Having a recent payday loan on your credit history can make it much harder for you to get a mortgage at a good rate – or even at all!
If you have used payday loans, the rule of thumb for a mortgage application is to wait until at least 2 years have passed after your last payday loan was settled.
Before coronavirus, the usual advice was to wait one year. But from 2020 many mortgage lenders have tightened their mortgage requirements.
Even after the two year point, with payday loans showing on your credit record you should always go through a good broker. And you may still have difficulty if you had a lot of payday loans.
One way to try to clean up your credit record is to make a payday loan affordability complaint.
Payday loans make getting a mortgage hard
How do lenders know you have used a payday loan?
Mortgage lenders check your credit records when you apply. Most will do this before giving you an “agreement in principle” and they will then recheck more thoroughly before approving your actual application when you have found a property.
These credit checks don’t show exactly who you borrowed from. But they do show the sort of borrowing – loan, overdraft, credit card.
All three credit reference agencies in Britain – Experian, Equifax and TransUnion – show short-term high-cost borrowing such as payday loans separately from other loans. So a mortgage lender can see if you have used payday loans and when your last one was repaid.
Why do mortgage lenders care?
Mortgage lenders are a cautious bunch because they are giving you a large loan for 25 years or more. Although they have your house as security, they only make profits on lending where the borrower does not get into big financial trouble. So they want to weed out any applicants who may get into difficulties.
People in a good financial position don’t need to use payday loans – they have better ways of borrowing that don’t involve interest rates of 100% or more.
So using a payday loan, even if you repaid it on time, is seen by most mortgage lenders as a big warning sign that you had financial problems. And if that is recent they are probably going to reject your application.
As Which? says:
In a financial rough patch, you might turn to a payday loan, but doing so can have repercussions for years to come. Many lenders are unwilling to lend to someone with a payday loan on their record, even if it was fully paid off on time and from several years ago.
But doesn’t a repaid payday loan help your credit score?
Yes, it does. Making the payments on time for any sort of credit adds positive marks to your credit record. Unless you have a lot of big problems in your credit history, repaying a payday loan will tend to improve your credit score.
But your headline credit score isn’t a number that matters to a mortgage lender so this won’t help a mortgage application at all.
Instead they look at the details of all your borrowing and that includes whether you have used payday loans recently.
“Recently” – how long ago is ok?
Mortgage lenders set their own criteria here:
- some don’t like to see any payday loans at all, ever;
- a year used to be a common rule. This is what one reader said in a comment below this article:
My last payday loan was in November 2017 and I got a mortgage with [a high street bank] in January 2019.
I had waited 12 months to clear the “recent” impact of payday loans. - from mid-2020 there are indications that most high street lenders now want to see that your last payday loan was more than 2 years ago.
What are your options?
If you are some way away from actually applying for a mortgage, the implications are simple. Avoid payday loans!
You may feel that making the maximum savings into your LISA is the best thing to help with your house purchase, but if that leaves you so short of money that your credit record suffers or you have to get a payday loan in an emergency this isn’t sensible.
If you missed some payments or had defaults on payday loans
Here it isn’t just the payday loans that are the problem, it is the negative marks on your credit record.
If the payday loans you had were unaffordable, you may be able to complain and ask for a refund of the interest you paid. Getting some money back would be good for your deposit and it has the good side-effect that negative marks are usually deleted from your credit record!
This is one of the very few situations in which defaults can be removed before they drop off after six years.
So if your payday loan borrowing had defaults or late payments, this could clean up your credit file. Find out more at How to ask for a payday loan refund.
Has your lender gone bust?
If you borrowed from a lender which is in the early stages of administration (that’s like bankruptcy for a company) then you can make a claim to the administrators about unaffordable lending.
But if they have are in the late stages or have already been liquidated as a company, you can still get those loans removed from your credit record by asking the credit reference agencies to “suppress” them because the loans were unaffordable but you can no longer get the lender to remove them.
Did your payday lender say they would help your credit record?
Some payday lenders say using their loans will help your credit score. Paying any credit on time helps your credit score, that’s true…
But if the payday lender website or app doesn’t also say that payday loans show as a special category on credit reports and that some lenders, especially mortgage lenders, are likely to decline you if you have had payday loans, then that is misleading.
In this case, you can complain to the lender and ask them to remove the loans from your credit record entirely. If they refuse, send your complinat to the Finacial Ombudsman.
Take a screenshot of the misleading information to help your complaint. If you are sure you saw it, but the website has since changed, have a look at old copies of the website using the Way Back When Machine.
If you had payday loans & they were repaid on time
If the payday loans were repaid without problems, then:
- wait until the last one was repaid more than two years ago;
- after that point, talk to a good broker who will know which high street lenders are likely to approve your application; and
- also have a look at whether you can get a payday loan refund. It won’t help your credit record but it could boost your deposit.
Applying directly to a lender is taking a gamble, so it is always better to go through a reputable broker.
This doesn’t have to be a “bad credit” broker if the only problem on your credit record is a few payday loans. Two good brokers are London & Country, a fee-free broker that covers the whole market and Habito which has an online service.
Last updated in January 2021.
Will defaults stop me getting a mortgage?
95% mortgages – what you need to know
35-40 year mortgages – be careful!
James says
I just wanted to put a message on this forum hopefully as some assurance for people and to share my gratification for Sara and this site. I had a history of over 70 payday loans with different companies, the most recent being around 2 years ago. All were paid in full but I was in a cycle that was really hard to get out of. I made complaints to a number of companies, got some refunds and got around 60 of these loans removed from my credit report. I have recently been fully approved for a mortgage with Nationwide and will be completing in the next month which I never thought would happen. Keep going!
Dan says
Hi James
Wow this is really re-assuring ! Was the one from 2 years ago still on your credit report when you applied ?
Also did you go via a mortgage broker ?
I hope everything goes well with your move.
Regards
D
James says
Hi, yes there were two from just over 2 years ago on my credit report, any others were over 4 years. We did go through a broker and I would definitely recommend it.
Good luck.
Ryan Todd says
Hi James, how did you get them removed from your credit file? They just removed the negative marks from mine, but all the loans still sit on there.
Ste Taylor says
How did you get them removed from your credit file?
Mark Forbes says
Hi James, how did you make your complaints to these companies to get them cleared?
Emma says
Hi just after some advise.
I took out pay day loans and the last one was paid off in March 2020. I have never missed a payment. I have raised a complaint as I took more than 1 from the same company.
Me and my partner are looking to buy a house next year. Being a year out of PDLs will I have an issue? My credit score is excellent with experian and my boyfriend has an excellent credit score and good savings behind us.
Sara (Debt Camel) says
At the moment it seems that many lenders are saying you need to free of payday loans for 2 years. Before the pandemic this was only one year.
Vic says
Let me k ow how you get on Emma. We are in the same boat.
Vic says
Has anyone recently applied for a mortgage with a payday loan history of 1 year. Me and my partner what to buy a house with 20% deposit, he is earning more than me and has a brilliant credit history. I am working on my credit score now, no defaults or late payments, paying my credit cards off but unfortunatelly had to have a few small payday loans less than a year ago. I am so embarrassed that my partner will find out when we go to the broker and so scared we will be refused even if we go after one year has gone.
Sara (Debt Camel) says
I suggest you tell your partner now. It is going to be less embarrassing than telling him in front of a broker! And the broker needs to know this – he can’t do his job properly if you don’t tell him about this.
Dave R says
Hi Vic,
Just a word of advice, I was in exactly the same boat as you this year:
I’ve used these bloody things on and off for a while and always hid it from my partner as I thought, as long as they are paid off and it doesn’t effect our lives together, then it’s just my problem. But I always carried the fear of being caught and the guilt and the shame of depending on such vile companies.
I figured I could get debt free and stop using them for years before we apply for a mortgage etc together. The anxiety was starting to take its toll on my mental health and I just had to come clean and tell her. The relief was huge and whilst it was far from an easy conversation – it’s done us a world of good and probably brought us closer together. I couldn’t bear the thought of a mortgage broker saying “we can’t give you a mortgage because of your boyfriend’s payday loan history” – don’t let your partner find out that way under any circumstances. They will probably even think ‘the only reason you’re telling me is because you’re about to get caught out’ – but it’s still way better than the former.
Tell them, they will work through it with you and help you I’m sure.
Vic says
Hi Dave, thank you so much for your advice. And Sara, thank you as well. I am worried my partner will get upset with me because I didn’t ask him for help, I went to pay day loan company. This is so embarrassing. It is behind me. I am debt free with outstanding credit score. I have savings behind me for the first time since I was a kid lol. I will tell him just before we go to the mortgage advisor in the spring (it will be a year since my last PDL). The anxiety and shame connected with those companies are horrible and so bad for mental health.
Ryan Todd says
Hi,
I took out a lot of payday loans (roughly 100) because of gambling – I went through the ombudsman and settled to get refunds of interest, due to being loaned irresponsibly/unaffordable loans. However, these loans still sit on my credit file.
My credit score is good, but my credit history is bad. My last closed payday loan was July 2020, but the bulk of my loans were 2016-2018 (the complaint to ombudsman was made in 2018).
I have one in the past year, two in the past two years and then a huge amount (75ish) in the past six years showing on my credit file.
What I’m asking is, if I’m looking for a house this year, is there any point trying, or do I have zero chance of getting a decent mortgage (or one at all)?
I know you mention lenders won’t lend to you if you’ve not had a loan in the past two years, so will I have to wait until July 2022 to apply for a mortgage? And if so, with the bulk of my loans being a few years ago (it’ll be 4-6 years ago by July 2022), do most lenders accept that they were a while ago and I’m now financially stable?
