Mortgage approval with bad ICB Report

S

SP2K16

Registered User
Messages
16
Myself and my wife are in the process of applying for a mortgage. I requested our ICB report, we had a credit card that was cleared in full in early 2014. On my wife's ICB report (she was the main card holder) under payment history the first 7 periods have payments in arrears (4x 3-payments in arrears, 1x 2-payments in arrears and 2x 1-payments in arrears). All the other periods are fine. We went through a difficult patch and made an agreement with the CC provider to pay €50 p/month around the time of the arrears. The broker thinks this will affect our chances with the banks. We have an otherwise perfect history repaying loans and never missed any loan repayments.
I'm looking to see if anyone has had a similar experience and might be able to offer some reassurance that the banks will offer us a mortgage. We're in the process of clearing our current loans so by the time we apply we won't have any loans outstanding. The CC provider are going to issue a letter to us stating that the credit card was paid in full and that there were some arrears but we made an agreement to pay €50 p/month, they said we could show the banks this letter to support our application.
 
Suggest .

Go to your own Bank before you formalize an application with them, ask them does your (past) now cleared issue mean you are excluded from a mortgage.
If it is a case you can show (difficult) patch was outside of your control but that you resolved matters and are in a much better ongoing situation they may look at you.
Impress on them good general history + in particular you have cleared all (small) loans.

Good luck.
 
Gerry Canning said:
Suggest .

Go to your own Bank before you formalize an application with them, ask them does your (past) now cleared issue mean you are excluded from a mortgage.
If it is a case you can show (difficult) patch was outside of your control but that you resolved matters and are in a much better ongoing situation they may look at you.
Impress on them good general history + in particular you have cleared all (small) loans.

Good luck.
Click to expand...

Thanks for your reply. The CC was with PTSB, I no longer have any account with them or my wife. I'm with AIB and my wife is with BOI. As my wife was the main card holder the 'bad' ICB report is under her name. Both our banks won't have any idea of the report as we've never given them reason to look at it. Should I approach them and be honest about it before the application is submitted?
 
The first thing a bank will do is check the ICB record. If it is not good, there is no point in spending time & money in underwriting a case that is not going to be approved.

Banks will make allowances for 1/2 missed payments if there is a very good reason e.g. emigrated and missed a payment. With 7 payments, I very much doubt they will take you on. Pepper's guidelines is 2 missed payments on unsecured debt in the last 2 years. They may look at your case, but you would want to have a very good proposal otherwise.

...oh, to get formal approval with Pepper, you need to have identified a house.


Steven
www.bluewaterfp.ie
 
SBarrett said:
The first thing a bank will do is check the ICB record. If it is not good, there is no point in spending time & money in underwriting a case that is not going to be approved.

Banks will make allowances for 1/2 missed payments if there is a very good reason e.g. emigrated and missed a payment. With 7 payments, I very much doubt they will take you on. Pepper's guidelines is 2 missed payments on unsecured debt in the last 2 years. They may look at your case, but you would want to have a very good proposal otherwise.

...oh, to get formal approval with Pepper, you need to have identified a house.


Steven
Click to expand...

Thanks for your reply. The thing is we didn't actually miss any payments in those periods on the report. I've gone back through my bank statements and we paid something off the credit card in the periods in questions we just didn't pay the full minimum amount, we had an agreement in place with the bank to pay €50 per month.
 
It doesn't look good. Banks want to see applicants that meet their payment obligations. If you weren't meeting the minimum required amount on your credit card, the bank will be concerned. I know you had an agreement with the credit card company but they don't care about your ICB, they just want their money back.

Ask your broker to give the Pepper rep a call and run it past him.


Steven
www.bluewaterfp.ie
 
SP2K16 said:
Myself and my wife are in the process of applying for a mortgage. I requested our ICB report, we had a credit card that was cleared in full in early 2014. On my wife's ICB report (she was the main card holder) under payment history the first 7 periods have payments in arrears (4x 3-payments in arrears, 1x 2-payments in arrears and 2x 1-payments in arrears). All the other periods are fine. We went through a difficult patch and made an agreement with the CC provider to pay €50 p/month around the time of the arrears. The broker thinks this will affect our chances with the banks. We have an otherwise perfect history repaying loans and never missed any loan repayments.
I'm looking to see if anyone has had a similar experience and might be able to offer some reassurance that the banks will offer us a mortgage. We're in the process of clearing our current loans so by the time we apply we won't have any loans outstanding. The CC provider are going to issue a letter to us stating that the credit card was paid in full and that there were some arrears but we made an agreement to pay €50 p/month, they said we could show the banks this letter to support our application.
Click to expand...
Hi,

I went through something very very similar, I went through a broker and it took a while but I ended up getting approved with Ulster Bank. I got refused by AIB and KBC.

Broker done sterling work, I had to provide a thorough explanation and provide details that my finances were in excellent condition for the last 6-9 months.

There were stipulation put down by UB regarding the full approval of the mortgage - We had to show that we had the full deposit and Legal fees, stamp duty etc.. in our account before the would issue approval.

It's hard but with the help of a good broker its very possible

Good Luck with everything
 
Last edited:
Sean1888 said:
Hi,

I went through something very very similar, I went through a broker and it took a while but I ended up getting approved with Ulster Bank. I got refused by AIB and KBC.

Broker done sterling work, I had to provide a thorough explanation and provide details that my finances were in excellent condition for the last 6-9 months.

There were stipulation put down by UB regarding the full approval of the mortgage - We had to show that we had the full deposit and Legal fees, stamp duty etc.. in our account before the would issue approval.

It's hard but with the help of a good broker its very possible

Good Luck with everything
Click to expand...

Thanks Sean. That was a positive outcome for you. Hopefully we'll have a similar outcome.
 
You must log in or register to reply here.
Back
Top