Urgent Advice Needed: Mortgage Refused because I have bad credit

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bmg

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Hi,

Myself and my partner put a depoit on a house about 5 weeks ago (€5000), the house is being sold for €230000

We applied for a Mortgage through a broker and yesterday she confirmed that IIB had refused us because I had bad credit. The bad credit stems from when I was on Maternity leave and fell to 6 months behind with payments. The loan is with Bank of Ireland and they advised me to "reschedule" the loan to fix the arrears which I did and for the past 14 months haven't missed one payment.

Basically because IIB has refused us, she has advised that all other banks (standard banks) will too. She has talked about getting a mortgage for us with Start but the repayments will be €400 a week which we could not afford (without something else suffering)

Now the big problem is that the sellers solicitor has been in touch with ours and wants the sale to close very soon.

My partner has no credit problems, we have another €5000 in savings in the credit union and I have my SSIA too.

What are we going to do, can anyone please advise on where to go from here. If we don't sort something out quick we are going to lose the house.

I need to add that our original application was for €250000 as they house needs to be done up and fully furnished. We need a €100% mortgage.

Can anyone offer advice. I'm devastated.
 
Re: Urgent Advice Needed

sorry for your trouble,I'm not an expert,but would it be possible to apply in his name only?-alternatively go to Citizens Advice(sorry don't have any better advice-but CAB very knowledgeable)
 
Re: Urgent Advice Needed

I'm afraid your broker is right - lenders are not going to approve a 100%mortgage when there is adverse credit on the ICB. All I can suggest is to get your deposit back, clear your BoI loan and save up for the 8% deposit.

Sorry.

Sarah

www.rea.ie

Edited to add - I take it both incomes are required to get the mortgage? If not your partner could apply on his own (not if you are married)
 
Re: Urgent Advice Needed

Sorry to hear that you're in that position. You probably have 2 options at this stage:

1. Apply with Start Mortgages and pay the higher rate (if the house is not worth losing).
2. Wait until your SSIA matures and combine that with your savings to come up with the 8% and apply for a 92% mortgage.

Hopefully it works out for you.
 
Re: Urgent Advice Needed

Johnnyboy, thank you for your reply. He can indeed apply for a mortgage in his own name but we wouldn't come near the amount we need.

Sarah, thanks for your reply also.
Unfortunately the more we look at it we might just have to request our deposit back as heartbreaking as it is.

I remember people saying the past "sure the banks are giving out mortgages, left right and centre", obviously this only applies to people who have never fallen behind in payments.

We are currently renting and paying €600/month. We have been doing so by direct debit for the past 2.5yrs without missing, this shows in the statements, my record with the bank for the past 14months has been A1, I have SSIA saving currently standing at €5000...so what does it take?
Am I being wrong by saying it seems a little unfair?
 
Re: Urgent Advice Needed

ciara_gmail said:
1. Apply with Start Mortgages and pay the higher rate (if the house is not worth losing).
Click to expand...

I don't think Start Mortgages will offer a 100% mortgage, which appears to be with what the OP requires.

I'd second Sarah W's advice.
 
Re: Urgent Advice Needed

Ciara, our messages crossed.
Yes we could start off with Start, out broker has advised that we can in the future change to a standard bank.
The problem is we were refused a mortgage pointblank...we cannot even get a 92%.
It's only 14months since I reschedule the loan with bank of ireland which means this is going to show for 5yrs with the ICB...is this not correct?
 
Re: Urgent Advice Needed

It's a shame to penalise people for things like this when their account gets back in good standing in the eyes of the bank. The ICB hold that information on record for up to 5 years I believe.