Also, I made most of the payments to the loan companies early (as part of my addiction cycle) and so rarely missed a payment (I have zero defaulted accounts). How do I see missed payments for things on my credit file, or can you not see those?
Any help would be much appreciated
Sara (Debt Camel) says
How large a deposit in % terms do you have?
Ryan Todd says
Hi Sara, the deposit would be nearer 10-15% end as we’re first time buyers.
But we wouldn’t be looking until 2022 anyway – meaning the most recent payday loan was 1.5 ish years on application and then 2 years for two others, then 4-6 years for the other 75…
I also see on my Experian that the payday loans have been listed under ‘loans’ rather than ‘payday loans’ – do you know if that’s good? I know when I settled, they said they’d remove any negative marks against credit file (but the loans are still on my file, annoyingly)
Which leads to my last question of how it’s possible to get settled unaffordable loans removed from credit file? I called one today (Mr Lender) and they said no, another is getting back to me (lending stream) and a third (Sunny) is in liquidation so I’m not sure how that’ll work.
I know I was an idiot for having a gambling addiction, but seems harsh to keep those loans on file considering they agreed they were basically wrongly loaned to me
Sara (Debt Camel) says
it’s very tough to get a mortgage with less than a 15% deposit at the moment. I suggest you wait until 2022 and come back and check again. The rule of thumb used to be wait a year – it has only lengthened to 2 years this year when the whole market has gone ultra-cautious.
Normally loans are only removed if you had a lot from the same lender.
If you have accepted a settlement and not asked for the loans to be deleted then, most lenders won’t change their minds now.
Ryan Todd says
Thanks, appreciate the help.
In terms of a credit score, why is mine so high, despite the history of payday loans? May this be because the negative marks were removed from most of my loans, or just because the loans have now been closed, so don’t count towards the credit score…? I know the credit score isn’t important for a mortgage, but what do the mortgage lenders look for, if not the credit score? I always presumed the credit score was the snapshot of your credit report and therefore once they’ve looked at that, see you have a good credit score, then move on to the other lending factors like expenditure & current debt, earnings, deposit amount etc etc. Or do they go through the credit report loan-by-loan and ask me what it was for and put negative marks next to them for my mortgage application?
Sara (Debt Camel) says
A credit score is a pretty meaningless number – no lenders actually use it.
“Payday loan” is a flag against a debt. It isn’t used in calculating the credit score. But mortgage lenders definitely do look for it.
A mortgage lender won’t want you to say what a loan is for.
Ryan Todd says
Ah okay, thanks. What if the negative marks have been removed, eg it’ll say I paid them all on time – can that be in any way positive/neutral if I have 75 loans over the course of mostly 3 years? By the time I apply it’ll have been a year since my most recent loan, two years since my previous two loans and then the rest will be 3-6 years in the past – I presume that will help me? And what’s the difference between a loan and a payday loan? The loan I had a year ago was Oakbrook Finance – do they count as a payday loan company (bad) or a regular loan (not bad, as I only had one and paid on time)
Sorry for all the questions!
Sara (Debt Camel) says
Getting that many loans will suggest to most lenders that you were in a desperate position!
Oakbrook aren’t regulated as a payday lender. But you need to check your credit records to see how the credit reference agencies have categorised them.
Ryan Todd says
Yeah that’s not good. I spoke with the FO that I dealt with years ago and he said there’s nothing he can do in terms of removing them from credit report, as I settled. But he said FO have changed their ways and now include removing payday loans from credit files in the suggestions, rather than just the negative marks. Which is gutting for me, as it seems I’ve lost out just through bad timing. Is there any way to get them removed retrospectively (post settlement)?. And well that’s the weird thing, is I only have one loan under ‘payday loan’ in my Experian file, but the rest of them under ‘loan’… Do you know what that means, is that good? Or does it mean nothing, as they’ll know the names of the companies anyway (eg Lending Stream & Sunny are clearly payday loan companies)
Matt says
Hi Sara,
I hope you’re keeping safe and well in these times and thank you for your continued support to everyone.
I’m looking to obtain a mortgage but haven’t started any process yet.
I’ve managed to save around 15% deposit. And earning a good salary.
But concerns ultimately is my previous borrowing from PDL providers.
I don’t have any open now.
According to Experian, Here’s a run down of what I’ve had in the past:
0-12 months – none
1-2 years – 12 across 4 companies
2-3 years – 1
3-4 years – 9 across 4 companies
4-5years – 5 across 2 companies
5-6 years – 1
Do you think I would be able to obtain any mortgage with my history? Maybe even a poor credit mortgage provider?
No defaults etc.
Really appreciate your help,
Matt
Sara (Debt Camel) says
I think you may struggle to get a mortgage with a high street lender because of the loans that are between 1 and 2 years old.
I really don’t suggest a bad credit lender. They will say it’s only for a couple of years then you can remortgage onto a normal rate, but there is NO guarantee you will be able to do that… After the last crash in 2008/9, lots of people were trapped on high credit mortgages for many many years.
James says
Hi Sara,
Sorry for all the questions….. As you know I won the affordability claim against Amigo and also Myjar and paid the remaining balances, Myjar is still showing as default which i have raised again with Equifax as myjar have advised them to remove all negative markets and to change from default but they have advised not to remove from credit file all together as the marker should remain.
Amigo and previous myjar loans are still showing in closed and paid as well. I was under the impression when I won this affordability claim they should be removed from my credit file and not showing in closed accounts?
Thanks
Sara (Debt Camel) says
Normally if you win an affordability complaint all negative marks are removed but the debt isn’t. If you had a LOT of loans with a lender, and the Ombudsman say 15 should be refunded, then the ombudsman may say something like delete the negative marks for the first 5 being refunded and delete all the loans for the later 10.
Sometimes lenders are lazy and just delete the loans anyway, but really they shouldn’t.
“they have advised not to remove from credit file all together as the marker should remain”
who is “they” in this sentence?
James says
This is myjar.
I had 5 loans with them 4 i repaid in full and 1 which went to default, i wont affordability with them but Equifax are keeping it at default even though Myjar confirmed it should no longer be at default.
Sara (Debt Camel) says
I am still not clear.
Myjar agreed the loan was unaffordable. Was this direct to you or via FOS?
They agreed to delete the default.
Now Myjar are saying they can’t do this because Equifax won’t let them?
James says
Sorry i won directly through myjar, myjar replied to say please delete any negative remarks from the file but it is still sitting as default with Equifax
Sara (Debt Camel) says
And have Equifax told you they won’t do this? Or have Myjar told you Equifax won’t do this?
james says
So I made a query to Equifax who asked myjar, myjar advised to change to no missed payment etc but Equifax still have it as default. So I had to open another dispute again, sorry it would not let me reply to your msg.
Sara (Debt Camel) says
myjar advised to change to no missed payment etc
how do you know this?
The problem here is that normally you just send Myjar a new complaint and they have to sort it. But they are now in administration, so I want to to know what you have in writing from Myjar that means the default should be removed.
jenna Mills says
Hi Sara,
i have a number of payday loans on my credit file settled between 10-4-2015 & 7-10-2015, i know these will drop off my file this year. However i am looking to get a mortgage with my partner this year in June (there will be 1 remaining on my credit file). He already has a mortgage and will be selling his property and getting a mortgage with me – his credit is excellent with no loans etc.
My first question to you is will these payday loans from 2015 effect me getting mortgage with him?
Secondly, I closed a very.co.uk account on 28-1-2017. Looking at my credit file there are a number of late payments between 2011-2016 – however i know this not the be the case as every time i missed the payment date i paid well within a 30 day period and therefore shoudn’t be marked as late – i am actually disputing this and requesting my old statements tomorrow from them.
My second question is, should i not be able to correct the faults on my credit score file, will these missed payments from 2011-2016 have an effect on getting a mortgage with my partner?
I read above that usually they just look at 2 years.
Kindest regards,
Jenna
Sara (Debt Camel) says
I would be surprised if those old payday loans make a difference, assuming they were all paid on time.
The old missed payments are also pretty old. You should probably be ok even if you can’t get them removed, assuming your deposit is large enough and you two pass the affordability checks. But definitely go through a good broker, don’t apply direct to a high street lender.
Amy says
Hi Sarah,
I have just been looking through my credit file with Experian. I have 10 paid off lending stream loans from 2017 – 02/2019. I also have 3 Sunny loans with the last one being closed 02/02. I never missed a payment on any of these and they are all paid off in full. I have no debt on my store or credit cards. I am looking to apply for a first time mortgage in May of this year alone, I have a new build house reserved. Do you think I have any chance of being accepted by any lenders or is this wishful thinking?
Thank you
Sara (Debt Camel) says
I think you should talk to a broker urgently but you may have a lot of difficulty.
Amy says
Thank you for your response I will take a look at some local ones. I have been banking with Natwest for over 10 years and have my mortgage in principle with them, I also have had long term loans with them in the past, do you think it would be sensible to continue with them or seek other options?
Sara (Debt Camel) says
I think you should talk to NatWest now and make sure they are aware of the payday loans.
I don’t have much faith in people getting a good decision because they have been a loyal customer I am afraid.
Amy says
That’s really helpful, thank you for your time.
Amy says
Hi Sarah
I just wanted to add since reading more info on your website I decided to apply to both lending stream and sunny with an unafordability complaint to have these wiped from my record. The administrators from Sunny have advised they were unaffordable and have advised me to contact the CRA’s direct.l to have all 3 removed. Lending Stream have agreed that 6 out of 11 were unaffordable and although they won’t wipe these from my record I have been offered £748 compensation. I only complained to LS 6 days ago so the quick reply has me thinking I could maybe push this further?
