Rushed mortgage,problems instant rejections?

Luck2014

Registered User
Messages
6
Hi all,
We have put in a joint mortgage application on a €50k mortgage, pre approved so just submitted documents.We have €10k deposit gifted to us,house is €60k. We paid off 2 overdrafts and and small credit card so no debt outgoings at all.
We are currently renting the house we want to buy and an offer to buy at a knock down price has arisen. Bit of a rushed application as a result.One missed DD on statement(stupid mistake) and I had a loan that went into arrears in 2006 which was then paid off early on ICB report that is due to be removed in October.I had bad health then and lost my job.
Will those 2 blips ruined our otherwise perfect application?
Our rent is more than the monthly mortgage repayments and we have a ************************* SO in paying the rent for over 6 years.
 
You need to provide more information.
How much is the investment property worth. What's the remaining mortgage amount and term. What tracker rate is it on. What's the value of the new build ie have you equity in it.
Is the investment property currently rented out.
Based on the info you have supplied I would thing you can manage the payments on your wages.
 
Niceoneted,thank you for the reply.We are tenants in the house and we house been approached by EA to purchase house we live in for 6 years for a knock down price.€60k as stated.it is not an investment property.
We can manage the payments,the question was is the will the missed DD and last payment on ICB report hinder us,ie will it be an instant refusal?
 
You haven't specified what the Direct Debit was for. Was it for repayment of a loan or some other purpose. Missing a direct debit itself (while not cheap) is not necessarily something the bank your current account is with would need to report.

As for the loan that went into arrears in 2006 - given you have a good repayment history since then it may raise flags but you should be able to challenge them on good grounds. It might be worth being proactive and pre-empting any queries regarding that by bringing it up with the mortgage advisor in the bank yourself rather than waiting for them to find it - that gives you the opportunity to explain it.
 
Apologies Luck 2014 I was responding to another thread and posted in the wrong one.
But in any case what are your earnings like? As you said you were approved in principle so it should be ok. Its a small mortgage.
 
Approval in principle, generally means that you have passed the repayment ability test. While it is a positie indicator it does not necessarily mean that a full approval will result. i.e. Full approval will need to be signed off by the Bank's underwriting department while a SIP (sanction in principle) usually be done locally as it involves no commitment by the bank. Having said that, the issues raised by the OP appear to be minor and current account statements showing no pressure and regular payment of rental SO will be positive factors. In summary OP, you do appear to have a good chance of obtaining full approval.
 
You haven't specified what the Direct Debit was for. Was it for repayment of a loan or some other purpose. Missing a direct debit itself (while not cheap) is not necessarily something the bank your current account is with would need to report.

As for the loan that went into arrears in 2006 - given you have a good repayment history since then it may raise flags but you should be able to challenge them on good grounds. It might be worth being proactive and pre-empting any queries regarding that by bringing it up with the mortgage advisor in the bank yourself rather than waiting for them to find it - that gives you the opportunity to explain it.

Thanks for the reply so crates, the DD was for a bill,we have no loans.We have explained the DD,as it was on current acc statement we submitted.Didnt know the ICB report when we submitted the documents,it's with underwriters now.
 
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