Mortgage with previous credit issues

ciara_mar

Hi,
My husband has 25 missed payments on an old student CU loan that we cleared in August 2019. He was on a v low income and just let it get on top of him. We are hoping to get approval around August this year. Our other issue is that we have a history of a lot of borrowings- id say 20 loans (well credit card and loan top ups) but these were all for big things like buying a log cabin, then doing it up then we both went to do college courses. Anyway we took on a lot of borrowing but for once off things if that makes sense not to live off, even though it looks bad. We paid it all back cleared on time. No debt now. Joint income of €136k saving €2k per month. Cleared 20k in debt since 2019-really worked our you know whats off to get where we are. JUst wondered if anyone had any luck with similiar issues? We really need to get approved soon, 3 children -2 bed cabin. Its a nightmare!!

coylemj

ciara_mar wrote: »

Anyway we took on a lot of borrowing but for once off things if that makes sense not to live off, even though it looks bad. We paid it all back cleared on time. No debt now.

I think you're being hard on yourself here. It's not a crime to borrow money and pay it back. In fact, doing so and paying it back in full and according to the agreed schedule is a positive thing as far as credit worthiness is concerned.

Those missed payments on your husband's CU loan may still exist as a negative on his credit history but the fact that it was cleared two years ago and you are now debt free should mean you'll have no major obstacles in your way when you apply for a mortgage.

Geuze

I presume you have checked you ICB and CCR reports?

ciara_mar

Yea we have. We actually applied for a mortgage in 2019 because our icb is clear. The missed payments only show on my husbands ccr report. We didn’t even know about CCR then. Needless to say we got a huge shock when we saw it

Darc19

You won't have any problems.

It's over two years since the cu was fully cleared and you have a good track record of repayment on all other loans.

A mortgage broker will be the best route and if the main banks don't bite they will look at ICS or finance Ireland (both offer excellent rates esp fixed)

The advantage of these two is that the broker can call and talk to the underwriter directly and explain any minor issue.

ciara_mar

Thanks for your reply. We were told last week by a broker that ICS, FI, PTSB and Haven won’t go near us. But I’m half thinking he didn’t even approach them once he saw our history to be honest! We chatted to another broker on Friday and she seemed to think FI would consider no problem. Very strange! We are going to give BOI a go, I’ve heard they can be quite understanding around issues similar to this.

ciara_mar

Just an update: So I contacted both a broker and BOI and yesterday I got an email from BOI saying that he thinks we will be ok. They called me today and I have the application form in front of me right now 😊. The broker also rang me today and said Finance Ireland would be willing to give us AIP. Like I am in total shock. A different broker only told me last week that FI wouldn’t consider us. Baffled!

Darc19

ciara_mar wrote: »

Just an update: So I contacted both a broker and BOI and yesterday I got an email from BOI saying that he thinks we will be ok. They called me today and I have the application form in front of me right now 😊. The broker also rang me today and said Finance Ireland would be willing to give us AIP. Like I am in total shock. A different broker only told me last week that FI wouldn’t consider us. Baffled!

On finance Ireland some brokers will have a closer relationship and as said above would have a direct line to the underwriter who signs off on the finance.

One grey mark that has a reason behind it can be acceptable once all the other boxes are ticked.

So well done, just don't over pay for a property.

markG1985

ciara_mar wrote: »

Just an update: So I contacted both a broker and BOI and yesterday I got an email from BOI saying that he thinks we will be ok. They called me today and I have the application form in front of me right now ��. The broker also rang me today and said Finance Ireland would be willing to give us AIP. Like I am in total shock. A different broker only told me last week that FI wouldn’t consider us. Baffled!

Hi, do you mind telling us which Brokers you went with. As myself and wife in same position with Credit Issues over 2 years ago!!

Cheers

ciara_mar

We are actually going to go with BOI directly as they have advised that there shouldn’t be a problem. Better interest rate plus cash back too. Highly recommend they have been more than helpful for us 😊

TheMilkyPirate

Strange that your broker told you FI won't touch you when they actually offer a mortgage for people with previous credit issues.

ciara_mar

I really don’t even think he approached them to be honest. A different broker just 4 days later told me FI would be happy to help us

Trish56

Don't forget that you were speaking to a Mortgage Advisor in a BOI branch who are always very confident however it may be a different story when your application goes to an Underwriter in Dublin.

Ask your contact have they discussed your application with an underwriter.

ciara_mar wrote: »

We are actually going to go with BOI directly as they have advised that there shouldn’t be a problem. Better interest rate plus cash back too. Highly recommend they have been more than helpful for us ��

Water2626262

You have big enough combined income so past issues are less of an issue. Easy to look over missed payments on some Mickey Mouse loan when you have 136k combined income.

ciara_mar

AIP received from Bank of Ireland! No questions asked! Still in shock really!

markG1985

https://www.boards.ie/discussion/comment/117774030#Comment_117774030

We have also applied with Bank of Ireland. Went thru broker and application went in last week.

How long where you waiting to hear back??

Also did you need to put in a letter of explanation as to why payments where missed on loan??

Thanks