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Leading Advisors For Mortgages With Payday Loans.

Worried about your payday loans and the impact they might have on getting a mortgage? Our expert low credit mortgage advisors are here to support your journey and find the right mortgage lender for you even if you have used payday loans which show on your credit file.

Your home may be repossessed if you do not keep up repayments on your mortgage. When The Bank Says No is a mortgage broker, and not a lender.

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Finding The Best Mortgage With Payday Loans Deal For Your Circumstances

Payday loans may be the reason a bank or high street lenders have said no to your mortgage application. Whilst it’s best to keep up to date with outstanding payments, budget carefully, and pay off loans on time, sometimes things just get in the way.

Our trusted mortgage advisors know that real life happens, and are here to show you that mortgage acceptance even with payday loans is possible. We have access to lenders who will still consider applications from those with payday loans. Whether your last payday loan was long ago or more recent, we will take the time to understand your situation and guide you through the mortgage application process.

Here to show you the way

Getting mortgages after payday loans can be difficult. Maybe it’s your first mortgage application, or maybe you’ve already been declined by high-street lenders for loans in the past. Whatever your circumstances, we’re here to help.

Whether you’re remortgaging or purchasing a home for the first time, you may fear your recent payday loans will get in the way of your home-owning plans. Don’t worry; there are mortgage lenders out there.

Our low-credit mortgage advisors can help support you on your journey and equip you with the tools and information you need to succeed in spite of payday loan usage or the state of your overall credit history. We’re on a mission to find your ‘yes’ from mortgage lenders, even when the bank has said no.

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We can support you and help you to make yourself as attractive to banks as possible, ready for your next application!

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In order for us to assess your credit history and suitability for different mortgage products, you will need to check your file.

Can I get a mortgage with payday loans?

Yes. Whether you have used payday loans many years ago or have an extensive history of payday loans, mortgage success is still within reach. Payday loans impact mortgage applications indirectly and usually cause difficulties when lenders conduct detailed financial checks; they can be a red flag.

Normally taken out to tide someone over between pay cheques (hence the name), using payday loans may imply an inability to budget and manage money responsibly. Whilst this can limit the mortgage deals you are eligible for, many specialist lenders are happy to accept borrowers with more complicated credit histories. Our team of specialist mortgage advisors can discuss the options suitable for your circumstances, and guide you through the process.

Will payday loans appear on my credit report?

Payday loans do not appear on your credit report unless you fail to pay them back on time, so you make late payments or default. If you default or don’t pay them back on time, your credit report will be adversely affected and the number of mortgage options available to you will inevitably decrease. However, if you keep up with repayments, your credit file itself shouldn’t be affected.

But, using a payday loan can still impact mortgage applications if lenders uncover them in your bank statements during detailed financial checks. This is especially true if you are currently using payday loans frequently and rolling them over as this indicates to potential lenders that you’re struggling to manage your existing commitments and may not be able to meet your mortgage payments.

Turning Your Nightmares Into Dreams

When you think you’ve hit that brick wall and have all but given up hope of finding mortgage finance, When the Bank Says No are here to turn your ‘No’ into a ‘Yes’. We have access to a range of specialist lenders who are willing to help those that the High Street banks just won’t touch. Get in touch today and see how we can turn your dreams into a reality.

How far back do mortgage lenders look for payday loans?

High street lenders typically assess the last 6 years when deciding on a mortgage application. Any payday loans taken out during this time can have an impact on your chances of mortgage success, however, this is not the case with all lenders.

Some lenders dislike payday loans entirely, while others will only require one year to have elapsed since your last payday loan. As a general rule, the further back in time you borrowed from payday lenders, the better, and the more payday mortgage deals you will be eligible for. But, even if you’ve used payday loans recently, it isn’t the end of the road for your mortgage application and home owning dreams. We could still help find the perfect mortgage lender for your needs.

Do payday loans affect my ability to get a mortgage?

Some mortgage lenders will accept payday loans on an applicant’s financial history but other mortgage providers may be cautious of lending to someone who has recently taken out a payday loan. This is because it suggests you rely on short-term finance to cover your month-to-month expenses. With mortgage repayments taking a further toll on your finances, some mortgage providers will begin to question your affordability. Whilst this will limit the options available to you, getting a mortgage after a payday loan is still not out of the question by any means.

Frequently Asked Questions

How Long Will A Payday Loan Stay On My Credit Report?

Information on your credit file will stay there for up to 6 years, after which it will be removed. If you have made late payments or have a payday loan default, this will be recorded and visible to any lender for that period. This doesn’t necessarily mean you can’t get a mortgage during this time, but it may reduce the number of mortgage deals available. Our bad credit mortgage advisors will take into account your payday loan history and help you search for the best deal from the mortgage lenders willing to lend to you.

