Took a repayment holiday, will this affect credit rating?

E

ellaoibhe

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Hello all,

Hoping someone may be able to advise. Husband and I own two properties, one of which is our family home and the other an investment property. We now wish to build our own house in the countryside. We've estimated the cost of the move to be €265k approx between the cost of the site and the build. We have an outstanding mortgage of €149k on our current family home which is valued at €300k. We intend to sell the investment property, EA tells us we can expect to fetch between 200 and 215k for it, but I think thats being a bit optimistic. In any case whatever we get for it will be going towards financing the move to the country, but we realise it could take a while to sell it, however we're anxious to get the new build underway. So now we need to go about taking out a second mortgage to buy the site and get the build started. When we sell we would pay off a chunk of the mortgage with the proceeds.

I'm wondering what the likelihood of being approved for a mortgage of 265k is right now, considering we also have another mortgage of 139k? Our joint income is €85k plus (depending on overtime) and we're both in secure long term employment. We took a repayment holiday of 6 months a couple of years ago to allow me to take extended maternity leave from my job following the birth of our last child, could this now go against us? We have no other outstanding debt besides the mortgage and have approx 25k in savings.

Any advice/opinions would be appreciated.
 
I am currently applying for a second mortgage aswell and have just received my loan offer from a lender (EBS direct). I am currently on 3 months unpaid maternity and have taken a 3 month payment holiday with my lender. It did not effect my credit rating. Although banks prefer to see a 'clean sheet' with repayments and some lenders frown on holiday payments if done regularly if its for a once off maternity leave cover you should be fine.
 
If you reschedule your loan in any way, it is noted as an "R" on your credit record with the ICB.

However, the ICB also provides you with a score based on your entire history of good loans and bad loans. The "R" is ratings neutral. Most lenders just look at the score and don't bother reading down the details if it's satisfactory.

Brendan
 
Brendan Burgess said:
If you reschedule your loan in any way, it is noted as an "R" on your credit record with the ICB.

However, the ICB also provides you with a score based on your entire history of good loans and bad loans. The "R" is ratings neutral. Most lenders just look at the score and don't bother reading down the details if it's satisfactory.

Brendan
Click to expand...

This is not correct.
The code "R" stands for "Repossession of goods" and it is certainly not a neutral code.
The OP clearly mentions a payment holiday that in financial terms is a moratorium, hence the code would be "M"
 
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