I would advise anyone who has multiple loans to explore this amazing site a bit further and see if you are eligible as well!
Thanks again Sarah
Adam says
Hi Amy – I saw your post further below on Sunny. Do you have the details of the administrator as I looked on the Sunny website and can see there customer support email and phone is still open.
Thanks!
Vicky says
I am in a very similar situation. And want to apply in the summer. However it will be two of us on a mortgage and my partner earns more and has no history of pdl.
Please let me know how you get on.
Fred says
I have had some success in removing settled entries from my credit file buy asking the companies directly to remove them.
I have gone along the lines of saying it was never mentioned that a settled account would have a negative effect on my future borrowing.
So far Peachy and provident have agreed without any fight. I am working on a couple of others.
Fred says
Also wanted to add, Myjar informed me the are removing all entries for customers.
Adam says
Hey Fred, I’m in a similar situation and have written to MyJar, lending stream and uncle Buck. Just curious how long typically did they take to remove the settled account records from your credit report after you made the request? Also, is there any wording you’d recommend in the emails you sent, other than not being aware of negative impacts? For example did you mention they never did sufficient affordability checks? Thank you!
Rach says
Hi,
Can I ask about the myjar. My current loan with an outstanding balance has disappeared from transunion, however nothing has been updated on equifax for over a year. Did they say they are completely deleting records?
Thank you
Sara (Debt Camel) says
Have you sent an affordability complaint to Myjar?
.
James says
Hi Sara
My last payday loan was paid back in August 2019 & I am now building up good credit, however I have a loan with ‘likely loans’, I presume they are not a payday lender but can you confirm if a mortgage lender will view them differently to a payday lender just view them as a ‘normal loan’?,
Thanks
James
Sara (Debt Camel) says
likely Loans will not show as a payday lender to another lender checking an application. And they cannot see the names of your lenders. If they did detailed maths they could work out this was a very expensive bad credit loan but I haven’t heard of people being refused a mortgage just because of this.
Of course the loan repayments will make it more difficult to pass the affordability test for a mortgage.
James says
Hi Sara
Thanks so much for your advice, my repayments end sept 21 & I will be looking to buy summer 2022, I did have poor credit when I took it but I got a promotional offer of 30% not the 60odd % advertised
… just getting my ducks in a row before I buy
SHAGAR says
Hi Sara
I had few payday loans back in 2017 and I am planning to get a mortgage in end if 2021. My credit history and credit has improved after I stopped taking Pay day loans and focused on being debt free. Will these payday loans affect my mortgage application. I am also starting to some of the lenders to get it removed on basis of affordability.
Regards
Shagar
Sara (Debt Camel) says
As those are so old you should be OK. I suggest you talk to a mortgage broker though, do not apply directly to a lender.
Shagar Gurung says
Thank You Sara. That’s a Relief. I will go through a Mortgage Broker.
Dan says
Hi Sara
Can I just check that when checking your credit file mortgage lenders are only able to see the type or credit I.e credit card, loan etc and not the names of the creditors ? I’ve been given mixed information with regards to this and some say they can see the names of the creditors so I just wanted to clarify ?
Regards
D
Sara (Debt Camel) says
They can’t see creditors names on credit checks,
BUT payday loans have a special flag, so they can see that.
And most mortgage lenders ask for bank statements and they can see the creditor names on there.
Dan says
Thanks , there were settled a while ago now so won’t show on bank statements . I’ve checked both Experian and Transunion and they appear within the Unsecured loans section not payday loans . Could they still be marked differently when lenders check ?
Thanks
D
Sara (Debt Camel) says
who were the lenders and how long ago?
Dan says
Hi
The lender is lending steam and it was almost 2 years ago . They appear as unsecured loan in trans union and just personal loan within Experian . They do not show on equifax at all .
Regards
D
Sara (Debt Camel) says
were the loans over a year in term?
D says
No they were slightly less . It doesn’t actuality say the loan term on the reporting however I’m assuming lenders will be able to see that it’s a short term loan just from looking at the first and last payment dates .
Thanks
D
Sara (Debt Camel) says
Lending Strem loans would typically be flagged as payday loans on a credit record. I don’t know what credit report you are looking at but I suggest you get the statutory reports from TransUnion and Experian and see what they say. See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to get those reports.
Natalie says
Hi Sara,
There is a Myjar settled account showing on my record. It was settled without default (after they agreed it was unaffordable) back in mid 2018. I have no other payday loan/adverse credit on my record and utilise less than 25% of my credit card balance. Do you think I would be favourable to lenders? I will be applying with my partner who has no adverse credit on his record. Thanks
Sara (Debt Camel) says
Assuming your deposit and affordability is ok you should be able to get a mortgage from some high street lenders – do go through a broker though, don’t apply direct.
Natalie Murray says
I am going through a broker but hadn’t told her previously about the payday loan as I couldn’t see it on Experian but will inform her about it before my full application goes in incase she thinks I’d be better suited to another lender. My DIP Is with Barclays 😝
Sara (Debt Camel) says
Ok, check your TransUnion and Equifax credit records as well (see https://debtcamel.co.uk/best-way-to-check-credit-score/) to see what a mortgage lender will see.
Natalie says
Have checked all of them now, that’s how I found the old payday loan that’s still showing. I’ve contacted my broker today to tell her about it and see what she thinks is best 😊
CJ says
Hi Sara,
Both my partner and I have passed affordability checks for a mortgage on a new build house. We are a second time buyer and have a 10% deposit. Both of our credit scores are excellent, I have old PDLs from 2015/16 (9). Last one was settled Jan 17. All paid on time, no defaults etc.
We are ready for our application next week, do you see there being any issues? It’s quite worrying and would like some advice please. Thank you.
Sara (Debt Camel) says
a 10% deposit is pretty low, especially on a new build which typically drop in value in the first couple of years. Have you talked to a broker?
CJ says
No. The lender are accepting 90% LTV, and are aware that it is a new build property. We won’t be moving thereafter. It was more about the advice on the PDLs, it’s widely publicised that lenders go back six years, but in the the thread I’m picking up, most ignore if longer than 2 years. It was more for clarity on that really. Thank you so much.
Sara (Debt Camel) says
Well I hope you won’t have a problem. Many lenders will be fine with old PDLs but I always suggest going through a broker.
CJ says
Thanks Sara. Really helpful. Would there be any reason why you wouldn’t go direct to a lender and therefore use a broker?
Sara (Debt Camel) says
Because brokers know the up to date market and which lenders are likely to be less or more concerned about old payday loans.
John Michael says
I have just had it confirmed that a payday lender will now …
“Thank you for contacting us
We can confirm that we have requested from all of your loan entries to be deleted from your credit file.
Please note that it is down the Credit Reference Agencies to make these changes. However, it may take between 30-60 days for them to process the data that we send across to them.
If you have any further queries, then please do not hesitate to contact us. ”
Do you think that the credit agencies can refuse to take the Loans off my credit report despite the payday loan provider requesting this ?
Sara (Debt Camel) says
No they won’t refuse. Their job is to report what the lender says.
John Michael says
So all my loans will be removed? , I never defaulted instead confirmed that I wasn’t aware that paying back on time and in full would still affect my credit rating. I had about 8-10, is this common now for them to remove if you feel you weren’t made aware of this detrimental effect on your credit rating in that they haven’t discharged their duty to make you aware ?
Sara (Debt Camel) says
who is the lender?
Vicky says
Wow you are so lucky!
I tried to do the same with Sunny but as they entered administration they can’t do anything. This is life changing John! Congrats!
Jim says
I’m in a similar position. I have approached Experian to ask them to remove the Sunny entries. They’ve just responded saying they are settled and will be on my record for 6 years from the settled date.
Sara, What’s a good casing point to get these suppressed? I did put in a affordability complaint to Sunny last year which was acknowledged with a follow up email in November saying I will hear the outcome in January. I went to the administrator website last week to see what updates there are, they have said they have stopped dealing with the CRAs and they’ve passed it all over to them! What’s next?
Sara (Debt Camel) says
read https://debtcamel.co.uk/500000-sunny-customers-tiny-refunds/ and https://debtcamel.co.uk/correct-credit-records-lender-administration/.
John Michael says
Do you think a loan from everyday loans would have the same negative effect a payday loan would have on a mortgage application. I took it out In January 2020 to pay off the payday loans. Do you believe a lender may see the high interest as showing you had no other options I.e high street main stream loan offers? Or is it not looked upon like that instead as just a loan and will be fine?
Sara (Debt Camel) says
An Everyday loan is not flagged on your credit record as being high cost short term credit.
A mortgage lender may be able to work out that it is high cost from the balance and the repayments but they may not care.
The high repayments will be taken into account when assessing affordability though.
John Michael says
Thanks for confirming sorry I meant to say it was paid off in full last year so not paying any longer the last one on on my report is a revolving credit like a payday loan called indigo Michael limited it has shown as credit card and was closed very quickly I take it that would also not be flagged ?
Sara (Debt Camel) says
I don’t know – have you looked at your credit record?
I regard SafetyNet Credit as a payday lender and if you used them for more than a few months you should consider putting in an affordability complaint against them, use the template here: https://debtcamel.co.uk/payday-loan-refunds/
John Michael says
It was safety net I used them in 2018 for few months closing and settling in September 2018 and then nothing until October 2020 I registered and they made £132 available which I never took and closed immediately but it comes up credit card from indigo michael limited on my credit report from equifax- do think this will be an instant rejection now on mortgage application and is it worth emailing on the affordability if I never actually received money from them? Thanks
Sara (Debt Camel) says
A mortgage lender can’t see the name of who you borrowed from. If it isn’t flagged as a high cost short term loan on your credit record, a mortgage lender is unlikely to realise.
