Getting a Mortgage with Pay day loan history

CEC100

Hi,

I am hoping someone can help me, i am sure this has been done before but any assistance would be appreciated.

My husband and i have recently sold our existing house, paid off the mortgage and moved into accomodation until our new home is ready (new build via help to buy).

Last year, i took out a 3 pay day loans to help pay for damages to a car. Having now read up on this i am really concerned we wont get a mortgage on this new house.

We have never had any defaults, CCJ's or late payments and have obviously had a mortgage previously. I know the credit score doesnt apply to credit applications and the lender cant see it, but we both have 999 / excellent ratings on experian.

We both earn really reasonable wages and have a deposit for the house at the moment.

Am i losing sleep over nothing or is there alot/some cause for concern?

ACG

There will be some lenders who will say no.
Most lenders will at the very least consider it.

If you are not using a broker, I think you need to raise this upfront with the lender:
Does it fit criteria?
Are they seen as a negative? (fitting criteria does not mean you will be accepted).

As a broker there are lenders who I would avoid for this sort of thing even if in criteria based on past experiences. There are other lenders I would lean towards and then others who it would be worth a try with if the cost is big enough.

CEC100

We will use the recommended broker from the house builder but I am just waiting to speak to him however did this first as I am so concerned. Hopefully he will be able to help.

I just see so many contradicting threads, some people who have had multiple PDL that have had no issues at all and others that were told no.

ACG

I say it all the time, the devil is in the detail.
But with 12 months clear, I think you will be fine.

tonyh66

in hindsight, you should have used some of your deposit/savings instead of payday loans. Some lenders are a straight 'no' with PDLs so you have shortened the list, im sure you will be ok but your rates might be less competitive.