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Payday Loans; Will They Ruin Your Chance of a Mortgage? Lender insight from Loans Andre

23 December, 2013: Some of the more negative consequences associated with taking a payday loan are the potential for high borrowing prices and the risk you run when or if the loan repayment does not go as planned, which can cause your debts to spiral. Many critics of payday loans allege that loans have another effect – many times these loans rule potential borrows out of taking out a mortgage. 

Recent research conducted by BBC News night claimed that two-thirds of mortgage brokers have had a client who was turned down after a payday loan. Other lenders responded in turn, saying that properly managed payday loans could even improve credit scores. Along with paying back loans, and making sure bills are up to date, mortgage brokers look to see if the applicant has also put in a series of other credit applications when applying for a mortgage. 

Earlier this week a piece of research by BBC News night claimed that two-thirds of mortgage brokers said they had a client turned down for a mortgage after a payday loan. That report sparked a response from payday lender Wonga that use of its loans could even improve credit scores. 

William Risen, Head Director of www.loansandre.com, 'Someone who uses payday loans serially – meaning month after month, sometimes paying them and sometimes not, is an indicator to a lender that the applicant is not able to budget properly. 

“This means that the lender may see this as the applicant not demonstrating that they are able to afford a mortgage.” 

“Taking out a payday loan speaks volumes about a potential applicant’s continuity,” says Risen. “When an applicant has used payday loans responsibly, this can be a positive sign. It shows mortgage lenders that a client is not credit-averse yet has good financial habits.” 

Loans Andre is a payday loan lender who specializes in procuring urgent financial assistance to potential borrowers. The site features easy to understand options and a team of experts offering you the best deal for your individual circumstances.

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