Borrowers who have recently used a payday loan risk having their mortgage application rejected, regardless of whether it was paid back.

Lender GE Money has stated that it will no longer consider applicants who have taken out a short-term, high-interest (payday loan) once in the past three months or more than twice over the past year.

Stating that as a responsible lender in a challenging market they have reviewed a range of data to make prudent mortgage lending decisions. Payday loan data is one of many items included in this review and if a mortgage applicant has a current or had a recent payday loan, it is unlikely that we will consider their mortgage application.

Companies specialising in credit checks have increasingly come under pressure to highlight payday loans on customer credit checks.

Global information company Experian now specifically lists payday loans separately in a departure from the previous practice of providing a more generalised overview of borrowing history.

If you are looking for a mortgage and have had a payday loan  within the last 12 months, call 01489 580020 and we can discuss your financial situation and provide you with the right product with the right lender for the right reason.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.