Payday loan users may have their mortgage applications declined

by Aaron Strutt

Nov 29 2013

BBC Two’s Newsnight programme highlighted research from Mortgage Strategy magazine which shows almost two-thirds of brokers have had a client's mortgage application refused because they have had a payday loan.

Newsnight’s Jeremy Paxman asked business secretary Vince Cable whether he thought it was fair that people endanger their chances of getting a mortgage simply because they have taken out a payday loan.

Mr Cable said that it is not fair based on the information put forward. He also went onto explain: “Now that the industry is being properly regulated this should stop. In future there will effectively be a health warning telling applicants that their credit record will be damaged if they apply for a payday loan.”

November 29, 2013