Mortgage provider GE Money has said that it will not process applications from those who have taken out a payday loan.

Borrowers who have used payday loan companies are in danger of permanently blighting their credit rating. Mortgage provider GE Money this week announced that it would not process home loan applications from consumers who had taken out short-term high-interest loan in the past three months or more than twice in the past year. Credit rating agency Experian has also taken steps to identify those who rely on payday loans. In the future, Experian will list payday loans separately in an individual's credit report instead of grouping the short-term loan in with other borrowing needs. A spokesman for GE Money said: “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.”.....Read more here: Payday loans could cost you a mortgage - Telegraph