Mortgage Question

Duckie2311

Looking for some advice please on a mortgage please.
Cutting a long story short.. We built a fabulous house back in 2007, had a car loan and a small other loan, nothing major.
In 2009 we realised we had pyrite and had to gut the house. It cost 100k to fix it. We borrowed to fix it as the house would have fallen down around us if we didn't.
Unfortunately we started to fall behind with loans etc. We had loads of equity in the house but the bank wouldn't release it due to us falling behind in our loans.
So we ended up selling our beautiful house.
We have been renting since earlier this year. We made a nice profit on the house and have about 170K put buy for when we are buying again, and we owe no one a penny.
My question is will we have huge difficulty in getting a mortgage, to buy where we want to buy it would cost about 300k.
Any ideas?

seamus

You're looking for a loan of ~€150k, which means by the current rules that between the two of you, you need to be earning at least €34k gross per annum.

Which is probably not an issue for you.

Your main stumbling block will probably be your history. You "fell behind" on loans - went into arrears, missed payments? If so, these will remain on your ICB record for five years after the loan was paid off.

Since you're borrowing such a small amount that's not a complete full stop on borrowing, but you will have to prove to the bank that you're capable of putting away at least the stress mortgage repayment amount, probably a good deal more. Are you saving at the moment?

Duckie2311

Hi Seamus,

We only recently started putting money into a savings account. But we are paying 1400 per month on rent.
We just feel that after all we have been through emotionally and financially and now we are out on top that we should be given a break. I know it doesn't work like that but we feel like we deserve it. Its been a horrible few years. We only paid off the loans that we fell behind on in June of this year, so they will show on the ICB report...

Sala

Falling behind on your loans will have affected your credit history. Your credit history lasts for 5 years after the loan is closed (i.e. your discharged the previous mortgage). Thereafter I'm not sure if a different back would have access to your records but I'm open to correction on that. In any event, you were in a very tough situation and I'm sure the difficulty you faced would be viewed in a more favorable light than someone who didn't pay for no apparent reason (i.e. investment went bad) or left the bank with a property worth half of what they are owed. Your LTV will be excellent and with good steady jobs if you can comfortably meet the mortgage a bank may well be happy to give you a mortgage sooner

Duckie2311

I Hope your right Seamus. We never fell behind with the mortgage, we reduced the car loan and fell behind with Credit cards and the other loan we had..