Mortgage and payday loans

barlol1

hi everyone
I am awaiting a decision from Santander for a full mortgage application. I have got a AIP.
I am a house mover and have 50 LTV
so sounds good, however.......I use pay day loans a lot.
I don't have an overdraft or credit cards and my last PDL was Feb 2016,
Never ever again will I get one. I have never not paid it back on time, I never thought it would have an impact on a mortgage application as I pay them back.
however after lots of obsessive research I see it's not good at all
If it declines I am thinking Buckinhamshire, Platform or Precise,
Anyone any ideas or experience please?
I have sold my house and had an offer accepted
Thanks Lisa xxx

dunstonh

so sounds good, however.......I use pay day loans a lot.

It is fair to say that pay day loans are a negative on your situation. Pay day loans are an option of last resort. They tend to be used by those in dire financial situations. So, they do not look good when you are applying for a mortgage. If you cant afford your lifestyle before the mortgage, whats it going to be like after? it is that train of thought.

If it declines I am thinking Buckinhamshire, Platform or Precise,
Anyone any ideas or experience please?

What does your broker suggest?

amnblog

The three lenders you mention seem a major leap from Santander.

Like voting for Nigel Farage if Jeremy Corbyn is not standing!

Where has this thinking come from, and who made these lender suggestions?

barlol1

My broker is an eatate agent broker and doesnt seem worried due to my LTV she just keeps saying im in a good position. She hasnt suggested the other lenders, thats just me researching. i have a current mortgage and had it 8 year and never missed a payment and the new mortgage is less as we are downsizing. I dont want to let the buyer for my house down as she is pregnant and will want to get settled. i have been so stupid taking payday loans for just being a bit short at times, never missed any payments on anything and credit score is 970 will this help? xx

Smedders11

Not particularly pertinent to the situation as it is now, but as you seem to otherwise be okay handling credit (apart from picking the best options) I'd strongly suggest getting a credit card for the future if you have financial restraint. Most cases it won't cost you a penny to borrow if you do it right, but when it does it'll be much less than any payday loan.

AnotherJoe

barlol1 wrote: »

hi everyone
I am awaiting a decision from Santander for a full mortgage application. I have got a AIP.
I am a house mover and have 50 LTV
so sounds good, however.......I use pay day loans a lot.
I don't have an overdraft or credit cards and my last PDL was Feb 2016,
Never ever again will I get one. I have never not paid it back on time, I never thought it would have an impact on a mortgage application as I pay them back.
however after lots of obsessive research I see it's not good at all
If it declines I am thinking Buckinhamshire, Platform or Precise,
Anyone any ideas or experience please?
I have sold my house and had an offer accepted
Thanks Lisa xxx

Why on earth not when you can borrow for 5-6 weeks for free on a credit card?

Only your lender will say if its a negative but it looks like a big clue you cant manage your finances properly.

amnblog

If Santander decline your case it should not be because you have PDL loans on file as they do not have a problem with it in itself.

They can, however, affect credit score causing a fail, and the way Santander works on existing debt, a loan in current payment is likely to be a particular problem.

If Santander do decline you, don't try to find an alternate solution yourself and you may wish to think again about your current advice source.

barlol1

I do not have any existing PDL. I do have a work overpayment that is on my wage slip for £50 a month but that is on the application form. Glad to hear Santander don't have issues with PDL
I will never ever use them again. My broker is with an estate agent, would you not recommend Precise?
It's making me feel quite poorly and just need to know one way or the other.

foxy-stoat

barlol1 wrote: »

credit score is 970

And you have been using Payday loans for a while. If anyone wants prove that your credit score is worthless, here it is peoples !

I would just use a whole of market broker rather than an Estate Agent one to get the best deal for you.

amnblog

barlol1 wrote: »

I will never ever use them again. My broker is with an estate agent, would you not recommend Precise?

Strangely, I would expect this kind of scenario to be one which Precise would not like. If you use PDLs they would expect you to have had a difficult situation making them necessary. This does not appear to be your history.

If Santander say 'no' get a good Broker in.

HappyMJ

foxy-stoat wrote: »

And you have been using Payday loans for a while. If anyone wants prove that your credit score is worthless, here it is peoples !

I would just use a whole of market broker rather than an Estate Agent one to get the best deal for you.

The OP has always made the payments on time and has no outstanding debt so the score will be very good.

It doesn't matter about the quality of the debt. Low interest credit card or high interest PDL....it's a debt that was taken out and paid back on time. Therefore high score.