mortgage application after payday loans

rb931

Hi all,
I have recently begun an application for a mortgage with my girlfriend. We have received an agreement in principle, and have had an offer accepted on a house. The house offer is £265,000. We have a deposit of £34,00. We have no current debts, and a total annual income of £55,000. The only problem is 4+ years ago I took out a few payday loans. They were for small amounts, and were always paid in time. How likely is this to affect our chances of getting our mortgage accepted?
Thank you for any advice

rb931

EDIT the deposit is £34,000

MovingForwards

Depends on the lender. Have you applied directly or through a broker? 

ACG

A couple of lenders will decline you if you have had a PDL in the last 6 years, but very few. You could probably pick a lender at random and odds are you would be fine. 

Just check with the lender before you do anything what their stance is on PDLs.

rb931

MovingForwards said:

Depends on the lender. Have you applied directly or through a broker? 

We applied directly with Lloyds. There were no issues through the initial meeting and soft search.
The newest loan is from/ settled in March 2017 so it's been 4 years.
We had a second meeting about the initial details of the mortgage and there were no issues. They only thing I am unsure on is that they never stated that the hard search had been completed yet

rb931

ACG said:

A couple of lenders will decline you if you have had a PDL in the last 6 years, but very few. You could probably pick a lender at random and odds are you would be fine. 

Just check with the lender before you do anything what their stance is on PDLs.

Do you know anything about Lloyds stance? I have checked their website but it's not clear

kazzyma3

Im so nervous, i am currently waiting for a reply with kent reliance. We have had quite a few payday loans in the past, our last one would have been around 2017-2018. Do you think this will have a massive impact on us getting a mortgage. WE have been totally clean for the last 2 years and no late payments or any payday loans or any defaults and have been on time with our payments, with a combine income of £65,000. will our previous history affect us in anyway. However we have do have credit cards but we always pay back on time. Anyone with similar experience?

Bobthebuildercanyoufixit

My wife and i are in the same position! We both have payday loan shown on credit file. We both used 4each in the last 2years, however nothing in the last 5months. These payday loans were always paid on time and immediately no longer than a month.
We have offer accepted on property worth £230,000 and deposit of £23000 (10%). Our credit file is 'good' and nothing else present other than the payday loan. Our DTI is slightly high approx 38-40 hence we went with a broker. 

Broker suggested That there would be only a few lenders that dont mind PDL shown on file apparently- this is what we have been told but due to maybe many factors other than just the PDL. So pick wisely, maybe a broker would be good to speak to
good luck!