Re: 100% mortgage and bad credit rating.

E

elayno

Registered User
Messages
18
Hi guys,

im new to this site but im desperate for advice on obtaining a 100% mortgage. Its just that i am paying back a credit agency that took over a loan that whilst i was a student, i couldnt pay back. It was 5000 euros at the time but ive only 2000 left to pay back. Im currently paying them back every month on time. But i fear this will stand against me applying for a 100% mortgage. Has anyone at all out there any advice for me or could put me in touch with someone. Id really appreciate it.
 
People with bad credit ratings find it difficult to obtain even a 92% mortgage with the prime lenders. You may be able to arrange a mortgage with a lender like Start or GEM but you will pay higher interest rates and you will need a minimum deposit of 8%.

The option you have is to wait until your ICB report is clear but this takes 5 years...
 
Go through a broker, not direct to the banks. This is exactly the sort of thing they are good at as they often get to talk with the key decision makers in the bank and you may get a favourable result if they get to explain the circumstances.
 
I would second what MonkeeMan said. Brokers can often see ways around problems that banks can't. Also you should contact the ICB and get a copy of your credit report.
 
hi again guys,

Thanks for the feedback, i have been to a broker who advised me to clear my loans, including the one with the outstanding credit agency. I have also a credit card with €1500 on it.. That's not a problem to clear. Although i dont have much savings either. All im looking for really is enough to buy my grandfathers' house for €120,000. Compared to new house prices, this seems far less a price to pay. I earn a lot on my salary so i know i can afford to pay it back. Is there anyone that can offer a name to any good brokers out there?
 
If you are earning the good money you say, why dont you first clear off the 2,000 debt completely, and it will look better on your credit cv, I would have thought?
 
Hi all,
Just to let you all know that the old loan that i had must have come off the ICB report, because even though i still had the outstanding loan with the credit agency it didnt show up on the report... I was delighted as i got my mortgage approval anyway... i got €228,000 and the house im buying is €240,000... I'm over the moon. It was the EBS that gave me the mortgage.. Im so happy that they never came across it.. So thanks to everyone that offered me the advise..
 
elayno said:
Hi all,
Just to let you all know that the old loan that i had must have come off the ICB report, because even though i still had the outstanding loan with the credit agency it didnt show up on the report... I was delighted as i got my mortgage approval anyway... i got €228,000 and the house im buying is €240,000... I'm over the moon. It was the EBS that gave me the mortgage.. Im so happy that they never came across it.. So thanks to everyone that offered me the advise..
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Congratulations on your approval elayno.
Just a quick question out of curiosity - considering your approval is very close to the price of the house you're buying, have you factored in the risk of negative equity?
 
Yes Negetive Equity could be an issue down the line.. Considering the price of homes could go up and down.. Im obviously hoping that they steadiy rise in order for me to make a profit on it in a couple of years..
 
Did your grandfather gazump you and double the price of the house? 120k to 240k?
 
no , actually another cousin of mine got in there and purchased my grandfathers property for €120,000.. I purchased a 3-bed Duplex for €240,000.. I got 95% which is €228,000.
 
elayno said:
Hi guys,

im new to this site but im desperate for advice on obtaining a 100% mortgage. Its just that i am paying back a credit agency that took over a loan that whilst i was a student, i couldnt pay back. It was 5000 euros at the time but ive only 2000 left to pay back. Im currently paying them back every month on time. But i fear this will stand against me applying for a 100% mortgage. Has anyone at all out there any advice for me or could put me in touch with someone. Id really appreciate it.
Click to expand...

If it was more than 5 years since the loan was cleared then it makes no difference unless the lender was the same institution who made the loan.

If not, then tough luck, your chances of a 100% loan are virtually zero in today's environment. And rightfully so. If you've a recent history of repayment problems, the chances of your finances being fully settled are pretty slim. I ran into trouble in late 2001-2002, and I am only just getting to a point where I am totally without financial worry. It does realistically take 2-5 years to tidy up past problems, the more severe the longer it takes. So it makes sense not to lend to somebody with this situation.

I would suggest concentrate on clearing off the past loans ASAP - it does make it a bit easier, but hate to be bringer of bad news, but as of last year, 3 years after I'd cleared the last of the original loans, I still found it VERY difficult to get even a small loan, never mind a mortgage.
 
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