Lending Stream/Mortgage

BethArmett

Hello, during the latter part of 2019 and the early months of 2020 I took out several loans with Lending Stream (there were seven in total)

All of these lones were paid fully and on time - there are no negative impacts on my credit file in terms of payments etc. They are all closed and settled. However, I did not do enough research on the subject and have since learnt that mortgage lenders see loans as very negatively and even one on your account can prevent you from being accepted. My question is: is Lending Stream a payday loan? On their website they claim to be an 'alternative to payday loans' and they appear on my credit report as 'unsecured loans' - I'm not sure if payday loans appear as anything differently. What are my chances of being accepted for a mortgage with seven of them on my file and is there anything I can do to help myself being accepted by a mortgage lender? (Other than maintaining a good credit score and not taking out anymore loans)

Thank you! 

MinuteNoodles

They only loan up to £1500 and at an APR of 1333% so yeah they're in the same category as payday lenders. Their claim that they're an 'alternative to payday loans' is not true. They're no different and a payday loan also reports as an unsecured loan as there's only two types:

• Secured - which the loan is secured or has a "lien" on the item it's being used to buy such as a house or car where if you don't make the repayments that item can be taken away.
• Unsecured - the lender does not have a lien on the item it's being used to buy, they literally just put money in your bank for you to spend.

Even though the mortgage company cannot see the name of the lender or the APR rate several short term loans in a short period will indicate payday loan lending and be a red flag. You cannot do anything to have these removed. Ignore the score, certainly do not spend money trying to improve it, keep everything in good order. It may be an idea to employ the services of a mortgage broker who has access to lenders who will lend to those with less than perfect records. A large deposit also helps.

sourcrates

They were a payday lender, then when regulation was tightened, they changed tack, and also changed there product to "short term loans", so yes they will be regarded in the same way as other payday lenders, the general advice, as above, is to use a good broker.

Kiwistrawb1990

BethArmett said:

Hello, during the latter part of 2019 and the early months of 2020 I took out several loans with Lending Stream (there were seven in total)

All of these lones were paid fully and on time - there are no negative impacts on my credit file in terms of payments etc. They are all closed and settled. However, I did not do enough research on the subject and have since learnt that mortgage lenders see loans as very negatively and even one on your account can prevent you from being accepted. My question is: is Lending Stream a payday loan? On their website they claim to be an 'alternative to payday loans' and they appear on my credit report as 'unsecured loans' - I'm not sure if payday loans appear as anything differently. What are my chances of being accepted for a mortgage with seven of them on my file and is there anything I can do to help myself being accepted by a mortgage lender? (Other than maintaining a good credit score and not taking out anymore loans)

Thank you! 

Heyyy, everyone's circumstances are completely different, but a bit of a glimmer of hope for you. 
I used lending stream 17 times in 2018-2019 due to some financial difficulty and getting into a vicious cycle using high interest loans.
I also used other companies like satsuma in 2019.
We completed on our purchase a month ago with a high street lender so it is possible.
I also had a historical default on my credit file too so definitely not the best history.
Use a broker. Good luck xx

RustieDog

Hey, I was just wondering you have now applied for a mortgage and how did it go with previous lending stream loans on your credit file?

CliveOfIndia

https://forums.moneysavingexpert.com/discussion/comment/80029232#Comment_80029232

Given that neither this thread nor the OP have been active since August 2020, I wouldn't hold your breath for an answer.

popoxo

Rustiedog  are you going through the same issue right now? I’m about to apply for a mortgage with a lending stream loan on my file from last year..