Getting a mortgage and payday loan?

Laureng83

Hi, has anyone had any experience of getting a mortgage with a payday loan?

I had a payday loan about 8 months a go, as I!!!8217;m only 20 I didn!!!8217;t even realise at the time that it was a payday loan - it was literally the first site that came up when I searched for loans. I needed it to pay the excess on my car when I crashed it and my boyfriend was only on SSP due to dislocating his shoulder. At the time we did have savings of about 10 grand but these were in an ISA so I couldn!!!8217;t withdraw anything. Also at the time we weren!!!8217;t spending our whole wages each month - we were literally putting £2000 a month into savings and living on the bare minimum to be able to save enough to buy a house (so isn!!!8217;t like we were living beyond our means).

This was paid back fine, my boyfriend has good credit and my credit is 790/999 on Experian. We earn about £60,0000 a year between us and are getting a relatively low mortgage. We have been accepted for a mortgage in principle.

Does anyone think we!!!8217;ll have issues getting the mortgage due to the payday loan? It!!!8217;s literally keeping me up at night with worry!

Has anyone had issues with a mortgage after having a payday loan?

glentoran99

Something doesn't add up here, you were putting £2000 a month into savings but got a payday loan? Why not just not put that into savings that month and pay the excess?

sal_III

Relax

If you already have DIP, this means that the Lender is happy with your credit score and affordability.

At this stage pretty much the only reason for refusal of full mortgage application would be incorrect details used in the DIP application and the valuation of the property coming lower than the purchase price.

Laureng83

The savings were going into a ISA, they went in on payday each month and I had the crash on the 18th of the month. I needed my car as without it I couldn’t get to work and couldn’t wait another 10 days to get paid to get it fixed. So took out the loan on the 18th to get the car sorted

Thrugelmir

Laureng83 wrote: »

At the time we did have savings of about 10 grand but these were in an ISA so I couldn’t withdraw anything.

There was nothing to stop you. A Payday loan cost you money.

Laureng83

As I explained, I didn’t even know I was taking out the payday loan at the time. I was panicked and desperate as my boyfriend was on SSP and I was just worried at the time it would be another loss of income. Along with the fact that at 20 we both managed to save enough money to buy a house - which in this day is quite rare. I wanted constructive opinions not to be lectured for one small mistake I made. Your answer has given no help at all in answering my question and is quite frankly rude.

csgohan4

A pay day loan may affect your mortgage chances and unfortunately you have to pay for your own financial decisions. Payday loans mean a poor management of money to lenders.


Surely when you signed up to the loan you would realise it was a payday loan?

You need to engage a broker to help place you with a lender

Pixie5740

sal_III wrote: »

Relax

If you already have DIP, this means that the Lender is happy with your credit score and affordability.

At this stage pretty much the only reason for refusal of full mortgage application would be incorrect details used in the DIP application and the valuation of the property coming lower than the purchase price.

Not necessarily. A lot of it can depend on whether the DIP involved a hard or soft credit search.

enthusiasticsaver

I think if it was a one off and now repaid you should be ok.

bethwilliams95

I also think that it being a 1 off and 8 months ago you should be ok

Laureng83

Thank you, that’s what I’m hoping but I can’t help worrying about everything. It would be really interesting to hear if anyone else has been in a similar position and what the outcome was.