Re-mortgaging with pay day loans on file.

pledgeX

[FONT=&quot][/FONT][FONT=&quot][/FONT][FONT=&quot]Hi all. Three years ago me and the now wife bought our first house. We’re on a 5 year fix that ends in 2 years. It’s 4.39% with Nationwide. We’ve just started overpaying by £80p/m so when the 5 years is up we should have 40% equity in the property (bought for 215k). Our mortgage repayments are quite comfortable at this rate. We know exactly what we spend on what and have ~£500 disposable cash each month, this could stretch to £700 fairly comfortably if we cut back on some of the luxuries.[/FONT]
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[FONT=&quot]Now to the hard part. A few months ago the missus took out a number of payday loans (don’t ask, long story!). She was in her overdraft for several months during this period too. They’re all paid off now and we’re comfortably back in the black, but obviously it’s a horrible blip on her credit record. Mine is fine btw.[/FONT]
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[FONT=&quot]First question, do you think Nationwide (or anyone else) will offer us a new deal knowing this information? Bearing in mind we should have 2 years’ worth of ‘good credit’ showing when we come to renew.[/FONT]
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[FONT=&quot]If not, what do you think our options are? Is there anything else we can do to help us when the 2 years is up? I was thinking that I might have to try and take the mortgage in my name only, but I’m not sure how that will work as I can cover the mortgage on my salary alone, but can only just cover all main bills without her wage too. That would also work at just over 5x my salary too so that might be an instant no go. If we don’t renew our deal, will we just roll over onto Nationwide’s SVR with no questions asked or will they still re-run the credit checks and do all the affordability calculations again?[/FONT]

kingstreet

AFAWK Nationwide will not carry out any further checks for a customer retention product, if you do not want to roll on to SVR.

Some other lenders may have an issue, if you remortgage, some won't.

leunger

first, was she in her pre-agreed overdraft?
second, did she miss any payment for those payday loan?

I pretty much go into my pre-agreed overdraft every month in the past 4 years and we had no problem re-mortgaging the house and that was from 1 leader to another. (pre-agreed overdraft £250 and go into that every month and "paid off" as soon as my salary go into the account of course, then go into that again)

also, i don't think the payday loan would have any affect to her credit rating as long as she didn't miss a payment.

amnblog

leunger wrote: »

i don't think the payday loan would have any affect to her credit rating as long as she didn't miss a payment.

Mortgage Lenders hate PDLs on file.

Taking them makes your life very tricky with regard to mortgage applications.

AVOID THEM

pledgeX

kingstreet wrote: »

AFAWK Nationwide will not carry out any further checks for a customer retention product, if you do not want to roll on to SVR.

Are you saying that if wanted to go to another 5 year fix with NW then they won't run another check?

leunger wrote: »

first, was she in her pre-agreed overdraft?
second, did she miss any payment for those payday loan?

also, i don't think the payday loan would have any affect to her credit rating as long as she didn't miss a payment.

She was in an un-arranged overdraft for sure. She had a reasonable agreed overdraft, but went over it. I don't think she missed any payments on the loans, but she did extend some which might be viewed equally as bad (or worse).

pledgeX

amnblog wrote: »

Mortgage Lenders hate PDLs on file.

Taking them makes your life very tricky with regard to mortgage applications.

AVOID THEM

I'm aware of this. I'm not debating that point. I'm working out how to try and resolve the issue.

Thrugelmir

Little point in getting over concerned now. You've 2 years to go. So you've time to allow the negative data to age. Also maintain an impeccable record going forward.

Continue to overpay the mortgage. Then consider the best options available to you nearer the time.

amnblog

pledgeX wrote: »

I'm aware of this. I'm not debating that point. I'm working out how to try and resolve the issue.

The message was for others - not for you - you cannot turn the clock back.

kingstreet

pledgeX wrote: »

Are you saying that if wanted to go to another 5 year fix with NW then they won't run another check?

Yes. That's exactly what I'm saying.