Credit report- Mortgage application

Y

Yeatsman

Registered User
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Hi,
I had a missed payment on a BOI loan in 2011, loan was fully paid in early 2013, and only then did i realize there was arrears (long story, but letter etc went to an old address and received no calls from the bank so was oblivious due to poor monitoring of my accounts at that time.)

Anyway , hope to be applying for a mortgage with my wife in Q1 next year- how likely this is going to be an issue for us? I've heard varying reports as to how many years they go back with regards credit check.

We earn 115K per year combined and in good stable jobs with decent regular savings. No outstanding loans or Credit cards and wifes credit history is perfect.

appreciate any advice.
 
I've a similar story. I've a credit card that has no online facility. The minimum payment date is always around the 20th of the month. There have been a couple of times where my payment didn't get in until 21st / 22nd. I never got any complaint from the cc company and 99% of the time I'm fully paid up prior to the date anyway.

I applied to switch mortgage a couple of months ago. The bank guy rang to say that the cc company had logged these missed payments on my credit report and why were they there. I just said the info above and the guy said grand. Didn't seem to mess up my application as I got the letter of offer since then.
 
Ok so got my ICB report which contains payment records of any previous loans. (8 in total shown on the record)
All perfect except the loan with BOI mentioned in my original post. It shows a "1" for that payment indicating payment in arrears that month but ticks in all the other payment boxes.
This is scheduled for removal in May 2018.

Any thoughts if this will be an issue in a mortgage application? Considering all other loans demonstrate good repayment history.
 
It sounds pretty minor on the scale of adverse credit. Some banks would probably look past this, as long as everything else about the application is very strong. Worst case, Pepper should be an option for you, as your record is clean for at least 2 years.

As a rule, it's essential to provide full and accurate details of the circumstances surrounding the missed payment. The more information you can provide, the better (dates, statements, proof you weren't living at the address, bonus points for getting a letter from the bank about being a model customer, etc.). Generally, you only have one shot to explain your case, and bank underwriters really don't like to be given inaccurate or conflicting information, when it comes to this sort of thing. If an applicant only offers a vague or even remotely inaccurate version of events

I would recommend getting the application "pre-screened" by an independent broker, or perhaps by an experienced mortgage advisor in your own bank (disclosure: biased broker). This is because one of these parties can help to build support for your application before it is reviewed by an underwriter. Also, if a particular bank is definitely not going to show any flexibility, then it's better not to submit an application, only for it to be declined. The next bank will not know that it was declined, but the more other lenders they see that did credit checks on you in the very recent past, the more they will infer that you were repeatedly declined, which could bias the underwriter against you. I don't mean to overstate this last point - I'm just saying that anyone in your position may need to play it even smarter than usual.

Best Regards,
Dave Curry, Irish Mortgage Corporation
https://ie.linkedin.com/in/davecurryirl
 
thanks for the reply Dave. Yes we intend to use a broker.
Pretty annoyed at myself for being so sloppy with finances at the time but hopefully it wont be a deal breaker for an application when the time comes.
 
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