John Michael says
Thanks Sara , I never realised that so they don’t see the names like we can only the type of credit /length etc – excellent – thanks for your input you have been great !
Chris Bingham says
Hi Sara, I am looking to take out a mortgage in the spring of 2022. I had 3 payday loans with peachy with the last one being December 2019. All were paid off on time. Iv also always had an arranged overdraft that I have lived in. I have gotten rid of that this month. Will I have to wait 2 years after removing this overdraft to get a mortgage or are they seen differently to PDLs
Many thanks. Chris
Sara (Debt Camel) says
Overdrafts are seen differently to payday loans so clear of an overdraft for a year and payday loans for two years should be good.
Good luck for next year – do go through a mortgage broker, not direct to a lender.
Chris Bingham says
Brilliant thank you for the peace of mind. Will
Do
D says
Sara,
Last PDL for me cleared / closed 2018 Oct. ( Sunny/ Elevate) – I am hopefully trying to get this removed.
Being accepted now for AIPs no problem. Will I likely face a grilling or disappointment on full mortgage app? Has anyone got any success stories. Going to submit mortgage app next month or so.
Credit score is 999 no issues and debt free with full 10%. Deposit. Just worried it may get pulled last min.
Sara (Debt Camel) says
I hope you will be ok but I always suggest going through a broker.
Joyce Hamil says
Hi Sara, bot myself and husband credit score 550 and other 770, have nationwide mortgage and 2 secured loans on house.PDL’s taken in past now paid in full. Credit cards trying to pay off. Is there anyone who would give us mortgage ? Anyone recommend a broker who can help?
Looking to move to a 3 bed asap
Sara (Debt Camel) says
How long ago were the payday loans?
Do you have unpaid defaulted debts?
What % deposit will you have for the house you want to buy?
Robert says
Hi all
Managed to get my debt sorted through this website (thanks Sara and everyone) by making lots of affordability complaints. Unfortunately the majority of the loans remain on my report.
Hoping to apply for a mortgage later this year. My last payday loan repayment would’ve been 18 months ago when applying. Anyone have any success stories on getting approved under two years? I had a lot of them over a three year period, probably around 30-40. This was due to family issues. I never missed a payment on them. I’ll be debt free when applying.
Appreciate this article says two years but wonder if anyone has had any recent luck with lower.
Thanks
Jim says
Hi Sara, I have looked on my credit report and the settled loans I took out with the payday lenders, the CRAs has categorised them as either “loan” and/or “unsecured loan”.
Some other payday lenders on my credit reports have been categorised as “advance against income” and/or “Payday Loans”. Again, all settled no payment issues. I am currently emailing these lenders, to ask them to remove them from my report. While I am waiting for a response, should I also ask the lenders that are NOT categorised as a PDL on my CRA to remove these entries? Most are under 1k.
Thanks in advance.
Jim.
Sara (Debt Camel) says
A mortgage lender can’t see the names of your lenders. Unless the loan is flagged as a payday loan, a mortgage lender probably won’t notice them.
Channing says
Hi,
I had 4 payday loans all in 2016 from wonga which were paid off in full and on time. They still show on my check my file credit report under closed accounts. It says they are going to be reported until the end of this year however we are going to apply for our mortgage june/july time and I am getting anxious at the fact this could mean we are rejected.
I have seen a few comments that people have complained and gotten them removed from their credit file, is this something I can try and do? And if so what would I say?
Thankyou in advance.
Sara (Debt Camel) says
It is unlikely that just 4 payday loans in 2016 with no payment problems will cause a problem fro a mortgage application. Go through a broker and you should be fine.
You can ask the CRAs to “suppress” the records if they are incorect, see https://debtcamel.co.uk/correct-credit-records-lender-administration/. But I am not sure what reason you have for asking for this to be done?
Channing says
Thanks for the reply Sara. That’s good to hear.
It’s just incase they decline the application but they aren’t incorrect I was just wondering if I could get them removed!
Sara (Debt Camel) says
You can ask for them to be “suppressed” – that means no other lenders can see them. So it’s as good as being removed.
If you had a reason to say they were wrong, the CRAs have to suppress them as Wonga no longer exists for the CRAs to check with.
So what could your reason be? Were you told getting payday loans would help your credit record and it wasn’t explained that they make it harder to get a mortgage?
Jim says
I’m in the same position. I’ve already had one lender agree earlier this week, they will remove the entry as ‘a gesture of goodwill’’ as the settled loan is having a negative impact on my future borrowing. I’ve tried this with another lender, they declined to remove the three entries, but they’re dated over two years ago. I’m waiting for them to fully liquidate as they’re already in administration, then I’ll raise it with the CRA to suppress.
With another lender that’s already disappeared, I’ve raised a dispute with the CRA to remove quite a few from my report, they are going through the motions I.e. they’ve said we’ve approach the lender for a response (lender does not exist now) – so once the CRA has completed their own protocol, which is 28 days has lapsed from no response from the lender, I’m assuming then this is the point they will suppress the record.!!?
Channing says
Hi Jim,
What lenders is it that are affecting you be able to borrow? And what company is it that you’ve approached to get the entries off?
All mine are with wonga and I’m not sure if they have fully liquidated yet, if so il just go straight to the CRA.
Sara (Debt Camel) says
Wonga are no more https://debtcamel.co.uk/wonga-has-stopped-issuing-loans/
Channing Chapman says
I was never told they would affect my credit file or stay on for 6 years after having them settled if I went for a mortgage. All I thought was that if I repaid them that would be it, is that a good enough reason?
Sara (Debt Camel) says
It’s worth a try. If it doesn’t work – well I still think you should be fine to get a mortgage.
Steve says
Hi Sara,
Thanks to your advice, I made successful affordability claims against a number of PD lenders, the claims culminating in refunds on roughly two thirds of loans I took out between 2014-17, my question is this, my girl friend bought out her parents home for 80k, the home is valued at 125k, she wants to remortgage with me to release the rest of the equity in the house(major repairs) , are my PD loans from 2017 likely to make problems for us in the application?
Sara (Debt Camel) says
Old payday loans may not be a problem, but how many of them are there on your credit records? Are any of them with lenders who have now gone under?
Steve says
Hi Sara,
The loans with Sunny, Wonga and Lending stream, the last loan was settled in 2017, I had no defaults or late payments with any of them, there were approx 70 loans spread across those 3 lenders between April 2014 and May 2017, the older ones are beginning to drop off my file now, but still very apprehensive about making a mortgage application.
Sara (Debt Camel) says
Lending Stream is still going, so send them an affordability complaint: https://debtcamel.co.uk/payday-loan-refunds/
Wonga – the company has now been dissolved. Sunny are in administration but are past the point where you can make a claim – but the Sunny administrators are no longer responding to queries and will not respond to the Credit reference agencies either…
So what you can do now is contact the CRAs (check which ones these loans show on) – say you are no longer able to contact the company because it is dissolved/in the late stages of administration to get your credit records corrected so you want the records “suppressed” so they no longer show. See https://debtcamel.co.uk/correct-credit-records-lender-administration/
It isn’t clear if you will be asked why you want the records deleted. You may not be. But if you are you can reasonably say that the lender’s website suggested that taking payday loans that were paid on time helped your credit record which was misleading as they make getting a mortgage harder.
Ashley says
Hi
I am planning to purchase my late Grandmother’s house in the Summer and am concerned about old payday loans on my credit file. I have 4 payday loans showing, the most recent closed in 2016 so they are very old but I have read that any sign of this type of loan and rule a mortgage out completely. These were all paid on time at the time. My credit file is great apart from these showing. I would hate that something so old could jeopardise my chances.
I will have 15% gifted equity deposit from my mum as my deposit. As a single parent with an income of 26k on a 95k property I am unsure if this is is viable?
Any input of
Sara (Debt Camel) says
I don’t think just 4 very old payday loans should prove a problem. But do go through a broker, don’t apply direct to a lender.
Ashley says
Thanks for the reply. 😊
Definately will use a broker to ensure thw quickest and easiest route.
Sue says
Hi,
I don’t have any payday loans but I’m a guarantor for someone with one who has now stopped paying so I’m paying for them. Will this count as me having a payday loan and prevent me getting a mortgage?
Sara (Debt Camel) says
Who is the lender?
Lauren h says
Hello,
I have a similar situation to others commenting on here, my husband and I are first time buyers, we have a decent deposit of £40,000 hand his finances and salary are great! Mine however not so much! I have gamble history and a little recently which is now under control. I have taken out two loans with Fund ourselves in February and start of this month for small amounts and paid back within a week or 2 of taking them out. I’m self employed and have been on maternity so all a broker has to go by is my 18/19 and 19/20 tax returns. We are hoping to get a mortgage this year. Does this seem completely impossible? Thanks
Phil says
Hi Sara,
I’ve history of 34 Pay Day Loans taken out since April 2017 with my last one being in February 2020 (All with Sunny or Wonga, both of who no longer exist). I always paid on time, and have asked the Ombudsman to look into whether I was mis-sold them due to affordability (these were consecutive loans) and dishonestly (I don’t remember being told it would affect my credit history, particularly for mortgages).
I’ve got 14 months clear of PDL but I’m reading online that since COVID, many lenders are more cautious and now want 2 years free of PDL rather than 1.
Will it help me at all that my your partner has a perfect credit history and have a bigger salary? He earns around 47k and I’m on 35k, he has a perfect credit history and we both have excellent credit ratings (no missed payments). We are going through help to buy, 5% deposit on a 380k house so are looking for a 285k mortgage.
