A mortgage after payday loans.
Repaid on time, they are still a payday loan, and some lenders treat any recent one as a reason to say no. Others look at how long ago and how often. The difference between those two groups is the whole answer.
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David Bourne
Why payday loans are treated differently
Most credit is judged on whether you paid it. Payday loans are also judged on the fact that you needed one. To some lenders, short-term, high-cost borrowing suggests that money was tight at the time, even if every payment was made on time. That is why a payday loan you cleared early can still matter.
Where it shows
On your credit file, usually for six years from when the account closed, like other credit. And on your bank statements, if the loan or repayments fall within the months a lender reads.
What lenders look at
How recent. The last twelve months matter most to most lenders. How many. One loan years ago reads very differently from several in a row, or one used to repay another. How it was repaid. On time, late, or rolled over. Lender rules range from "none in a set period" to "we will consider it with an explanation".
What I would do
Get your credit report from all three agencies and list every short-term loan, with its dates. Then match that list to lenders whose criteria fit, rather than applying to a high street lender likely to decline on sight. If the honest answer is to wait, I will tell you how long, and why.
If you are using payday loans now to get to the end of the month, the mortgage can wait. Free debt advice from MoneyHelper, StepChange or Citizens Advice is the right first call.
The usual questions
Can I get a mortgage if I have had a payday loan?
Often, yes, with a lender that considers them. How recent, how many and how they were repaid decide which lenders will look.
Does a repaid payday loan still count?
It can. Some lenders consider the use of payday lending itself, not only whether it was repaid.
How long does a payday loan stay on my file?
Usually six years from when the account was closed, as with other credit.
Does talking to you affect my file?
No. There is no credit search to talk.
Leave your details and I will get back to you.
Plenty of people would rather not ring a stranger about their credit file, least of all at the end of a long day. Leave a number or an email and I will get in touch when it suits you.
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Or message me on WhatsApp, or ring 07810 716749.
Does one of these describe your situation?
What happened, how long ago, and whether it is settled decides more than almost anything else.
What credit score do you need?
Lenders do not use the number in your app. What they read instead.
Mortgages with adverse credit
The whole picture: what counts as adverse, what it costs, and who lends anyway.
What the rate actually costs
The four things that move your rate, and why no honest page quotes you a number.
Can I get a mortgage at all?
Eight questions, answered in your browser. No details stored, no email needed.
Back to mortgages with adverse credit · The broker people ring after being declined
If you would rather see someone local: I work in Uxbridge and I live in Guildford.