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Mortgage application - pay day loan
Raymik159
Posts: 7 Forumite
Hi all, just on looking for some advice
Both myself and partner have just applied for a mortgage via TSB, we have 15% deposit saved and have been given a Mortgage Promise acceptance.
Having check both credit scores, the are both relatively high, however I still have 2 pay day loans on my closed accounts from 4 years ago. Everything was paid on time, never defaulted with No CCJs etc. We have relatively low outgoings and affordability isn't an issue. Over the past 3 years I have reduced most of my debt. My question is, will TSB automatically reject mortgage application for pay day loan use 4 years ago.
Both myself and partner have just applied for a mortgage via TSB, we have 15% deposit saved and have been given a Mortgage Promise acceptance.
Having check both credit scores, the are both relatively high, however I still have 2 pay day loans on my closed accounts from 4 years ago. Everything was paid on time, never defaulted with No CCJs etc. We have relatively low outgoings and affordability isn't an issue. Over the past 3 years I have reduced most of my debt. My question is, will TSB automatically reject mortgage application for pay day loan use 4 years ago.
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Comments
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I dont know about TSB, but Natwest let me through with PDL 5 years ago, and with a default from the same time.0
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I work for a lender and I just asked the question.
We'd ignore it if it was repaid a while ago (I suggested a year).
So, chances are they may query it, but I doubt they'll flat out reject the application for a payday loan that was repaid 4 years ago with no defaults / arrears.Current Debt (excluding mortgage) - £7,020
Reducing £450/ month.0 -
A broker would be best to match you to a lender who fits your credit history without guessing"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
This won't be a problem in itself.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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