We are just about to go through with our broker to a High Street Bank for a Mortgage in Principle. I’ve heard that it is after this when you go to proceed with the offer that a much harder check is carried out and this is when we are likely to be refused? I’m worried it will ruin our chances of owning home this year, as we wanted to avoid the Stamp Duty tax too.
Thanks in advance for your help re. PDLs.
Phil
Sara (Debt Camel) says
Will it help me at all that my your partner has a perfect credit history and have a bigger salary?
probably not :(
We are just about to go through with our broker to a High Street Bank for a Mortgage in Principle.
what does your broker say about the payday loans?
Read https://debtcamel.co.uk/correct-credit-records-lender-administration/
John says
Hi, my last pay day loan was cleared in December 2019 and I am going to investigate the government mortgage guarantee scheme. I have 7 in December 2019 and 4 in 2018 and all were from Sunny. I went down the dispute route last year with KPMG and I was awarded about £12 due to the fact the loans were all 2 week loans at £150. They said they would remove them from my credit file and I can see that on “check my file” it says
Elevate * – Not recorded and each credit agency has different info, Experian doesn’t have them recorded except 1, EQFX has them as unclassified and then settled with a balance of £0 and TransUnion has has them all listed as per the original agreement (however my broker has advised me mainstream lenders tend to not use TransUnion more EQFX and Experian).
I have spent hours googling if “elevate – not recorded” means they are swiped from my file and I can only see them as it’s my own personal file or if lenders can see them too.
Some help would be appreciated.
Thanks
John
Sara (Debt Camel) says
my broker has advised me mainstream lenders tend to not use TransUnion more EQFX and Experian
That is a very odd statement from your broker. You might want to talk to a different one.
I suggest you get your statutory credit reports from each of the three credit reference agencies to see what shows there, see https://debtcamel.co.uk/best-way-to-check-credit-score/
It may well be the Sunny loans are in the process of being deleted. But it would be better if this has happened before you make an application.
You can also ask the CRAs to “suppress” your Sunny loans as Elevate *should* have deleted them. See https://debtcamel.co.uk/500000-sunny-customers-tiny-refunds/
John says
Hi Sara,
Firstly, thank you so much for your time. I have raised disputes with agencies today and a top tip – anyone with check my file they will do this on your behalf and are very helpful (it seems like they have a lot of experience in this). I did have one more questions, me and my partner have an AIP with Natwest at 90%LTV and the property we have found comes in at around 50K under our AIP (I have been in debt and do not want to mortgage myself up to the eye balls). We are about to submit the application and I wondered if you had any experience with Natwest under writters? I had 17 pay day loans from October 2017 to October 2019 so about 18 months old. Do you think this is going to be a massive issue? They were for around £200 to £250 each, paid back on time and in full. I started using them to pay for works on my car and just got stuck in the trap.. as so many people do!
Thanks again for your help.
John
Sara (Debt Camel) says
First of all it is honestly quicker for you to raise the disputes yourself and not your a credit report as the middle man. They add nothing to the process and they may get in the way if they haven’t been clear about the need to “suppress” the credit records and why … this is NOT normal thing to ask for.
What did you broker say about the payday loans? These could be a major problem for you.
John says
Ok perfect, I will raise these myself. The broker said
“We have access to lots of lenders, some have very strict policies on pay day loans others do not. The fact the last one was settled 18 months ago should mean we are able to find someone as most lenders like no pay day loan use in the last 12 months”.
My concerns are that the article says they want 24 months good financial behaviour. I do not want to submit an official application, have a hard search on my credit file and then be declined and struggle because of the hard search. A friend of mine recommended speaking with my bank (first direct) I have been with them for 12 years so can see what goes in and out my account, they may take a view on these?
Not really sure what the best thing to do it.
Thanks for your help on this though.
Sara (Debt Camel) says
You need to ask the broker what NatWest’s payday loan policy is. This is why I tell people to go through a broker, it’s their job to know this. If your broker sounds vague, then you need a different broker who knows what they are doing.
As says
Hi Sara
Couple of questions if you wouldn’t mind.
1) What is the difference between an unsecured loan compared to a pay day loan showing on your credit file? Will an unsecured loan be viewed in the same way a pay day loan would if the report was being checked for a mortgage application ?
2) How common is it for loans not to show up on your credit file? Example, I’ve taken a loan within the last year or so, was paid on time and in full, and no record of it showing up on credit file (checked all 3 major CRA reports).
Sara (Debt Camel) says
Any credit where you had missed payments or defaults is a potential problem for a mortgage application. And all current amounts owed affect the “affordability” calculations for the mortgage.
But in general if credit has been repaid without problems then it doesn’t matter – unless this is a payday loan which mortgage lender see as a sign you had major financial problems even if it was repaid fine. This doesn’t happen with other sorts of credit.
Most loans are reported to at least one CRA. Who is the lender of this one?
Jess says
Hi ,
I have approx 30 payday loans ranging from 2015 to 2019 . All have been paid in full but there were some late payments on these which o can see on my file . I have a few defaults on my file also
I’m in a decent job with earning around £4Ok per year now and have a deposit saved up but my credit score is still bad due to these do you think I will ever be able to get a mortgage ?
Sara (Debt Camel) says
Which payday lenders?
Southlondon02 says
Hi Sara
Wondering if you can help, is Shelby finance a payday loan or unsecured loan? How are they viewed? And what is the difference between the two?
Thanks
Sara (Debt Camel) says
if you want to know how mortgage lenders see them, then look at your statutory credit reports from the credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to get these reports.
southlondon02 says
Thanks Sara, it shows as an unsecured loan on my credit file. Is this the same as a payday loan? Or will they do further checks to see what the unsecured loan is?
Additionally, I share the same version of my credit report with my mortgage broker and she said it should be fine as it shows as settled, even though it was taken out in March 2021.
Sara (Debt Camel) says
What report are you looking at?
southlondon02 says
I’m looking on Experian
Southlondon02 says
Hey Sara checking in on this one… it shows as unsecured loan on my credit but surely a mortgage lender will just Google Shelby loans to get more information? What do you think?
Sara (Debt Camel) says
A “payday loan” is a loan that is a high cost short term loan – a year or less in length with an APR of 100% or more.
But my guess is mortgage lender would go by whether the loan was flagged as High Cost Short Term lending on the credit report.
Southlondon02 says
Thanks. So I assume Shelby loans is classed as a payday loan and will be flagged to a lender when going through the mortgage application?
Sara (Debt Camel) says
You have just said it isn’t flagged on your credit record as a payday loan. A mortgage lender can NOT see who you have borrowed from, they see the debts but not the creditors.
James says
Hi all,
I have a number of payday loans that have been refunded due to affordability. Some were within two years and I’m now looking for a mortgage with some trepidation after reading the above and other forums.
I never missed a payment on any or defaulted etc. The FOS ruled in my favour on all and stated in them all that:
‘[Lender] should remove any adverse information recorded on the credit file in relation to the loans.’
None of them have removed the actual loans and so they’re sitting as short-term credit on my reports.
Do I have a case to say that now I’m applying for a mortgage, the records themselves are adverse and I therefore want them removed or suppressed? Especially since their sites encourage borrowing and make no mention of mortgage issues.
Many thanks,
James
Sara (Debt Camel) says
Who were the lenders?
James says
Most of the common payday lenders. Moneyboat, Satsuma, Lending Stream, Sunny. However, Lending Stream and Satsuma (Provident) don’t seem to flag as a short-term/payday lender.
I’ve just managed to get Sunny removed from Experian by going through CRAs as aware I can’t go direct to them now. I’m going to look to try this with Peachy, Moneybox247 and Uncle Buck too.
Sara (Debt Camel) says
It may be better to wait a while – I think those administrators may still reply to queries from the credit reference agencies – you want to wait until they won’t reply.
James says
Thank you. In terms of removing adverse records, do you feel Moneyboat for example should remove the whole loan record, as although there are no missed payments for example, the loan itself is adverse?
Sara (Debt Camel) says
You can try to complain about this – say their website never warned you it would cause a problem with a mortgage. I don’t know what the chance of this working is.
Ian says
if my last payday loan was nearly three years ago,would i still have a good chance getting a mortgage mosty it was from wonga.
Sara (Debt Camel) says
Is the rest of your credit record “clean” or have you had defaults, missed payments etc?
stacey says
Hi Sara!
Thanks for this very helpful post. Looking for a little advice if possible.
Me and my husband will have a 20% gifted deposit for a property at the end of next year and will be clear of the current 7k debt we have now.
My husbands credit file is clean apart from 1 missed payment in 2017 on a mobile phone contract.
I however got into a bad place a few years ago and have 1 default from 2017 on a mobile phone contract and several missed payments on a credit card between 2017-2018.
I also have 12 pay day loans between 2017 and 2019 the last being settled September 2019 (never missed a payment on these). These are from Mr Lender and My Jar.
Is it going to be possible for us to start the mortgage process the end of next year being 4 years from my last missed payment and 3 years from my last PDL? or is this still too soon?
Many thanks!
Sara (Debt Camel) says
Have you read the default? And cleared that credit card account?
stacey says
I cleared it. It was basically a phone bill in an old address for £77. I had no idea about it until checking my credit score one day and noticing all the missed payments and default so I phoned and paid it straight away. The credit card still has £1000 on but will be paid off this year.
Sara (Debt Camel) says
you want that card paid as soon as possible.
stacey says
Ok, plan was to continue with monthly payments until I can pay the remaining chunk in October. Will the PDL’s stop us with the mortgage application? or is 3 years long enough?