If I've Already Been Declined Because I've Used Payday Loans, What Are My Chances Of Getting A Mortgage?

If you’ve previously been declined for a mortgage after a payday loan, don’t despair. Many people are declined and then go on to secure a mortgage. Some high street lenders may refuse a mortgage application if payday loans appear somewhere in your credit history. Others use automated programmes to assess applications which may not allow them to gather the full picture before making a decision. This is why it’s essential you speak to specialist mortgage brokers who can help you target an adverse credit lender who is best suited to your financial circumstances.

Do I Need To Pay Off My Payday Loans To Improve My Chances Of Getting A Mortgage?

When looking to take out new finance, it is always a good idea to repay any debts – including payday loans. Having outstanding debts or a previous payday loan may make many mortgage lenders question your affordability, suggest you have issues managing money and rely on revolving credit to cover bills. Despite this, we have helped numerous clients with financial difficulties find a suitable lender even if they have been previously declined for mortgages by mainstream lenders after payday loans.

Does Using Payday Loans Mean I Have Bad Credit?

Payday loans affect your financial history and certainly count as an adverse mark on your mortgage application by most lenders. However, they do not necessarily mean you have a bad credit score if you have kept up with repayments. When an underwriter considers your application, they are essentially looking at your ability to pay back the money. Payday loans are designed to support cash flow between pay cheques so this would certainly make them question your ability to budget. So, whilst a payday loan doesn’t necessarily mean you have a bad credit report, it can still complicate the process, especially with mainstream lenders. If you’re concerned about your application, our expert advisors are here to dispel your fears and find mortgage lenders who are prepared to consider your application.

Should I Wait Until My Payday Loans Are Off My Credit File Before I Apply For A Mortgage?

Mortgage applications without a payday loan history are certainly going to be looked at more favourably, so if you can wait before applying for a mortgage, you may improve your chances of success and increase the number of deals open to you. However, if the payday loan was taken out recently and you don’t want to wait 6 years, it’s still possible to get a mortgage. Sometimes, life is too short to wait! If you’re eager to get on the property ladder, our team of mortgage advisors can help. We’ve guided many people with a history of short-term loans towards the right lender despite what may be on their credit report.

My Payday Loan Account Went Into Default. Will This Affect My Ability To Get A Mortgage?

You could still be approved even if your loan went into default; there are lenders out there who specialise in bad credit mortgages. However, many lenders won’t consider you and the number of mortgage providers might decrease. You may also be required to put down a higher deposit.

The majority of lenders will usually require a deposit of at least 10%, maybe more if you’ve previously defaulted, though it’s not impossible to get a mortgage with some specialist lenders with a 5% deposit, even after previous borrowing from payday lenders.

You may also be charged higher mortgage rates and fees because you will be seen as a high-risk borrower. Despite this complication, a payday loan is not the end of the story. If you’re concerned, our expert advisors will assess your credit report, understand your circumstances, and explain what the options are.

Does The Age Of My Payday Loan Make A Difference When I Apply For A Mortgage?

Yes, as with any adverse credit, the older the better. The more time that has passed since your last payday loan, the more likely mortgage providers will disregard it. This is because they view historic borrowing as less indicative of your current money habits and that you are more likely to meet your mortgage payments – time really is a healer! If the payday loan account is over 3 years old, you will be eligible for significantly more deals than if it is more recent. In fact, many lenders will want to see 12 months clear of bad credit before considering you. If you’re in doubt about your credit history, our specialist advisors are here to help.

Is It Possible To Remortgage After Payday Loan Use?

Mortgage providers will approach a remortgage much as they do a standard mortgage application. Previous payday loans could impact your chances of remortgaging, leading to more limited options and higher interest rates. One payday loan that has long since been paid off will likely have no impact, whereas a more recent payday loan could negatively impact your application. A mortgage broker will scour the market to find you a better remortgage deal with other lenders more likely to accept someone with payday loans or a poor credit rating – that’s where our team at When The Bank Says No comes in.

Professional advice for low credit mortgages with payday loans.

Certain events in people’s lives can result in them relying on payday loans to cover expenses. There are many mortgage lenders out there who may automatically decline payday loan applicants because they do not meet specific lending criteria. However, there are also many lenders out there who actively specialise in bad credit mortgages, even for those with a history of payday loans.

Our specialist mortgage broker team comprises friendly advisors who have been trusted by applicants all over the UK to find the right lender for their mortgage, even with payday loans on their credit file. Through our in-depth knowledge of the market, we’ve been successful in finding lenders who approve borrowers in a range of situations. We dispel payday loan fears. With us as your mortgage broker, the property ladder is within reach.

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