Mortgage refusal bad credit.

dougiex06

Hi All,

Just looking for a bit of advice. Me and my girlfriend are looking to buy my family home for 300k. Were going for the first time buyers and have the deposit saved. We both have perminant jobs too in the public sector.

Our mortgage got refused as I have a revoked credit card. When I started college BOI were giving out credit cards with 400 on it if you opened an account. I didnt even have a job at the time so was delighted with the 400 euro. Anyway, long story short the card was revoked as I missed payments. I paid the 400 off it as soon as I got a job in January 2015. I haven't had any loans or debts since, girlfriend is the same.

I was told I have to wait until January 2020 to even be considered. Has anyone any experience with this? The crime doesn't seem to match the punishment at all? It seems like no one is willing to take into account I haven't owed a penny since 2015 and have a good savings pattern since.

It's so disheartening that I can't get past a computer which doesn't take any circumstances into account.


Any advice appreciated.

Cheers.

4ensic15

Go to a mortgage broker and tell them the situation. In credit-history, 3-4 years is a short time. You showed a cavalier attitude to your contractual obligations taking a "pay when I like" and not a "pay when I agreed to" attitude.

Jet Black

dougiex06 wrote: »

It seems like no one is willing to take into account I haven't owed a penny since 2015

That's not necessarily a good thing when it comes to looking for credit. No track record means they don't know how your going to be making regular payments. All they will see is the bad marks from the credit card payments you missed. In their eyes they see couldn't be bothered making the minimum monthly payments on a €400 credit limit, can he be trusted with 300k?

the_syco

dougiex06 wrote: »

Anyway, long story short the card was revoked as I missed payments. I paid the 400 off it as soon as I got a job in January 2015. I haven't had any loans or debts since, girlfriend is the same.

Maybe consider getting a credit card, and buy stuff with it, immediately paying said credit card bill off. Do this often, so that there's a record of you being able to pay off your CC, as opposed to a record with you taking out only €400, and being unable to pay it back.

winksblinks

Try Pepper Money. Once your credit record is clear for 2 years they will consider you.

Sleeper12

dougiex06 wrote:

I was told I have to wait until January 2020 to even be considered. Has anyone any experience with this? The crime doesn't seem to match the punishment at all? It seems like no one is willing to take into account I haven't owed a penny since 2015 and have a good savings pattern since.

I'm not up to date with this but it used to take 5 years to get a clean credit rating again. An earlier posted suggested trying a mortgage broker. This is good advice imo

dougiex06

Jet Black wrote: »

That's not necessarily a good thing when it comes to looking for credit. No track record means they don't know how your going to be making regular payments. All they will see is the bad marks from the credit card payments you missed. In their eyes they see couldn't be bothered making the minimum monthly payments on a €400 credit limit, can he be trusted with 300k?

It's not that I couldn't be bothered its that I didn't have a job. As soon as I got a job out of college I paid it in full.

4ensic15

dougiex06 wrote: »

It's not that I couldn't be bothered its that I didn't have a job. As soon as I got a job out of college I paid it in full.

Their view will be that you shouldn't have borrowed money if you didn't have the means to pay it off.

dougiex06

4ensic15 wrote: »

Their view will be that you shouldn't have borrowed money if you didn't have the means to pay it off.

Agreed, however it's probably not the best idea to hand out free credit cards for opening a bank account.

But you're right. My fault, I hold the hands up, but I do think 5 years is a long punishment. I think it should be proportional to the amount you owe.

Electric Sheep

dougiex06 wrote: »

Agreed, however it's probably not the best idea to hand out free credit cards for opening a bank account.

But you're right. My fault, I hold the hands up, but I do think 5 years is a long punishment. I think it should be proportional to the amount you owe.

It's not about the amount, it's about the attitude displayed. You spent the money knowing you had no job and no way at the time of paying it off. This makes a lender feel that you might get a mortgage, move into a house, and decide you did not want to pay the mortgage if it is inconvenient for you. Because there are plenty of people doing that in Ireland in the knowledge that it takes years for the bank to repossess. For obvious reasons the banks flag the people who have form for not paying.

dougiex06

Electric Sheep wrote: »

It's not about the amount, it's about the attitude displayed. You spent the money knowing you had no job and no way at the time of paying it off. This makes a lender feel that you might get a mortgage, move into a house, and decide you did not want to pay the mortgage if it is inconvenient for you. Because there are plenty of people doing that in Ireland in the knowledge that it takes years for the bank to repossess. For obvious reasons the banks flag the people who have form for not paying.

And I do acknowledge that it was a mistake. I have paid in full and have been saving ever since. I was just looking to see if anyone had been in a similar situation and could maybe give me advice on how the navigated it if they applied successfully? I appreciate the input but I understand why they have refused me.

GaGa21

Is it not true that bad credit is only kept on record for 6 years? So if you apply next year with a different bank, the bad debt should be gone from the external system. Can't say for sure tho.

the_syco

winksblinks wrote: »

Try Pepper Money. Once your credit record is clear for 2 years they will consider you.

Pepper Money is a "sub-prime mortgage" provider.

jimmycrackcorm

the_syco wrote:

Pepper Money is a "

That gives a distorted view. Basically that article shows them being more proactive dealing with existing problematic mortgages than the banks who are holding many more.

They're subject to the central bank rules but seem more willing to treat situations like the OPs as ok.

bleaks

dougiex06 wrote: »

Hi All,

Just looking for a bit of advice. Me and my girlfriend are looking to buy my family home for 300k. Were going for the first time buyers and have the deposit saved. We both have perminant jobs too in the public sector.

Our mortgage got refused as I have a revoked credit card. When I started college BOI were giving out credit cards with 400 on it if you opened an account. I didnt even have a job at the time so was delighted with the 400 euro. Anyway, long story short the card was revoked as I missed payments. I paid the 400 off it as soon as I got a job in January 2015. I haven't had any loans or debts since, girlfriend is the same.

I was told I have to wait until January 2020 to even be considered. Has anyone any experience with this? The crime doesn't seem to match the punishment at all? It seems like no one is willing to take into account I haven't owed a penny since 2015 and have a good savings pattern since.

It's so disheartening that I can't get past a computer which doesn't take any circumstances into account.


Any advice appreciated.

Cheers.

Did you get sorted in the end OP? In a similar situation myself! : /

el Fenomeno

Jet Black wrote: »

That's not necessarily a good thing when it comes to looking for credit. No track record means they don't know how your going to be making regular payments.

When we were going through our mortgage broker a couple of years back, I asked him about this as it always, always gets quoted on threads here.

He said no, it's absolute bullshít. The most likely a person a bank will give a loan to is someone who has a history of not needing loans or credit. That, combined with your payslips and account statements, is better than any credit history - no matter how good it is or instantaneous your repayments were.

L1011

bleaks wrote: »

Did you get sorted in the end OP? In a similar situation myself! : /

OP has not posted in a year and a half - they are very unlikely to reply