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Credit: Interest Rates

Question for HM Treasury

UIN 204209, tabled on 7 July 2014

To ask Mr Chancellor of the Exchequer, what discussions he has had with banks about the consequences for a mortgage application of taking out a payday loan.

Answered on

10 July 2014

Treasury Ministers and officials meet with a range of stakeholders to discuss relevant policy issues.

In making mortgage lending decisions, lenders must follow the appropriate regulatory and legislative requirements. Beyond this, decisions about who they lend to and on what terms are a commercial matter, including how they use information about existing or previous credit commitments.

Credit risk models and approaches vary between lenders, so while a history of payday loans may prevent a borrower taking out a loan with one lender, others may take a different approach.

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