Payday loan / Mortgage application

Sean8564

Hello All,

Been quite a lot of it in the press recently after a Newsnight piece last night on those with a pay day loan history blacklisted by standard mortgage lenders.

I have used pay day loans in the past, up to about 4 months ago - completely unaware of this (ignorant I know). However, we're hoping to secure a mortgage in the immediate future. Despite using pay day lenders in the past, I obviously have not missed a repayment on any loan.

I wonder if anyone had any experience or insight on which lenders don't include this in their auto-reject criteria?

For background's sake:
First time buyers
Looking to take out £170k mortgage
Have 25k deposit
Combined incomes of around 60-70k

I have spoken with a couple of brokers; but they seemed surprisingly ignorant on the subject. Concious of not applying blindly in instances such as this.

Any guidance most appreciated.
Many thanks.

kingstreet

NatWest is automatic decline on any visible PDL activity in last twelve months.

Nationwide don't like them and may decline at later underwriting stage if outgoings appear under pressure.

No other automatic decline from any other lender known at present.

Thrugelmir

Sean8564 wrote: »

Have 25k deposit
Combined incomes of around 60-70k

And you need to resort to PDL's?

Sean8564

Thrugelmir wrote: »

And you need to resort to PDL's?

Naively thought it was a positive thing and would boost my rating versus eating into hard to access savings.

Stupid, I know... but we live and learn.

pinkteapot

Sean8564 wrote: »

Naively thought it was a positive thing and would boost my rating versus eating into hard to access savings.

Stupid, I know... but we live and learn.

Lesson learned. 'Normal' credit (e.g. a credit card) will boost your credit score as it helps to have had some credit and successfully paid it off on time.

Abu-Dina

Sean8564 wrote: »

Hello All,

Been quite a lot of it in the press recently after a Newsnight piece last night on those with a pay day loan history blacklisted by standard mortgage lenders.

I have used pay day loans in the past, up to about 4 months ago - completely unaware of this (ignorant I know). However, we're hoping to secure a mortgage in the immediate future. Despite using pay day lenders in the past, I obviously have not missed a repayment on any loan.

I wonder if anyone had any experience or insight on which lenders don't include this in their auto-reject criteria?

For background's sake:
First time buyers
Looking to take out £170k mortgage
Have 25k deposit
Combined incomes of around 60-70k

I have spoken with a couple of brokers; but they seemed surprisingly ignorant on the subject. Concious of not applying blindly in instances such as this.

Any guidance most appreciated.
Many thanks.

I had similar concerns in the summer when we were in the process of buying our first home. I too made the foolish mistake of taking out several Pay Day Loans 3-4 months prior to making the full mortgage application with Halifax.

We also went in with a 15% deposit and luckily for us it worked out well in the end.

Abu-Dina

Thrugelmir wrote: »

And you need to resort to PDL's?

Yes it is possible!

When we decided to save for a deposit I had a payment setup on my bank account to transfer £500 into a savings account that my partner had access to. That was done on the day I got paid so by the time the rent/bills etc... were paid I had very little money for myself. The wife thought it was plenty to keep me going for the month but it never lasted me so on a couple of occasions I took out the PDLs (£100 at a time) to pay for my smokes/weekly snooker sessions.

Sounds crazy but it's true!

When the wife found it I was in big trouble! :rotfl:

wannahouse

Abu-Dina wrote: »

Yes it is possible!

When we decided to save for a deposit I had a payment setup on my bank account to transfer £500 into a savings account that my partner had access to. That was done on the day I got paid so by the time the rent/bills etc... were paid I had very little money for myself. The wife thought it was plenty to keep me going for the month but it never lasted me so on a couple of occasions I took out the PDLs (£100 at a time) to pay for my smokes/weekly snooker sessions.

Sounds crazy but it's true!

When the wife found it I was in big trouble! :rotfl:

you'd take out payday loans to buy cigarettes and play snooker???:eek::wall::wall::wall::wall:

whatever happened to "if you can't afford it, don't do it??"

i would only ever consider taking out a payday loan if a major crisis happened and we were going to die/ starve etc if we didn't do it!

may i suggest looking up dave ramsey on the internet...
fabulous guy to help people get their finances sorted out!
sounds like you could benefit!

leveller2911

Mortgage_Broker_Surrey wrote: »

Payday .

May be an idea to look at the forum rules with regards to spam,advertising... Your signature has your e-mail address in...

http://www.moneysavingexpert.com/site/forum-faqs#companies