Personal Finance & Money Asked by li x on April 2, 2021
I am currently living in the Netherlands and I have quite the accumulation of UK student debt, currently it’s sitting at around £50000 but based on my repayment schedule, it wouldn’t affect my ability to pay back a mortgage. I’ve tried the online calculators offered by places such as ABN & AMRO and ING and my student loan status has a very negative impact on my calculation. I’m not sure how I should approach classifying or presenting my current debt situation as I earn more than enough to make the repayment terms on a €200’000 loan (~€600 P/M), in fact I pay more now for renting per month (€1250 P/M). How should I approach trying to get a mortgage with these facts? Does my UK loan have a different form of classification rather than being presented as regular debt? Is it equal to Student Debt accrued in the Netherlands?
edit:
To clarify the student debt is purely a student loan taken out with the Student Loans Company, furthermore if I lose my job I will not have to repay so I am more likely to receive better judgement over my actual debt.
After consulting a few mortgage providers via there mortgage advisor representatives, I've gained some clarity over the whole process, finally. So there are three possibilities for how they will view your foreign student debt:
They will look at it from the starting amount and how much you currently owe irrespective of the amount you may pay monthly. So if for instance you have £50000 of student debt it will be viewed as such, this is by far the worst outcome when attempting to garner a mortgage in the Netherlands.
They will calculate your mortgage based on your monthly repayment structure, so for instance if I have £50000 student debt but I pay a monthly payment of £140 they will attempt to match this to a student loan. In my case rabobank made this calculation out to be €7000 of equivalent debt.
The advice would be to not declare your foreign student debt at all and seek to gain the maximum amount of mortgage possible. Whenever this has been suggested to me it comes along with the warning of 'this is not legal advice' and in my opinion is walking along the unlawful route. Though the pretext often given is that there is no central registry and they will never be able to find out.
Furthermore the dutch loan system while more accommodating than the UK interms of generally allowing a 100% loan is rigid in certain cases. In the case of foreign debt it does not seem like they have any logical recourse in place. In my own circumstance I will be paying far more to rent then to mortgage a property but based on the guidelines set out by the providers and advisors I saw I would not qualify to mortgage a property that would reduce my monthly renting costs by over half.
Correct answer by li x on April 2, 2021
In the Netherlands for a mortgage they expect that you pay 2% of your debt each month. For student debt (before 2015) it is 0,75% and for newer ones it is 0,45%.
You can go to an Mortgage advisor and request and 'introduction meeting'*(These are free). You can ask the question an maybe they can answer them.
Some (smaller) mortgage providers don't want 'complicated' cases, if that happens, the 3 big banks(ING, ABNAMRO, Rabobank) may be your best bet.
Most likely some banks can give you a better offer than the 2% the calculators currently use, but I don't know of they have rules/guidelines for it.
Dutch Source (Consumers Association)
Dutch Source (mortgage provider/bank)
*maybe there is a better word for it
Answered by Aldwoni on April 2, 2021
Get help from others!
Recent Answers
Recent Questions
© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP