Mortgage application with payday loans

Kauto5

Hi everyone,

Around 10 months ago I took out a loan of £2000 with likely loans. Then 3 months later I opened a credit line with Drafty, of which I used £400. I have paid and closed my Drafty account and have 2 months left on my likely loans repayments then that will be settled. 

Do you know if these loans are automatically classed as payday loans? I've been trying to find out online but it's not very clear. Does it depend on each lender's criteria to decide what is and isn't a payday loan?

I'm planning on applying for my first mortgage in around 9 months and I'm concerned I'll have shot myself in the foot, albeit unavoidably sadly.

Thanks!

[Deleted User]

You can see on your credit files the category under which they're reported.

Thrugelmir

Why not use the money you are saving for a deposit rather than incurring high interest charges by borrowing the money?