Pay day loans affecting application

Legacy_user

I have a history of pay day loans on my credit file and I wondered if any brokers on here would be able to tell me how historic they need to be before I can successfully apply for a mortgage please?

Usual script, I made the mistake of taking the advice from someone that they improve your file so I repeatedly took out one every month for 12-18 months. Every last one was paid in full on time, not one was missed. The latest one was 6 months ago. Obviously now I know the impact of having them attached to your file and wish I hadn't bothered.

FYI we are looking at deposit of 10-15% if that makes any difference to the matter.

ndf9876

I am not a broker, but I can tell you that I know of people who obtained high street mortgages once they were clear of payday loans for a year. These were all higher LTVs (80-90%) and those involved had no defaults, CCJs etc - in other words, no adverse other than payday loans (and even then, always settled on time).

My personal suggestion would be to see a broker who can steer you clear of any lenders that might frown on them.

ekumi00

I know 2 lenders that will accept you but there can be no payday loans within 12 months. You won't get the best rates at all but you will get a mortgage.

ACG

There are lenders who will accept them, they may ask for an explanation but that should be as bad as it gets. Speak to a broker and you should be ok.