Saving/Applying for a mortgage 2015/16/17/18/19

TheShow wrote: »

Go on the ICB website and request a copy of your history so you know exactly whats on it.
Did you have arrears a few years ago, was it a lot in arrears or just 1 missed payment?
Sometimes the ICB results that the banks get back can be incorrect.
Either ways its always worthwhile to know what is on your credit history.

I have my ICB report, I actually supplied them with it and was completely up front. I was out of work for nearly two years, and was only making a small payment for about a year of that time. The loan was closed in May 2015, and it was restructured into a new loan which was cleared in August last year. I never missed a payment once I was working again.

Ulster Bank have approved us, but I am concerned that they will pull the loan at the last minute. We want to put a deposit down on a new build this Saturday, but don't know what to do now.

Plasandrunt wrote: »

Hey just looking for some advice from someone in a similar position or someone in the know.

I'm 32, single and no dependants. Earn 35k per year. I bought an appartment 3 years ago with cash from money recieved from the death of a relative. Appartment is worth around 225k. I'd like to start saving for a mortgage so I can buy my own house and bookmarked from next month to start saving 1k a month (looking for mortgage of 120k)

I went through a sticky period financially for a few months around 4 years ago and defaulted on an AIB loan, once I got back on my feet I restructured the loan and paid it off in 2018, 2 years before schedule. However the ICB report states that it stays on my record until 2023 despite me defaulting 2015/2016.

With the sale of my property I'd hold a greater equity so then the value of the mortgage so would the banks take that into consideration? I haven't gone to a broker yet because I haven't started saving yet. Is there any point in going to one or will i wait until I've a few quid put away?

You will never, and I mean never, get a mortgage off AIB given you defaulted on a loan. It's just not surmountable. In the UK it is, but you'll feel a bit of sting. In Ireland it isn't possible to get a mortgage with a bank you previously stung, even if it was for 500 quid. Banks are insanely sensitive about credit risk given their experience in the past.

I would say to you do not apply for any credit with a bank you may want a mortgage from until the loan is gone off your record, as they will run a credit report and then have it on file for 7 years. Again, if any bank knows you defaulted then same story. They couldn't give a flying f*ck how much it was for and how long ago it was, it will never make it past underwriting. You could be looking for 50% LTV on a 3 bed semi in a great part of Dublin (i.e strong security for the bank), have great savings records and excellent credit behavior since the default, it doesn't matter.

Now, banks may ask on an application form anyway "did you ever default" and you have to answer honestly. It's a conundrum as if you answer honestly as you will not get the loan.

Let it be a lesson for anyone, don't ever default on a loan. Make some level of payment as you will eventually recover your creditworthiness, but if you are marked as having defaulted then it's curtains I'm afraid.

Plasandrunt wrote: »

Thanks for your reply even if it's a right kick In the balls.

Is there even any point in me gearing towards saving for a mortgage so?

Maybe meet with a mortgage broker and tell them the state of play and see what your options are from there

Has anyone had any experience with the following situation:

- You buy a house as a first time buyer and live in it while you pay off you mortgage.

- You finish paying off you mortgage and want to buy another house.

- You convert the house you already have to an "investment property" by moving out and putting it up for rent with PRTB registration


... can you then apply for a residential rate mortgage on the new house you will buy to live in?

Plasandrunt wrote: »

Thanks for your reply even if it's a right kick In the balls.

Is there even any point in me gearing towards saving for a mortgage so?

Hey, listen, don't fret. You can work your way through it but it's going to take some planning. Go meet with a financial planner or a mortgage broker and tell them the story. You can put in place a 2 to 3 year plan specific to your scenario. Not many people realise how bad it is to default on a loan when it comes to getting a mortgage. You are certainly a write off with AIB, but don't mess it up by applying for a mortgage with anyone else until you speak to someone who can help you. Say for example you waited until 1 month before it was due to come off, you'll basically reset the clock 7 years with that bank all for the sake of 1 month. Wait until it's gone off your report.

I have recently applied for a mortgage but the bank is questioning a loan and what it was used for even tho it was over 9 months ago I thought they only check 6 months bank statements. Loan has since been cleared so is no relevance to application. Any ideas ?

Mrnew wrote: »

I have recently applied for a mortgage but the bank is questioning a loan and what it was used for even tho it was over 9 months ago I thought they only check 6 months bank statements. Loan has since been cleared so is no relevance to application. Any ideas ?

Was there any missed or late payments for the loan? They would still show up on a credit report even if the loan is now cleared.

Mrnew wrote: »

I have recently applied for a mortgage but the bank is questioning a loan and what it was used for even tho it was over 9 months ago I thought they only check 6 months bank statements. Loan has since been cleared so is no relevance to application. Any ideas ?

Standard question when assessing a mortgage application.
You took out a loan 9 months ago and since cleared it, a little unusual behaviour to be honest.

Thanks guys there was no missed payments just got me worried when they were questioning it.

Mrnew wrote: »

it was only a small loan and I just cleared it now as I wanted no loan applying for a mortgage,

just tell them the truth so.

skippy123! wrote: »

Hey guys,

I'm in the situation where an EA for a new build is asking that contracts are signed within 21 days after paying the initial deposit. Is this a normal practice? I am 100% sure I want to buy the place but still waiting for divorce papers which are preventing me of actually signing the contracts.

Standard practice, but any decent solicitor will get you an extra 2/3 weeks.

We needed some time, and our solicitor just told the vendor's solicitor that she was on holiday for 2 weeks.

All is well after a few more queries we got approved today delighted. We have already viewed the house we wanted twice so have put an offer in.

Have you not already factored these costs in your solicitors fees?
it shouldn't affect your mortgage application as its related to the property sale/purchase, and thats what the savings are for...

Getting really frustrated with the bank. Everything is taking ages. Waiting on the formal loan offer and there is nothing on our side thats holding it up. Being put under pressure by the developers to sign the contracts now. Anything we can do to speed them up or just have to wait and be patient?

deisedude wrote: »

Getting really frustrated with the bank. Everything is taking ages. Waiting on the formal loan offer and there is nothing on our side thats holding it up. Being put under pressure by the developers to sign the contracts now. Anything we can do to speed them up or just have to wait and be patient?

Could be a natural backlog with the underwriting team, summer is when most people are househunting, combined with staff who could be on annual leave. No harm phoning your mortgage broker or adviser and asking for an update? See if they can advise how what the wait time is, ask again if there's any outstanding paperwork your end, just in case.