Payday loans effecting a mortgage application

[Deleted User]

FireWyrm wrote: »

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.

Oh good, when are they going to do the same for those with overdrafts and credit cards, why stop there how about credit referencing those who sell their processions. :cool:

Still anyone can have a reversal of fortune, don't I know it. My parents done well really suppose I won't be tempted into a life of deep debt knowing home can really go just as easily now more than ever before. Ah when living with the parents wasn't an option, now I am proper earning they joke they will be coming to me for their subs! :)

forgotmyname

andrewjack21 wrote: »

Payday loans won’t directly affect your mortgage or remortgage application, but if you’ve taken one out in the last six years, then lenders may become warier of you and this could lead towards your mortgage application being rejected.

andrewjack is a spammer who is confused, one post asking for advice and another giving advice. Make your mind up.

But this one made me giggle. So it wont affect a mortgage application BUT if you have taken a payday loan in the past 6 years your application maybe rejected?

Personally i would count getting rejected as affecting the application a little bit.

Rossim1985

Hi OP,

I had a mortgage application with HSBC accepted in September (95% LTV and like you it's for my first place) and my last payday loan was in November 2014, so almost identical circumstances to you.

However in 2014 I was only using one lender and it was few and far between, but I did have a major problem with using multiple lenders between 2011-13, with the worst of it being in 2012.

I was upfront with HSBC about this from the start (I went direct and they managed to beat all the rates two brokers could come up with). HSBC didn't appear too concerned, however I would add that none of these accounts ever had any defaults etc and since clearing them all (and all other credit by August of this year) my credit rating has improved a lot (I gave the mortgage chap in the branch a copy of my experian report) which he did put in with the application to the underwriter.

Hope that helps!

redpete

Rossim1985 wrote: »

(I gave the mortgage chap in the branch a copy of my experian report) which he did put in with the application to the underwriter.

It would be an irresponsible lender who was influenced by a printout of a credit report given to them by the prospective borrower. They have access to the raw information from the CRAs. I could easily create a made-up credit report using Word on my PC.

andyfromotley

This issue is addressed regularly on the Mortgage forum.

Some lenders require no PDL;s in the last 12 months. Others in the last 3 years.

As advised earlier you need a broker to guide you through, but you may have to wait until at least a year since your last PDL.

AndyT678

harryfrombarry wrote: »

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

Gets 35 thanks.

blue_mango wrote: »

Who cares.

Gets 7 thanks.

Conclusion: The world is 83.3% comprised of pedants.

FireWyrm

AndyT678 wrote: »

Conclusion: The world is 83.3% comprised of pedants.

Or, 83.3% of people who read the OP are still capable of writing good English despite repeated attempts by the socialists to destroy our education system.

harryfrombarry_2

38 now )))

Needy_2

Sorry to ramble a bit, but I wanted to get this off my chest...from one who has travelled this "Pay day / short term loan” road.! Don't use PEACHY loans website. It says it can also pass you through to "carefully chosen" partners and you'll get other offers.! All it does is pass you through to links where you can APPLY.! But worse, several websites offering offer products (credit file info and budgeting info) at £19.50 per month, and will have debited you bank account before you know it.! I intend to complain to the FCA.! Also if you don't have the time, or don't want to have to go to the hassle of sending paperwork then DON'T USE - 118 118 loans, or SAVY loans, or WAGE DAY ADVANCE.! These websites imply no paperwork is required to be sent – but it is. For example 118 wanted a copy of passport or drivers licence and copy of bank statement and then something else later. Sometimes it's after they have checked you and said we're almost ready to send you money that they ask. There are probably lots of other liar sites also, but some really don't require paperwork, but do a credit check.!(Lending Stream / Poundstopocket) Don't use LOLLY.CO.UK or any “broker” websites. (Check Q+A section and that should tell the truth, despite appearance of website) These sites mean any number of people could credit check you, meanwhile you might not get a loan offer; or you will get offered something a lot less than you want/need. And more credit checks mean less chance of getting a loan. But PLEASE, more than anything, as Martin says, if you can avoid using any of these companies please, please, do. BASICALLY QUITE A LOT OF THEM ARE JUST GREEDY, LYING, UNCARING, LEGALISED CROOKS.

FireWyrm

Needy wrote: »

Sorry to ramble a bit, but I wanted to get this off my chest...from one who has travelled this "Pay day / short term loan” road.! Don't use PEACHY loans website. It says it can also pass you through to "carefully chosen" partners and you'll get other offers.! All it does is pass you through to links where you can APPLY.! But worse, several websites offering offer products (credit file info and budgeting info) at £19.50 per month, and will have debited you bank account before you know it.! I intend to complain to the FCA.! Also if you don't have the time, or don't want to have to go to the hassle of sending paperwork then DON'T USE - 118 118 loans, or SAVY loans, or WAGE DAY ADVANCE.! These websites imply no paperwork is required to be sent – but it is. For example 118 wanted a copy of passport or drivers licence and copy of bank statement and then something else later. Sometimes it's after they have checked you and said we're almost ready to send you money that they ask. There are probably lots of other liar sites also, but some really don't require paperwork, but do a credit check.!(Lending Stream / Poundstopocket) Don't use LOLLY.CO.UK or any “broker” websites. (Check Q+A section and that should tell the truth, despite appearance of website) These sites mean any number of people could credit check you, meanwhile you might not get a loan offer; or you will get offered something a lot less than you want/need. And more credit checks mean less chance of getting a loan. But PLEASE, more than anything, as Martin says, if you can avoid using any of these companies please, please, do. BASICALLY QUITE A LOT OF THEM ARE JUST GREEDY, LYING, UNCARING, LEGALISED CROOKS.

How do they debit your bank account without your account details? Stop giving random websites this information and surprise debits cannot happen.

Of course they are uncaring, they are businesses. What did you want anyway, a dummy and a warm hug? They assume you are an adult capable of making your own decisions. They assume you know what you are doing and the consequences of those actions. If you want to enter into a contract, read the terms and conditions thoroughly first. If you cannot or will not behave like an adult, you get fleeced.