Payday loan means being turned down for a mortgage in the future

dunstonh

Dukesy wrote: »

I'm not pretending to be a mortgage expert, all I'm saying is that the first thing that every bank we spoke to when we were comnparing mortgages was to do a there and then credit scorey checky thing on us, no paperwork or anything else provided by us.

When a bank says it will credit score, that is something different to a score given by a credit reference agency to encourage you to buy their product.

Dukesy

dunstonh wrote: »

When a bank says it will credit score, that is something different to a score given by a credit reference agency to encourage you to buy their product.

I never said it was the same thing - I personally have no truck with experian etc. However, surely the same things will be noted - ie whether or not you are efficient at paying bills and honouring contracts, whether you have a checkered borrowing history etc?

Wh05apk

Dukesy wrote: »

I never said it was the same thing - I personally have no truck with experian etc. However, surely the same things will be noted - ie whether or not you are efficient at paying bills and honouring contracts, whether you have a checkered borrowing history etc?

Yes, they will, but lenders will place a deferent priority on things, even to other lenders, this is where some lenders will prioritise against pay day loans.

moneemonee

droiderm wrote: »

Sorry to hear that
Who was it ?

Natwest Bank - I bank with them as well so it was a bit of a surprise as they have all my money and can see I had plenty of access to other sources.

ValHaller

moneemonee wrote: »

Natwest Bank - I bank with them as well so it was a bit of a surprise as they have all my money and can see I had plenty of access to other sources.

Which all goes to make your use of PDL look quite irrational from the bank's perspective ....

I would suggest letting things sit for a few months then go to a good broker and start off by explaining your indiscretion with the PDL and that you now understand that you were ill advised to do it to improve your credit score. And line up your evidence that you really didn't need it.

I may be overestimating the power of a broker, but by doing this it may be possible to get the PDLs taken out of a lender's credit scoring

chrisfurbs

I love how everyone has posted on this when the initial post was mearly a quote no discussion to be had

daniboy

opinions4u wrote: »

It already is viewed negatively.

If you can't afford more than the minimum balance on a card how the hell do you expect to afford the mortgage?

Peoples circumstance change. You could pay off cc when refinancing or moving house.

Really there is no need to be so harsh.

michaels

Not long ago there was £50 quid to be made via quidco for being anew customer with wonga then borrowing the minimum amount and paying it back straight away - I correctly decided it wasn't worth the money due to the reputational risk.

Thrugelmir

daniboy wrote: »

Peoples circumstance change. You could pay off cc when refinancing or moving house.

Really there is no need to be so harsh.

It's the reality of the situation. Lending criteria has been rentlessly screwed down over the past few years. There's no indication of a let up.

So better to be informed and take corrective action. Than post on here complaining that no one wants your business. Lenders can choose their customers. So obviously will accept the lowest risk.

HAMISH_MCTAVISH

It's mortgage rationing, plain and simple.

Banks have had a very limited amount of money to lend, and so must shrink the pool of borrowers to match the limited pool of funding.

Of course, this means lots of perfectly creditworthy borrowers have been refused credit over the last few years, and over a million potential FTB-s forced to enrich their landlords instead.

But don't worry, the political pressure on the banksters is now increasing relentlessly, as funding for lending is removing their excuses not to lend.

And funnily enough, new mortgage approvals are up by nearly 25% in the last 6 months as a result. Still a long way to go of course, but with an election only 2 years away, lending will certainly continue to improve, or this shower will have zero chance of getting in again..