Halifax Mortgage and PDL

AshleyMC83

Hi. Has anyone recently had a mortgage application accepted by Halifax after using pay day loans? I stupidly took out a pay day loan a few months ago (paid it back on time over 3 months) in order to get money quickly to help a struggling relative and now my partner wants us to apply for a join mortgage and move house. I'd applied years ago in 2011 for a couple too when I was in a crap job and living on my own. He doesn't know I took out the old PDLs and the PDL for my brother and I stupidly didn't know if would affect my chances of getting a mortgage - my partner is the mortgage holder for our current house and he has around 80k to put towards the new house. He has no debt history. He went to the bank without me knowing and got an agreement in principle with the Halifax who we both bank with and are the current mortgage lenders. I know from reading online that the agreement in principle is just a soft credit check - my credit score is 850. I'm worried if we go to apply and get turned down, he'll find out about the PDL and be furious. Anyone had one accepted? Thanks!

Edi81

You’re going to have to tell him.
The brokers on the thread will know how halifax view recent PDLs and they may not be the right lender for you.

You may need to go down the broker route.

The ones from 2011 should have dropped off your file but the recent ones are going to be an issue.

Thrugelmir

A recent PDL raises questions about your finances in general. The purpose isn't really relevant. As PDL's are last resorts for borrowing money.

ACG

It will come down to the details. A single pay day loan in 6 years is unlikely to be a deal breaker in the main. However if you are applying for a 90% mortgage and your repayments will jump significantly an underwriter might have concerns.

Difficult to say without knowing more, but I am fairly confident you should be fine in the main.

AshleyMC83

Thanks for the replies. Will the bank ask me if I've taken out any in the past or will that just form part of the in depth credit check?

YHM

Halifax don't specifically ask about Payday loans, but it would flag on the credit report.

As long as it can be justified and isolated, as above, can still see it still being accepted

mallen

How did you get on? I have several payday loans on my credit file from being at universiy last year.

I am now in a very well job and want to apply for a mortgage. Do you know which lenders are more lenient with PDL's?

MancFTB

I have a query regards PDL’s and mortgage applications too. Between Nov 2014 and Nov 2015 I took out quite a few PDL’s (long story linked to hotels for business travel). I haven’t touched them for 2 years and have a squaky clean credit file having checked all 3 major credit agencies and score of 999 on Experian.

I am looking at applying for HTB mortgage where I will need a75% LTV.

Does anybody know if I will have problems with a mortgage app?

ACG

MancFTB wrote: »

I have a query regards PDL’s and mortgage applications too. Between Nov 2014 and Nov 2015 I took out quite a few PDL’s (long story linked to hotels for business travel). I haven’t touched them for 2 years and have a squaky clean credit file having checked all 3 major credit agencies and score of 999 on Experian.

I am looking at applying for HTB mortgage where I will need a75% LTV.

Does anybody know if I will have problems with a mortgage app?

Check criteria beforehand or speak to a broker, but because of how long ago you last used them, you should have options.

MancFTB

Thanks ACG

I am really hopeful that it will be ok, I am going to pick up with a broker ASAP and take it from there.

Given the fact that it was 2 years ago and affordability isn’t an issue I am hopeful it will be ok.

sr1527

Hi MancFTB,

FTB here too, just read this thread, how did you get on?

Been speaking to our broker who seems to think we will be absolutely fine, had 2 PDL in 2014 and credit fine since then. Waiting for AIP so we can offer on house we saw last week!_pale_