Taking out a payday loan could wreck your chances of getting a mortgage.
One lender has decided to reject applications from borrowers with a record of recent payday loans, while others are cautious. Payday loans offer short-term credit, often for only two to three weeks, but at high annualised interest rates. A loan of £100 for a fortnight might cost between £20 and £30 in interest. GE Money Home Lending, which acts through brokers, is rejecting anyone with a loan in the past three months or who has had two or more payday loans in the past year. This is even where a loan has been repaid in full and on time.....Read more here