Mortgage options for poor credit?

Hi could someone please advise me on my chances of getting any kind of mortgage.
I have some blips on my credit where I missed months of payments on a student loan when I had lost my job and made the bad decision of not communicating with the bank about it at the time.
The loan went to collections and I paid it off in full last year. I have a stable and permanent public service job now and I earn €45,000 with annual increments.
I have been saving extensively in the credit union and I have come up with close to 10% of a deposit for a property in the range of €110,000-€120,000. I can save a bit more for a higher mortgage in the coming months if need be but ideally I would like to move before the property climate changes.


How do I get a mortgage? My own bank won’t give me so much as an overdraft. I can get a guarantor if needed from a parent but I don’t think they would get approved for another mortgage to be fully in their name or anything. Is the guarantor mortgage still a thing or is it a joint application?

Are there any banks out there who would accept this situation? There is no information out there about this? Any advice would be appreciated.

Sharon2021 said:

The loan went to collections and I paid it off in full last year.

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Your bad credit record lasts 5 years, so you have 4 to go.

You could try Finance Ireland who do sub-prime mortgages and charge an extra 0.7%

Qualifying Criteria​

The Progress Plus mortgage allows for a little more flexibility around things like previous credit issues, self-employed income assessment, refinancing and buying a buy-to-let property for example.

Hi Sharon2021,

As it is an unsecured loan you just have to be up to date on the loan for at least 2 years(I.e. arrears cleared in full) and Finance Ireland will assess your case.

I'd have to double check but I'm pretty sure if you satisfy the above condition you'll qualify for the Progress product which is the cheaper of the two mortgage products Finance Ireland offer.

Furthermore, as a public servant, there is a good chance that the bank will work off a salary level that is 2 points up on the scale from you are now and allow 50% of last years overtime to be assessed.

I hope this helps.


Best of luck!


Justin


justin.griffith@mortgagebrokers.ie

Fahrenheit said:

Hi Sharon2021,

As it is an unsecured loan you just have to be up to date on the loan for at least 2 years(I.e. arrears cleared in full) and Finance Ireland will assess your case.

I'd have to double check but I'm pretty sure if you satisfy the above condition you'll qualify for the Progress product which is the cheaper of the two mortgage products Finance Ireland offer.

Furthermore, as a public servant, there is a good chance that the bank will work off a salary level that is 2 points up on the scale from you are now and allow 50% of last years overtime to be assessed.

I hope this helps.


Best of luck!


Justin


justin.griffith@mortgagebrokers.ie

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Thanks Justin. That sounds promising! I have contacted one of their brokers.

Would a bit more saving increase your 10% too maybe 20-30% give you a better chance as it would be a lower amount borrowed

Pinoy adventure said:

Would a bit more saving increase your 10% too maybe 20-30% give you a better chance as it would be a lower amount borrowed

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No, it'd have no impact on underwriting, only the interest rate. It'd be different if we lived in a country where repossession happened quickly.

Brendan Burgess said:

Your bad credit record lasts 5 years, so you have 4 to go.

You could try Finance Ireland who do sub-prime mortgages and charge an extra 0.7%

Mortgage Rates | Irelands largest non-bank lender. .

Irelands largest non-bank lender. We are an Irish financial services provider established in 2002. We operate in various sectors, including commercial property lending, residential mortgages, motor finance, asset-backed lending and agri-finance.

www.financeireland.ie

Qualifying Criteria​

The Progress Plus mortgage allows for a little more flexibility around things like previous credit issues, self-employed income assessment, refinancing and buying a buy-to-let property for example.

Click to expand...

I'd second this. I had credit issues about 19 years ago and even getting a very small car loan was a challenge for the next few years.
I'd suggest saving and waiting it out. You won't get favourable rates and will end up paying far more than you need to. You'd be better off saving as much as you can and trying to get your earnings up a bit.