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Joint Mortgage Application with Payday Loans

Sjamies
Posts: 3 Newbie


Hello.
Would really appreciate some advice from those who have had a joint mortgage application accepted where one party of a joint mortgage application has payday loans on their credit file. Especially from the mortgage broker members.
In short, my partner and I have had an offer accepted on a property, £845k offer accepted. We have a £220k deposit, so mortgage amount is around £625k and LTV around 75%.
I shamefully took out a series of payday loans spanning 3 years due to loss of income and personal debt between 2018 and 2021. All repaid in full and on time. Last PDL was Feb 2021, so over 2 years ago. Total of 10 PDL's.
I since have zero debt, a perfect credit score & payment history, and a very good salary (£82k).
My partner has a perfect credit score, and a phenomenal salary of £200k, so combined salary is around £280k p.a. for a mortgage amount of around £625k.
We have a mortgage in principle with a mortgage broker for up to £1.7m which is way over what we need to actually borrow.
My question is, given our favourable buying position in terms of excellent credit scores, no debt, combined income of £280k, are lenders likely to decline our mortgage application based solely on my 10 PDL's that were settled over 2 years ago?
I am bricking it a bit as I fear our dream house and mortgage for it could be declined based on my stupid PDL's from a couple of years ago, so would really appreciate personal experiences and feedback from mortgage advisors who might be able to offer advise.
Thank you
Would really appreciate some advice from those who have had a joint mortgage application accepted where one party of a joint mortgage application has payday loans on their credit file. Especially from the mortgage broker members.
In short, my partner and I have had an offer accepted on a property, £845k offer accepted. We have a £220k deposit, so mortgage amount is around £625k and LTV around 75%.
I shamefully took out a series of payday loans spanning 3 years due to loss of income and personal debt between 2018 and 2021. All repaid in full and on time. Last PDL was Feb 2021, so over 2 years ago. Total of 10 PDL's.
I since have zero debt, a perfect credit score & payment history, and a very good salary (£82k).
My partner has a perfect credit score, and a phenomenal salary of £200k, so combined salary is around £280k p.a. for a mortgage amount of around £625k.
We have a mortgage in principle with a mortgage broker for up to £1.7m which is way over what we need to actually borrow.
My question is, given our favourable buying position in terms of excellent credit scores, no debt, combined income of £280k, are lenders likely to decline our mortgage application based solely on my 10 PDL's that were settled over 2 years ago?
I am bricking it a bit as I fear our dream house and mortgage for it could be declined based on my stupid PDL's from a couple of years ago, so would really appreciate personal experiences and feedback from mortgage advisors who might be able to offer advise.
Thank you
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Comments
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If they were a issue you would not have got a mortgage in principle, unless they were never declared.Life in the slow lane0
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@born_again yes that's true, but we were given a mortgage in principle based on the fact that I have not had any PDL's in the last 2 years. Which is completely true. My concerns is the underwriting process which will raise these PDL's from 3-5 years ago and potentially be grounds to decline a mortgage application. Which is why I am asking for similar experiences and guidance from mortgage brokers.1
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A lot will depend on who the actual lender is.Life in the slow lane0
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I think you will be fine with 99% of lenders. You could pick a lender at random and you would be incredibly unlucky to get declined based on that alone.
They are over 2 years old, you are not in the cycle that is usually associated with PDLs anymore.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
I recently secured a 90% LTV with settled payday loans 2 years before I applied for my mortgage.
I was accepted by a mainstream lender for the lowest rate on the market at the time. I can't see you having any issues whatsoever.
Some lenders will decline you for ever having payday loans, some will accept them as long as it was 12 months ago - check the lending criteria to be sure.1
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