Getting a mortgage after bankruptcy

Discussion in 'Personal Insolvency, bankruptcy, etc' started by MikeL2007, 12 Jul 2016.

  1. glic83

    glic83 Frequent Poster

    Posts:
    117
    People in the UK have be successful getting a mortgage post bankruptcy, the system is different over there and there is a lot more lenders. Building up your credit rating would be the 1st step, small credit union loans, credit card and clear it each month would be a start. Will be very interesting to see how it goes here.
     
  2. Fresh-Start

    Fresh-Start Registered User

    Posts:
    12
    New rules coming into force next year that a bank can only hold information on you for 6 years. But there are plenty of other banks out there...
     
  3. Alan1962

    Alan1962 Registered User

    Posts:
    17
    I opened an account in our local credit union

    I just brought my certificate of discharge and the account was opened in 5 mins
     
  4. jayboy

    jayboy Registered User

    Posts:
    4
    Where do you get a certificate of discharge? I don't think I have received anything like this. I will have to have a look through my files
     
  5. Fresh-Start

    Fresh-Start Registered User

    Posts:
    12
    Following discharge your debts are written off, which means you no longer have a liability to repay them and the lender can't chase you for repayments.
    However the record stays on your credit report for five years from date of discharge. (That's the way its supposed to happen anyhow)
     
  6. Fresh-Start

    Fresh-Start Registered User

    Posts:
    12
    Is it just me or are PTSB the only bank refusing to correct an ICB report when pushed.
    I'm more than 5 years post discharge and they are still reporting my account to the ICB as in arrears?
    Its very frustrating, they are claiming that as the property is not sold they have the right to continue to report it. This makes no sense to me...
     
  7. Anbhfuilcead

    Anbhfuilcead Registered User

    Posts:
    1
    Post discharge from bankruptcy or the completion of full and final settlement towards a shortfall on the sale of a house? I've had it confirmed that all debts should be removed from an ICB report after 5 years, paid or unpaid.
     
  8. jayboy

    jayboy Registered User

    Posts:
    4
    I do not know how this is possible. I might have to look at some alternative credit union in my area or around by my college and see can I open an account there. I don't really know what else to do in this sense. The only problem is if I open account and apply for loan straightaway they may check the ICB and find me on there until 2021.
    I am gobsmacked that you can open an account and then apply for a loan and get it even before opening the account and speaking with loan manager about your bankruptcy. I would feel you were in a financially better off position to me as you might have had a job which was good wage so you could show repayment capacity for the loan but even at that its a strange situation. I have a different circumstance, I work part time at weekend but don't really want to mention too much on this forum on that. I am trying to move from where I am living at the moment to a bigger place but am caught for the deposit and have no way of accessing credit until 2021 according to ICB.
    I am hopeful I will get job after college in May but that will take time to save up. I am at a bit of a crossroads at the moment on this.
     
  9. Fresh-Start

    Fresh-Start Registered User

    Posts:
    12
    Hi Anbhfuilcead,
    I believe you are correct, who confirmed this for you?

    I can find material from the UK but I can't find anything in Ireland so far...
     
  10. MikeL2007

    MikeL2007 Registered User

    Posts:
    39
    Hi folks,

    Just to give an update on our situation. As per the thread back in October, KBC seemed to react accordingly to a complaint from the FSO. Eventually updating the status on that loan to withdrawn.

    However my wife is now having a battle with PTSB through the FSO to get a loan updated to the correct status. Having been declared bankrupt in 2014, my debts are listed as being removed in 2019 (correctly) but her PTSB debt having declared on the date are sitting with a removal date of 2022. They refuse to play ball and are making excuses ranging from 'the official assignee delayed in transferring possession the property' to 'the property is not sold yet'. This despite the fact we know that the property is occupied.

    We've found a favourable lender that is willing to consider a mortgage application from us having reviewed our situation but this could be one blocker too far for them.

    Mikel
     
  11. breakonthru123

    breakonthru123 Registered User

    Posts:
    32
    @MikeL2007

    At what date are banks meant to change your ICB etc. records to show mortgage loans as ‘withdrawn?’ After you’re declared bankrupt or after you exit bankruptcy?

    And is that procedure a statutory obligation - or - just based on the whim of the particular bank you previously had a mortgage with??

    Cheers!
     
  12. Smashed123

    Smashed123 Registered User

    Posts:
    1
    This is a great post ,its great to see people talking about this issue. Im in the process of applying for a mortgage through a broker with my squeeky clean partner. Ive recently been discharged from bankruptcy and we're going to try find somone to lend to us if possible... my question is am i a 20% second time buyer house is gone back to bank or are we as a couple a 10% first time buyer .There seems to be a lot of gray area out there regarding each banks rules.
     
