I mentioned on another thread yesterday that some evidence has come out that mortgage lenders are rejecting applications where the applicant has made recent use of payday loans.

One of our team confirmed it with a mortgage broker last night. He'd had a near perfect application rejected because the applicant has used a very short-term payday loan purely because she didn't like using her overdraft facility.

Important information perhaps for anyone trying to rebuild their credit history after a trust deed. Using some types of credit responsibly is likely to boost your credit standing, but with payday loans it might be quite the opposite.