Wonga affecting me getting a re morgage??

chris123456789

Hi, i just recently applied to re morgage my home and to remove someone form the morgage. after asking for additional borrowing, i sent in all my pay slips like they asked. i received a call from natwest to say because over the last few months i have used wonga they see this as big problem and will be unable to accept. they said in 6 months time re apply. what i dont understand is that on the wonga website it says it helps your credit rating, on top of that i have no outstnading credit with wonga and i have also not missed a morgage payment for over 5 years and recently cleared my loan i had with them. does this sound right? am i able to appeal?

MonkeyMad

I would imagine a mortgage lender seeing you have resorted to PDLs is a sign to them that you may be struggling with cash flow and therefore might not be able to meet any increased lending by them.

What Wonga say may well be true, ie you credit rating might be unaffected, but as you see, this may not actually count, and is not the only criteria a lender may use.

ticktack_2

Maybe they think that you probably wouldn't have had a payday loan if you could have borrowed the money elsewhere for a lower interest rate.

I don't think you have a right of appeal, but you could try explaining to them all the circumstances of why you borrowed through Wonga, and ask them to reconsider.

jason1231972

My partner works in lending, though not for a bank (more of a community finance initiative as an alternative to banks, but with lower-interest than payday loans, etc.). She often tells me tales of how if a customer's bank statements show credits and debits for Wonga and their ilk, new customers will be refused loans, and existing customers will be limited in their lending.

Her job is very different to a mainstream mortgage lender (her company don't do formal credit checks, they just work on intuition and other evidence of financial (ir)responsibility), but her views make sense.

Borrowing from Wonga, etc. is a sign that you're unable to make ends meet (otherwise, why use them on anything other than an absolute one-off/emergency basis??), which is obviously a red flag for lenders.

I don't see how Wonga does improve your credit rating. Do they report to credit reference agencies on a regular basis (and not just when people attempt to rip them off?)? If they don't, it won't help your credit rating - not outside of Wonga, anyway.

Any application that's reviewed by a human being and not just a computer (such as those passing over the desk of mortgage staff at banks) stands a great chance of refusal if the applicant is a user of payday loans.

DCFC79

Maybe its the fact you used wonga and as such you can't manage your finances

BugsyBrowne

Agree with above using wonga looks like desperation and someone who is struggling to keep his finances running smoothly.

It really doesn't look good from a lenders point of view.

opinions4u

You can't budget.

They won't lend.

Simples.

InsideInsurance

The "problem" is that credit scoring and vetting customers for credit is not done in the same way by all lenders etc.

Wonga's claim will be based on the general rule that settled credit accounts are generally considered to be a good thing as it shows you are a responsible borrower.

If the lender in question does a very simple credit score (hot key as it used to be called in my day) then they probably would help you.

Not all lenders, and I'd argue (almost) never mortgage lenders, however rely on the basic score but instead look at the detail (white keying in my day) and when they start seeing names of payday lenders then it is a massive red flag of financial difficulties which way out weighs the benefit of the settled credit accounts

chris123456789

Thank you all for the responses, i just thought that i have had a mortgage with them for over 5 years with not one missed payment and also recently clearing my loan with them does show that natwest get their money on time with no issues. anyway looks like i will have to stay clear of wonga for good.thanks again

simon2010

Wow, a lender actually explaining why they turn you down, whatever next???


Thanks to others for their explanations as this might well explain why I still struggle to get credit (nothing wrong with file) just been using quick quid quit a lot to help with matters.

I will be avoiding QQ from now on.

BugsyBrowne

Trouble is a lender can check back a few years through your credit file and settled accounts stay on for 6 years so who ever has had PDL's might have a long wait.