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Saving/Applying for a mortgage 2020-22 Edition

Graham

Continued from here: https://www.boards.ie/vbulletin/showthread.php?t=2057501206

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2Mad2BeMad

Duke of Url wrote: »

How can you tell if you have a good credit rating?

I'm not sure of the overall.
But loans and credit cards a d overdrafts are shown on it over the last 5 years? I think it is.
So it shows banks what loans you paid off and if you've ever missed a payment.

If there is a credit score system it doesn't pop up like the English one.
Basically just go through the report check your loans and make sure it reports that there is no arrears and it's paid off in full. If that's the case consider your credit to be good.
I'm not 100 percent on all of this but I can't see any numbers on the report with regarding a specific score. Best to ask them personally if there is one.

Edit. I also think banks get extra information regarding a score system when doing quick checks not sure if true or not maybe someone who runs credit checks might know

wally79

Tilikum17 wrote: »

Our mortgage runs out on the 20th. We can get a 1 month extension after that. It’s crazy they haven’t given people more time with pretty much everything on hold.

Probably makes sense for the banks to have people reapply. Some people with approval may not have a job after all this

Nicki99

2Mad2BeMad wrote: »

We should have, we were going to but having applied for and receiving loans previously subject to credit check we didn't think it was really necessary.

Will contact him Monday morning. Thanks.

I only say that because when I got a credit check done for my self it said on mine that I owed 1100 on an overdraft that was unpaid and still had 2 loans unpaid.
When in fact all of it was paid without ever missing a payment I had 0 loans out when checking also.
It was why my credit union wouldn't give me a loan but my bank could because they knew I had it all paid but if I wanted a loan with anyone besides my bank they would reject me.
It gets sorted easily enough but I was surprised by so many mistakes on it.[/quote]"

Thanks for that, I assumed since we always paid our loans on time there wouldn't be an issue. Mistakes never occurred to me. That's actually quite shocking that happened to you, glad you could sort it

Can I ask do you know what's included in credit history report. Is it only loans or are utilities included? We've only ever had credit union loans. All paid off in full, overpaid every week so cleared early. I have an overdraft which I never use. Never had a credit card.

Eta apologies for quoting wrong again, new to this site and still trying to figure it out!!!

Tilikum17

wally79 wrote: »

Probably makes sense for the banks to have people reapply. Some people with approval may not have a job after all this

Just reading on the journal there, if your circumstances haven’t changed at all they will give you an extension.

ELM327

Duke of Url wrote: »

How can you tell if you have a good credit rating?

Get your credit report from ICB

Nicki99

Just an update to say we got a call this morning to say we've been approved. The delay was because the guy we were dealing with is working from home and we will be dealing with someone else still in the office from here on out. Apparently we were approved almost immediately.

Duke of Url

ELM327 wrote: »

Get your credit report from ICB

I did,

Doesnt show any scores.

Just that I have a credit card and boxes ticked for the past 24months

Nothing showing in numbers like scores.

[Deleted User]

Duke of Url wrote: »

I did,

Doesnt show any scores.

Just that I have a credit card and boxes ticked for the past 24months

Nothing showing in numbers like scores.

Yep, like others have mentioned, there shouldn't be a score.

A particular institution might implement their own scoring system that they use internally, but there's nothing that scores people on a national level. The ICB/CCR report just highlights any missed payments/arrears, the amounts outstanding on existing loans, and some identifying information like name/address.

When I told people I was applying for a mortgage, a good few people brought up the idea that I should get a credit card or a small €1k loan and pay it off, to establish my credit score. I think people picked it up from American TV. In Ireland, a blank ICB record is as good as a clean payment history.

Dylan94

true-or-false wrote: »

Yep, like others have mentioned, there shouldn't be a score.

A particular institution might implement their own scoring system that they use internally, but there's nothing that scores people on a national level. The ICB/CCR report just highlights any missed payments/arrears, the amounts outstanding on existing loans, and some identifying information like name/address.

When I told people I was applying for a mortgage, a good few people brought up the idea that I should get a credit card or a small €1k loan and pay it off, to establish my credit score. I think people picked it up from American TV. In Ireland, a blank ICB record is as good as a clean payment history.

This is not true. My credit report has a score on it. In fact it has a history of different scores that were calculated by the ICB.

Frank Grimes

true-or-false wrote: »

Yep, like others have mentioned, there shouldn't be a score.

A particular institution might implement their own scoring system that they use internally, but there's nothing that scores people on a national level. The ICB/CCR report just highlights any missed payments/arrears, the amounts outstanding on existing loans, and some identifying information like name/address.

