Mortgage After Payday Loans
Updated 13th August 2021.
Mortgage After Pay Day Loans Advisors.
Our Mortgage Experts Online accredited advisors are specialists in mortgage after payday loans. Furthermore, our bad credit mortgage expert’s knowledge will help you to find the right mortgage on the market.
From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there. Subsequently, this may feel completely overwhelming to you and you may have no idea where to start. We can offer you guidance and help you navigate the complex world of mortgage after payday loans.
The brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.
Scroll down for more information and FAQ’s.
Can I get a mortgage after a payday loan?
Payday loans are one of the biggest hurdles to overcome when looking at mortgage options. For the most part, often deemed on a par with defaults and county court judgement in adverse mortgage lenders eyes.
Most lender will insist on no payday loan use in the last 12 months. Why you might ask? Quite simply, mortgage lenders do not like them as they can portray clients as not being able to manage their finances from one month to the next. Therefore, making them seem more of a risk.
When payday loans first came onto the market, many people were encouraged to use these as a way of improving their credit score, as they believed this would increase the chances of obtaining a loan or mortgage in the medium to long term. However, it is the overuse of these which is the main concern for mortgage lenders. Hence, leading to most lenders changing their lending criteria.
As a rule, a one-off payday loan taken out in an attempt to improve your credit score or for a genuine reason (think emergency boiler or car repair) should not act as too much of a barrier to obtaining a mortgage after payday loans. It is however, recommended to work with a mortgage broker under such situations as they can relay this information to an underwriter rather than relying on an automated decision.
Consequently, it is always the best advice to check your credit report, click here to see your latest report.
Can payday loans improve my credit score?
The simple answer is no. Payday loans are designed to offer short-term solutions to financial problems. These types of loans are last resort lending when you have no other options.
Generally, when lenders see the use of these loan it appears that the person isn’t managing their finances. Because the rates and fees associated are high, costs and payments can get out of hand if not managed correctly.
Payday loans and bad credit mortgages.
When you are looking for a bad credit mortgage and have recently taken out a payday loan, then I’m afraid your options are going to be very limited. If you have clean credit, some high street lenders will ignore them if they are paid off before application and you pass their credit score. If you have a large deposit this could open up more options available to you. Read our article on bad credit mortgages.
Speak to a payday loans mortgage advisor.
There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or cannot borrow what they need. However, just because one lender has declined you, do not give up.
Our mortgage after payday loans experts will look at each case before deciding which lender is right for you and your individual circumstances. Furthermore, all the mortgage after payday loans brokers we work with are whole of market and offer unbiased advice. They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.
The expert mortgage after payday loans brokers we work with have experience in dealing with all aspects of mortgages after payday loans. Coupled with, using the whole of the market to access the best deals available.