23
Jan
First time buyers could be hampered by student debts
New laws being proposed could mean that first time buyers who have
defaulted on student loan repayments could be turned down for a
mortgage, it has been revealed.
Under the terms of the proposed reforms defaults against student
loan repayments will be logged in credit files and this information
will be available to mortgage providers.
Should the borrower have failed to make payments at the required
time, banks and buildings will according to Francis Ghiloni,
business development director at mform, regard the loan application
less favourably.
Ms Ghiloni said: "Many students miss one or more of their student
loan repayments, and this information will soon be made available
to credit references agencies and therefore the banks and financial
services companies that use them.
"If they can see a history of missed payments here, they are likely
to be less willing to lend you money."
Recent studies found that students currently leaving college facing
debts of up to £20,000.
Conversely, the average first job salary for a graduate is
£16,000.
