Student Loan Default

Posted on 15 May 2012 by Mark

Hi - Me and my partner are looking into getting a mortgage. We have a joint income of £110K and approximately £40K deposit. We would be looking at borrowing around 250-280K. Neither of us have any debts - my partner has a very clean credit record, though I have a five year old settled default on student loans (which I didn't realise I had until last year). Other than that I've had a few missed credit card payments but none in the last three years. What are our chances of getting a mortgage? Thanks.


This is a very difficult question to answer because you won't know until you try.  I suspect that as you will be wanting to borrow a relatively high proportion of the purchase price you will find it difficult.  If you were able to either save more or look at cheaper property so that you were only borrowing 75% of the value your chances would be much higher.

Although the default is 5 years old and has been settled Santander will definitely not consider you for a mortgage and the combination of missed payments and a default will put off a lot of others.  It might be worth waiting until 6 years from when the default was registered as it will then stop showing on your credit file and the missed payments will be another year older.  If you can wait and use this time to increase your deposit I think you will stand a better chance.

If however you want to go ahead now and take advantage of the current low interest rates please give us a call on 0344 346 3672.  We can research which lenders will consider you for a mortgage without you having to traipse round the High Street until you found someone and recommend the best deal available on the market for you.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Stay connected....

Association of Mortgage Intermediaries



John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.