When I told people I was applying for a mortgage, a good few people brought up the idea that I should get a credit card or a small €1k loan and pay it off, to establish my credit score. I think people picked it up from American TV. In Ireland, a blank ICB record is as good as a clean payment history.

Dylan94 wrote: »

This is not true. My credit report has a score on it. In fact it has a history of different scores that were calculated by the ICB.

From: http://www.icb.ie/credit_rating.php#q13

ICB wrote:

13. Will I always have a Credit Score?

No, not always. The Credit Score needs to be requested by the lender from ICB. If the lender has not requested it, you will not have a Credit Score. If the loan(s) has been opened very recently, or there has been no activity on the loan(s) for some time, you will not have a Credit Score either.

I have a score on my report but it was generated when I was applying for a loan and the lender did a credit check.

Duke of Url

Frank Grimes wrote: »

From: http://www.icb.ie/credit_rating.php#q13

I have a score on my report but it was generated when I was applying for a loan and the lender did a credit check.

So its impossible to know if you have a score unless a lender checks.

Weird that we have to go blind into a credit check when applying for a loan or a mortgage

stuey89

Hi there, we have submitted our mortgage protection to the banks yesterday so we hope our solicitor will be able to draw down our mortgage within a couple of days as the house is ready to snag, but obviously building sites are closed so will not be able to close until they are back up and running. My question is, is it possible for my solicitor to draw down for us before we finnish snagging? Just living in fear of my job not knowing if is safe or not as I am in the hospitality sector and would like to draw down before I get bad news. My husband job is safe thankfully.

awec

stuey89 wrote: »

Hi there, we have submitted our mortgage protection to the banks yesterday so we hope our solicitor will be able to draw down our mortgage within a couple of days as the house is ready to snag, but obviously building sites are closed so will not be able to close until they are back up and running. My question is, is it possible for my solicitor to draw down for us before we finnish snagging? Just living in fear of my job not knowing if is safe or not as I am in the hospitality sector and would like to draw down before I get bad news. My husband job is safe thankfully.

Once you've your insurance / mortgage protection / valuation etc all sorted out your solicitor can draw down whenever you ask them to.

Snagging is not part of the formal process, it's just convention that people snag before draw down in case there's any big issues.

There is nothing to stop you snagging after you get the keys.

Atlas_IRL

Gone through BOI twice now trying to get a mortgage. They said both times iv'e a great chance for the extra 4.7 times (not sure what it is called) then offered 3.5 both times. I wouldnt even buy an apartment on that, literally nothing. Going to have to go through brokers now.

coolperson05

We got approval from BOI this week, applied through a broker. We didn't need an exemption. I'd say you'll find it hard to get one at the moment. But to others applying, they are still lending. Covid is in the AIP letter, just that when we go sale agreed we'll need updated documents to show our earnings are where they were when we applied. But other than that, delighted to even be one step closer to escaping crazy rents.

Captainsatnav

We got approval letter from PTSB last Friday.

random_banter

Duke of Url wrote: »

So its impossible to know if you have a score unless a lender checks.

Weird that we have to go blind into a credit check when applying for a loan or a mortgage

Not quite. I ran my own ICB report a two years ago just to check it was clear. Yes, it's true that if a lending institution hasn't run a credit check on you, then there will be no score. However, it will still list the details (to you) that go into calculating that score. So by looking at the report, you can get a sense of how clean your credit history is and how you're likely to fare when the bank does a credit check on you.

As a practical example, mine listed a 12 month loan I was in the process of paying off. It listed each payment made on time. No overdue payments. Etc.

If there are overdue or outstanding payments listed on your report, that would be a factor in the bank's calculations when they run the credit check.

So if you have payments outstanding, or overdue payments marked on it, then it's not as good a report as someone who has literally nothing listed on the report. If you've nothing listed on the report (it's clear), it's more likely that the credit check the bank performs will be spotless.

I'm not using absolute terms here as I'm not an expert, but that's been my experience.

(As an aside, I literally innocently forgot to make a payment on my credit card about a year ago, and while it was paid within the "overdue" time the bank says it allows before informing the ICB, I'm still sh*tting a brick that it will show up on my report, and I'm too much of a pansy to check. Will be checking shortly though before making a mortgage application.)

P.S. There is also the newer Central Credit Register which now runs along with the ICB. You can also apply for a report from them to check your credit history. While doing my reading, it's been unclear if it's exactly the same kind of system in terms of reporting unpaid credit card payments etc. Anyone have any experience?

Bigmac1euro

random_banter wrote: »

P.S. There is also the newer Central Credit Register which now runs along with the ICB. You can also apply for a report from them to check your credit history. While doing my reading, it's been unclear if it's exactly the same kind of system in terms of reporting unpaid credit card payments etc. Anyone have any experience?

https://www.centralcreditregister.ie/

This what you're talking about.
You can do a check yourself for free I think.
Bit more involved than with the ICB report as you need to print out documents and sign them and re-upload.

