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  • FIRST POST
    • gem1987bab
    • By gem1987bab 12th Feb 18, 8:45 AM
    • 1Posts
    • 0Thanks
    gem1987bab
    Payday loads & mortgage applications
    • #1
    • 12th Feb 18, 8:45 AM
    Payday loads & mortgage applications 12th Feb 18 at 8:45 AM
    Hi, I’m very new to this site I hope you can help!
    Myself and my partner are looking to buy a new home together.
    When I was younger I was silly and naive and used pay day loans when I was finding it hard to make ends meet.

    I have never made a late payment and have always been to date with my bills but worry these old loans will impact a mortgage application.

    The loans were 5 years ago. My overall credit rating is very good but obviously these loans show on my closed accounts.

    If I knew then what I do now about these loans I wouldn’t have gone anywhere near them. Has anyone been successful with a mortgage application with payday loans on their credit file?

    Many thanks
Page 1
    • zx81
    • By zx81 12th Feb 18, 8:46 AM
    • 16,789 Posts
    • 17,798 Thanks
    zx81
    • #2
    • 12th Feb 18, 8:46 AM
    • #2
    • 12th Feb 18, 8:46 AM
    Yes, some. It would be be worth engaging a broker though, to narrow down your options.

    Remember to ignore your credit rating, It's only the data on your files which will interest lenders.
    • ACG
    • By ACG 12th Feb 18, 9:04 AM
    • 16,816 Posts
    • 8,771 Thanks
    ACG
    • #3
    • 12th Feb 18, 9:04 AM
    • #3
    • 12th Feb 18, 9:04 AM
    You should be fine, but there are lenders who will decline you outright because of them. So it is worth either checking criteria or speaking to a broker.
    I am a Mortgage Adviser
    You 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.
    • giorgio992
    • By giorgio992 12th Feb 18, 12:27 PM
    • 73 Posts
    • 197 Thanks
    giorgio992
    • #4
    • 12th Feb 18, 12:27 PM
    • #4
    • 12th Feb 18, 12:27 PM
    I was in the exact same situation with you but with more recent Payday loan usage on my credit files (June 2015 was last).

    I had the same worries as you but spoke with an online mortgage broker who was great, said there were no issues and I have today just been issued with my formal mortgage offer from Tesco who had no issues at all throughout the application, even with current credit card balance and loan!


    Don't be down and as the others say, speak to a good broker and they'll find a lender that's suitable for your circumstances.
    • FTBdreaming
    • By FTBdreaming 12th Feb 18, 3:07 PM
    • 15 Posts
    • 8 Thanks
    FTBdreaming
    • #5
    • 12th Feb 18, 3:07 PM
    • #5
    • 12th Feb 18, 3:07 PM
    We recently had an offer from Barclays and my payday loans were from 2013. But as said above there are some lenders who just won't accept any.
    • Supersy
    • By Supersy 14th Feb 18, 12:13 PM
    • 60 Posts
    • 16 Thanks
    Supersy
    • #6
    • 14th Feb 18, 12:13 PM
    • #6
    • 14th Feb 18, 12:13 PM
    I had payday loans from 2013 and 4 paid off defaults and we have just got an offer from Natwest, this was all through a very very good broker who deals in adverse.
    • amy16195
    • By amy16195 15th Feb 18, 9:53 AM
    • 6 Posts
    • 0 Thanks
    amy16195
    • #7
    • 15th Feb 18, 9:53 AM
    • #7
    • 15th Feb 18, 9:53 AM
    Hi. Which broker did you use? I've looked online but I don't know whether to trust any of them! !!!128514;
    • ACG
    • By ACG 15th Feb 18, 9:57 AM
    • 16,816 Posts
    • 8,771 Thanks
    ACG
    • #8
    • 15th Feb 18, 9:57 AM
    • #8
    • 15th Feb 18, 9:57 AM
    Hi. Which broker did you use? I've looked online but I don't know whether to trust any of them! !!!128514;
    Originally posted by amy16195
    That made me smile. Everyone in financial services is a bit dodgy :P (only messing).

    The brokers website should have an FCA number on there, you can put the details in on this site https://register.fca.org.uk, which will tell you if they are legitimate or not. It is a 6 digit number.
    I am a Mortgage Adviser
    You 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.
    • Kaggs!
    • By Kaggs! 18th Feb 18, 8:01 PM
    • 29 Posts
    • 4 Thanks
    Kaggs!
    • #9
    • 18th Feb 18, 8:01 PM
    • #9
    • 18th Feb 18, 8:01 PM
    Hi there, we have a mortgage in principal from precise... I!!!8217;m really worried and doubtful.... I have 1 default and have had pay day loans (stupid I know) but actually thought they might have built up my credit rating rather than ruin it, my husband has also used payday loans last ones being 2016, he also has 2 defaults from EE, do you think we still have a chance? Or am I praying for a miracle here .... :-(
    • Kaggs!
    • By Kaggs! 18th Feb 18, 8:02 PM
    • 29 Posts
    • 4 Thanks
    Kaggs!
    We have paid a deposit on a new build as the builders mortgage adivisor told us to go ahead but u am very doubtful
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