  13. RedOnion

    RedOnion Frequent Poster

    Posts:
    1,915
    There's no grey area. There's legislation setting out the meaning - if either of you have ever previously had a home loan, in the republic, you're not a first time buyer.
     
    breakonthru123 and David1234 like this.
  14. Jane09

    Jane09 New Member

    Posts:
    4
    Hi
    Any more updates on anyone getting a mortgage since being discharged ? Or people who have approached banks what kind of response are you getting ? And who do you make appointments with to discuss getting a mortgage with ?
    Mikel2007 any luck on the bank you approached ?
    Thank you for any responses in advance.
     
  15. Dauhee

    Dauhee Frequent Poster

    Posts:
    91
    Things that will help you:
    • meet face to face, build a relationship, try get an area/territory sales manager
    • having 12+ months since discharge
    • have a savings/current bank account with the bank you are applying to and have your wages put in, 12+ months of this can help
    • have good disposable income (according to their scoring system)
    • if joint application, if switching and existing mortgage is in non-bankrupt spouse
    • ask them [nicely] to refer to their underwriter if not getting accepted
    • have your finances under control, be able to demonstrate good understanding and planning
    basically, banks want to loan, but they also don't want to get stiffed. If you can get an area sales manager, they will be able to sway things in your favour if you are genuine and don't present as much risk.

    Its still unknown territory for them with post bankruptcy, UB and PTSB seem to be more open to the idea currently
     
  16. Jane09

    Jane09 New Member

    Posts:
    4
    Thank you Dauhee for your very detailed reply.
    Just a couple more questions.

    We are both with permanent tsb with my husbands wages going into it so should we keep it there then ?

    We are only out of bankruptcy so should we just not make any appointments for 12 months ?

    Should we put our consistent monthly savings into ptsb also in the hope they give us a mortgage down the line ?

    Will we need to save 10% or 20% deposit ?

    Should we start getting small loans out now or credit cards to build up our credit rating or does it not work that way in Ireland as we don’t have a credit score system ?

    We are renting consistently for 7 years now paying 1450 rent so we have a good record there


    My husband was bankrupt with a house he owned with an ex who emigrated so it was our only way of breaking that contract as bank didn’t want to know. So it wasn’t for financial difficulty reasons. He could not sell it as it was in negative equity and ex didn’t want to cooperate :( he also had a small loan out at time of going bankrupt.

    Thank you so much for your help :)
     
  17. Dauhee

    Dauhee Frequent Poster

    Posts:
    91
    Hi Jane09,

    You could certainly try before the 12 months with PTSB. If you get to the point PTSB will definitely not accept you, could then look to save with another bank and try them for a mortgage. There is no harm in politely checking in every so often. PTSB were sympathetic to my case, but I have periodic checkins with UB and BOI also, just to keep the relationship going. Sometimes they might say contact them again in 6 months, or when your finances are at a certain point. KBC said they would never do business with me, but then again different branch reps can give different answers.

    With any bank, if they see the money coming in then that's good enough, if money is going out to separate savings account then that should be fine so I would say no need to change that.

    You can request your ICB report online for a nominal fee (6Eur or something like that), while banks will be doing their own checks, at least you can highlight how good (apart from bankruptcy) the finances are.

    Unfortunately because you are married, with the homeowners act, you need to make a joint application. Depends on how desperate you are for a mortgage - divorce could solve your problem :)

    yes loans and ccard do get listed on your ICB, but is pointless getting a 1k loan and paying it back as the value is listed also. They will be looking for longer term history.

    I'd say you should aim for 20% deposit

    Definitely meet sales managers from each bank and listen to what they have to say.

    Beware of independent financial advisers as they may be more negative on options.

    Best of luck
     
  18. Jane09

    Jane09 New Member

    Posts:
    4
    Thanks a million for your reply I really appreciate it.
    At least now I have a starting point.
    I just can’t wait to hear even from one person to say they got a mortgage just to even know it can be done :)
    Light at the end of the tunnel :)
     
    breakonthru123 and Dauhee like this.
  19. AH2017

    AH2017 Registered User

    Posts:
    5
    Very interesting post. I cant seem to even get a credit card from a bank latest attempt was june with ptsb.

    Myself and my husband were declared in Nov 2014 discharged in July 2016. We too surrendered family home to the ISI and went renting.

    Fortunately we got a loan from our cu for a car but we had a guarantor and told cu everything. This was august last year.

    I want to know how to get the bank to stop reporting to the icb that we are with arrears with mortgage which isn't the case.

    Thanks in advance for reading
     
    Ciara Lee likes this.
  20. Dauhee

    Dauhee Frequent Poster

    Posts:
    91
    If you give a reasonable timeframe dealing with them direct and they don't cooperate, then would be to legally compel them unfortunately. Could look for ombudsman also