Payday loans and mortgages

Amlie

Hi everyone I'm just looking for a bit of advice and if anyone else has been in a similar situation really.

I'll start from the beginning and hopefully it'll be easier to explain... my partner and I both had amazing credit scores, with no faults on our reports whatsoever. Virgin Media ruined this by adding a misplaced default on our (well my partner's) credit file. Basically we had our TV etc with them, we moved to a new address and they couldn't supply this address so our only option was to cancel. The advisor at the time took payment for our last bill, cancelled the account there & then and he also had a hold of our new address for when we gave it to him to change to the account. Fast forward a year and we are applying for a mortgage and are being declined, so we sign up to credit expert and lo & behind there's a default from Virgin Media with an amount owing. We immediately called them up to contest this, the amount was then removed by them and after another year, endless of emails with their credit amendment department they have now removed the default too :T

The problem we now have is we foolishly took out a payday loan earlier on in the year, it was for £150 to help cover the excess of our dog's vet bill a week before our payday. We needed the cash ASAP and that is what we went with the day before, or maybe on the day actually, that we were due to pay them back an advisor called my OH and asked if he wanted to extend the time length of repayment. I have absolutely no idea why but he accepted (my OH tells me he didn't fully understand what the man was talking about and just went along with it I know, I know, I was doing a lot more than just SMH), and so it rolled over another month until our next payday and they charged us extra for doing so.

Just looking at our credit file now and it's in the higher end of the good section, there's no negative factors, 3 positive factors and no defaults, CCJ's etc BUT there are these 2 payday loans, plus another 2 which are the exact same ones but are duplicated for some reason. We are wanting to go ahead and try for a mortgage application again but are worried about the PDL's now we know how detrimental they can be when seen by a potential lender. So I was just wondering is there a way to have the dupliactes removed? If we went to the PDL lender and showed them our credit report and the inaccuracy, do you think they would correct it? And has anyone any positive stories on being approved a mortgage deal (and a good one if possible!) with their credit file showing PDL's?

Thanks in advance.

DCFC79

Is the date on the 2 entries the same ?

dotdash79

How long ago is earlier this year? is it under 6 months ago or more?

What level of mortgage are you going for? 75%, 85% or 95%

The answer to these two questions will make the all the difference.

Amlie

Thank you for your replies.

Yes, the dates and amounts are exactly the same and we definitely only took the one out (plus the extension), but there's 4 recorded on the file for some strange reason.

And the PDL was taken out in June, extension taking it to July... so not that ''early on'' in the year actually crap!

imoneyop

You say you took out the payday loan for an emergency - I take it from this that you have no saving, so how are you expecting to fund the deposit for your house (or is it a remortgage)?

dotdash79

I would see it when you was offered the extension they paid of the original one and then re-scored you for a new loan. You might want to query why there is 4 entries rather than 2.

There is no point in going over old ground but I would wait for at least 12 clear months and use the time to build up a buffer.

Amlie

imoneyop wrote: »

You say you took out the payday loan for an emergency - I take it from this that you have no saving, so how are you expecting to fund the deposit for your house (or is it a remortgage)?

We don't have savings as such, we have money from my OH's late gran's estate which, at the time, was tied into some kind of stocks or bonds. Sorry, I don't know the ins and outs of it as OH's dad was dealing with it all, but the money we have became available to us last month hence why we are now looking to buy.

I've just looked on the PDL's site and have emailed their customer services team and their complaints department explaining that they've incorrectly put the loans down twice on the credit file. I've also attached the credit report so they can see for themselves. Hopefully they'll get back to me ASAP and will be able to correct it. I just hope that they can and if corrected, the 2 doesn't look as bad as the 4 that are currently on there

Does anyone have any experience of havng 1/2 PDL's on there file and how badly this affected their being able to lend? I suppose we'll just have to wait a few more months until they aren't so recent if it really does look that bad.

[Deleted User]

Amlie wrote: »

Does anyone have any experience of havng 1/2 PDL's on there file and how badly this affected their being able to lend?

Doesn't affect your ability to lend. Borrowing may be another matter though.

The mortgage board has people who are more clued up on how various lenders see PDLs. You'd certainly be wise to wait for 12 motnths or more though, I would think.