Mortgage, how far do banks look for history of bad credit?

Schecter01

Bit of background basicly in 37 at the moment, in my early 20s when i got a high paying job thought i was great & splashed cash stupidly & when 2008 hit i lost the job & was left with a heap of debt,i went downhill, had a car repoed & let the arrears go to a debt collector but this was paid off in 2014 & my credit report says it will be wiped off my record this year. I also had a bank loan that was in arrears but was paid off in 2013 & doesnt show on my record.

Basily i always thought i would ever get a mortgage with this history, but i got my **** together, got married, 3 kids, good job im in the last 6 years, the last 2 years has been very good, i got a good raise, i earn 55k a year, we get €700 per month in maintenence for my stepson, im due another raise next year as the business is expanding.
i got a car loan for 20k approved 16 months ago they asked about the previous car debt and i told them the truth about losing my job and fell behind, they gave me the loan anyway, i havent missed one payment.
Im 2 years into a 5 yr credit union loan for 8k with no missed payments and i havent missed a direct debit rent payment of €1200pm in 4 years.
My only blip in the last 5 years is a missed credit card payment last year but that doesnt show on on my credit report.
We werent planning to even consider applying as we only have 6k saved but ill be getting inheritance of 30k later in the year, so that would be a deposit sorted, were looking for a €230k max budget.

I recieved my report yesterday, it doesnt show a score itself only my 2 loans with all payments on time, the previous car loan from 2014 with arrears(says its to be erased in august.)

Anyway based on all this do you think the banks will look back on past debt issues even if they aren't on my record?
Will be good circumstances he last 5 years hold me in good stead in spite of the past debt?
Anyone get a mortgage with similar circumstances?

AngryLips

I really don't think they'll look back over ten years. Even if it's still on your credit report, I'd be surprised if they take it into account, considering the age of it. A mortgage broker would be best placed to advise on the credit criteria of various lenders to be honest without necessarily going through the entire application process and impacting your credit history some more.

DubLad69

Go onto the AIB website and click apply for a mortgage. Their calculator is very accurate. Once the last bit of bad credit is wiped from your record you will be able to apply for the mortgage as long as you have your savings and evidence of monthly savings/rent payments.

Markitron

Which credit report did you get? There's the ICB and CCR and the lenders will check both so make sure there is nothing on either of them.

In general this was all so long ago that I don't think you have anything to worry about. Based on what you have said you might have a problem when it comes to the banks assessing your ability to repay the loan. A credit union loan, a car loan and 3 dependants will factor against you when they are working out your monthly repayment capacity. Also the 30k lump might cover the deposit but they will still need to see 6 months of saving/repayment ability (your renting history should help here though).

Your situation is nothing too far out of the normal, but you should really speak to an advisor as early as possible to get ready for the application. I am not an expert but the first thing I would do is get rid of at least one of those loans with the lump sum.

akelly02

what number is classed as a good credit score lads/lassies?

Markitron

akelly02 wrote: »

what number is classed as a good credit score lads/lassies?

There are no scores on the 2 credit reports used here, just a record of on-time/missed payments.

akelly02

theres a score on mine, dont think its great

Markitron

akelly02 wrote: »

theres a score on mine, dont think its great

Got both of mine recently and neither one of them had a score

akelly02

Its only if a company go in to have a look that a score is given

ted1

You’ll struggle to get a mortgage
The 20k car loan and 8 k credit union loan is going to go against you.

Start living within your means.

Does your partner work?
You can only get 3.5 times your salary. They then reduce this based on number of dependants , loans etc

brianc27

ted1 wrote: »

You’ll struggle to get a mortgage
The 20k car loan and 8 k credit union loan is going to go against you.

Start living within your means.

Does your partner work?
You can only get 3.5 times your salary. They then reduce this based on number of dependants , loans etc

i've one dependent and my loan offer was not reduced, pretty much bang on 3.5 times my salary, I think if you've more then enough spare money (excluding savings) at the end of the month after stress test & living costs are taken out then you should be good, thats my experience anyway.