Think the banks do this one as well as the ICB.

Plasandrunt

I've only started saving after finally getting stuff in order and ensuring all debts (Bank loan) have been cleared.On 37k per year and recieve rental income of €100 per week. Currently saving 2k a month due to Covid19, will drop it to 1500k a month when restrictions are relaxed and should have about 12k by September. I also own an apartment I bought in 2016 for 175k cash due to inheritence so I'll be selling to buy. Obviously don't know how much I'll get for the apartment now but before all this places went in same complex for around 230k.

Are banks looking for 10% of the mortgage value or 10% of the total value of the house to be saved up? Will they take into consideration the LTV will be fairly small?

wally79

Plasandrunt wrote: »

I've only started saving after finally getting stuff in order and ensuring all debts (Bank loan) have been cleared.On 37k per year and recieve rental income of €100 per week. Currently saving 2k a month due to Covid19, will drop it to 1500k a month when restrictions are relaxed and should have about 12k by September. I also own an apartment I bought in 2016 for 175k cash due to inheritence so I'll be selling to buy. Obviously don't know how much I'll get for the apartment now but before all this places went in same complex for around 230k.

Are banks looking for 10% of the mortgage value or 10% of the total value of the house to be saved up? Will they take into consideration the LTV will be fairly small?

I assume you are not buying a 2million plus home so the proceeds from the apartment will more than cover your deposit requirement if you are selling before buying

All you need to show is that you can meet the repayments really

Also I am not sure if previous cash purchase means you are no longer a first time buyer and need 20% deposit

Plasandrunt

The reason I ask about the 10% thing is I'd rather have the sale and new purchase go hand in hand and not much time between the two so that I'm not renting/staying with a friend for too long.

I'm 99% sure it's only 10% of the deposit because this would be my first mortgage, however the proceeds of the apartment sale would cover if i need 20%.

Creamy Goodness

Plasandrunt wrote: »

The reason I ask about the 10% thing is I'd rather have the sale and new purchase go hand in hand and not much time between the two so that I'm not renting/staying with a friend for too long.

I'm 99% sure it's only 10% of the deposit because this would be my first mortgage, however the proceeds of the apartment sale would cover if i need 20%.

FTB status is tied to mortgage loan, not owning a property which is weird tbh

https://mmpi.ie/mortgages/articles/am-i-a-first-time-buyer/

headtheball14

It’s 10 percent of the value of the property , Ltv must be 90 % or lower

headtheball14

“

Brock Turnpike

Hi all,

Does having/investing in shares have an impact on mortgage application? If so, can you give me an idea of what please?

Prezatch

Brock Turnpike wrote: »

Hi all,

Does having/investing in shares have an impact on mortgage application? If so, can you give me an idea of what please?

Just need to show a statement proving the value of your shares, if you are using it toward a deposit.

Plasandrunt

I'm a owner occupier and my friend rents the spare room off me for €100 p/w. She pays me cash in hand but since Covid19 I've been self lodging the money into my account.

Was planning on applying for a mortgage in September and now thinking it might be a better idea for her to transfer the money over in case the bank query this? Or will it matter considering it's a relatively small amount?

Pivot Eoin

Plasandrunt wrote: »

I'm a owner occupier and my friend rents the spare room off me for €100 p/w. She pays me cash in hand but since Covid19 I've been self lodging the money into my account.

Was planning on applying for a mortgage in September and now thinking it might be a better idea for her to transfer the money over in case the bank query this? Or will it matter considering it's a relatively small amount?

It will only become a factor for your Capacity for repayments. If you want that to go up by €400 monthly to give yourself more room for exemption then i'd start a rent book.

If you aren't looking for an exemption then you'll be alright. Although if you consider this part of your earnings... 5200*3.5 = 18,200 total value off the top of your mortgage. If you need this 18k to purchase then I'd legitimize it ASAP.

Pivot Eoin

Just got off the phone with my Broker,

Said at any other time I'd more than qualify for an exemption but in current climate it's highly unlikely. I'd probably be considered a strong enough applicant in the current circumstances so that's food for thought for anyone applying.

Don't necessarily need it (Dependant on market behaviour), but wanted to have more options available to me with it. Will be interesting to see when they open back up to stronger applicants.

KilOit

Finally got loan offer from UB. 2 year fix at 2.3 but now thinking we should go with 5 year fix 2.2. Very hard to decide in this market, don't really feel like switching in 2 years unless saving a massive amount