Getting a Mortgage After Payday Loans
Payday loans are a common tool to help pay urgent debts or expenses while waiting for the month-end to arrive.
Reasons range from covering an emergency, such as a car breakdown, to bringing forward cash from your paycheque to cover ongoing costs.
However, payday loans usually carry very high rates of interest and can be detrimental to your credit report.
Mortgage lenders can, in some instances, turn down an application if you have ever used a payday loan - however, business finance broker negotiate many mortgages for clients in this situation.
For tailored advice about securing a mortgage in your circumstances, get in touch at info@revolutionbrokers.co.uk or give us a call on 0330 304 3040.
Is It Possible to Get a Mortgage If I've Had a Payday Loan?
It is, yes - although some mainstream lenders do not offer mortgages to applicants who have had a payday loan, many of our specialist lenders are happy to extend an offer.
Some high street mortgage providers will even reject applicants who have had a payday loan at the start of their six-year credit history.
Therefore it is essential to apply to the right lenders to avoid having an application rejected and potentially more marks showing on your credit report.
Factors lenders will consider:
- How recently the payday loan was taken out.
- Whether it is a regular occurrence or a one-off.
- What loan-to-value (LTV) borrowing you are applying for.
- Whether your credit file shows any other credit issues.