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.
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.
Finding The Best Mortgage With Payday Loans Deal For Your Circumstances
Payday loans may be the reason the bank has 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 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 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.
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 as they can be viewed somewhat as a red flag.
Normally taken out to tide someone over between paychecks (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 reveal the options suitable for your circumstances, and guide you through the process.
Will payday loans appear on my credit report?
Payday loans will not appear on your credit report unless you fail to pay them back on time or default. In these cases, your credit score will be negatively affected and the number of mortgage options available will inevitably decrease.
If you keep up with repayments, your credit score itself shouldn’t be affected. Using a payday loan can still impact mortgage applications, however, if lenders uncover them in your bank statements during detailed financial checks. This is especially the case if you are currently using payday loans frequently and rolling them over as this indicates to potential lenders that you are struggling to manage your existing commitments.
Maximise your chance of approval with specialist advice from an expert in Payday Loan Mortgages
How far back do mortgage lenders look for payday loans?
Mortgage lenders typically assess the last 6 years when deciding on getting a mortgage. 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 passed since your last payday loan. As a general rule, the longer ago you borrowed from the payday loan lender the better, and the more payday mortgage deals you will be eligible for. But, even with recent payday borrowing, it isn’t the end of the road for your mortgage application and homeowning dreams.
Do payday loans affect my ability to get a mortgage?
Payday loans affect mortgage applications, but only indirectly. A payday loan won’t be listed on your credit report unless you have missed payments or made late payments. However, mortgage applications usually involve an assessment of bank statements, and this is when mortgage lenders may uncover your payday loan history.
A mortgage lender may be cautious of lending to someone who has recently taken out a payday loan because it suggests they rely on short-term finance to cover their month-to-month expenses. With mortgage repayments taking a further toll on your finances, many will begin to question your affordability. Whilst this will limit the options available to you, getting a mortgage after payday loans is not out of the question by any means.
Mortgages with payday loans FAQs.
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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 those with a history of payday loans.
Our specialist mortgage broker team of friendly advisors has been trusted by applicants all over the UK to find their mortgage, even with payday loans in their credit history. We've been successful in achieving approval for people in a range of situations through our in-depth knowledge of the market and commitment to dispelling client fears. With us, the property ladder is within reach.
Here to show you the way.
Getting mortgages after payday loans can be difficult. Maybe it's your first time applying; maybe you've already been declined by high-street lenders for loans in the past. Whatever your circumstances, we're here to help.
Whether 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 options open to you.
Our low-credit mortgage advisors can help support your journey and prepare you with the tools and information you need to succeed in spite of payday loan usage or your overall credit history. We're on a mission to find your yes from mortgage lenders, even when the bank has said no.