Past pay day laons & mortgage

Tom_T90

[FONT=Arial, sans-serif]Hi, I've been saving for the past 16months for a deposit for a mortgage. I set a target to save 18k (20% deposit for a 90k house) by march 18 but since getting my s*** together I have already hit my target, I plan to keep on saving till march 18 so I can put an even larger deposit down, plus account for fees etc.[/FONT]


[FONT=Arial, sans-serif]Thing is I've been reading more & more about what I need to do to improve my chances of been accepted for a mortgage & came across that having payday loans in the past is a big no no to leaders. I've had quite a few in the past. Going back a few years I used to be really bad with with gambling... I used to blow my wage & overdraft on payday then take out payday loans to last me me the rest of the month, I probably did this atleast 15-20 times. My last payday loan was back in May 2014 & I haven't used my overdraft since November 2015, but I still gambled up until April 2016 till I shut all my accounts down & got it together & decide to start saving for a house. Going back through my statements today I cant believe how much gambling I actually did & what an idiot I was.[/FONT]


[FONT=Arial, sans-serif]My questions are -[/FONT]


[FONT=Arial, sans-serif]Will having numerous payday loans from over 3 years ago affect my chance of getting a mortgage next year?[/FONT]


[FONT=Arial, sans-serif]Will having a lot “Betting transactions” on my account from over a year ago have a negative affect on my chances? [/FONT]


[FONT=Arial, sans-serif]I know a good credit rating is important too, I checked it 5 yrs ago & its was excellent but I have yet to check how its is currently. I'm assuming it should still be pretty good as I've never missed any payments or anything but I was once turned down for a loan with my bank due to excessive “Gambling transactions”. Could that have a big impact?[/FONT]


[FONT=Arial, sans-serif]Any help appreciated Thank You.[/FONT]

[Deleted User]

Tom_T90 wrote: »

[FONT=Arial, sans-serif]I know a good credit rating is important too[/FONT]

That's the one thing which ISN'T important.

It's all about the data and your credit history.

Sparx

How does your actual credit file look? Ignore your 'score' it's irrelevant. Do you have any Defaults (paid/unpaid), CCJs (satisfied/unsatisfied), late payment markers, etc?

Check with the 3 credit agencies, here are the free websites to check. Make sure all of the accounts are accurate and nothing has been reported incorrectly, otherwise you'll be in for a shock when you eventually want to apply for a mortgage.

Equifax - Clearscore (https://www.clearscore.com)
Experian - MSE's own Credit Club (https://www.moneysavingexpert.com/creditclub)
Callcredit - Noddle (https://www.noddle.com)

It may well impact a mortgage application if you took out PDLs until 2014. However if your bank account and credit has been well maintained the last 3+ years it will certainly put you in good stead and help your cause...

To be honest the gambling may not be an issue if you stopped in 2016. This will not show on your credit file, only the overdraft balance if you was using your OD at the time for it... By the time you come to apply for a mortgage, if they want statements they will not want 2016 it'll be the last 3-6 months.

ACG

Pay day loans will be the biggest issue, some lenders say none in the last 6 years, some say none in the last 12 months. There are options but your options will be limited - although not necessarily more expensive.

The gambling transactions will not be a massive issue as they are so long ago and unlikely to get picked up providing you avoid whoever you bank with.