Sara (Debt Camel) says
I can’t guess what the mortgage market will be like in 18 months … 3 years may well be ok.
Mayjar is in administration. If you wait another 6-12 months, you can probably get those payday loans “supressed” see https://debtcamel.co.uk/correct-credit-records-lender-administration/ if the dates were wrong or something.
Rob says
Hi Sara,
Looking for some advice please, I have had a lot of loans and payday loans over the past 6 years, the last payday loan of which in August 2020 (Uncle Buck), I have one outstanding Natwest loan which ends in the next few months. I have had the majority of loans successfully accepted as unaffordable and I have been contacting the CRA’s and the lenders themselves to have these records removed (Only Equifax / Sunny which I’m struggling with so far). As a result I have one or two payday loans left on my credit file (Except Sunny which I hope will be deleted) and I am looking to apply for a mortgage in 12-18 months. I would like to know how you advise going about applying / length of time to wait. I will have a deposit of 15% and with no debt and good repayment history.
Would you also advise I make affordability claims against Bamboo / Likely Loans? Have these been successful?
Also, I had confirmed today that TransUnion are deleting ALL Uncle Buck loans which have a balance of zero regardless of whether they were unaffordable or not.
Thanks in advance
Sara (Debt Camel) says
So good news the UB loans are going. After that when will your most recent payday loan showing be?
Yes good results against Bamboo and Likely Loans. See https://debtcamel.co.uk/refunds-large-high-cost-loans/
Rob says
The most recent after that is Dec 2019 which was a Peachy loan. The only loans showing as ‘payday’ or ‘advance against income’ are 3 peachy loans and 1 cash float loan. Any others, I.e. sunny are shown as personal loans but I expect all these to be deleted.
Thanks
Sara (Debt Camel) says
so in 18 months time you will be nearly three years clear of payday loans – that sounds good.
Rob says
Thanks Sara, Peachy have refused to remove any loans unaffordable or not. Is this any push back I can do on this?
Also I have 1 missed payment on a credit account dating back to December 19, the payment was made (after multiple attempts) just over 30 days later but they won’t remove that mark from my credit file. How will this be perceived from a mortgage perspective do you think? (No other missed payments or defaults)
Thanks
Sara (Debt Camel) says
Peachy are in administration. If you wait a year, then it is likely they will have stopped talking to the credit reference agencies and you will be able to get the CRAs to “suppress” the records, see https://debtcamel.co.uk/correct-credit-records-lender-administration/ but it is too early to do that now.
the late payment – who was the lender? Have you complained about this – if so when did you complain?
Rob says
What’s the process for having the CRA’s to suppress records, are they quite willing to do this?
As for the missed payment it was PayPal Credit, I haven’t made a formal complaint but I did speak at length with them and they said they wouldn’t remove it (this was this week). I did speak with them at the time and my billing cycle was also changed at that time but even as a goodwill gesture they aren’t keen on removing it. Any other options I have?
Sara (Debt Camel) says
see that article I linked to for supressing credit records. And the comments beneath it.
re Payplan – You can put in a complaint and take it to the ombudsman if they reject
Rob says
Thanks Sara, am I in a fair position to complain? What grounds can I use for removal?
Thanks
Sara (Debt Camel) says
explain to me why you think the late payment is unfair…
Rob says
Admittedly it’s a loose one but I did make multiple attempts to make the payment, which on PayPal it does take the payment and then it was rejected twice. When I eventually noticed that neither had gone through I did then make an increased payment to bring my account up to date.
Sara (Debt Camel) says
Then that is your complaint – that you tried to pay on time so you should not be penalised for this.
Tom says
Hi Sara,
Thank you this is a super helpful!
I have a history of pay day loans (wonga), but the last was 3 years ago. I have no defaults, CCJs, but a couple of missed payments (again more than 3 years ago. I currently have £1500 outstanding on two credit cards.
I have a gifted deposit that will be about 30% of the value of the property I want, and an agreement in principle with Natwest. On the phone when I got the agreement in principle I mentioned the PDLs and they suggested it would be ok. I’ve made an offer on a property but am now getting anxious I wont be approved for a mortgage :(
Best wishes,
Tom
Sara (Debt Camel) says
Fingers crossed this is ok for you – can you come back and say what happens?
Tom says
Will do! :)
Nigel says
17 payday loans all paid of early.(5 with sunny so may be able to remove them)
Last one paid off June 2020
When we be a good chnace to get mortgage if my credit rating very good and just 2 loans total 4k.
So if I get one this year I can put deposit beetween 5-10k
End of Next year deposit about 20k (and no loans on my file)
House price 100-170k
My salary 950 a month outgoings 300-400 (including debt repayments)a month
End of Next year salary will be 1500 a month outgoing 200-300
Sara (Debt Camel) says
This year you have three problems:
– having taken payday loans within the past two years
– still repaying those two loans
– less than 10% deposit.
That looks pretty unlikely to me. You can talk to a mortgage broker S bout this now but second half of next year sounds more likely.
Nigel says
Repaying normal bank loans
All payday loans paid off last one paid on June 2020
What I’m worried about is amount of payday loans I had, even if it’s 2 years, due to amount doesn’t that out lenders off.
What if I can get a 10% deposit this year
Sara (Debt Camel) says
There are no hard and fast rules here. The number of payday loans may put some lenders off so everyone you can get removed from your credit record is good. So where you have three small loans from a lender – you are pretty unlikely to win an affordability complaint at the Ombudsman but it’s not impossible, so you can complain and if they reject the complaint offer a compromise of them removing the loans from your credit record? I have no idea if this will work but worth a try? All the Sunny ones should be suppressed.
Time helps. The longer ago the loans are, the more they look like ancient history.
And a larger deposit helps.
If you can get a 10% deposit, talk to a broker then – at that point you should have a few less loans showing.
Gemma bosworth says
Hiya I’m just wondering, I already have a £84,000 mortgage with natwest on a £220,000 property so the added amount is my own cash, im dying to move house so wanting to port my mortgage, unfortunately I have had two PDL £150 and a £250 both have been paid off, am I in any chance of my mortgage being ported? Please help!, thankyou :)
Sara (Debt Camel) says
I am sorry but I really can’t guess – there are some situation in which a bank can refuse to port a loan – you need to ask – and make a complaint if you they say No and you feel that is unreasonable.
jojo says
I had some success removing old PD loans but I have 2 loans from satsuma left (waiting for the scheme to be decided) both from 2016 (one defaulted Dec 2016 so will be removed end of next year & one paid on time) and I will have 1 from The Money Shop (also taken out in 2016 but fell into problems repaying and settled in 2018). The Money shop have said they can add a default onto my account for NOV 2016) but this means I’ll have 2 defaults from 2016.
My £3000 credit card has nothing owed, had 1 missed payment in 2019 and a couple in 2017.
I’m looking to join my partners mortgage in January 2022 but am worried. Do you have any advice about TMS loan and whether I should accept the default? If it’s unlikely I’ll get accepted anyway because I have 1 default and some missed payments from 2017 on 2 account, I might aswell not bother and accept the default and try again afterwards? Thanks
Sara (Debt Camel) says
if you wait another 4 or 5 months, then ICL will probably have stopped talking to the credit reference agencies and you can ask for your TMS loans to be “suppressed”, see https://debtcamel.co.uk/correct-credit-records-lender-administration/.
This all seems a bit touch and go for a mortgage application next year. It isn’t clear you will get a decision on the Satausma loans by Jan 2022.
Jojo says
Thanks Sara. ICL have said they can add a default on my account which they didn’t do initially (and I didn’t know!) and that would mean it would disappear from my record next year. I’m having trouble getting my Sunny Payday loan removed both from transunion and Experian although I’ve won my claim against them… Do you think it’s worth me accepting that from ICL? I realise then my records will look really poor and no chance any mortgage would accept although it was 5 years ago but if it means it will all be gone next year it might be worth it? Thanks
Sara (Debt Camel) says
So you can get ICL to add this default or you can just wait a few months and then try to get thre record suppressed by the CRAs.
You have asked Experian and TransUnion to suppress the Sunny loan? What have they said?
Jojo says
Hi Sara transunion are saying because they haven’t have a response they can’t remove the loan for piggybank even though I’ve won my complaint with them.
Do you think the default from 2016 will impact my chances – I have a 40k a year job and there’s less than 100k left on mortgage. Thanks
Sara (Debt Camel) says
you won a complaint with piggybank but they didn’t remove the default? Was this in administration or before?
Nd says
Hello Sara,
I am looking for some advice please, I currently have 20 closed Wonga loans on my credit file. These are all from 2016- last one closed June 2018. I feel this definitely would have been a case for an unaffordability claim however I know I have left that to late to do. All i really want is for these to be taken off my file or supressed.. I contacted the administrators Grant Thornton, who have said there is nothing they can do now as they are no longer accepting claims.
I will be trying to go for a mortgage with my partner at the end of this year, I am just really worrying these are going to cause a problem.
Is it worth me contacting the 3 CRA asking for them to be removed? or the financial ombudsman first? just feel so helpless now about this as I wish I had done something sooner
any advice would be greatly appreciated
thanks
Sara (Debt Camel) says
Read https://debtcamel.co.uk/correct-credit-records-lender-administration/ and contact the CRAs and ask then to suppress the records. Say you have a good claim for unaffordability but you can no longer contact the lender as it has been dissolved.
Nd says
Hello Sara
THANK YOU!!
Equifax – have removed all of these from my report!
Experian – these do not even show on my report there not there at all. Are you aware if they took the decision to remove when a company no longer exists?
