**Success story** Mortgage with Pay Day loans and missed payments

London2018

Hi,

I wanted to post my story, as I have spent weeks and weeks scrolling through these forums looking for advice and 'success stories', re getting a mortgage, and have found it very helpful.

Myself and my partner are first time buyers, we both had a reasonable deposit saved, and felt we were ready - BUT- 2-3 years ago I found myself in a bad financial situation, and got caught up in that awful cycle of pay day loans! I also had some past missed payments on a credit card and a finance agreement. Fast forward 2 years and I am now completely debt free (it is possible!). I first pulled up my credit score-I was mortified. Although my actual 'score' is now good, the long list of payday loans and missed payments made me cringe. This was almost enough to make me just give up there and then, as in my mind I believed no bank would ever give me a mortgage! Anyway, we decided in the end to got to a mortgage broker as we had nothing to lose.
The first bit of advice I would give is use a mortgage broker, they are worth their weight in gold, especially if your situation isn't perfect. I was completely honest and up-front about my past situation, from the start. Our broker was also completely honest back and said lots of banks wouldn't touch us, but that it was possible - music to my ears!
He ended up deciding on Halifax for us, as apparently they are a lot more lenient with pdl's etc- we got out DIP first, which all seemed okay.
A few weeks later, we found a house and put an offer in. Then came the part I was dreading, the actual mortgage application. I was still convinced I would be declined, and made myself ill with the stress and waiting..... but, about a week later we got confirmation Halifax had said yes!!!! They also only ended up requesting last months payslips from us. I am still in shock, and waiting for them to change their mind.
So, my advise would be even if you think your situation is awful, go and speak to someone. Quite often it isn't is as bad as you think, and there usually is a way somehow.
If anything, it has made me even more grateful that I have been lucky enough to have this opportunity and will appreciate it even more :j

Quick facts- £300,000 property price with a £30,000 deposit. We both have a credit card each with a balance of approx £1,500 on. No overdrafts, loans, car finance etc. My parter has no adverse credit.
I had a long lost of PDL's and some missed payments on my credit file.

Noobie2011

Well done and good news. We have had the both sides with brokers as we used one on our 1st house 3 years ago and he was brilliant and worth every penny we paid so I agree a good broker can open doors you never knew were there.

On the flip side we have just parted ways with our current broker as our case was slightly unique in that we are using HTB, gifted deposit, had a lot of debt maxed out and was living with family following the sale of our house so not on the electoral roll. Long story short quite a few mistakes were made and in the end a Halifax AIP reduced on LTV due to new address which was confusing really.

In the end we hd a contact at Halifax through family who checked it all out and said should not be an issue. So we ended up on the sane day doing an AIP and then a full application and both flew through no problem. We were surprised that the address thing did not affect anything but not surprised in that we had a few weeks before cleared all our debt apart from a 6k credit card. Our valuer is being instructed today hopefully and with the solicitor progress it is looking like everything could be well on the way to exchange in a couple of weeks if we get the mortgage offer.

My worry of course is the chances of it getting declined by the underwriters as I think it still goes to them regardless. We were only requested to submit 1 payslip each and nothing else and that was checked and was fine. We have declared everything and with the hard search I presume that would pick all anomolies up on our credit reprts but still nervous.

Were you told the exact process after the hard search application?
Going into Halifax today with proof of ID

London2018

Thank you.
it can feel like a long road! With regards to our main application, obviously our broker submitted it, and he said he talks with the underwriters on the phone as they do the application, so you pretty much get a decision the same day. Plus, any issues the underwriters have, they can be dealt with there and then, as they know the best way to get round certain things etc. I think the fact your AIP went through etc is positive with regards to credit scoring, as you say, most things should get picked up at that stage. After that, I think they mainly look into 'affordability' etc. Did Halifax instruct the valuation? As if so, I would assume its pretty much a given. We are now waiting on our valuation date, which should be this week, and like you, already have a solicitor working on everything else. Good luck!!

Noobie2011

London2018 wrote: »

Thank you.
it can feel like a long road! With regards to our main application, obviously our broker submitted it, and he said he talks with the underwriters on the phone as they do the application, so you pretty much get a decision the same day. Plus, any issues the underwriters have, they can be dealt with there and then, as they know the best way to get round certain things etc. I think the fact your AIP went through etc is positive with regards to credit scoring, as you say, most things should get picked up at that stage. After that, I think they mainly look into 'affordability' etc. Did Halifax instruct the valuation? As if so, I would assume its pretty much a given. We are now waiting on our valuation date, which should be this week, and like you, already have a solicitor working on everything else. Good luck!!

Yeah when we had a broker they pretty mich spoke to the BDM’s to see if we would be acceptable etc however this time as we have gone direct it was basically an AIP passed, Full Application passed and payslips verified all last Saturday. They said no problems anywhere and affordability is way above what we are looking to borrow so they took the valuation fee also on Saturday and we found out today a valuer is going out on the 22nd June. Normally I would say this is all good but just so sceptical since previous broker issues that I am petrified it will get rejected on something

saheeda

Thank you
This has literally made my morning. Me and my partner failed the AIP due to an active payday loan being on my file but this was settled in May which is incorrect
I have had payday loans in 2017 but cleared in 2017 and early 2018
I haven't had CCJs or defaults and have had two late payments with my phone bill in six year last one was in may
I have an old uni credit card-.I have one credit card at the mo and we are in contact with the mortgage broker for a Halifax mortgage
hopefully it will go through as my credit is fair

saheeda

Hi guys


I also was going on a lot of these websites during the whole of last year as I was terrified about having payday loans and the likely chance of me not being able to get a mortgage with my partner


I had about nine in 2017 all cleared off and paid and last week I got an AIP with Halifax so fingers crossed it all goes through


it is possible as Halifax are more lenient

NB94

This is great to hear a success story,

Me and my partner have an AIP with Halifax, we’ve a payday loan on file from 2017, outstanding car finance and a cc that Halifax has requested is paid off upon mortgage completion.

We’ve used a specialist broker and they have chose Halifax so fingers crossed everything will work out

Hh82

I have just posted a long post about my current situation - 1 payday loan in 2017 that I had actually forgotten all about. Never had one before or since and it was paid on time. Had our AIP with Halifax (or nationwide - I can’t remember which one the broker said!) last week no problem but now terrified we will get declined for the mortgage! This has given me some hope...

Shantastic

I've had a AIP with Halifax but panicking about submitting a full application as I've ccjs over almost 4 years old one satisfied and one unsatisfied for £485 & £515. The amount of mortgage requested is 54.000, is there any point submitting an application or should I approach a broker??

Justjay1991

Am I able to ask who you used as a mortgage broker? Thank you

deeka

hi, I am currently on a similar situation to yours. Please could you share the mortage broker details? Any help would be much appreciated.

Many thanks.