Mortgage with past payday loans

SPM87

just to keep people updated - barclays have sent instruction to do an evaluation of the property... its a new build so i dont see any issues here

i have to say i cannot see any reason after all the checks that have been done on files and affordability that it will be rejected due to payday loan activity... it would be frankly outragous at this stage

will keep updating as i know more

nsrock1978

Hi SPM87,

That's brilliant news. I got below response from the bank's adviser today as well. So I'm thinking now probably can go straight to bank without paying a broker a fee. But haven't decided yet.
"Having now explained the history in context to an underwriter I have today been told that on the basis that no payday loan debts are currently still being managed and the previous arrangements were successfully managed and repaid without any issues, then Barclays will we able to look favourably on this matter and potentially help you with your new mortgage application. This is obviously still reliant on all other underwriting checks being OK and a suitable valuation being obtained in relation to your new home. The underwriter I spoke with today was xxxxx.

In relation to the mortgage valuation, if you are buying “off-plan” and the house is not fully constructed at the time of a visit by the Bank’s valuer then that valuer will simply survey the site, review the plans, visit another fully constructed property of a similar style on that development or another that the builder is involved with so that he can hopefully confirm that when fully complete your new home will be worth what you’ve agreed to pay. A final inspection may be required before the purchase is ultimately completed, although sometimes this will be avoided by your solicitor obtaining suitable Building Regulation certificates, NHBC certificates, etc."

SPM87

hi mate,

sounds like a no brainer then from that point of view - their rates are very competitive so i dont think you have nothing to lose really

as i say i passed the hard check so really the payday history should be moot at this point but who knows for sure

it all seems positive now to honest, i would absolutely be baffled if payday history came up in my application decision at valuation stage

nsrock1978

Hi mate, How did it go? My property is not released until the end of October. So just waiting. Hope yours everything sorted now.

SPM87

hi mate

update you have been waiting all this time for (and me of course) offer has been issued and should receive it in next few days

so all good news from my side

Burt0604

I've recently posted something very similar. I've had numerous pay day loans, something I'm not proud of and Santander gave us a 440k mortgage offer yesterday with 95% LTV

Good luck! I hope you get your mortgage!

Burt0604

Should also add the PDLs are within the last year. Read my thread, it might make you feel better

nsrock1978

SPM87 Great news mate. Congratulations! I'll let you know how I it goes for us probably next month.

nsrock1978

just to keep people updated - barclays have sent instruction to the valuation of the property.So positive outcome so far....

Hb16

Hi
Thanks for sharing. Fills me with some hope. Can I ask if you both had good levels of surplus income in your bank accounts when you made the application?

I have x1 default about to drop off and x10 PDLs around 5 nearly 6 years old.