Getting a mortgage after bankruptcy

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

  1. MikeL2007

    MikeL2007 Registered User

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    Hey GoingForward

    I'd say wait till Feb/Mar 2018 for BOI based on the feedback I got, but as soon as I have news from AIB I'll let you know.

    As a matter of interest is your credit union in Dublin? I'd happily switch our savings to a CU if it meant getting a mortgage, regardless of interest/term!

    Mikel
     
  2. Going forward

    Going forward Frequent Poster

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    Hi Mikel,

    My credit union is not in Dublin. Its a Midlands branch, thats all i can really say!!. Sorry. I will keep you posted of tbe outcome but since my post yesterday I have learned that their maximum term of repayment on a asset loan has gone from 15 ýears to 10 years. So much higher repayments but still affordable for myself and partner.

    One lives in hope when we submit application again as to the outcome.



    Going forward
     
  3. Going forward

    Going forward Frequent Poster

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    Hi Mikel,

    Just doing a check in with you to see if you had any news with your application to AIB.

    Please say you had some good news.


    Going forward
     
  4. Southeast

    Southeast Registered User

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    Hi all,
    We were discharged July 2016 and got a smallish loan from AIB in Nov 2016 and Credit Card also from AIB early in 2017. So now trying to build a new credit profile. However we spoke with AIB about a mortgage and there is no way we can meet the new mortgage lending criteria at the moment. We too have started saving with the CU so we'll see if they are in any way helpful. The local authority seems to only loan to first time buyers (as per government credit policy) but we are checking that out now too.
     
    breakonthru123 likes this.
  5. Going forward

    Going forward Frequent Poster

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    Hi all,

    Does anyone know how long bankruptcy stays on your credit file for. (Not ICB report).

    Have been told by ptsb that I will never get a mortgage through them having been a bankrupt.

    Is this legal. Im just asking asking a question so please anyone don't shoot me down.

    Thanks in advance.


    Going forward
     
  6. glic83

    glic83 Frequent Poster

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    Sent you a pm Going Forward
     
  7. Going forward

    Going forward Frequent Poster

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    Hi glic83

    Not sure if its protocol to recieve a pm. Or how it works.

    Im not trying to sound rude to you.


    Going forward
     
  8. glic83

    glic83 Frequent Poster

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    A pm is just a private message for something someone mightn't want seen on the open forum
     
  9. Palerider

    Palerider Frequent Poster

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    Very interesting thread, I would be surprised if any bank sanctioned a mortgage drawdown to a bankrupt, there is clearly an extra level of risk, not sure our tiny market will in the near term get over the past credit history.

    I say go to a mortgage broker, they will assist if they can.
     
  10. glic83

    glic83 Frequent Poster

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    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.
     
  11. Fresh-Start

    Fresh-Start Registered User

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    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...
     
  12. jayboy

    jayboy Registered User

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    Last edited: Jan 3, 2018
    I would be really interested in learning more on this subject as I entered and went through bankruptcy of my own accord in June 2016. I had a family home with my now ex wife and two kids and lost my job in 2010. I paid the mortgage for two years even though I was out of work but couldn't do it anymore and it took a serious toll on my mental health state.
    My father thankfully got involved and took me away from this situation after a years legal letters going back and forth. My marriage then broke up a few months after moving back to the city. Its actually hilarious as the same date in June 2014 and June 2016 were major changes in my life. One was when I left the rented home I shared with my wife and kids and two years later on the same date I appeared in the high court for my bankruptcy proceedings. I exited bankruptcy in June 2017 and have been in college doing a degree since September 2014 trying to rebuild after a very painful separation from my ex wife and still ongoing.
    I have applied for a few loans as a student just to test the waters and see whats the story and have been turned down for all of them. Student loans are subject to easier terms and conditions but still I got refused.
    I am interested in the question of firstly getting a loan after bankruptcy and then as well how long you are on the ICB or credit file as you call it, I believe these are the same thing.
    I approached the bank in college and asked whats the situation and was told I may be on the ICB. now I knew I was but applied for loans just to see, I was only applying for small loans like €1000 to guage if I would get it or not. I then started putting 20 a week in to the account to show my savings potential and applied again and was again turned down. I got my ICB report sent out to me last week and was shocked to see my loans which were 235k for mortgage and €800 on an AIB credit card and a credit union loan of €4000 are still on it. That's fine but according to the PIP I dealt with through the IMHO(Irish Mortgage Holders Organisation) and the representative of the ISI I would be discharged from bankruptcy after one year which I was. I received a letter stating this a few months back and presumed I was free to apply for loans and so on. On my ICB report my credit card is stated its there until 2021 and my mortgage default until 2020.

