Advise needed! Excellent credit score but no to mortgage

kingstreet

chanz4 wrote: »

This is rubbish about Halifax, I had one still on my file from 2 years ago for cashback. I had zero issue

I'm the only one in the thread who has mentioned Halifax, so what did I say which you think is rubbish?

the other HTB lenders such as Halifax and Woolwich, AFAIK will not automatically decline for PDL use

I'm suggesting that of the HTB lenders, there are two which don't automatically decline for PDL use, so I don't understand why the broker in question didn't try one of them.

Abu-Dina

I also fell for this trap and back in April when I spoke to a specialist mortgage advisor, he also told me that I had no chance of securing a mortgage with a high street lender. With 15% deposit we were able to get one with Halifax. So not all is lost! Get to the 15% deposit and you should have some options. Good luck!

chanz4

kingstreet wrote: »

NatWest decline any applicant with payday loans. Nationwide don't like them and have been known to decline just before offer, but the other HTB lenders such as Halifax and Woolwich, AFAIK will not automatically decline for PDL use.

Which broker was it, NHMH? Did they try to get a DIP? If so, who with?

here, you said they decline

Dave_Ham

chanz4 wrote: »

here, you said they decline

Not sure you actually read that properly.

In the post it states

Natwest decline
Nationwide do not like them

Halifax/Woolwich will not automatically decline.

GwylimT

Well as others have said payday loans suggest you are unable to manage your finances as they are something that should be used as a desperate last resort, even if a lender didn't see them as a negative using payday loans does not boost your credit rating.

Some lenders will accept applicants with a payday loan, however it seems your partner has taken multiple ones out, which with interest must have been costly. If you are willing, it might help if you can say how many loans over a period of time, as I'm sure there will have been people on here in similar situations.

I see it was a mortgage adviser from the builders who advised he couldn't get a mortgage, are they actually just an adviser or a broker employed on behalf of the builder?

Now, if he wants to do something about his credit rating if he doesn't already have one it might be worth getting a credit card, even with poor credit history there are ones you can get. He can use it as his usual way of spending if he pays the balance off in full every month.

bikermom

Sorry to jump on the post but have just seen someone comment that Natwest automatically decline for payday loans...

Is this on all applications or varient on LTV - asking as i am waiting to hear from natwest underwriters my hubby has taken out payday loans much in line with OP to build up credit, but we have a 45% deposit.

Dave_Ham

Typically, if they see the Pay day loan then they will decline.

Sometimes they manifest themselves in many fashions on a credit file and may not be immediately noticed and you may get lucky.

All the best

annmaria2

So how long do you have to wait for a pay day loans to be less harmful to a mortgage application i.e. 2-3 years?

kingstreet

I'd just use a lender which doesn't have a problem with them. We don't know how long considers a PDL a deal-breaker.

Stay away from NatWest, others should be ok, subject to credit score, LTV etc.

annmaria2

Thank you King Street. My partner had 4 year long battle with one of the banks to remove two unlawful Defaults ( we have won!). However during that time nobody would lend to him. So he used PDL as a way to show he can repay credit on time even though he didnt have to borrow any money. We are now worried with our mortgage application in few years time it can affect us in negative way.Anyway thank you again.