Pay Day Loans

Payday Loans: Are they Affecting Your Chances of Getting A Mortgage

If you have recently applied for a mortgage but have been turned down, it is a good idea to check your credit report. If everything seems in order, but in the recent past you have used payday loans, it’s possible that mortgage lenders have deemed you a higher risk. Use of payday loans indicates risky financial behaviour or at least mismanagement of your money, both are things that mortgage lenders frown upon.

What Are Payday Loans?

Payday loans are typically short-term, high-interest, unsecured loans for smaller amounts up to around £1000. The short repayment period and high interest rates often lead to Payday Loan users struggling to make repayments, resorting to taking out other loans to repay them.
Money Hub recently revealed that in the last 6 months, 18% of UK adults have applied for payday loans in comparison to 10% of UK adults applying for mortgages. This indicates the precarious financial situation that a lot of people now find themselves in, due to the high cost of living.

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The Effect Inflation Rates Have on Mortgage Interest Rates

The Effect Inflation Rates Have on Mortgage Interest Rates

In recent times, homeowners having been dealing with the worry of rising costs due to an increase in the UK Inflation rate, which in turn affects the price of just about everything, including our mortgage interest rates. There is light at the end of the tunnel though.

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