Mortgage application advice with payday loan history

firsttimebuyer27

Hi

In the next twelve months I’m going to apply for a mortgage as a first time buyer. I have a past history of payday loans none of which are in the last 6 months. I’ve read lots online about the impact of payday on the ability to receive a successful mortgage application.

For the next 12 months my plan is to be paying regularly into my saving, along with paying off CC in full each month. However I want to know what I can do to boost my chances of a successful application in 12 months time and who I should speak to who can guide me along the way to achieve that.

Are there any mortgage advisors in particular who have a track record of being able to assist with my situation 

Any advice greatly appreciated.

Brie

How long ago were the payday loans?  The farther they are in to the past they less important they are.  

Paying off the CC in full each month is great.  Check to see if there's anything else lurking on your credit history that you can tidy up in the next year, no CCJs lurking there?  Registration to vote obvious?  

Your credit history won't show your savings account as far as I'm aware but if you try to get a mortgage with the same bank they will be able to see that through their own records and that might improve your chances of success.  

ACG

There is nothing you can do. 
Some lenders will automatically decline pay day loans, others will just accept thm if it passes score. Most fall somewhere in the middle. 

You had them, there is nothing you can do about that. When the time comes either speak to a rboker or check the lenders stance on them. There is no reason for you to end up on higher rates becuse of them but you MIGHT not have access to whoever the cheapest is depending on their PDL stance. 

A lot of the time PDLs are not the issue, its the fact they normally act as a warning to other issues. Its rare (but not unheard of) that you see PDLs and no other adverse. 

firsttimebuyer27

Brie said:

How long ago were the payday loans?  The farther they are in to the past they less important they are.  

Paying off the CC in full each month is great.  Check to see if there's anything else lurking on your credit history that you can tidy up in the next year, no CCJs lurking there?  Registration to vote obvious?  

Your credit history won't show your savings account as far as I'm aware but if you try to get a mortgage with the same bank they will be able to see that through their own records and that might improve your chances of success.  

Multiple in previous years but last one was in Dec 2023. No CCJs or anything else like that. 

firsttimebuyer27

ACG said:

There is nothing you can do. 
Some lenders will automatically decline pay day loans, others will just accept thm if it passes score. Most fall somewhere in the middle. 

You had them, there is nothing you can do about that. When the time comes either speak to a rboker or check the lenders stance on them. There is no reason for you to end up on higher rates becuse of them but you MIGHT not have access to whoever the cheapest is depending on their PDL stance. 

A lot of the time PDLs are not the issue, its the fact they normally act as a warning to other issues. Its rare (but not unheard of) that you see PDLs and no other adverse. 

ACG said:

There is nothing you can do. 
Some lenders will automatically decline pay day loans, others will just accept thm if it passes score. Most fall somewhere in the middle. 

You had them, there is nothing you can do about that. When the time comes either speak to a rboker or check the lenders stance on them. There is no reason for you to end up on higher rates becuse of them but you MIGHT not have access to whoever the cheapest is depending on their PDL stance. 

A lot of the time PDLs are not the issue, it’s the fact they normally act as a warning to other issues. It’s rare (but not unheard of) that you see PDLs and no other adverse. 

Okay so best for now is to keep paying off CCs each month and approach a broker maybe 3 months before I’m thinking of applying?

Are there any brokers in particular you would recommend or how I would good about choosing one?

Fortunately I should have around 15-20% deposit so I’m hoping this reduces the risk to a lender from my past history. 

ACG

Sounds like a sensible plan. 
Any experienced broker will likely have come across pay day loans before. I dont think you need any sort of specialist etc. 

Your deposit will be fine.