular.
Our Solution
Doulton assessed her income including the tutoring receipts evidenced through twelve months of bank statements. A lender whose affordability model treats Plan 2 student loans less punitively than others was selected. The tutoring income was included at 100% given the consistent twelve-month history.
The Outcome
Mortgage placed at the required level. Student loan treatment by the selected lender made a material difference - two other lenders had offered £28,000 less on the same application. First home purchased. Key highlights: Student loan treatment - selected lender offered £28,000 more than competitors; Tutoring income included at 100% with 12-month history; First home purchased - income assessed holistically.