Mortgage Application Issue

edited 30 November -1 at 1:00AM in Mortgages & Endowments
10 replies 1.6K views
missionfellamissionfella Forumite
17 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi everybody

I'm a regular lurker and user on MSE and often come here for advice but I can't find my current problem

I want to apply for a mortgage (maybe using the Help to Buy scheme) and have been saving up for a while. Stupidly, I never paid back my student loans, through a combination of moving house a few times and head in the sand attitude. I have been in a position to pay them off or arrange the minimum payments for a few years now but haven't done so because I wanted to get a good savings behind me and because I'm worried that it will affect my credit. the debt is around £10,000. I have been receiving my statements from the SLC but also some debt collection notices which I haven't called up about because I really didn't know the best course of action to take. I know it seems very stupid, but I really do want to settle the debt. but without it affecting my score.

Currently these defaults do not show up on my reports (Experian and Equifax) and I don't want them to for obvious reasons. I want to pay them off but don't want them then to show up on my credit report. Ideally I'd be able to pay them off and/or arrange to pay monthly before I apply for a mortgage but I don't know if that means they will adversely affect my credit by becoming visible.

The alternative would be to get the mortgage and then satisfy the debt but even though they're not showing up on my reports will they show up when the lender searches?

I realise that I probably should have sorted it out as soon as i could butI made the decision to not affect my credit score, rightly or wrongly. I do have enough to pay off my debt and for a 10% deposit.

Is there anybody who knows how Student Loans and credit reports work able to help?



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