Transunion – I have raised a dispute for each one, and I am waiting to hear back still. But I cant see why they wouldn’t remove too!
Honesty thank you for your advice
VG says
Hi Sara,
I had over 70 payday and other loans removed from my file with your help, which is great. I will be looking to get a mortgage with my partner in a couple of years, we earn over £80K together and will hopefully have some pay rises prior to then too, hoping to buy a house around £400,000 with 50K deposit for which we will need a very good history. We are in London so every penny counts.
I was hoping you would give me some advice on what would look bad for lenders of the things remaining on my file which are the following:
1. Halifax – Bank Account, £600 overdraft, regularly in it
2. Barclaycard – £400 limit since 2017, over 80% utilisation until April 21, around 50% since
3. Capital One card – £200 limit since 2019, over 80% utilisation until April 21, around 50% since
4. 118118 – £1468, Unsecured Loan, To be settled in July 21
5. Bamboo – £1207, Unsecured Loan – Settled in May 21
6. Uncle Buck – £362, Unsecured Loan, Settled in May 2020
7. Mr Lender – £217, Unsecured Loan, Settled in Nov 19
8. 247 Moneybox – £80, Payday Loan, Settled in Sept 19
9. 247 Moneybox – £100, Payday Loan, Settled in Nov 19
10. MyJar – £150, Unsecured loan, Settled in May 19
11. Myjar – £100, Unsecured Loan, Settled in May 19
12. Lending Stream – £104, Unsecured loan, Settled in Aug 19
13. Lending Stream – Loan details not recorded, Unsecured Loan, Settled in Sept 19
14. Myjar – £100, Unsecured Loan, June 19
I have not had any Defaults, missed payments or IVAs, and only 2 payday loans remain on my file but I am waiting for the lender (247Moneybox) to remove them. I have been snowballing my credit card and overdraft debts and will close them once they are paid off. Will not be taking out or applying for any more loans either, so the last loans will be the Bamboo and 118118 loans settled in 2021. However, the above information will likely remain on my file so I was wondering what the effects of that could be on my mortgage application in 2023.
Thank you in advance.
Sara (Debt Camel) says
You really want as many of the payday loans gone as possible, Uncle Buck, Mr Lender, 247, Myjar, Lending Stream.
Myjar is deleting all its loans – I think they have already gone from Experian and it says they should go from Equifax within 6 weeks.
Uncle Buck is also in administration. If you wait a year you should be able to ask the CRAs to “suppress” that loan, see https://debtcamel.co.uk/correct-credit-records-lender-administration/. If 247 or Myjar don’t get rid of those loans, you can also get them suppressed after a year.
So that gets you down to just 1 Mr Lender loan and 2 Lending Strem loans, all settled in 2019. Hopefully a mortgage lender won’t mind those.
Have you looked at affordability complaint about the 118 and Bamboo loans?
You need to get the credit card balances down to zero asap. And stop using the overdraft.
I would be inclined to close the Capital One card – the balance is too low to do you any good.
But keep the Barclaycard when it is clear, use it once a month for something less than £100 and set the card to repay in full automatically every month.
Good luck!
VG says
Hi Sara,
Thanks for this.
I have checked all of the CRAs and the loans all appear as unsecured loan rather than payday loan apart from 247 Moneybox. Do you think that advisors will look into it more?
Also 118118 didn’t uphold my complaint so I will go to the FOS now. Bamboo didn’t uphold either but settled my loan early.
The rest I will contact the CRAs about, Mr Lender already said they will remove the account.
Sara (Debt Camel) says
the loans all appear as unsecured loan rather than payday loan apart from 247 Moneybox.
Odd. I still think you should try to get rid of them.
Gemma bosworth says
Hiya just been reading your comments! I have had two pay day loans both paid off within two weeks of having the. And totalling only £350… what exactly do you want email to the pay day loan company to have it removed from file and am I eligible for this at all? Thankyou :)
Sara (Debt Camel) says
Which lender?
Gemma bosworth says
one is ‘cashASAP’ (£150) and the other is ‘dotdotloans’ (£200)
Thankyooou
F says
Hi Sara,
My partner and I are planning to buy a house next year towards the end of 2022. By the time we get to Nov/Dec 2022 I will have 11 PDLs appearing on my credit file. I’m working on having some of these removed.
6 of these will be around 5 years old since settlement and the remaining span 4.5 years to 2.5 years. We will have a 25-30% deposit, my partner has no history of pdl and we are both on good salaries. Do you think we stand a chance?
A few questions:
1) 4 of these loans are with LS (all paid on time with no defaults). I have been offered a refund for the 4th loan and negative marks removed from credit file. Does this mean the actual loan will stay on the credit file as they only remove defaults? Ideally I would like more of these loans removed entirely – do you think this can be won if taken further with FOS or should I accept their offer? I had at least 3 other pdls taken out at the same time and do not think this was checked? I also took all 4 LS loans in quick succession during a 6 month period. Loans 2 and 3 were taken 2 weeks apart.
2) Safetynet credit have not been responding to any of my emails – Should I go straight to FOS? This also appears on my TransUnion report as a “credit card” rather than loan – is this more acceptable to a mortgage lender in comparison to an “unsecured loan”?
3) I have two older loans with provident and one with QQ – is it best that I wait to suppress these next year?
Sara (Debt Camel) says
Unfortunately those two are still in business. Otherwise you have more options.
It is unlikely you would win an affordability complaint as the loans were so small and you only had one from each lender. I suppose you could try (see https://debtcamel.co.uk/payday-loan-refunds/) – it has been known for some lenders to just say as a gesture of goodwill they will remove the loan, but most lenders will not do this.
NG says
Hi Sara. I have been searching but cant find any clear answers. Are credit card cash advances viewed the same as Payday Loans? I stupidly had no idea that withdrawaing cash from a credit card leaves a mark. My last withdrawal was over 1 year ago but under 2 years. I have about 6-7 withdrawals between the last 13-24 months on my experian file (very annoyed with myself). I am planning to apply for a mortgage soon and only through research I have realised this may be an issue. I am applying for a 75% LTV mortgage in the next 6 months with the Help to Buy equity loan. I am planning to go through a broker but do you think this will have a big impact on my application when it gets to the underwriters? I have no other adverse credit and I closed the credit card last month. Thank you for all you do. I have been reading comments on here for months
Sara (Debt Camel) says
It is up to an individual lender what their criteria are. I haven’t seen cash withdrawals from a credit card specifically noted as problem – although it is easy to argue that more than the odd withdrawal is a sign that someone may be in financial trouble.
NG says
Thank you for the response
Andrew says
I have 10 payday loans from 2016-2017 on my credit records. They all appear as “unsecured loan” or just “loan” and aren’t flagged in the usual way. The last one was settled Feb 2018. All paid in full and on time with no issue.
1) Do underwriters definitely not see the names of lenders? I’ve read conflicting information. Will lenders even know these are payday loans – presumably yes due to the amount and term?
2) You seem to suggest these are “historic” enough for lenders not to be bothered by them?
3) I have a 15% deposit but would rather put down 10%. Do lenders imply stricter deposit requirements due to the PDLs.
Thanks
Sara (Debt Camel) says
who are the lenders?
Andrew says
Just lending stream. I raised a claim and got a refund but they have refused to remove the loans they deemed unaffordable despite numerous attempts.
Sara (Debt Camel) says
ok so to answer your questions:
1) Do underwriters definitely not see the names of lenders?
definitely not.
Will lenders even know these are payday loans – presumably yes due to the amount and term?
yes they could work this out from the loan details. Just the loan terms will suggest this may be worth looking into… but I have no idea if underwriters will do this.
2) You seem to suggest these are “historic” enough for lenders not to be bothered by them?
Anecdotally yes. But you MUST go through a broker. Just because some / many lenders may not mind doesn’t make it safe to pick one at random and hope they don’t.
3) I have a 15% deposit but would rather put down 10%. Do lenders imply stricter deposit requirements due to the PDLs.
I don’t know. But you will have larger choice of better rates with a 15% deposit. Talk to a broker about this.
F says
Hi Sara,
Thanks so much for this page, it’s been so helpful for me getting to grips with my credit file and launching complaints against pdl companies. I currently have a complaint in with Lending Stream who I had 4 loans with. These were taken out in quick succession in a 6 month period (loans 2 and 3 were only 2 weeks apart). LS have offered refund for the 4th loan and said they will remove negative marks on credit file. Does this mean the actual loan will stay on my credit file? I always paid off the loans on time and have no defaults. If they’ve recognised it as unaffordable should they delete the whole record?
Is this worth pursuing further with FOS or accepting their offer? I feel loans 2 and 3 were unaffordable as taken out so quickly after loan 1. I also do not think they performed adequate checks on credit file at the time as they would have seen I had at least 3 other pdls at the time. Any guidance would be appreciated!
Sara (Debt Camel) says
how large were these 4 loans, in order that you took them out, eg 300,400,300,700
F says
Hi, the amounts were: 100, 300, 250, 400
I’m more concerned about cleaning credit file… If they agree loan 4 was unaffordable do they have to remove the record of it entirely?
Sara (Debt Camel) says
A refund on loan 4 is probably all you would get from FOS then.
FOS rarely says a lender has to remove a credit record completely unless there has been a very large number of loans.
F says
Thanks Sara! And apologies for posting my comment twice.
Couple more questions: I want to launch a complaint against safetynet and have emailed both help@safetynetmail.com and complaints@safetynetmail.com several times over the last month and had no response. Is it best to go straight to FOS in this instance? Also, safetynet credit appears on my TransUnion report as a ‘credit card’ as opposed to an ‘unsecured loan’ – does this look better to a potential mortgage lender/broker when I start applying at the end of 2022?
