AIP declined

vinylpusher

Hello,

Me and my partner applied for a mortgage. We have £20,000. The house is £193,000 new build so a further 20% from help to buy.

Me and my partners history isnt great. I have a default (paid) from 2 half years ago by Orange for £105. Nothing since then.

My partner just has a few payday loans from last year.

We went to a broker who looked at both credit files and said potentially meet the criteria for 80-85% mortgage.

We applied for 70% taking into account help to buy and our deposit and have been declined straight off.

We both have full time jobs more than 5 years at thd same company etc.

My partner only realised recently she wasnt on the electoral roll so applied and council confirmed she is but rxperian havent updated yet.

Our broker is going to speak to someone to try and find out why its a decline and if its worth appealing.

If its not worth it, how long are we going to have to wait to get a mortgage with these PDLS. Etc or could it just be the electoral stopping the application?

Anyone got any advice of who we could turn to ?

Thanks

Ggrw104

It could be a combination of the payday loans and not being on the electoral role. Some providers won't look at applicants who have used payday loans within the last year and nearly all will expect applicants to be on the electoral role.

Don't rush into applying for a new mortgage as it will only make you look worse on paper but it's definitely worth appealing. Your broker should be able to advise how long it's worth waiting.

Randomer462

A lot of banks which straight down decline applicants who have took out Payday loans since they see this as a big risk and will want make sure they will get there money back. In my opinion I think finding a new lender would be a much faster process than waiting the appeal to come back since the bank will need a lot of information to overturn an underwriters decision, It maybe worth waiting a couple of years. Good luck to you and I hope all goes well! :j

vinylpusher

Thanks for the replies. This is what i was worried about. My payday loans are 3 years old but my partner has ones from 6 months ago, stupidly.

Will it take a few years for us to be considered by anyone because of this?

Not in a position to wait a few years so will have to look at renting... Again

gorillatom01

i'm trying to stay away from payday loans myself to try and get a mortgage this year, good luck!

Thrugelmir

vinylpusher wrote: »

Thanks for the replies. This is what i was worried about. My payday loans are 3 years old but my partner has ones from 6 months ago, stupidly.

Will it take a few years for us to be considered by anyone because of this?

Not in a position to wait a few years so will have to look at renting... Again

If there are recent PDLs. Suggests that finances aren't in the best of order. Is anything owed on other credit lines such as credit cards, overdrafts, loans etc.

vinylpusher

We had between us £5000 outstanding on credit cards which is now clear. No missed payments on them.

Yeah i appreciate why they dont accept payday loans im trying to work out how long we have to wait before they arnt really taken into account.

Surely mortgage companies cant penalise people for 6 years for some loans that were paid back on time.

Dave_Ham

It is very lender specific, which lenders has your broker currently looked at?

vinylpusher

Dave_Ham wrote: »

It is very lender specific, which lenders has your broker currently looked at?

As far as i can see from my report only a search by 'Nationwide' has been done so far.

Not really sure who else he's considered as he just took our Experian details and information asked what property weve been looking at and just gone ahead with what lender he though was best. Based on our history