Anyone with recent success with payday loan history?

aggimartz1

Applying for a mortgage with my partner. I unfortunately only found out recently about his history of pay day loans over the years (two weeks ago).


We have found our dream house and offer accepted, sent application for mortgage to Santander 3 days ago. I suffer from anxiety and cannot stop obsessing over it! Checking emails, for calls etc and its only been 3 days!

About us:

I have no debt at all, no missed payments or anything bad on my history, or recent loans, excellent credit history (999 on Experian) and alwyas pay my credit card off in full each month. I am the main breadwinner earning 56k with 10% bonus. The deposit is from my own savings.

Partner earns 29k with 10% bonus, only debt is 2 current loans of 10k combined with 3 years to pay off, he said in the past 10 years he has had around 20 payday loans however, his last pay day loan was 18 months ago and fully paid off with no missed payments. He did have some savings for the deposit but he had a history of using his arranged overdraft every month so we used what he had saved to pay that off and moved his overdraft down to 100 limit so that's sorted. 

We got an AIP for 375k via a broker around 3 weeks ago. They knew about his current loans.

Mortgage we want is 318k, so only 3.7 x our salaries so under the usual 4-4.5 x salary lending amount. 

I am really worried his payday loan history will mess things up for us.

Anyone have success in getting a mortgage with santander recently with a similar history of payday loan usage?

aggimartz1

To add partners credit report is in 'good' range and shows no missed payments and that the loan was paid off

ACG

If the last pay day loan was 18 months ago, I think pretty much all but a minority of lenders will be fine with them. 
The issue with pay day loans is that they are usually a sign of other issues and people tend to become dependent on them. That does not sound like the case with our partner. 

I do not know santanders stance as I do not use them regularly, but you should have options at normal rates. 

Trust the broker. 

K_S

@aggimartz1 I'll echo what ACG has said above, I don't see any reason to worry, particularly because your broker is already aware and because it's 18m+ old and no adverse history for both applicants.

What the Santander BDM has told me in the past is that Santander may decline if they see any recent pdls on the Experian report but if you've got past the DIP stage and the broker knew about it before placing it, you should be fine.

Hope the offer comes through soon, good luck!