FTB with a PDL history!

Jayswin88

Hi All

Long story short, i'm 26 and living with parents. My dad lost his job a few years ago and in order for my parents to keep up with the bills and not face losing the house whilst he was out of work, I contributed a lot towards the bills. Wasn't earning a huge amount at the time (about £18-20K) and rather than being honest with my parents that I couldn't afford to contribute as much as I was and still live a nice life, I turned to payday loans to see me through. This was my only option at that time as my credit score was really low due to a historic default. Always paid the PDL's back on time or even before, but wasn't aware at the time that they would have such an adverse affect in future.

Skip forward to present time and I am now earning a huge amount more than I used to (£37k), the old default has disappeared from my files as it was 8 years ago now, I have an "excellent" rating on Equifax and manage a credit card, phone bill, car lease with absolutely no issues at all.

My big worry now is the PDL's. The last one I had was about 18 months ago, but there was a huge flurry of them for about 12 months up to this point. I'd ideally like to buy a £120k house with a 15% deposit saved, but worry that it'll be an instant "computer says no" when they see the historic PDL activity.

I know my first port of call should be a broker; but is there anything else I can do to be a "model mortgage candidate" or is more time the only healer in this case?

Thanks in advance x

Teaandtoast0124

Im in the same boat as you, im applying for a mortgage 2cnd feb, and i to have had payday loans most of them 2 years ago. 2011/2012. I no that HSBC and halifax and maybe nationwide, say that they will accept people with payday loan history.

Libber

You'll be trying to borrow less than 3x your own salary, so I can't imagine the lender will be too bothered about some historical payday loans.

Jayswin88

That's really encouraging - thank you for your posts

ethank

Speak to a broker who will know who the fussy lenders are.

Nkec

I am in a similar situation and wish I could be as positive.

My last PDL was 3.5 years ago in 2011 when credit was in scarce supply and I was low paid marketing exec in London. I am now in the process of trying to get a mortgage. Without wanting to go into the nitty gritty, I earn over 50k (my other half considerably more) and am looking for a 70% LTV.

We have just been rejected from our preferred mortgage by Skipton Building Society, with the only failed criteria being my PDL which the M.advisor was told has to be absent for 6+ years before I will be considered. If I had ever known this was going to be the case, I would have gone hungry.

He then said that we shouldn't bother re-applying with any of the major lenders and that if my partner wanted a good rate the best thing to do was to cut me out completely or apply for a mortgage with someone like Aldermore on 3.8% who are less fussy.

The whole thing seems absolutely ridiculous and completely non sensical. I understand about criteria, but payday loans need health warnings like cigarettes and mortgage suppliers need to look at the individual rather than going through a tick box exercise.

ANYHOO rant over... if anyone has had success with any of the more competitively priced brands in a similar situation I would love to know.

stalkah

Do your PDL's appear on all of your credit reports? Mine only show on Noodle (CC). I believe skipton are one of few (if only) mortgage companies that search Noodle.

Nkec

Mine are only showing on Experian...Equifax and Noddle both don't display them.

Madbags

Trust me there's always light at the end of the tunnel. I had to take out a Debt Relief Order 3/4 years ago due to being stupid with Payday loans, so after the year moratorium none of mine even got paid back and were wiped clean. I had defaults left right and centre on my credit report. Even after contacting them to have them "closed" or "partly settled" after the DRO ended.


Me and my partner were still accepted for a mortgage with Nationwide in December. She has no credit history whatsoever as she's been careful her entire life (which can also be a bad thing in some cases) and mine was completely terrible.

.

kingstreet

Nkec wrote: »

My last PDL was 3.5 years ago in 2011...

We have just been rejected from our preferred mortgage by Skipton Building Society, with the only failed criteria being my PDL which the M.advisor was told has to be absent for 6+ years before I will be considered.

He then said that we shouldn't bother re-applying with any of the major lenders and that if my partner wanted a good rate the best thing to do was to cut me out completely or apply for a mortgage with someone like Aldermore on 3.8% who are less fussy.

Get another broker.

This one should be in the circus wearing a red nose and funny shoes.

Teaandtoast0124

Glad you posted that comment madbags. Ive got payday loan in 2011/2012 and im worries nationwide will decline me on the 2cnd. What was your LTV?