Student loan

[NancysGarden]

Advice needed: I am saving for a mortgage deposit and will be ready in approx 12 months. I have recently received the annual notice from the student loans company asking for deferral or repayments. I have always earned just below the minimum and have deferred for more than 10 years now. ( not good I know) question is, do I defer another year or start paying? Will it count against me in my mortgage application or should I just continue? Or does it depend on the company? I' m guessing by next year I will have to start paying anyway, and an extra 100 quid or so a month makes the difference now between the drudgery of saving hard but if pushed could tighten our belts further...ideas? Opinions?

Advice gratefully received!

It you are PAYE it is taken direct from your wages and hmrc usually contact your employer about it.
If you are SE you need to tick a bos on your self assessment at the end of the tax year and you get a bill

It doesn't count against anything mortgage or loan wise. I don't see why you should pay it if you do not earn the amount they stipulate.

If it makes you feel any better, my sister has always earnt just below this amount, I have never earnt anything like that amount (have been SAHM for 9 years and live off DH's wage alone, no benefits except Child benefit before anyone starts on the whole living off the state argument) and neither of us have paid, we have always deferred.

In fact, mine was 21 years ago! They write mine off after 25 years so I am waiting for the day.

Wonderful thank you just what I wanted to hear!

Not true!!! Some lenders do have an issue with outstanding student loans. Seek advice from a professional mortgage adviser.

Vickibee, I believe the OP has an old mortgage-style loan not one of the more modern (2002+) income contingent loans, hence the 'deferral' option which modern student loans do not have.

Mortgage lenders look at affordability, so paying a student loan will affect this. If you aren't earning enough to pay it, then it shouldn't make any difference, although this would mean you don't earn much which will mean you can't borrow much in the first place (unless your OH earns a lot).