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Advice? mortgage with payday loans&defaults pls!!

Kaggs!
Kaggs! Posts: 118 Forumite
in House buying, renting & selling
Hello, can anyone help me pls? We have just paid a deposit on a new build, help to buy scheme, as advised by our mortgage advisor, as we have mortgage in principal. I am really worried and doubtful as we have defaults & have had payday loans in the past... do we have a chance with this or am I still praying for a miracle... husband earns £62k myself £16k :huh: :cry:
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Comments

  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Kaggs! wrote: »
    Hello, can anyone help me pls? We have just paid a deposit on a new build, help to buy scheme, as advised by our mortgage advisor, as we have mortgage in principal. I am really worried and doubtful as we have defaults & have had payday loans in the past... do we have a chance with this or am I still praying for a miracle... husband earns £62k myself £16k :huh: :cry:

    Maybe or maybe not.

    No one on here can say if you have a chance.

    How old are the pay day loans ?

    Some lenders may treat pay day lenders differently. Might find your only offers are higher rates.
  • daz_79
    daz_79 Posts: 55 Forumite
    How old are the defaults? Different lenders have different criteria and when it comes to payday loans some will automatically decline an application if any are evident. If your Mortage Advisor is aware of the above I’m sure they will advise of the best course of action. If you have a decision or agreement in principle defaults and payday loans should have already been taken into account.
    Darren :beer:
  • Kaggs!
    Kaggs! Posts: 118 Forumite
    edited 19 February 2018 at 8:48AM
    The last pay day loan was 2016, defaults should drop off at the end of this year... 2 are still active with EE but are being disputed as they where settled a few years ago, thanks
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    Kaggs! wrote: »
    The last pay day loan was 2016, defaults should drop off at the end of this year... 2 are still active with EE but are being disputed as they where settled a few years ago, thanks

    Your mortgage advisor will know more than us on here.
  • Kaggs!
    Kaggs! Posts: 118 Forumite
    Yes of course, he!!!8217;s coming to see us on Wednesday... but I!!!8217;m so anxious and impatient haha
  • daz_79
    daz_79 Posts: 55 Forumite
    As already mentioned, your Mortgage Broker will know best who to approach after assessing your credit files etc. Some lenders won’t entertain pay day loans, especially so recent and coupled with defaults (albeit quite old by the looks of it) so it may be a ‘Credit repair’ job. If you have a back story re the active defaults this would also be worth explaining to your Broker.
    Darren :beer:
  • Kaggs!
    Kaggs! Posts: 118 Forumite
    Thank you, appreciate it
  • Kaggs!
    Kaggs! Posts: 118 Forumite
    What you mean by a credit repair job?
  • daz_79
    daz_79 Posts: 55 Forumite
    Credit repair is the new term for what used to be a sub prime mortage. Providers of credit repair mortgages are more leniant and tolerable of adverse credit.
    Darren :beer:
  • Kaggs!
    Kaggs! Posts: 118 Forumite
    Ahh I see... gives me a little more hope ... thanks :)
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