Also, I have two old provident loans and one with QQ. Is it best to wait until some time next year to try suppress these once the administrations have ended?
Sara (Debt Camel) says
Safetynet Credit – really? Have you phoned them up? These are normally some of the easiest affordability complaints to win and people do not normally have a problem contacting them. You can’t go to FOS until 8 weeks is up, but even then it is worth phoning them first.
You can’t suppress the QQ loan now, you have to wait. 6 months time may be OK.
You can make a claim for unaffordable lending to the Provident Scheme now. I don’t know if you will be able to suppress a provident loan, so best make a claim, hope you win that and that they delete the loan.
F says
Thank you – will try giving safetynet a ring. Safetynet appears as a credit card on both equifax and TransUnion – does this look more favourably on a credit report to a mortgage broker/lender as opposed to an “unsecured loan” (especially if they can’t see who the lender is?)
If I don’t win with provident will there not come a point where the company is fully liquidated and then can be suppressed?
Hoping to apply for a mortgage with my partner towards the end of 2022. I will have 11 pdl on my files (half of these will be 5 years old since settled and the rest between 4-3 years). We will be putting down 25-30% deposit and I’m trying to clean up my credit file where poss. Will definitely be going through a broker having read all your helpful posts/comments. Hoping for the best!
Sara (Debt Camel) says
Mortgage lenders cannot see who a creditor is. To them there is no real difference between a loan and a credit card if the accounts are closed.
We don’t really know what will happen to the Provident credit records. You may be right. But you have no idea when that point may be reached.
You will have a good deposit and all the pdls are pretty old – I hope you will be fine.
Amiee says
Hiya.
I took out 2 pay day loans one in November 2015 for £50 and the other in December 2015 for £100, both my parents have passed away and I have inherited a mortgage free house with my sister. Me and my husband are planning to buy my sister out and we should be ready to apply for our mortgage around October November time. We aren’t first time buyers, will these old payday loans have any impact on us getting a mortgage? We have a broker but I haven’t mentioned them to her yet.
Sara (Debt Camel) says
TELL YOUR BROKER – they can’t help you avoid difficult lenders if they don’t know what your problems are.
There should be a lot of lenders who won’t care about these old payday loans at all, you just want to avoid the few that may care.
Shawn says
Hi everyone
Just an update, i have posted on here in the past regarding payday loan use and was worried i may not get accepted, i had roughly 25/30 payday loans from 2015 up to 2019 all where paid on time , i managed to get approx 15 removed by wonga which helped thanks to this forum, my last payday loan was settled feb 2019 and i have not got my first home, i was worried sick with it all, i went through a local mortgage broker as advised and explained my situation and due to having a good credit history and very little debt to income ratio she was happy to proceed with a mortgage with a building society, they didnt even question it, as a first time buyer i thought i would have to put up more money as they may see me as a risk due to the old payday loans but this was not the case and they accepted me for a 95% mortgage, i hope this helps someone, there is hope just keep your credit file as good as possible and i would recommend a mortgage broker worth every penny.
Good luck !
PS i have now got a mortgage!!!!!
Vanessa says
Hi Sara, I have 7 quickquid payday loans on my credit report from 2016-2017. Would this effect my mortgage application?
Can I get them removed as quickquid went into administration in 2019.
Thanks
Sara (Debt Camel) says
Were they repaid on time?
Did you make a claim to the administration?
When is your mortgage application likely?
Vanessa says
Hi Sara, yes all the loans were paid on time.
I have not made any claim as I just spotted them on my transunion credit report yesterday. My broker is applying for my mortgage today!
Sara (Debt Camel) says
Well they are so old they shouldn’t cause a problem if they were all paid on time.
Come mid 2022 you can probably ask TransUnion and the other credit reference agencies to “suppress” the records as by that time the administrators will no longer be answering queries from the CRAs, see https://debtcamel.co.uk/correct-credit-records-lender-administration/ – your argument to the CRAs is that the loans were unaffordable but you can no longer get the company to look at your complaint about this. But this is too soon to do it.
Vanessa says
Thank you so much for your advice.
Rebecca says
I took out one payday loan just over 18 months ago and having checked my credit report it just shows as an unsecured loan. How would a lender know that this was a payday loan as it doesn’t seem to be separate on my credit report
Sara (Debt Camel) says
what credit report are you looking at? who was the lender and what was the term of the loan?
Paul says
I’m in a similar position having checked my credit file and would be grateful to know what might be seen about the following:
In terms of loans: in the last two years I have had long term unsecured personal loans with Bamboo 1 year term), Likely Loans (Oakbrook – 3 years term) and 118Money (Madison – 3 year term). Bamboo is settled. All loans show on credit file as ‘personal/unsecured loans’.
From historical loans, I have been trying to clear up my credit record and just with the two year window (around 20 months ago) is one loan from Peachy that I am trying to get suppressed and one loan with Satsuma/Provident.
The Peachy loan is labelled as ‘wageday advance’ but the Satsuma loan is ‘personal/unsecured loan’ as the term for this was 12 months.
Please could you tell me what might be seen and if I should have mortgage problems?
Sara (Debt Camel) says
Have you made a claim to the Provident Scheme? That is the only way you will get the Satsuma loan removed until probably the end of next year – what ever it is labelled as, it would be better gone.
The peachy one should be suppressed.
The longer term loans aren’t a problem for a mortgage – but you should still make affordability complaints if you can.
Paul says
Thanks Sara. I need to apply for a joint mortgage with my wife in May 2022.
I had a past history of payday loan use, but most of these have been deleted. If I am taking the two year rule for payday loans that you suggest then I think there are two that just fall just inside this:
1) A Satsuma loan that was closed in Sep 2020 and has some late payment markers as they rolled a missed payment on to the end and left it one month behind for a while.
2) A MoneyBoat loan that was closed in Oct 2020. I took out the loan in Sep 2020 but paid it back after 6 weeks instead of 6 months.
Before 2019, I had a lot of late payment markers for various credit cards and loans. This has dramatically improved since then and my credit file is in much better shape from a sustained period of payments. I have only had one late payment marker (Sky communications) in the past two years.
Do you think that I would have a chance through a broker? I have a good job and salary now and I have £75,000 from equity in my property to put down as a deposit for hopefully an 80% LTV.
Sara (Debt Camel) says
I think you should talk to a broker. I never like people accepting bad credit mortgages as there is no guarantee that they will be able to refinance at the end of 2 years.
Paul says
Hi Sara. I spoke to a broker today and he felt he could secure high street lenders having looked at my credit record. This sounded positive. I’m still working on my credit report so I’ll go back to him in a few months.
Mani says
Hi Sarah,
Hope your well, I currently have a joint Mortgage with Halifax, myself and wife have sold our home and have just found a new property that we put in an offer and it was accepted, I currently have a payday loan with Amigo loans but we were accepted by Halifax for a mortgage in principal some months back but just recently, The Halifax bank are now saying that they would need me to clear the loan and they can put through the mortgage for the new property, does this sound about right to you?
they originally said we could use some of the equity in the property to clear the loan, this would still leave us with abut 35% deposit for the new property, but they seemed to have gone back on their word.
I found another broker to find out if there would be any other lenders that would consider the first deal, (clearing loan with the sale of our home) rather than clearing it first.
I also wanted to ask, do you think this is possible? or would you advise we just stick with the Halifax as they were offering a rate of 1.44% fixed 3 years?
I would hate to borrow the money from friends and family to have Halifax come back and say it needs to be two years.
Thanks Sara
Sara (Debt Camel) says
I am sorry but it really depends on the exact wording of what Halifax told you – I don’t know if they have made a commitment that they WILL lend on the agreed terms or that they can’t proceed with making the decision until you have cleared the loan. What does your first broker say? Also what else your second broker thinks you could get.
Mani says
Hi Sara,
Thanks for replying, I received a message from my only broker today and Barclays are willing to offer us a mortgage with more money including my payday loan providing it is paid off from the sale of our home, They also require us to to have our credit cards all cleared.
Should I move forward, I will no longer be porting my current mortgage, I’ll pay the balance of one year left of my fixed rate and take a whole mortgage out with Barclays.
Just encase there is anyone in my position that is worried, find a broker that will seek all options so you know whats available to you, there is hope.
Thanks again Sara and all the best!
Emma says
I just wanted to give people a bit of hope as it is the most stressful and challenging feeling being in debt and house hunting especially when your partner has never had debt.
I took out a lot if pay day loans over the past 5 to 6 years the most recent being paid off in 2020.
We applied for a mortgage through a mortgage advisor and of course everything showed up. My heart was in my mouth and my whole world was crashing down thinking it wasn’t going to happen for us.
I am delighted to say we got a mortgage with a building society. I was waiting for something to go wrong right up to the handover of the keys thinking there had been a mistake and they will change their minds.
We have now been in our beautiful new home just over a month. This forum really helped and gave such good advise and hope for people who are struggling.
There is always hope 🙂
Martin says
Hi Sara,
Can you please advise, apologies if it’s in the incorrect forum –
I took out a loan but didn’t require it then and withdrew from the loan agreement within 14 days and paid it off in full within the 30 days of the withdrawal notice. The loan is showing as settled under Closed Accounts in my credit file. What is the correct practice here can anyone advise please? I have no issue it showing as a hard search but as I withdrew from the agreement within 14 days of obtaining the loan am I correct in believing it shouldn’t show within closed accounts and should be completely removed from my credit file?
Sara (Debt Camel) says
I’m not sure if there is an agreed practice here. You could ask for it to be removed.