Yes, you can get a mortgage after a payday loan. But they do affect how likely a lot of lenders will be to consider you, especially if this sits alongside other issues on your credit file.
Lenders tend not to like seeing payday loans on applicants' credit file because they think it means you’ve had financial issues in the past, and therefore might not be able to keep up with mortgage repayments if they lend to you.
But just because some of the mainstream lenders will refuse you doesn’t mean all lenders will. Lenders have their own rules when it comes to giving mortgages to people who’ve used payday loans. Some might turn down your application as soon as they know about it – even if this was five or six years ago. But specialist lenders might consider you. They’re more likely to be willing to look at your individual situation, rather than just turn you down on the spot.
Specialist lenders will usually want to know:
When you took out the loan(s)
How much you borrowed
How many times
How quickly you paid them back
Using this information, they’ll decide whether they’re willing to lend to you. Quite often, they’ll look at how long ago the last payday loan was taken out. If it was recent, they’re less likely to accept you for a mortgage. But if it was years ago, that will work in your favour.
We get how it feels when you’re refused a mortgage. We’ve been there. Haysto exists because the mortgage world is broken. If you don’t have a shiny credit rating, you’re self-employed with a complex income, or just don’t fit the mould, the odds are completely stacked against you. We just don’t think that’s fair.
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