Mortgage question

gav2000

Hi,
I have finally started saving for a deposit and I am looking to buy next year. I should have around a £13000 (5%) deposit for a £25000 flat. Just a one bed in London. I have been really bad with money in the past I have 16 payday loans on my credit report and the last will show as settled 2 and a half years ago by the time I will be applying. Over the past couple of years I have paid off a lot of debt (around £15000 at one point. I had been gambling) and I am now finally in a position to save. I have never missed a payment and no CCJs. Will this affect my ability to get a mortgage? Will this exclude me being able to get a good deal or will only sub-prime lenders be available to me?

obay

As far as I know, lenders don’t want anyone with payday loans. Best to bring your case in front of an adviser though.

Settled or not. I’d realistically raise your deposit up to 15% as well.

ACG

You should be fine in getting a high street lender in the main, but many lenders do not like to see sight of a pay day loan on your credit report (6 years).

You will need a broker or to check the lenders criteria yourself.

YHM

Full and frank disclosure will be needed to both your broker and your lender. As long as they are historic, you should be fine.

gav2000

Thanks for the advice everyone. I feel mostly better!

dimbo61

Time to live the MSE way !
Look at every penny you spend.
No more pay day loans
No more gambling
Save every single penny each month you can
So cancel the gym membership and take up walking/running
Eat in and make up meals for the evening and at work.
No Costa coffee or treats out.
Plan you food and buy what you only need.
No new finance over the next 18 months.
No new mobile phone, Car loan or credit cards
Look at ways to save money, bike to work !
Cheap hols in the UK.
Cancel the golf club membership, SKY , get a cheap mobile and have a sim only deal

gav2000

Cheers for the extra advice. I have given up smoking, drinking, gambling! Now if only I could give up coke zero...!