Payday loans advice

A question about : Payday loans advice

Hi all

My partner has a huge history of payday loans on his credit report between 2011-2014

All were repaid on time with no late payments or arrangements, however I am now worried this will prevent us getting a mortgage.

None will be taken out ever again!

Do you think there is any possibility, at all, the payday loan companies will ever remove record of these from his file?

Any tips or advice on this?!

Thanks

Best answers:

• I wouldn't have thought so. They are an accurate representation of his credit history.
• i was told that these loans stay on your file for 6 years!
• The only issue is, he was told at the time payday loans would increase his credit rating, but obviously it has now come to light they have not. Do you still think there is no possibility for this to be removed?
• Before going through a mortgage app we're going to make sure all debts are repaid e.g. overdrafts and a UPL I have, will be cleared by summer 15 at which point we will be looking seriously for a mortgage. I am also going to open a nationwide help to buy savings acc at some point this week which hopefully will improve our chances by then. At the the point of application hopefully we will have 10% deposit, no debt and no defaults for 3 years and no PDL's for over 12 months.. just worried that we will never get a house of our own!
• Yes, that's right. Those companies peddling out these scores do not even know you salary or if you have any income at all.
  Lenders absolutely care about these matters.
  Your credit file is visible for 6 years so all accounts should be on there. Not all report though, and there are three agencies which don't necessarily match up.
  You can't simply remove the things you don't like. It is a record of borrowing and the handling of your debt.
  I have read some Mortgage lenders won't lend if there are PDL entries within the last 6 months so it may not be all bad.
  What do you mean "no defaults in 3 years?". They will conspire against your application if you have defaults.
• I think most mortgage lenders say that an applicant must not have had a payday loan in at least 12 months to be accepted.
  It is fortunate that he doesn't have any defaults as it is defaults which really cause the damage.
  I'm not a mortgage adviser but I would encourage you to both to join a save to buy scheme now and seriously keep a good eye on your spending and save as much as you can to prove that you can do it.
• Each lender has their own acceptability criteria, and these criteria aren't made public.
• Buying a house within your joint income budget, with a nice 25% deposit, and good stable employment should mean a mortgage application will sail through underwriting.
• A low credit rating from a CRA probably does give a reasonable idea that a lender will consider you a bad risk - the negative things a CRA takes into account are likely to be in line with the negatives a lender will take into account. A high score is not a very useful indicator because a lender will look at things that the CRA doesn't see at all.