Getting a mortgage with bad credit rating - how hard will it be?

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Just goes to show how informed you are Mrs. O Bumble. The ICB completely ceased operations in 2021. The data base they held has been wiped and no reports can be made or accessed.

im out. Believe what you want. If you think banks continue to report indefinitely a non performing loan or credit card then that’s nice.

walterking

https://www.boards.ie/discussion/comment/120109915#Comment_120109915

The issue is most brokers work primarily on commission, so would have little interest in this.

Look for a fee based financial advisor near to where you are. Here's an example (plucked from Google) https://lifestylefinancialplanners.ie/about/fee-based-advice/

But I'd also talk to Bank of Irish mortgage advisor as currently they are the only bank that are willing to look at the current and recent history and give allowances if a previous history can be explained and they will also give you a path to follow if they deem you not ready yet.

Q&A

https://www.boards.ie/discussion/comment/120111058#Comment_120111058

The bank will sell a loan and write off it's interest but that's from it's perspective. The fact it is sold means the loan purchaser is taking over the ownership of that interest. So there is a difference. In general the purchaser of the loan is covered by the CCR.

https://www.centralcreditregister.ie/borrower-area/faqs/

What lenders are included?

.....

Firms that have acquired loan books from Irish financial institutions

https://www.boards.ie/discussion/comment/120111152#Comment_120111152

Yes— high value loans are sold to the likes of Pepper who will seek payment on similar terms to the bank.

However if you default on your credit card, it’s more likely AIB, BOI, Avant will sell that onto Intrum or a crowd such as them who’ll just bug you for a while but can’t actually submit payment records to the CCR.

So if I get my defaulted credit card sold to Intrum on Feb 1st that’s the last time it will be recorded on the CCR. Jan 31st 2028 it won’t be there anymore. the bank doesn’t keep recording until the end of time.

I think my assumption this is the sort of bad credit the OP is talking about rarher than they defaulted on a massive loan or mortgage and are asking about the chances of a mortgage is more than fair here. I think no one would be stupid enough to wonder if they could get a mortgage when they failed to pay a previous one.

In any case I think the OP mentioned they have had considerable, high scale debt, not merely several hundred on a credit card.

OnlyWayIsUp

https://www.boards.ie/discussion/comment/120111307#Comment_120111307

Correct. We’re talking very high scale debt here. An utter mess of a situation but officially sorted now.

https://www.boards.ie/discussion/comment/120111372#Comment_120111372

If by sorted you mean it was paid then what I would suggest is if you don’t already have a copy of the CCR report, get one (it’s free) and make an appointment to speak with a mortgage advisor in your local branch.

Then you can sit with them, go through the report and they’ll fairly quickly and easily give you a clue if you have any hope here. Making applications you haven’t a hope of approval on is not a great idea generally as each time your report is viewed by a lender it leaves a footprint.

AlainaBarrera

Just stumbled upon your post and thought I could share some thoughts. There are actually financial advisors or mortgage brokers who specialise in helping individuals with low credit scores secure a mortgage. While mainstream lenders might be more reluctant to offer a mortgage with a bad credit history, you could explore alternative providers like specialist lenders.

https://www.boards.ie/discussion/comment/120739749#Comment_120739749

Fair advice but worth adding to

1. never pay a deposit or anything of that nature in order to get a loan from anyone (scam)
2. make sure that they are a registered and approved lender with the Central Bank!

super important to keep that in mind when stepping outside the usual lenders (AIB, BOI, PTSB, Avant)

crusd

I wonder how the OP got on and also could they secure a mortgage in the wife's name only if they were not party to the original issue?

Q&A

https://www.boards.ie/discussion/comment/120739888#Comment_120739888

Highly unlikely that a lender would give a mortgage to the wife without assessing the husband. Being married entitles a spouse to certain rights to the family home not to mention family finances. The home is collateral for the lender and are not going to advance money without knowing the full state of play of interested parties.

crusd

https://www.boards.ie/discussion/comment/120743084#Comment_120743084

I know of situations where due to certain preexisting conditions a spouse could not get life cover. The other spouse was then able to get the mortgage on their own.

In the case of a mortgage the spouse would only have rights over the equity in the house. The banks interests would not be impacted. If the spouse qualifies for a mortgage on their own there should be no additional risk to the bank.

Jim2007

https://www.boards.ie/discussion/comment/120743255#Comment_120743255

I have not seen any Irish models, but certainly in the banks I have been associated with I have seen it included in the model. Expecting a spouse to pay you over helping their spouse and family is too big an ask.

Q&A

https://www.boards.ie/discussion/comment/120743255#Comment_120743255

But in this case the spouse was assessed as part of the original application, they weren't ignored. The legal implications of marriage make it very difficult to assess an individual on their own. Just look at how complicated divorce can be.

