Getting new Mortgage with CC Issue

[Onlygirl]

Hi I am just looking for some advice, myself and my husband are trying to obtain a mortgage in order to move house. We are 2nd time buyers. We recently submitted everything to a broker and he applied for a mortgage for us. We just got notice it was declined due to my husband having a revoked credit card in May 26. The amount my husband owed on the CC was €297 and the reason it wasn’t paid is because we were unaware he owed it. We hadn’t used the card in a year and we thought we owed nothing on it so we weren’t reading the statements coming in. We only discovered we owed money on it when we tried to use the card this summer to hire a car on holidays. When we found out about this we paid it immediately. Apart from this one isolated incident we both have clean credit records and our current mortgage is always in credit. I just can’t believe we can’t get a mortgage due to €297. Is there any way around this or would anyone have any advice on how best to obtain a new mortgage??
Thanks

 

[Connard]

This happened to some of my friends a few years back. In his case I think it was an over draft on an account he did not use anymore. He just paid it off and then told the bank he was applying for the mortgage what happened and they were able to get the mortgage. I doubt it will be a problem for you.

 

[Onlygirl]

It is a problem for us, we have been declined a mortgage because of it and our broker told us it is very unlikely we will get a new mortgage because of it. We currently have a mortgage and paying it in advance so I can’t believe we can’t get a new one over such a small amount. I just feel surely there is a way around this.

 

[Monbretia]

What about your existing lender? Have you applied to them for the new mortgage, they have the most info on your repayment patterns and may be more open to accepting an explanation on the credit card mess.

 

[Connard]

It is a problem for us, we have been declined a mortgage because of it and our broker told us it is very unlikely we will get a new mortgage because of it. We currently have a mortgage and paying it in advance so I can’t believe we can’t get a new one over such a small amount. I just feel surely there is a way around this.

Maybe try going direct with the bank for the mortgage instead of using a broker. The bank's main worry is that you pay back the mortgage. If they see something like that then they worry that you won't. If you pay it off now and tell the bank that is was a credit card that you thought you had paid off but didn't realise it wasn't until you applied for the mortgage then they will probably be fine with it. If not try another bank. Some banks will be ok with it I imagine

 

[Brendan Burgess]

Who is your current lender? They are likely to be your best bet.

Which bank refused you? Why did the broker try only one bank?

we thought we owed nothing on it so we weren’t reading the statements coming in.

I would be a bit worried about lending to someone who does not read their statements.

You should check your credit record to make sure that this is the only blot.

Is it possible that the lender refused you on the basis of earnings and thought it's just easier to say "Sorry, bad credit record"?

Posts suggest that Bank of Ireland is the best bank for getting a human to look at the full circumstances of a loan application and to lend where others refuse to tread.

 

[Onlygirl]

Our current lender is EBS, PTSB refused us. I am unsure why the broker only tired PTSB.

I recently requested both our credit reports and mine is perfect and it is just the CC on my husband’s, everything else on his is perfect too..

No it wasn’t refused on earning, my husbands income covers the amount we are looking for. The broker said it was because of the CC that we were refused. I explained it was only €297 and it was paid immediately when we discovered it but it didn’t make a difference..

I will try get a meeting with EBS and I will also try BOI thanks.