Payday loan history and mortgage

Thrugelmir

cherry_three wrote: »

But that was my point. How can a PDL be seen worse than a CCJ. Country gone mad. Anyway point is to

Different issues. Comparing apples with pears. CCJ is a last resort to collect an outstanding debt when all other attempts have failed. Does not indicate that the debtor has no income. Highly possible the debtor is trying their utmost not to pay. From the lenders perspective a reflection of the character of the borrower. Whereas PDL is an indication of financial distress. Has many causes, so lenders will wish to see a prolonged period of financial stability.

Both however have to viewed in the context of a mortgage being a long term debt. Is the borrower likely to make 300 to 420 monthly payments on time without fail. Mortgage lending has relatively low interest rates as it's low risk.

Madbags

Hi I've been in a similar situation in my life with PDLs, this was around 3 or 4 years ago now but all hope was lost for me and I had taken out a Debt Relief Order.


Me and my partner were accepted for a mortgage with Nationwide in December and I did have to provide a written letter giving reasons for my "adverse credit". There were still even two or three outstanding defaults on my credit file at the time, which were debts included in the DRO but they had not updated the CRAs.


But I was extremely honest in my letter, I explained how and why I got into debt and how it spiralled out of control and had to resort to basically making myself insolvent to sort things out.


I will also mention that on the £145,000 house we bought, we did put down a £45,000 deposit, which was made up of both of our savings and gifts from family. So that definitely helped.


While we did take some advice from a broker using a free 60 minute consultation, we did end up going direct.