Payday loans

Bobthebuildercanyoufixit

Hi all,
could someone please clarify how payday loans effect mortgage application please?
My broker has put an application through via Natwest regardless of my wife and I having payday loans present on our credit file.
my broker asvised that the payday loans where used and paid off in full before the last 3 months so this would not really matter with Natwest (as this is within the lending criteria)-
is this true? Do Natwest overlook payday loans if it is more than 3months ago and paid in full?
Also can someone recommend a lender that would be fine with payday loans on credit file.
many thanks,

JamieJ89

How many payday loans are on your credit record? How long ago? Any defaulted?

Bobthebuildercanyoufixit

Hi JamieJ89,
i do not have any defaults nor does my wife.
the last payday loan (Lending stream) was taken out and paid off immediately in November 2020.
altogether i have 4 short term loans and so does my wife (8 between the both of us) in the last 2 years.
However, our credit scores are 'good' (in the green zone)- we have never missed payments etc.
Thanks

Bobthebuildercanyoufixit

JamieJ89 said:

How many payday loans are on your credit record? How long ago? Any defaulted?

Hi JamieJ89,
i do not have any defaults nor does my wife.
the last payday loan (Lending stream) was taken out and paid off immediately in November 2020.
altogether i have 4 short term loans and so does my wife (8 between the both of us) in the last 2 years.
However, our credit scores are 'good' (in the green zone)- we have never missed payments etc.
Thanks

Kirkii27

Please let me know how your application gets on we are in same position. But only 3 recent ones on credit file all paid off before they was suppose to of been! 

Bobthebuildercanyoufixit

@Kirkii27 have you spoken to a mortgage advisor?? Have they directed you to a specific lender that they think is best with the payday loans??
thanks

CLJ2986

I used a lot of payday loans over a year ago now, and had a period in 2018/19 where I had missed payments but no defaults. I haven't been able to get a DIP with a high street lender and my broker has now applied with Aldermore. Every single case is different though and I have a 90% ltv which I think made it harder. If you've got a dip with natwest then that's probably a good sign 

Kirkii27

Yes spoke with mortgage advisor who got a dip but didn’t say who with as we needed to pay £300 just for it... online mortgage advisor was the advisors. 

Halifax have give us a mortgage in principal as well. Who my partner banks with (payday loans are on his file )

Kirkii27

 We have a gifted deposit but we only need a 60-65% LTV

Bobthebuildercanyoufixit

@CLJ2986 completely agree! Everyones corcumstances are different. Yeah fingers crossed it goes through all fine with Natwest. 

@Kirkii27 i think with a big deposit like that regardless of it being a gift i would think there are many lenders that you can consider. My wife and I have got a 10% deposit which makes it slightly difficult like @CLJ2986