Also, I would think a lender may take a very different view on:

A) the failure to get to get life cover, and

B) a track record of not paying back a loan.

manniot2

Hoping someone might have some thoughts on our situation.

We purchased a couch from DFS in 2018 and we apparently missed one instalment payment (bounced back or something) in 2019. It was for 140e. We never knew anything about it as the lender had an incorrect address for us so we never received any correspondence. They subsequently wrote off the 140e and reported it to the credit register. Again we knew nothing about this until today when our mortgage broker said there was an adverse finding on our credit history.

Are we likely to be able to get a mortgage?

Jim2007

You are working with a broker, who is in a far better position to advise you on this as they have access to all your financial information and are in a far better position to advise you on this, what do they say?

My advice would be to to contact the lender and sort the matter out, even with interest and penalties it can't come to more than a couple of hundred Euro and honestly if you cannot come up with the cash to settle that, who can you convince any lender that you will have access to sufficient funds to clear a mortgage???

A bank does not have limitless lending capacity and a loan officer has to sign off on your application, it's their job and their career, salary and bonuses depends on the decision they make. And they are not likely to take a chance of you if there are other more reliable candidates looking for a loan.

At the moment, your report is telling a potential lender:

• I don't stick to the lending agreements I sign up to
• I don't follow up on my debts and settle them
• And your excuse tells them you don't control and manage your financial affairs

You might get a loan if you get a loan officer on a good day, but I would not bet on it...

OnlyWayIsUp

https://www.boards.ie/discussion/comment/120739888#Comment_120739888

We’ve still not applied for a mortgage but will start talking to folk very soon. Will deffo reach out to BoI for a chat with one of their brokers.

@AlainaBarrera - You mentioned specialist mortgage/financial advisors r that specialise in such situations? If you could provide details of who does offer such services it would be much appreciated.

We have been previously advised that my wife won’t get a mortgage on her own, because married she’d have to be jointly assessed with me.

i got my credit report and there’s nothing else on it bar this absolute mess. I have no personal debt.

We have a deposit saved and we have a high income coming in between us, we just need a bank to look more forwards than backwards.

Any further advice appreciated.

Squiggle

https://www.boards.ie/discussion/comment/120106812#Comment_120106812

Cabot Financial do report to the CCR and do litigate. I've even seen them continue to chase debts after litigation has been successfully defended against !

Busymum33

https://www.boards.ie/discussion/comment/121585327#Comment_121585327

Hi, myself and my husband found ourselves in a similar situation. I had checked both our credit reports in 2019 (ICB) and nothing showed up but when I looked for the credit report from CCR in 2023 an old debt from 2008 came up on my husbands. Not a couple of hundred!

I was able to get a mortgage offer from AIB on my own but my husband was basically shown as a dependent and I didn't get anything near what I would have if we weren't married!

Now we are trying to just pay that debt off but the company offered a settlement rather than to pay in full and I am wondering if that would look bad on the CCR when applying for a mortgage?

Can you tell me how you got on for a finish? I really don't want to have to wait 5 years for to buy a house!

ELM327

We don't have "credit ratings" in ireland. We have a shared database where lenders are obliged to record and maintain records of loans of 500E and above. Prospective lenders can then review said database when further credit is being requested.

@Busymum33 short of clearing the loan (or making an arrangement where the lender marks the register as cleared, this is the key part)there's nothing you can do. Even at that, it will show as delinquent and cleared on the record so may impact your ability to get credit for the 5 years period anyway.

Jim2007

https://www.boards.ie/discussion/comment/121823401#Comment_121823401

One way or other this debt will have to be settled before the five year clock is going to start running, so what is quicker way for you to start the clock running - accept the offer or pay down the full amount over a period?

https://www.boards.ie/discussion/comment/121823401#Comment_121823401

a settlement shouldn’t matter honestly as long as the account is reported as 0 balance to CCR.

Mind you the fact there was money owed may be a problem and the record won’t drop off for 5 years

Deep Thought

Could your wife not apply herself? And you then contribute to it?

Busymum33

Hi Jim,

Thank you. We do know that and we were fully prepared to pay in full but they offered this settlement and we are unsure if we should proceed with that:

a) without a solicitor

b) If we might have an option of getting a mortgage within the 5 year period

Buddy Bubs

https://www.boards.ie/discussion/comment/121841051#Comment_121841051

Starts now unfortunately

It will be there until Feb 29 for example but it will show that it's coming up on 5 years old and if nothing else negative on your report it might be looked at more favourably than it would be this year.

In mar 29 it will disappear

bobbysands81

https://www.boards.ie/discussion/comment/121841404#Comment_121841404

Is this possible?

I thought it wasn’t.