Current mortgage with vulture fund - can I get a new mortgage?

Buddy Bubs

Got into a lot of financial trouble a few years back with failed business and burying my head in the sand and didn't deal with it well regarding my financial obligations.....anyway everything is paid off including a credit card default which I have paid off in full and is about to disappear off the Central credit register 5 year period.

So in 2 months the only open item that will be on my credit report is a mortgage which is now paid up to date and no arrears or anything, but the mortgage was sold by ulster Bank to a vulture fund.

Will this ring alarm bells with another lender, the mainstream ones? The fact that it's with a vulture fund, can they use that against me? We will have approx 60% deposit against new house from the proceeds of my equity and our joint savings and would be looking for less than 2 x combined income

Am I coming into the clear now or will it haunt me forever? I know some mortgages went to vulture funds that weren't in arrears for capitalisation reasons.

dennyk

The lender's underwriters will look at your actual financial history when making a decision on your loan. If you have been in arrears on any loans within the past few years, that will likely adversely affect your chances of getting a new mortgage. Who your current mortgage holder is likely won't make any difference if you have been current on all of your payments for the past four or five years. If you do have more recent arrears, then you might need to wait a while before taking out another mortgage. Your arrears won't "haunt you forever", but lenders will generally look at the past several years of activity on your credit report.

Buddy Bubs

https://www.boards.ie/discussion/comment/120689273#Comment_120689273

Thanks Denny, that's the kind of thing I'm looking at. My credit report will be clean in 2 months there's a settlement of an old credit card balance due to fall off report in 2 months time so it won't appear. All that will appear is a fully up to date mortgage with a non bank lender that is more than 5 years old, just wondering will they dig into the reasons for it being with the non bank lender. Next stop is to talk to a mortgage broker and see what they think, hopefully could apply towards the end of this year. Income and equity are high at the moment, just looking to move house probably in 2024 if I can!

randomguy

The identity of the current lender won't be an issue. Plenty of performing buy-to-let loans were offloaded to "vulture funds", so the fact that it is a non-bank lender who bought the loan is not, in and of itself, relevant. The amount outstanding, the interest rate, any arrears, any defaults etc will all of course be taken into account. But the identity of the lender is not relevant.