Pay day loans a big no no All together?

pookied87

Applied through a broker with Newcastle BS.
Case is At formal underwriting.They have all relevant information they need. Valuation carried out employment references done. But they asked for a print out of my partners Experian report, they have this but my partner now has a fair score due to a hard search from them!..He's the sole applicant of the mortgage however he had some pay day loans in end of 2012 and a couple in 2013, what were small amounts an he never missed a payment with anything and not one default on his report. He had some finance for 2 years monthly payments, not one missed payment on the report. all settled all he has now is his bank account and no overdraft facility so my question is will his pay day loan history be frowned upon?

Thrugelmir

pookied87 wrote: »

so my question is will his pay day loan history be frowned upon?

That will vary from lender to lender and their own lending criteria. If you fail to tick a box then a decline will result.

pookied87

Thank you for your reply this is Their Criteria...
Pay Day Loans
Applications will be referred to our underwriters for review in the following circumstances:

1 or more pay day loan taken out in the last 6 months
2 or more in the last 12 months
Where there is track record of applicants taking pay day loans frequently over the 12 month period then the underwriters reserve the right to decline the application.
.........................
None in 2 years!! But I know some will still decline. Do they still not consider there has never been a miss payment and everything is settled on all accounts.?
I'm just over stressing!

ACG

They take into account everything on the credit report good and bad.
It fits criteria. You cant really ask for much more at this stage.

DCFC79

Credit scores don't exist, your partners history was searched and a mark was left, OK it may have brought his score down but lenders don't see it hence its useless.

dunstonh

is will his pay day loan history be frowned upon?

yes. Pay day loans act as a negative point on the assessment. However, these have to be offset against positive points that (may) exist. An underwriter will look at the good and the bad and make a decision. Too many bad and its a no. A few bad but mostly good can be a yes.

However, in simple terms, a pay day loan is a negative against you but not necessarily terminal.

Thrugelmir

dunstonh wrote: »

yes. Pay day loans act as a negative point on the assessment. However, these have to be offset against positive points that (may) exist. An underwriter will look at the good and the bad and make a decision. Too many bad and its a no. A few bad but mostly good can be a yes.

However, in simple terms, a pay day loan is a negative against you but not necessarily terminal.

System driven underwriting dominate these days. As policy will be set board level down through risk management. The commercial parameters in the algorithms will be set accordingly. Smaller lenders such as regional building societies still underwrite on a more discretionary basis.

pookied87

Thrugelmir wrote: »

Smaller lenders such as regional building societies still underwrite on a more discretionary basis.

Can you elaborate more on this please.?