Mortgage with payday loan

Speckledegg

Hi I'm new here so hope I'm doing this correctly.

My situation is that I am separating from my partner, have a deposit of £100k. Saw my financial advisor today who has advised me that as I have recently had to resort to a payday loan this may jeposise my chances of obtaining a mortgage. I work and have an ok salary, but ran into a financial issue which my then partner wouldn't help with hence the payday loan.

Anyone has any experience in this?

butterflybook

Lenders do not tend to like pay day loans so you may struggle with this if it was recent - there are lenders that will accept but generally a length of time will needed to have passed

ACG

Pay day loans usually indicate other issues - going over your overdraft/living up to your limit in an overdraft/missed or late payments. Are any of those relevant for yourself?

If not, assuming just a one off pay day loan then I would expect there to be options at normal rates, especially with a £100k deposit, it may be worth speaking to a Mortgage Advisor (rather than a finaical advisor), most financial advisors tend to do pensions and investments with mortgages being more of a bolt on as a service.

Speckledegg

Payday loan was purely due to circumstances of ex leaving and bills to pay!! I will be completely debt free but it seems impossible.

Mortgage_Adviser

Ho recent it is?

xyz123

Speckledegg wrote: »

Payday loan was purely due to circumstances of ex leaving and bills to pay!! I will be completely debt free but it seems impossible.

You have £100k deposit and still needed a payday loan recently.. Is it genuinely a one off, do you go overdrawn regularly, how is your work history and credit history?

Verix

If it was over 6 months ago I wouldn't worry about it, if it's more recent than that then you may have a slightly trickier time with lenders but I can think of a couple of high street banks that could probably look at this, especially with that level of deposit.

diggingdude

I would have thought it would depend on how much you want to borrow compared to your deposit. Would have been better tapping the deposit money if you needed though

Mortgage_Adviser

As already asked above. Hove recent it is?
Hsve you already paid it off?

CLARKR

Hi there, we are going through the same (although a much smaller deposit) we are having to wait until the end of October which will be 12 months AFTER the PDL was satisfied - to the date. Most are saying 12 months after however a small proportion of lenders do offer 9 months after.

kingstreet

I can think of more lenders who don't have an issue with this than those who do.

is it visible on all three versions of your credit file?