Payday loans effecting a mortgage application

bs09001

Unfortunately in the past I have been silly enough to use payday loans. At one point I had numerous ones open at once. I haven't taken out a new payday loan since October/ November last year and paid the last one off in March this year. I have had a good or excellent credit rating since Feb 2015.


I am about to apply for my first mortgage and am worried about how these past pay day loans may effect my chances.


any help would be great!

[Deleted User]

Use a broker. They will know where best to place an application.

harryfrombarry_2

It's "AFFECTING"... "AFFECTING".

nyc_451

harryfrombarry wrote: »

It's "AFFECTING"... "AFFECTING".

Who cares.

poppasmurf_bewdley

You may need more than a clean nose for nine months before someone will trust you with a mortgage of however many thousands.

How much deposit have you saved up since you paid off your last pay day loan?

DandelionPatrol

blue_mango wrote: »

harryfrombarry wrote: »

It's "AFFECTING"... "AFFECTING".

Who cares.

That got harry another thanks

harryfrombarry_2

DandelionPatrol wrote: »

That got harry another thanks

Another 5 as it happens

harryfrombarry_2

blue_mango wrote: »

Who cares.

The twelve people who "thanked" me, for a start.

MEM62

The reason mortgage companies do not like a history of payday loans is that is shows poor management of your finances.

In your case they will also be asking how you can go from needing payday loans to being in a position to take on a mortgage in less than a year. Such speedy changes in circumstances are unlikely.

As advised, as broker is your best option.

FireWyrm

Last year, banks (cough...Lloyds...cough) let slip that PDLs were now going to count against mortgage applications and that in some cases it was an automatic rejection situation since they had more borrowers than they needed, they could afford to be choosy. it was reasonably well reported at the time and for the first time, the credit reference agencies were recording short term loan information. It seems that Lloyds were not the only ones as Barclays soon followed suit stating that PDLs meant automatic rejection. In short, there has never been a more serious reason for avoiding PDLs at all cost. This is the unintended consequence of having them and it is going to come back and bite people over the next few years as they attempt mortgage applications.

jaydeeuk1

blue_mango wrote: »

Who cares.

Well seeing as there is a direct link between education (inkludin da ablilty to spel) and salary - and after all this is a loans subforum for people with insufficient funds for whatever purpose they have in mind - I'd argue everyone should.