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  • FIRST POST
    • Laureng83
    • By Laureng83 16th Jun 18, 12:43 PM
    • 4Posts
    • 0Thanks
    Laureng83
    Getting a mortgage and payday loan?
    • #1
    • 16th Jun 18, 12:43 PM
    Getting a mortgage and payday loan? 16th Jun 18 at 12:43 PM
    Hi, has anyone had any experience of getting a mortgage with a payday loan?

    I had a payday loan about 8 months a go, as I!!!8217;m only 20 I didn!!!8217;t even realise at the time that it was a payday loan - it was literally the first site that came up when I searched for loans. I needed it to pay the excess on my car when I crashed it and my boyfriend was only on SSP due to dislocating his shoulder. At the time we did have savings of about 10 grand but these were in an ISA so I couldn!!!8217;t withdraw anything. Also at the time we weren!!!8217;t spending our whole wages each month - we were literally putting £2000 a month into savings and living on the bare minimum to be able to save enough to buy a house (so isn!!!8217;t like we were living beyond our means).

    This was paid back fine, my boyfriend has good credit and my credit is 790/999 on Experian. We earn about £60,0000 a year between us and are getting a relatively low mortgage. We have been accepted for a mortgage in principle.

    Does anyone think we!!!8217;ll have issues getting the mortgage due to the payday loan? It!!!8217;s literally keeping me up at night with worry!

    Has anyone had issues with a mortgage after having a payday loan?
    Last edited by Laureng83; 17-06-2018 at 11:55 AM.
Page 1
    • glentoran99
    • By glentoran99 16th Jun 18, 12:48 PM
    • 5,476 Posts
    • 4,661 Thanks
    glentoran99
    • #2
    • 16th Jun 18, 12:48 PM
    • #2
    • 16th Jun 18, 12:48 PM
    Something doesn't add up here, you were putting £2000 a month into savings but got a payday loan? Why not just not put that into savings that month and pay the excess?
    • sal_III
    • By sal_III 16th Jun 18, 12:49 PM
    • 644 Posts
    • 658 Thanks
    sal_III
    • #3
    • 16th Jun 18, 12:49 PM
    • #3
    • 16th Jun 18, 12:49 PM
    Relax

    If you already have DIP, this means that the Lender is happy with your credit score and affordability.

    At this stage pretty much the only reason for refusal of full mortgage application would be incorrect details used in the DIP application and the valuation of the property coming lower than the purchase price.
    • Laureng83
    • By Laureng83 16th Jun 18, 12:53 PM
    • 4 Posts
    • 0 Thanks
    Laureng83
    • #4
    • 16th Jun 18, 12:53 PM
    • #4
    • 16th Jun 18, 12:53 PM
    The savings were going into a ISA, they went in on payday each month and I had the crash on the 18th of the month. I needed my car as without it I couldnít get to work and couldnít wait another 10 days to get paid to get it fixed. So took out the loan on the 18th to get the car sorted
    • Thrugelmir
    • By Thrugelmir 16th Jun 18, 12:54 PM
    • 59,844 Posts
    • 53,203 Thanks
    Thrugelmir
    • #5
    • 16th Jun 18, 12:54 PM
    • #5
    • 16th Jun 18, 12:54 PM
    At the time we did have savings of about 10 grand but these were in an ISA so I couldnít withdraw anything.
    Originally posted by Laureng83
    There was nothing to stop you. A Payday loan cost you money.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Laureng83
    • By Laureng83 16th Jun 18, 12:58 PM
    • 4 Posts
    • 0 Thanks
    Laureng83
    • #6
    • 16th Jun 18, 12:58 PM
    • #6
    • 16th Jun 18, 12:58 PM
    As I explained, I didnít even know I was taking out the payday loan at the time. I was panicked and desperate as my boyfriend was on SSP and I was just worried at the time it would be another loss of income. Along with the fact that at 20 we both managed to save enough money to buy a house - which in this day is quite rare. I wanted constructive opinions not to be lectured for one small mistake I made. Your answer has given no help at all in answering my question and is quite frankly rude.
    • csgohan4
    • By csgohan4 16th Jun 18, 5:40 PM
    • 4,898 Posts
    • 3,129 Thanks
    csgohan4
    • #7
    • 16th Jun 18, 5:40 PM
    • #7
    • 16th Jun 18, 5:40 PM
    A pay day loan may affect your mortgage chances and unfortunately you have to pay for your own financial decisions. Payday loans mean a poor management of money to lenders.


    Surely when you signed up to the loan you would realise it was a payday loan?

    You need to engage a broker to help place you with a lender
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • Pixie5740
    • By Pixie5740 16th Jun 18, 7:28 PM
    • 12,956 Posts
    • 18,625 Thanks
    Pixie5740
    • #8
    • 16th Jun 18, 7:28 PM
    • #8
    • 16th Jun 18, 7:28 PM
    Relax

    If you already have DIP, this means that the Lender is happy with your credit score and affordability.

    At this stage pretty much the only reason for refusal of full mortgage application would be incorrect details used in the DIP application and the valuation of the property coming lower than the purchase price.
    Originally posted by sal_III
    Not necessarily. A lot of it can depend on whether the DIP involved a hard or soft credit search.
    • enthusiasticsaver
    • By enthusiasticsaver 17th Jun 18, 12:18 AM
    • 7,079 Posts
    • 15,330 Thanks
    enthusiasticsaver
    • #9
    • 17th Jun 18, 12:18 AM
    • #9
    • 17th Jun 18, 12:18 AM
    I think if it was a one off and now repaid you should be ok.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • bethwilliams95
    • By bethwilliams95 17th Jun 18, 8:48 AM
    • 36 Posts
    • 6 Thanks
    bethwilliams95
    I also think that it being a 1 off and 8 months ago you should be ok
    • Laureng83
    • By Laureng83 17th Jun 18, 10:38 AM
    • 4 Posts
    • 0 Thanks
    Laureng83
    Thank you, thatís what Iím hoping but I canít help worrying about everything. It would be really interesting to hear if anyone else has been in a similar position and what the outcome was.
    • mortgage1st
    • By mortgage1st 6th Jul 18, 3:55 PM
    • 41 Posts
    • 1 Thanks
    mortgage1st
    I have had a loan with Lending Stream, I got my decision in principle from Bluestone mortgages but I've found out today that due to having this they will not accept us. I'm absolutely gutted! Our broker thankfully has suggested an alternative so we'll give it a shot and see as we really don't want to lose the house we've offered on so we can only try!
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