Treasury written question – answered on 15th January 2014.

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Photo of John Martin McDonnell John Martin McDonnell Labour, Hayes and Harlington

To ask the Chancellor of the Exchequer what assessment he has made of the practice of mortgage lenders declining mortgage applications from people who in the previous six years had taken out a payday loan.

Photo of Sajid Javid Sajid Javid The Financial Secretary to the Treasury

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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