    Can someone enlighten me as to why this is as a few of you seem to be commenting on here saying that you had discussions with lenders about the time that they had on your ICB report and that it was wrong. I am a bit confused by this as I would have thought after the bankruptcy as it was reduced from 5 years to 3 years and then reduced to 1 year in 2016,as I actually kept an eye on news articles for this to happen and waited for it to be put in place so I could apply.
    I had contacted New Beginnings and the IMHO about what was involved in bankruptcy and attended a meeting with New Beginnings where I was told the bankruptcy was 3years timeframe. When I told the gentleman no its not its actually 1 year since last week he was unaware of this and he also tried to push me into agreeing to a PIA which I had no interest in doing as I was attending college and my plan was to do my degree which I am in the final few months of and then come out and be able to get loan and get work but that's all up in the air now as my ICB report seems to say I cant do a thing until 2021. He was looking for €3500 to apply for bankruptcy. A broker in city wanted €3750. I did it myself for less than €500, €465 if i am not mistaken.
    I have three boys aged 3,6 and 12 and struggle to provide for them even though they don't live with me so I would really appreciate peoples comments on this situation.
    Just to add I had a good relationship with my credit union up until the bankruptcy,always having a healthy account as they called it. I always kept them aware that I was going down the route of bankruptcy and asked their advice on it to which they agreed there was no alternative option. I actually know some of the staff in the credit union and as I am finished college in May I was thinking I need to get few things in place and start trying to save again as I do a bit of part time work at weekends. So I went to open an account, young girl on counter was fine until she went to get the forms and the woman I know asked her what did I want. I could see by her face that there was no way I was opening an account there.
    She came over and said the lady who deals with all that was off today but would be back tomorrow so she would contact me. She called me the next day and said the lady who was meant to know didn't know what to do in my situation and that my case would have to go before the committee at the agm in November. I haven't heard from them since.
    So in hindsight, even though bankruptcy was the only viable option for me as I didn't have the capacity to ever pay my debts off. They tell you you are done after a year term of bankruptcy but according to my ICB report this is not the case. And trying to open account in credit union I was looked at like I had some sort of disease.

    I would love to hear peoples opinions on this and what might be the next step forward for me as I finish college in May and need to figure out what I can do as I am a bit in limbo at the minute with the whole lot of it. My apologies for the long post but just wanted to give a jist of my story.
    And to reply to a few of you on here about sub prime mortgages, they are simply mortgage companies that not only ask for a big payment every month but every 3 months they ask for lump sum as well. Its a lump sum taken quarterly. The reason I know this is because when I was going for my mortgage initially I was offered this and refused immediately as there is no hope of paying it but its about the only option if you have had outstanding debts which at the time my ex wife did.
    Also just to note sub prime lenders are the lads that created the worldwide recession first day by selling bad loans and bad mortgages which they knew weren't ever going to be repaid for big money and hiding the real figures which created the domino effect in banks all across the world. Lehmann Brothers and JP Morgans as far as I know..
     
    Last edited: Jan 3, 2018
  13. Alan1962

    Alan1962 Registered User

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    I opened an account in our local credit union

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

    jayboy Registered User

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    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
     
  15. Fresh-Start

    Fresh-Start Registered User

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    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)
     
  16. jayboy

    jayboy Registered User

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    Yes I agree with this. I have located my certificate of discharge and have had to contact several different organisations including the Irish Credit Bureau, Commission for Competition and Regulation Authority and The Financial Services Ombudsman to discuss my term of bankruptcy. I also was in touch with the ISI(Insolvency Service of Ireland). It seems you are correct with the five year term.
    This is why I commented on this post as a person @Alan1962 commented that he went to his credit union and opened an account with his letter of discharge.

    I find two issues with this.

    1. If you are going to open an account in a financial institution then bringing your certificate of discharge which shows you were bankrupt isn't the greatest idea ever as the institution could very easily say there is some problem with opening an account. You are essentially telling them you have been through bankruptcy when there is no need to do this.
    2. I have visited my local credit union and tried to open an account to which there were red flags went up immediately when a senior lady asked a question about my details to a younger staff member. I was told I would be contacted by them in due time to tell me if I could open an account with them. This credit union is who I would have been with before and know a few people working in the branch and kept them in the loop the whole time about my bankruptcy so was surprised by the way I was treated. But the guy above seems to be of the opinion that you just walk in and open an account. Its not that easy.
     
  17. Alan1962

    Alan1962 Registered User

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    18
    I opened the account with one of the largest credit unions in Dublin, and have taken out a loan guaranteed by shares.

    The account took about 10 mins to open.

    Prior to opening the account I had rang and inquired about taking out a loam after my discharge, and about opening an account. I spoke to the most senior loan manager, and she discussed the matter with their credit committee and then came back to me inviting me to open the account.

    I don't think the forum allows me to name the credit union.
     
  18. Anbhfuilcead

    Anbhfuilcead Registered User

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    Hi,

    I am very interested in finding out more on this subject. I agreed a full and final settlement with a bank in 2015 following the sale of my house for less than the original value. Following the sale I gave the bank a large cash settlement kindly gifted from parents and was told by the bank the outstanding amount would be written off and my credit rating would not be affected going forward!
    This was not true as following receipt of my credit report from ICB it transpired that an 'L' was recorded on our account and this would not be removed until 2020.
    My query is regarding getting another mortgage before/once the 5 years are up. I have moved to the UK and managed to save a bit and have received an inheritance and could possibly manage a 30% deposit on an average priced house in 2 years time. I have contacted a couple of brokers who don't even want to entertain dealing with me.

    Is there any financial advisors or mortgage brokers specialising in life after credit deals/insolvencies. It seems to be impossible to get advice.

    Thank you
     
  19. Fresh-Start

    Fresh-Start Registered User

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    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...
     
  20. Anbhfuilcead

    Anbhfuilcead Registered User

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    2
    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.