broker won't apply for mortgage

Mzt6

Hi there, wondering can anyone help us with our situation please. we have been in the process of applying for a mortgage for the last few months, and are using a broker. everything looked like it was going well, all documents in order and we were waiting to hear back from some banks, when broker rang and said there was an issue with credit rating.
My partner had a BOI CC which was revoked in 2012 when they weren't working and receiving a social welfare payment, during this time payments of as much as we could afford continued every week, 10 to 30 euro, and one off payments of 50 when it was available, but was sent to debt collector for full payment after missed payments snowballed.
it was eventually paid off in full in 2016, approx €1300 when partner returned to full time work. we were advised by broker that the application with kbc would not be processed as we would have a "black Mark" on our credit rating for mortgage refusal. pepper mortgages have now been advised but rates seem very high and max loan term is 30 years, there is also a fee for processing the application of approx 1500. broker doesn't seem to be applying anywhere else, as we thought would happen originally.
just to add we are both now in full time permanent employment and have never missed any payments on loans, rent etc since this incident. credit rating is good since then.
can anyone advise where to turn next? We are devastated about this, were all ready to go and were saving our deposit for months to get to this stage. thanks for your help.

GarIT

You could try to get a mortgage without your partner and then marry if you’re not already.

Mzt6

thanks for your response. we actually are married already, and our salaries alone wouldn't get us anything in the area we need to buy in. both on approx 40k per year, 3.5x that wouldnt get us even a 1 bed apartment. we qualify for first time buyers htb scheme so we're hoping to use that, but would need both salaries to be taken into account to even dream of a new build! appreciate your reply

GarIT

Shop around then, apply to everywhere individually and hope someone accepts it.

jlm29

You can just ditch the broker, and put in the applications yourself? Or go to another broker. But I’d have thought he was right, it takes five years for black marks like that to disappear from your credit report.

dudara

I’m open to correction but your ICB record also tracks when a bank or financial institute queries your history. If you’re declined, that is recorded on your ICB record. Your broker might be trying to protect you here.

I think in this case you need to be strategic. Either wait for the black mark to disappear, or work to find a bank that is open to it

ArtyC

This happened to me. I got refused from Ebs because i didn't make full payments at a hard time but I'd kept in touch with bank and paid some .

The bank was also boi... I went to boi and explained the situation and they had a look and saw I was transparent with the bank.... I got approval - though they did stress test me for 6 months first ... go to boi

Brainz

Having been in the position of the broker before there are several factors as to why they are not formally submitting applications to various other institutions.

Brokers have underwriters in with them and the broker would have informally discussed the application with them and advised of the background.

In the current environment lenders are very reluctant to lend to individuals who have had bad credit even if there are factors that caused this. Rule of thumb is 5 years clean credit however I have seen lenders accept after 3 years.

As others have said the broker is also protecting you because if he formally applies to lenders and you get rejected this shows on the icb.

The other factor you need to consider is if the broker does all this ground work, applies to all the lenders at his disposal, while he knows the credit history you have and they all reject the application he will have done an enormous amount of work for zero return.

johnnyskeleton

There are two types of broker in Ireland - one who gets paid by you and the other who gets paid a commission by the bank. If this broker is the latter, he probably feels he wont get paid as the application will be unsuccessful or possibly he gets a better commission from pepper.

Maybe try an independent broker and see what they say. It costs more upfront but at least you have the comfort of the knowledgr that hes working for you not for the bank.

godtabh

dudara wrote: »

I’m open to correction but your ICB record also tracks when a bank or financial institute queries your history. If you’re declined, that is recorded on your ICB record. Your broker might be trying to protect you here.

I think in this case you need to be strategic. Either wait for the black mark to disappear, or work to find a bank that is open to it

I was told something similar when apply for a mortgage. Also told if a broker looks for money up front chances are they dont think you have a chance and are getting their commission up front!

Could be doing you a favour.

bleary

Being refused by a bank will go against you for other applications. If you don't want to go with pepper you could apply yourselves. Try with the bank that you had the issue with as noted above.
If you get a couple of refusals you could then apply to council for their mortgage scheme if gross income is less than 75 k last year between you .
Otherwise check icb record and see if note is correct and possibly if you could add a note to it.

Mzt6

thanks for all the replies, some great advice here.
're the broker, it is independent afaik, in that it's not a chain and we have to pay a fee of 150euro, which we were advised was to be paid after applications went in.
so haven't handed over anything yet.
we really don't know what to do at this stage, have queried with other banks who advised us to submit applications to them but spouse is hesitant to apply for too many at once, whereas I want to try everything before we give up and wait out the 3 years, which is a nightmare scenario to us to be honest. we are more than willing to do the paperwork and submissions ourselves and have several ready to go, were just afraid of getting lots of refusals and putting us in a worse off situation with lots of refusals on our credit report.
can someone elaborate on what is meant by adding a note to icb? Not sure what I can do there,sorry, this is all new to us!
artyc can you advise what they were looking for during stress test, and how long it was between card revoked and applying for mortgage from them? for us it's 6 years since card was revoked. this might be the way to go.
unfortunately we would not be able to get council mortgage as we are just over the 75k income threshold.
we appreciate your advice, anymore welcome. thanks again.

bleary

Well the first thing to do is get a copy of your icb records.
Check that the details are recorded correctly. If loan paid off accurately etc. As in the links below you can add a personal declaration to the record.

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/irish_credit_bureau.html

Have you been granted any loans since then? Records of paying off loans may improve your scores.
I would talk to the original bank involved to see if they would be willing to lend or not. Lots of people had the same problems at that time .

Captain Flaps

Where are you looking that a 3.5x of your combined salary (208k or thereabouts) wouldn't get you a one bed apartment? I appreciate city centre is expensive but even drifting SLIGHTLY outside of that should give you plenty of choice at that level.

jlm29

Captain Flaps wrote: »

Where are you looking that a 3.5x of your combined salary (208k or thereabouts) wouldn't get you a one bed apartment? I appreciate city centre is expensive but even drifting SLIGHTLY outside of that should give you plenty of choice at that level.

Someone suggested that if they weren’t married they she could apply alone on the basis of one salary. She said she couldn’t even buy a one bed apartment on her (40k) salary alone. I gather they don’t want to buy a one bed apartment anyhow.

Captain Flaps

Ahhh, my mistake (also the above was a typo, should have read 280k)