Will having a payday loan harm your chances of getting a mortgage?
Some mortgage lenders are refusing to give a mortgage to people who've taken out a payday loan
In the run-up to Christmas and in the aftermath, payday lenders are likely to be advertising even more aggressively than usual. Payday lenders say that many of their clients are happy to pay extra for the ‘convenience’ and they’re taking out loans that are affordable. Even if that’s the case, by doing so, you could be turned down for a mortgage.
The government’s help to buy 'mortgage guarantee' scheme is being introduced early
The help to buy scheme will help buyers who don’t have a large deposit to get a mortgage. How will it work?
If you want to buy a property or trade up, but you don’t have a large enough deposit to get a mortgage, you may be helped by the government’s help to buy scheme. It’s currently offering help to people who want to buy a new build home and it will be extended to existing homes later this year. It means buyers who only have a 5% deposit could be helped to buy a home.
The FCA has fined Yorkshire and Clydesdale banks for mistakes on customers' mortgage payments
The banks will have to pay compensation to people who had a shortfall on their mortgage because of the mistake.
The regulator, the Financial Conduct Authority, the FCA has fined the Yorkshire and Clydesdale banks £8.9 million because they didn’t tell customers that they could ask for compensation over a mistake that had been made with their mortgages. The mistake meant that thousands of mortgage borrowers had underpaid on their mortgage for several years. Now the FCA says they should be compensated.