Do I need to build credit file before applying for a mortgage?

R

RichardTea

Registered User
Messages
6
Background: UK citizen, did my undergraduate degree in Ireland, graduated, worked in UK for a year. Moved to Ireland permanently in September 2016. Looking at applying for a mortgage at some point in the next few months to years. I have a good credit file built up in UK as I was renting a house for a year in my name with all bills in my name and mobile contract and several credit cards (with 0% balance transfer offers), all payments have been made on time. Since I'm now living in Ireland I'm winding this all down and will end up with just one UK current account and one credit card.

In Ireland I have a current account with AIB open since 2011 -still a student account, no overdraft. Renting a room in a house share at the moment with no written contract and bills are in one of the other inhabitants name. So therefore have no access to credit at all in Ireland.

Do I need to do more to get a credit file built up in Ireland before applying for a mortgage? I don't foresee a need to borrow money until I take out a mortgage so anything would just be to build up the file, as in the UK this seemed to be fairly important.

If so what would be the best thing to do, e.g. taking out a phone contract, credit card, arranged overdraft with bank, etc? Should I move into a house rented in my own name, which would cost me more in rent and bills in the short term?
 
Some one else will be along to give better advice soon but i just had a meeting with an EBS mortgage advisor and he gave me a simple enough checklist which is fairly common knowledge anyway.

6 months savings record.
Permanent Job
Earn at least 30k or so.
Deposit of course.
6 months Clean Bank Account. i.e no Gambling

Your rental situation will work against you. They use rent and savings as a way of measuring your ability to pay the mortgage. On paper it looks like you live with the mother and spend cash on god knows what. In your case only the savings would be taken into account.

Id say dedicate 6 months to a year to getting a mortgage.

Rent through an agency with contract and standing order payments.
Save regularly on top of that. 100 a week for 6 months but 50 would probably do if you were paying proper rent.
No huge unexplained cash withdrawals. 100 cash coming out of an account every weekend and only saving 50 will not look good.
I assume you have the permanent job already if you are getting a mortgage.

I would also highly recommend a 10 minute meeting with an EBS mortgage advisor. After you use their online mortgage calculator a form pops up where you can arrange a meeting. Hearing this from them will give you confidence.
 
There is no credit scoring system in Ireland as there is in Britain.

Excellent advice above from Chris.

Have you evidence of the rent you are paying. Ideally a trail of the money going out from your bank,
 
You must log in or register to reply here.
Back
Top