Need advice on mortgage approval with bad credit rating.

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Mur2006

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I don't even know where to start but i'm looking for some helpful advice. My girlfriemd and I are applying for a 350k mortgage at the moment for a self build. We have a site valued at 280k. Girlfriend earns around 48k. I also have decent enough job and earn around 62k. Plus my work also gives me a monthly mortgage supplement of €190 to my salary. I also have pension with AIB with 35k paid in.

A while back i accumulated some debts with AIB and wasn't in position to repay at the time, i've consequently paid off everything i owe, without having extra borrowing to cover this. However i'm down on a credit list with AIB.

At this time we have no debts or borrowings however AIB are refusing our joint mortgage application because of my poor credit rating and my partner can't get enough on her own.

What are my choices?
Is it worth trying a different institution?

Any help or advice gratefully received.

Thanks
 
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It depends on how long ago the bad debt occurred, why it occurred and how long it took you to put it right. TBH if AIB, knowing all the details, won't consider a mortgage you might have to look at the sub-prime lenders such as Start mortgages or GE although it might be worth asking a (good) broker to present your case to other mainstream lenders. As an alternative could your partner's (or your) parents go guarantor for a couple of years?

Sarah

www.rea.ie
 
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Mur2006 said:
What are my choices?
Is it worth trying a different institution?
Click to expand...

Different institutions use your ICB report (the credit list you referred too) in different ways. How your "credit risk" is calculated is different for each of the institutions, the ICB report just supplies them with information to allow them to do the calculation.
More information on your report and what it can/does contain can be found here.. http://www.icb.ie/
It may be worth applying for a copy of your report to ensure all details are correct.
It's certainly worth trying different institutions, the worst they can do is say no.

Have you tried asking the lender in AIB if there is anything you can do to aid your application? A guarantor for example? The only way to find out what they will/won't accept is to ask them.
 
Hi,

Sarah and Satanta are correct, there are two things that you should do one is to get a copy of your credit history from the ICB, this will give you and anyone working on your behalf a clear understanding as to what exactly is showing on this when lenders are looking at it.

The second thing is to contact a good broker. The sub prime market may be a solution for the short to medium term, as the credit history remains on the ICB for around five years when it comes off you will not have this "black" mark hanging over you. Important when choosing your broker that you make sure that they have all the agenicies including the sub prime market as they will then be able to identify how all the lenders view this.
 
Thanks folks, I really appreciate this, i know you all talk about 'good' brokers, i'm very green on this, I'm based in Dublin, can someone give me some advice what broker is good and in turn might be able to help me out and give me proper advice.

hopefully this isn't an inappropriate question but i can't realy see thwe woods for the trees.

thanks again
 
Hello,

One other thing to consider it that none of the sub prime lenders wil lend on a self build, however depending on how bad the previous debts were it would be worth trying other main stream lenders
 
Start Mortgages are going to launch a new Self build product later today to a limited number of brokers. Should be available to all soon........
 
We had problems getting our mortgage this year due to a slight old credit problem and were refused ourselves despite no current loans and good salaries and savings but our broker was excellent and secured the mortgage we wanted thru IIB, thing is we actually did not need 100% as we had enough saved and 100% ltv kind of worries my husband anyway!. If you want to email or pm me (is facility available on AAM??) and I will give you his number. We were totally upfront with him about everything and had full mortgage approval in a week. He worked his backside off for us though, he was more like a friend in the end!. He is based in Kildare and we are in Bray and it was fine.
 
Ive heard of a place I think it's Start Finance, They're suppose to be good for poeple with a bad credit rating.
 
i have been in contact with Start Mortgages - through the brokers axiom finance - have to say all very professional... but i had to work out for myself of all the fees they forgot to mention....

995 euro fee for axiom finance
800/900 euro fee for start mortgages
1050 euro for irish title (irish title will contact your creditor for redemption figures etc and will make appt for solicitor as well)

Apart from that - no problems
 
The fee for the broker seems to be very high, they will be getting a commission on the mortgage too, so why charge a fee. most brokers would not charge anything, the only fee you should pay the broker is the valuation fee, approx €130.00
 
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