Agents are increasingly seeing customers with a history of utilizing payday advances being refused for mortgages
John Charcol claims the issue is growing and there is a need when it comes to payday financing industry to better inform borrowers in regards to the potential impact taking right out a quick payday loan might have on future mortgage applications.
The broker says it has seen an increase within the wide range of would-be borrowers that have either been declined a mortgage or offered a reduced loan amount from the basis they’ve used a payday lender in past times.
John Charcol item technical supervisor Simon Collins states this stance on payday lenders is mainly coming from major banks using automated underwriting processes which do not take into consideration individual circumstances.
Collins says: вЂњIt is the one of these scenarios that areвЂcomputer-says-no. Loan providers might not have a collection policy on pay day loans nonetheless it does seem that in a suspiciously high level percentage of this instances our company is seeing, you have got a borrowing that is payday in the background.вЂќ
Chadney Bulgin mortgage partner Jonathan Clark says he approached a high street lender on behalf of a customer who, 2 yrs previously, had utilized a payday lender at college. Clark had been told the lender will never start thinking about candidates that have taken out a quick payday loan. (more…)