Could payday loans harm my mortgage hopes

Could payday loans harm my mortgage hopes

Yes a payday loan may affect your mortgage options with some mortgage lenders seeing that taking out payday loans can show signs of financial stress
Your privacy is important to us. By sending this you agree that only First Choice Finance may use these details to contact you. Any data we hold for you will be handled in accordance with our PRIVACY NOTICE.
Highest Loan To Value Purchase Mortgages And Remortgages - Low Rate Loans From £5,000 To £150,000 - Release Your Equity With An Equity Release Plan
If you are considering taking out a payday loan then this may impact on your credit rating and reduce the mortgage options available to you, First Choice Finance have a number of finance options available that could help you instead of taking out a payday loan.

Video transcript

Taking out a payday loan could limit your choice of mortgages, even if you pay it off in full and on time – fortunately, First Choice Finance is on hand to try and help those that have had this issue through some of their more specialised lenders.

The BBC broadcast in November that two-thirds of experts contacted by Mortgage Strategy have dealt with people who have been refused a home loan after taking out one of the quick, high interest pay day style unsecured loans.

These rejections were often immediate, without taking into account the applicant`s income or payment history. As a result, their credit scores could also take a hit as searches that are subsequently declined can reduce their credit rating, which can make life harder when they next apply for a mortgage.

However, First Choice Finance have access to personal loans, secured loans and even guarantor loans alongside mortgages for people from all sorts of credit backgrounds.

Discover how we could help you by visiting firstchoicefinance.co.uk or by calling us on 0800 298 3000 or 0333 003 1505.
 

Return to the video homepage


Homeowner Secured Loans
9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages
8.4% APRC.
Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.

First Choice Finance - Reviews

Read Our Genuine Reviews


This website uses cookies. Find out more

Loan Plans