Wonga on credit report affecting mortgage application!

[renegadeimp]

Pdls are considered differently than credit cards by lenders. Use of a pdl is seen as desperation.

[BRIGADIER2JCS]

A revolving credit facility is better as it will show how well an account is managed BUT having a number of cards with high outstanding balances and showing that high amount of available credit is being used will indicate high reliance on credit for day to day living.

[Ford]

........ BUT having a number of cards with high outstanding balances and showing that high amount of available credit is being used will indicate high reliance on credit for day to day living.

 

thats what i was getting at also re just min payments. just like a payday? so, that would also be treated negatively re a mortgage? even though to have a 'good' credit rating, there needs to be credit?

Edited June 30, 2013 by Ford

[BRIGADIER2JCS]

Indeed so good credit management is paying more than the minimum payments regularly and clearing balances when ever possible.

[Bambilegs]

Hi all,

 

Still not heard a word from my mortgage broker so presuming Aldermore are still making a decision. It's been 7 working days now, seems extreme to me or is that normal?

 

Also my estate agents are really on my back now wanting information. Panicking slightly. I've never been through any of this before so no idea what to do! :/

[Ford]

have you tried ringing broker, find out what current status is?

[Bambilegs]

Sent three emails with no response.

 

Going to try ringing him after my meeting in work.

[Bambilegs]

Just spoke to my broker. Bad news. Aldermore have refused me a mortgage due to my payday loans. Absolutely gutted. Can't believe I got fooled by Wongas stupid marketing campaign.

 

He's now spoke to a packager who feel its probable I will get something. They are trying Buckinghamshire who apparently don't credit check, they look at every case individually, and Precise mortgages.

 

Feeling a bit down about the whole situation. Anybody heard of these companies?

[Ford]

no worries, chin up, keep your broker on the case, let him earn his 'commission'

do a googly on them, they seem ok? precise do an 'allowable adverse' re 'near prime' at a higher rate re up to 70% ltv but they seem to have certain criteria? from their site **Removed Link**

bucks are a mutual. but am sure they would do a credit check!?

double check interest/terms etc

ps, could consider taking up a complaint against wonga, now that you have individual proof re their misleading claims adversely affecting your credit rating and mortgage app'n?

Edited July 2, 2013 by Ford

[citizenB]

Sorry Ford, we cant allow the link

[Bambilegs]

Thanks for your advice Ford, I think I'm definitely going to raise a complaint with Wonga.

 

Good news though. I've been offered a mortgage through Precise this morning. I'm so happy, I thought I wasn't going to get anything and was even looking in to renting last night. Haha.

 

Just fingers crossed everything goes smoothly from here.

 

Thanks again for everyone's great advice, you really helped while I was panicking,

[citizenB]

 

Good news though. I've been offered a mortgage through Precise this morning. I'm so happy, I thought I wasn't going to get anything and was even looking in to renting last night. Haha.

 

Excellent news

[Bambilegs]

Thanks! I'm really excited for the next step!

[catquest]

Indeed so good credit management is paying more than the minimum payments regularly and clearing balances when ever possible.

 

Surely clearing balances every month completely can also count against you as lenders then think they won't make any money from you. Remember the Egg debacle from 2008.

[BRIGADIER2JCS]

Things have change greatly in 5 years the checking of ''credit worthiness'' is far more comprehensive and the protocols are different.

[Ford]

Thanks! I'm really excited for the next step!

 

happy days

[Helpme9999]

Hi, which mortgage lender are you using?

[Ford]

see #36

[Helpme9999]

Who are precise my friend ??

[Ford]

googly them

[Helpme9999]

I just did lol. You need at least a 15% deposit

[Ford]

yes, OP did say that they had a decent (largeish) deposit. not too bad though considering the defaults, and wonga credit. can always refinance mortgage later when things improve, depending on terms etc. always check the agreement.

[Helpme9999]

yes, OP did say that they had a decent (largeish) deposit. not too bad though considering the defaults, and wonga credit. can always refinance mortgage later when things improve, depending on terms etc. always check the agreement.

very true

[Helpme9999]

Very true

[matttye]

Isnt this exactly what a notice of correction should be used for?

 

You could explain that you used payday loans as you wanted to build a credit history, rather than through desperation.

 

But yes, payday loans are primarily marketed for people who can't make their wages last the month - so it's no wonder people are getting declined for mortgages with these on their record. Wonga may not have realised that their loans were viewed so negatively back when they used that in their marketing.

 

It's a shame but I don't know if anything can be done besides the notice of correction.

 

Please you got the mortgage anyway