Payday loan

Benorient

Hello
I stupidly took out a payday loan for £200 back in September, Im currently applying for a mortgage (FTB) I appreciate this may be frowned upon by lenders. Does anyone have any experience of success when applying for a mortgage with a one off pay day loan?

Cheers

hoops77

Benorient wrote: »

Hello
I stupidly took out a payday loan for £200 back in September, Im currently applying for a mortgage (FTB) I appreciate this may be frowned upon by lenders. Does anyone have any experience of success when applying for a mortgage with a one off pay day loan?

Cheers

Who is the payday loan with, have you checked your credit file to see if it's on there as some don't report them

Benorient

It's with Wonga, it's on my experian but not my equifax. My mortgage broker said it practically wipes out all the high st lenders but he may know a few willing to do business. Just worrying as it was a one off nearly 10 months ago

kingstreet

Re: payday loan activity in last twelve months.

For some lenders, it's an automatic decline.

For others, they may decline if the remainder of the case is weak.

For others, they simply don't worry too much. IMHO the broker is being a bit of a drama queen.

Stay away from NatWest, the others should be okay.

Benorient

Thanks for the replies. Our credit ratings are fine no defaults, and after all our bills, mortgage, travel etc etc comes out we will still be left with £750 a month between us so affordibility isn't an issue. I thought it was a bit extreme for a one off.

ACG

Im with kingstreet.

If this is only on 1 credit report, it should be possible to place this all day long on the high street... but when he does come back and has managed to place it, you will be thinking how amazing he is that he managed to get such a bad case through on the high street... thats me being cynical. The flip side to that would be he genuinely thinks this will be a nightmare to place - in which case, he will learn from this that it isnt as hard as he thinks its just knowing who to go to and who to avoid.

kingstreet

Benorient wrote: »

Our credit ratings are fine

What you think your "rating" is, what the CRA you pay think your rating is and what your potential mortgage lender decides it thinks your rating is, are three different and separate things.

Regardless, at least one lender will not lend if you have visible payday loan activity in the last twelve months.

If this teaches you nothing but to stop paying for "credit ratings/scores" the lesson was valuable...!

Benorient

This makes sense as he did have to go and speak to someone more experienced about it and he did say he hadnt been there as long as others in the company. Fingers crossed, see what tomorrow brings

kingstreet

ACG wrote: »

when he does come back and has managed to place it, you will be thinking how amazing he is

Hm. Under promise, over deliver and charge £1,500 fee.

ACG

Benorient wrote: »

This makes sense as he did have to go and speak to someone more experienced about it and he did say he hadnt been there as long as others in the company. Fingers crossed, see what tomorrow brings

I will take my cynical hat off then. I was probably there 2 years ago, there is a lot to learn and I still treat everyday like a school day.

At least he was honest about it and you know he has someone more experienced to fall back on.

Benorient

kingstreet wrote: »

What you think your "rating" is, what the CRA you pay think your rating is and what your potential mortgage lender decides it thinks your rating is, are three different and separate things.

Regardless, at least one lender will not lend if you have visible payday loan activity in the last twelve months.

If this teaches you nothing but to stop paying for "credit ratings/scores" the lesson was valuable...!

Lucky for me I only did the 30 day trial to check everything was in order. Both are now canceld