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    • AshleyMC83
    • By AshleyMC83 21st Oct 17, 1:04 PM
    • 2Posts
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    AshleyMC83
    Halifax Mortgage and PDL
    • #1
    • 21st Oct 17, 1:04 PM
    Halifax Mortgage and PDL 21st Oct 17 at 1:04 PM
    Hi. Has anyone recently had a mortgage application accepted by Halifax after using pay day loans? I stupidly took out a pay day loan a few months ago (paid it back on time over 3 months) in order to get money quickly to help a struggling relative and now my partner wants us to apply for a join mortgage and move house. I'd applied years ago in 2011 for a couple too when I was in a crap job and living on my own. He doesn't know I took out the old PDLs and the PDL for my brother and I stupidly didn't know if would affect my chances of getting a mortgage - my partner is the mortgage holder for our current house and he has around 80k to put towards the new house. He has no debt history. He went to the bank without me knowing and got an agreement in principle with the Halifax who we both bank with and are the current mortgage lenders. I know from reading online that the agreement in principle is just a soft credit check - my credit score is 850. I'm worried if we go to apply and get turned down, he'll find out about the PDL and be furious. Anyone had one accepted? Thanks!
Page 1
    • Edi81
    • By Edi81 21st Oct 17, 1:41 PM
    • 427 Posts
    • 287 Thanks
    Edi81
    • #2
    • 21st Oct 17, 1:41 PM
    • #2
    • 21st Oct 17, 1:41 PM
    You!!!8217;re going to have to tell him.
    The brokers on the thread will know how halifax view recent PDLs and they may not be the right lender for you.

    You may need to go down the broker route.

    The ones from 2011 should have dropped off your file but the recent ones are going to be an issue.
    • Thrugelmir
    • By Thrugelmir 21st Oct 17, 2:02 PM
    • 58,192 Posts
    • 51,566 Thanks
    Thrugelmir
    • #3
    • 21st Oct 17, 2:02 PM
    • #3
    • 21st Oct 17, 2:02 PM
    A recent PDL raises questions about your finances in general. The purpose isn't really relevant. As PDL's are last resorts for borrowing money.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • ACG
    • By ACG 21st Oct 17, 2:14 PM
    • 16,699 Posts
    • 8,681 Thanks
    ACG
    • #4
    • 21st Oct 17, 2:14 PM
    • #4
    • 21st Oct 17, 2:14 PM
    It will come down to the details. A single pay day loan in 6 years is unlikely to be a deal breaker in the main. However if you are applying for a 90% mortgage and your repayments will jump significantly an underwriter might have concerns.

    Difficult to say without knowing more, but I am fairly confident you should be fine in the main.
    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.
    • AshleyMC83
    • By AshleyMC83 21st Oct 17, 3:01 PM
    • 2 Posts
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    AshleyMC83
    • #5
    • 21st Oct 17, 3:01 PM
    • #5
    • 21st Oct 17, 3:01 PM
    Thanks for the replies. Will the bank ask me if I've taken out any in the past or will that just form part of the in depth credit check?
    • YHM
    • By YHM 21st Oct 17, 3:07 PM
    • 506 Posts
    • 189 Thanks
    YHM
    • #6
    • 21st Oct 17, 3:07 PM
    • #6
    • 21st Oct 17, 3:07 PM
    Halifax don't specifically ask about Payday loans, but it would flag on the credit report.

    As long as it can be justified and isolated, as above, can still see it still being accepted
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • mallen
    • By mallen 6th Nov 17, 6:44 AM
    • 46 Posts
    • 1 Thanks
    mallen
    • #7
    • 6th Nov 17, 6:44 AM
    • #7
    • 6th Nov 17, 6:44 AM
    How did you get on? I have several payday loans on my credit file from being at universiy last year.

    I am now in a very well job and want to apply for a mortgage. Do you know which lenders are more lenient with PDL's?
    • MancFTB
    • By MancFTB 11th Nov 17, 5:53 PM
    • 3 Posts
    • 1 Thanks
    MancFTB
    • #8
    • 11th Nov 17, 5:53 PM
    • #8
    • 11th Nov 17, 5:53 PM
    I have a query regards PDL!!!8217;s and mortgage applications too. Between Nov 2014 and Nov 2015 I took out quite a few PDL!!!8217;s (long story linked to hotels for business travel). I haven!!!8217;t touched them for 2 years and have a squaky clean credit file having checked all 3 major credit agencies and score of 999 on Experian.

    I am looking at applying for HTB mortgage where I will need a75% LTV.

    Does anybody know if I will have problems with a mortgage app?
    • ACG
    • By ACG 11th Nov 17, 6:16 PM
    • 16,699 Posts
    • 8,681 Thanks
    ACG
    • #9
    • 11th Nov 17, 6:16 PM
    • #9
    • 11th Nov 17, 6:16 PM
    I have a query regards PDLís and mortgage applications too. Between Nov 2014 and Nov 2015 I took out quite a few PDLís (long story linked to hotels for business travel). I havenít touched them for 2 years and have a squaky clean credit file having checked all 3 major credit agencies and score of 999 on Experian.

    I am looking at applying for HTB mortgage where I will need a75% LTV.

    Does anybody know if I will have problems with a mortgage app?
    Originally posted by MancFTB
    Check criteria beforehand or speak to a broker, but because of how long ago you last used them, you should have options.
    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.
    • MancFTB
    • By MancFTB 11th Nov 17, 7:26 PM
    • 3 Posts
    • 1 Thanks
    MancFTB
    Thanks ACG

    I am really hopeful that it will be ok, I am going to pick up with a broker ASAP and take it from there.

    Given the fact that it was 2 years ago and affordability isnít an issue I am hopeful it will be ok.
    • sr1527
    • By sr1527 12th Jan 18, 10:37 AM
    • 7 Posts
    • 0 Thanks
    sr1527
    Hi MancFTB,

    FTB here too, just read this thread, how did you get on?

    Been speaking to our broker who seems to think we will be absolutely fine, had 2 PDL in 2014 and credit fine since then. Waiting for AIP so we can offer on house we saw last week!
    • MancFTB
    • By MancFTB 12th Jan 18, 10:49 AM
    • 3 Posts
    • 1 Thanks
    MancFTB
    Hi

    Yes I should have posted, wasnít a problem at all. I took ACG advice and let my broker know the situation. They looked into it and came back fairly confident that it would not impact my application. We carried on as initially planned and applied with Barclays and got an offer confirmed within a few weeks.

    Based on my experience sounds like you will be fine.

    Good luck
    • sr1527
    • By sr1527 15th Jan 18, 11:42 AM
    • 7 Posts
    • 0 Thanks
    sr1527
    Oh thats great to here, i dont want to be too confident. Meeting broker tomorrow morning so should have our AIP if approved in a day or two.

    Thanks!
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