Pay day loans - future mortgage?

savesavesave12

Hi All,

I am new to this but have been reading posts for a while. So I thought I would pluck up the courage to get some advice.

I am currently saving with my partner for a deposit for our first home. I earn £32000, he earns £20000, luckily we are living with parents so our out goings are very little meaning we can save each month.

When I was younger and VERY VERY VERY silly, I took out various pay day loans, and actually used to continue these every month. At one point I had 3 pay day loans on the go. Not clever I know, however the worry of my stupidity is now really getting to me.

I have learned my lesson and the hard way, however I havent had much success stories/ advice from people who have been in a bit of a mess and have managed to get a mortgage.

We currentl have a savings account with Skipton, and they advised that a pay day loan on your account is an instant decline for a mortgage. On my experian credit report I have probably 20+ PAY DAY LOAN accounts.

I know that people who have been bankrupt have been able to get mortgages, however there isnt much information regarding pay day loans.

Any advice or help would be really appreciated (to keep me sane for the next year!)

Thanks so much :):)

amnblog

PDL in the last few months is a major problem =very restricted mortgage options

PDL in the last 12 months is a problem=limited mortgage options

PDL in the last 12-36 months = some lenders will not like it

savesavesave12

thanks very much for getting back to me.Do you know of any lenders who have in the past considered someone with previous pay day loans? We also could possibly have my parents guarantee a mortgage for us. Not sure if these are even an option any more?

Thanks again

Thrugelmir

savesavesave12 wrote: »

I have learned my lesson and the hard way, however I havent had much success stories/ advice from people who have been in a bit of a mess and have managed to get a mortgage.

Time will heal your credit rating. Keep saving and building your deposit. Don't give up.

amnblog

Why would your parents need the guarantee the mortgage?

savesavesave12

- We are not going to!!! Where theres a will theres a way

- We thought this could be an option if my credit history was an issue, we can easily afford mortgage payments as we are saving more than a mortgage would be where we are hoping to buy, plus are saving the same amount for bills food cars savings etc. I thought that if my credit history hindered us getting a mortgage we could also say to a lender we have someone who would guarantee the mortgage

Island_breeze

Thought I would offer some support here. I too was very silly when I was younger.

I never had a PDL but I did have 2 credit cards which I didn't repay on time, hardly ever, and had letters (opened a few years later) in which both banks were requesting I called them to explain why I was not giving them my priority. I had O/D's, no savings at all and to be honest was in a pretty big mess. I had the banks calling my house numerous times a day & hid away from it by not opening letters etc.

Paid off the cards in 2009 in full (in fact one credit card was £500 in credit but as I guessed the amounts I owed as I didn't face the letters, I didn't know quite how much I owed)

Anyway, to get to the point... I applied for a mortgage in 2011 with a bank of which one if the credit cards was with and to my shock was accepted without any fuss or bother. About 3 months later I plucked up the guts to take out car finance and again was accepted.

Mortgage deal just come to an end and we have remortgaged with another building society (high street again) without any problems.

I have to admit my experience in my late teens / early 20's in relation the the credit cards still affects me today. I have an almost phobia of banks & get nervous just going in one to pay a cheque in!!

But what I wanted you to know us that there are success stories and don't give up trying! I hope you are successful, everyone deserves a second chance!

garynstu

We have complained to the Financial Ombudsman regarding a declined mortgage after using PDLs in the past. We urge more to do the same. We will post the outcome

amnblog

Guarantors are useful when affordability is a little short.


They do not help with issues caused through poor credit history.

DpchMd

garynstu wrote: »

We have complained to the Financial Ombudsman regarding a declined mortgage after using PDLs in the past. We urge more to do the same. We will post the outcome

No need to post the outcome, thanks anyway!

savesavesave12

Thanks Island Breeze and garynstu

garynstu - it would be interesting to know the outcome. I dont seem to really be able to find many success stories after PDL online. Hopefully soon I will have a sucess story to share!