Is there any point in progressing our AIP to full application?!

Abu-Dina

Hi,

The offer on the house we want has been accepted and we already have anagreement in principle for a mortgage (15% deposit) with the Bank of Scotland.

We did a joint application (I earn £33k and my wife earns £10k). Her creditreport is excellent and mine is average however I do have one Default from 3years ago for £165 which was settled more than 2 years ago.

We have been saving like mad and now have £28k saved up in a separate bankaccount.

However, I think I may have screwed up our chance of actually getting amortgage because I've been taking out small payday loans thinking that it wouldimprove my credit score! When I check my credit file with Experian, the onlypositive thing at the moment is the number of settled accounts but I've beenreading online that when lenders see these in your credit report theyautomatically reject your application?!

Now I'm really worried because we have the deposit and the money for thefees saved up and we can backup everything we said in the application withpayslips and bank statements but will Bank of Scotland turn us down because ofmy stupid mistakes?!

Any ideas?

DevCoder

They are rarely viewed as a good thing on your credit file although you can explain that you thought it would increase your credit score and that the fact you have put significant amounts into the savings account would indicate your aren't using PDL as matter of last resort for money.

Thrugelmir

Abu-Dina wrote: »

Hi,

The offer on the house we want has been accepted and we already have anagreement in principle for a mortgage (15% deposit) with the Bank of Scotland.

We did a joint application (I earn £33k and my wife earns £10k). Her creditreport is excellent and mine is average however I do have one Default from 3years ago for £165 which was settled more than 2 years ago.

We have been saving like mad and now have £28k saved up in a separate bankaccount.

However, I think I may have screwed up our chance of actually getting amortgage because I've been taking out small payday loans thinking that it wouldimprove my credit score! When I check my credit file with Experian, the onlypositive thing at the moment is the number of settled accounts but I've beenreading online that when lenders see these in your credit report theyautomatically reject your application?!

Now I'm really worried because we have the deposit and the money for thefees saved up and we can backup everything we said in the application withpayslips and bank statements but will Bank of Scotland turn us down because ofmy stupid mistakes?!

Any ideas?

Pay day loans are a last resort. So will be negatively scored by the lender.

The source of the deposit will be verified.

Abu-Dina

Well that doesn't sound good at all. I wish I never bothered with the them.

Is it even worth going ahead with the mortgage application or should we go for different lenders?

somethingcorporate

All lenders will view it the same way as it is an indication of desperate behavior and poor financial management (not what you want when you are going to be lending hundreds of thousands).

There will probably not be any harm (aside from a search) in applying for the mortgage but if I were you I would expect the worst.

Abu-Dina

Well I’m a total pessimist by nature anyway so I’m alreadyexpecting the worst! I just feel bad for my partner who has a near perfectcredit reports. No missed payments, all accounts under full control etc.

Bah.. I’m such a fool! I actually believed them when theysaid they help your credit score!

Abu-Dina

somethingcorporate wrote: »

There will probably not be any harm (aside from a search) in applying for the mortgage but if I were you I would expect the worst.

I did but yuo and I were both wrong! We did get a mortgage!

monty-doggy

How many are we talking? I've used quick quid in the last 12 months twice, and I still got a mortgage.

74hotspur

I had about 8 over a 2 year period. Was never questioned by lender

Thrugelmir

Abu-Dina wrote: »

I did but yuo and I were both wrong! We did get a mortgage!

Pleased to hear the outcome for you.

kingstreet

AFAIK only NatWest declines on sight of a PDL. Nationwide don't like them and sometimes have a problem later on at underwriting, but don't decline out of hand.