Payday loan may cost you a mortgage

Mortgage lender GE Money has confirmed that they are no longer likely to accept applications from borrowers if they have recently used a payday loan company, according to a report in Mortgage Strategy magazine. More people are using payday loans in these difficult economic times, but they are unlikely to expect any future mortgage application to be declined as a result of borrowing the money. GE Money is not the only lender likely to refuse mortgage applications for this reason. A spokesman for GE Money is quoted as saying: “As a responsible lender in a challenging market we review a range of data to make prudent mortgage lending decisions. “Payday loan data is one of many items included in this review and if a mortgage applicant has a current or had a recent payday loan, it is unlikely that we will consider their mortgage application.” If you subscribe to Times Online, you can view Trinity's comments via this link: http://tinyurl.com/6ujoncf July 12, 2012