Yes — but it depends on how recent they are and how your credit looks now.
Payday loans can leave a stain on your credit profile, even if you paid them back on time. Many mainstream lenders see them as a red flag — but some specialist lenders will still consider you.
Here’s what you need to know.
💳 Why Do Payday Loans Matter to Lenders?
To many lenders, payday loans suggest financial instability or cash flow issues — especially if they’ve been used repeatedly or recently.
But not all lenders treat them the same way.
🕒 How Long Should I Wait After a Payday Loan?
If your last payday loan was:
- Over 12 months ago — more lenders may consider you
- Over 24 months ago — it’s far less of a concern
- In the last 6–12 months — your options are more limited
💡 Even one recent payday loan can lead some banks to automatically decline an application — even with good income and deposit.
🧠 What Lenders Will Look At
✅ How long ago the payday loan was
✅ How many you’ve had
✅ Whether they were repaid on time
✅ Your current credit behaviour
✅ Your deposit size and income stability
💷 How to Improve Your Chances
✅ Avoid payday loans for at least 12 months before applying
✅ Pay off any outstanding high-cost credit
✅ Check your credit report and correct any mistakes
✅ Save a bigger deposit (15–25%)
✅ Use a broker to find flexible lenders
💬 Let’s Find a Lender That Looks Beyond the Payday Loan
If payday loans are holding you back from homeownership, let’s find a lender that sees more than just your past. I’ll help you build a strong case and match you with the right fit.
✅ No-judgement mortgage advice
✅ Access to specialist lenders
✅ Realistic, honest feedback on your options