mortgage refused due to wonga/payday loan

Experian_company_representative

It's important that lenders get the full facts and can then make an informed decision. As I think the Mortgage Strategy article above says, some mortgage lenders have gone on record saying that they do not refuse loans due to payday data alone, so it depends entirely on each individual lender's policies on this. Maybe worth asking about this in advance?

James

matttye

Perhaps a notice of correction would help here?

It will mean any credit applications are deferred for a manual assessment and a human will consider the application.

notanewuser

matttye wrote: »

Perhaps a notice of correction would help here?

It will mean any credit applications are deferred for a manual assessment and a human will consider the application.

It's not incorrect though!

_Andy_

matttye wrote: »

Perhaps a notice of correction would help here?

It will mean any credit applications are deferred for a manual assessment and a human will consider the application.

A human will decline the mortgage.
There's nothing to 'correct' either.

matttye

notanewuser wrote: »

It's not incorrect though!

_Andy_ wrote: »

A human will decline the mortgage.
There's nothing to 'correct' either.

There's perhaps a false impression to correct.

The guy believes he has a reasonable reason for taking out a payday loan, and it wasn't financial hardship/irresponsible financial management.

I can't remember which one(s) it is, but at least one of the CRA's actually suggests using notices of correction to give more information about something on your report. E.g. "Yes I did default as I lost my job and income was drastically reduced." Whether or not that would help or not is another matter, but it may stop the lender thinking the applicant just decided not to pay.

You-kip

matttye wrote: »

There's perhaps a false impression to correct.

The guy believes he has a reasonable reason for taking out a payday loan, and it wasn't financial hardship/irresponsible financial management.

I can't remember which one(s) it is, but at least one of the CRA's actually suggests using notices of correction to give more information about something on your report. E.g. "Yes I did default as I lost my job and income was drastically reduced." Whether or not that would help or not is another matter, but it may stop the lender thinking the applicant just decided not to pay.

They won't buy that old bull Mattye.

The underwriter will see the notice of correction and realise there's nothing on the credit report that is in need of correction and getting a PDL is true reflection whether its once or twice of the applicant they're dealing with.

matttye

You-kip wrote: »

They won't buy that old bull Mattye.

The underwriter will see the notice of correction and realise there's nothing on the credit report that is in need of correction and getting a PDL is true reflection whether its once or twice of the applicant they're dealing with.

You say that, but payday loans aren't usually taken out by people who have mortgage deposits available. The circumstances do seem atypical.

You-kip

matttye wrote: »

You say that, but payday loans aren't usually taken out by people who have mortgage deposits available. The circumstances do seem atypical.

You have a valid point but as we know each individual case is different.

matttye

You-kip wrote: »

You have a valid point but as we know each individual case is different.

That's the exact point I've been trying to get across A notice of correction will allow the OP to state his case. Perhaps then he won't be tarred with the same brush as thousands of other irresponsible PDL borrowers.

londonTiger

Experian_company_representative wrote: »

It's important that lenders get the full facts and can then make an informed decision. As I think the Mortgage Strategy article above says, some mortgage lenders have gone on record saying that they do not refuse loans due to payday data alone, so it depends entirely on each individual lender's policies on this. Maybe worth asking about this in advance?

James

seems like a PR line more than anything else. Payday loans do and SHOULD raise red flags on a borrowers record.

It shows that someone was so broke, that they couldn't get credit from overdraft, credit card, borrow from friends that they had to turn to these legal loansharks.

Sure there may be some exceptions, some students have turned to payday loans, maybe, just maybe someone would a good job, good credit rating (but no immediately available credit) who just happened to be broke a few days before payday who turned to payday loans. But this is extremely rare IMO

With all things, they would be taking everything into acount. But a recent payday loan will drop the credit rating down significantly