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  • FIRST POST
    • OverD
    • By OverD 12th Jan 18, 1:46 PM
    • 2Posts
    • 0Thanks
    OverD
    Mortgage + Credit History
    • #1
    • 12th Jan 18, 1:46 PM
    Mortgage + Credit History 12th Jan 18 at 1:46 PM
    Hi all,

    I'm after a little bit of advice.

    Me and my partner are looking to get a mortgage this year. We have an £100k deposit and are looking at properties around the £300k mark with a joint income of £50k, so hopefully all good from that side of things.

    Now the iffy bit.

    We went travelling for around 5 months and came straight back into new jobs, however, in the 2 weeks I had to wait for my first pay I took out a payday loan for £100 to tide over a few things. This was paid back in full as soon as I was. We have a policy of not dipping into our savings for anything whilst we've been saving for a deposit. Hence why I did that as a quick option.

    Typically I then found out a few weeks later that this could potentially have a negative impact on a mortgage application.

    There seems to be a lot of differing information floating around on how this may impact things so was hoping for some advice on what to do and whether there is anything that can be done to mitigate the damage as it were?

    Thanks!
Page 1
    • zx81
    • By zx81 12th Jan 18, 1:53 PM
    • 14,891 Posts
    • 15,713 Thanks
    zx81
    • #2
    • 12th Jan 18, 1:53 PM
    • #2
    • 12th Jan 18, 1:53 PM
    Payday loans tell lenders that you don't have enough disposable income for your needs, so never a good thing.

    It will be taken into account as part of your wider credit history.

    Nothing you can do about it now, but stay away from them in future.
    • ACG
    • By ACG 12th Jan 18, 2:07 PM
    • 16,109 Posts
    • 8,286 Thanks
    ACG
    • #3
    • 12th Jan 18, 2:07 PM
    • #3
    • 12th Jan 18, 2:07 PM
    You dont say how long ago, but some lenders will decline you outright, others will probably decline you at underwriting stage and some will just ask a question and be ok with it subject to score.

    It is just a case of avoiding the ones most likely to decline you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • OverD
    • By OverD 12th Jan 18, 3:17 PM
    • 2 Posts
    • 0 Thanks
    OverD
    • #4
    • 12th Jan 18, 3:17 PM
    • #4
    • 12th Jan 18, 3:17 PM
    It was only in October.

    Apart from the damn payday loan I'm clean otherwise. No other stains on my credit history. Everything has always been paid off. So hopefully that will count for something.
    • ACG
    • By ACG 12th Jan 18, 3:29 PM
    • 16,109 Posts
    • 8,286 Thanks
    ACG
    • #5
    • 12th Jan 18, 3:29 PM
    • #5
    • 12th Jan 18, 3:29 PM
    You will be fine. You just wont have the pick of the lenders, but no reason for it to cost you a fortune.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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