There are circumstances where you can speak with your bank and ask them to remove the record off the ICB and send you a letter to the effect of you have reorganised your finances and come to an understanding of how much is to be paid back a month and other than the payments 14 months ago, they are satisified with your account in general...dont know specifics so you would need to speak with your bank to get further info
 
Re: Urgent Advice Needed

bmg said:
Ciara, our messages crossed.
Yes we could start off with Start, out broker has advised that we can in the future change to a standard bank.
Click to expand...
did he tell you the exit costs from Start ???? brokers make a lot of commission on Start you see. More than proper banks.
The problem is we were refused a mortgage pointblank...we cannot even get a 92%.
Click to expand...
walk away
It's only 14months since I reschedule the loan with bank of ireland which means this is going to show for 5yrs with the ICB...is this not correct?
Click to expand...
correct, 5 years - 14 months except that the IIB mortgage refusal has gone on it now and will remain 5 years .

the boi will disappear 5 years from the date of the last missed payment. Even if BoI were to play ball the IIB record is also there and your co prospective mortgagee is now linked to the refusal and they also have a black mark , try to get them separated off it .
 
Re: Urgent Advice Needed

2Pack said:
the boi will disappear 5 years from the date of the last missed payment. Even if BoI were to play ball the IIB record is also there and your co prospective mortgagee is now linked to the refusal and they also have a black mark , try to get them separated off it .
Click to expand...

2pack..how do I go about this?
Is it worth it to talk to the Bank Of Ireland or would I be making a fool of myself?
It's very hard to walk away to be honest (even if I don't have a choice)
I'm almost 31 and the thought of having to rent for the next 5years just doesn't appeal to me because of a few missed payments.
I'm feeling hard done by here (yes I know this is what happens if you miss yor payments),had I known at the time, I was later advised I could have actually put my loan on "hold" with the BOI for the duration of my maternity leave...they told me so themselves.

The house is a dream and a bargain...it's very hard to let it go.
 
Re: Urgent Advice Needed

The ICB does not record a mortgage refusal, only that a search has been carried out by them. However application forms DO ask if you have had arrears on any previous loans and also if you have been declined credit in the past.

I would recommend you clear the BoI loan as soon as you can and ask them to note on the ICB that the loan has been repaid in full.

Sarah

www.rea.ie
 
Re: Urgent Advice Needed

bmg said:
2pack..how do I go about this?
Is it worth it to talk to the Bank Of Ireland or would I be making a fool of myself?
Click to expand...
if you can convince BoI to amend the record then they may show one miss not six which improves matters. You may also put a NOTE in written by you explained what happended and why. That can make a difference.

Anecdotally on this site it seems that the banks have tightened up recently and are nodding fewer 'imperfections' through .
It's very hard to walk away to be honest (even if I don't have a choice)
I'm almost 31 and the thought of having to rent for the next 5years just doesn't appeal to me because of a few missed payments.
Click to expand...
Well its maybe 3 years but look at what start WOULD cost you on a €250k mortgage and tell me thats not dead money too.

Start would gouge you on interest and lot let you refinance very easily when your record was clean , see what happens when you go with start or GE in this thread here

http://www.askaboutmoney.com/showthread.php?t=28934

what rate were they quoting you ?? 7% ???? and for 30 years ????

and then in 3 or 4 years when your record is clear the banks wonder why you went to them if you were in a salaried job (not self employed) and 'inder' something from that so yoru record is not clean even then.

I'm feeling hard done by here (yes I know this is what happens if you miss yuor payments),had I known at the time, I was later advised I could have actually put my loan on "hold" with the BOI for the duration of my maternity leave...they told me so themselves.
Click to expand...
if they would give you a retrospective payment holiday that would be nice , and if they amend the record accordingly even better.

You then have to get IIB to pull their refusal off the record as it no longer has a basis as such. If its only shown as a search you will have to explain that maybe you asked for too much off IIB (say you asked for a fixer up loan off IIB and a mortgage and they refused, very plausible) .
The house is a dream and a bargain...it's very hard to let it go.
Click to expand...
Its time to spring clean the ICB my friend , otherwise predatory or sub prime lenders like GE and Start await you in the long grass .

talk to Mabs and the BOI especially the latter. Pull in all the good news and long relationship and make them play ball.

www.mabs.ie
 
Re: Urgent Advice Needed

Have you approached the BAnk of Ireland for a mortgage, they know your situation and your track record, would they be willing to lend to you?
Often face to face is a better way of doing things as you can explain yourself better.
 
Re: Urgent Advice Needed

Bamhan said:
Have you approached the BAnk of Ireland for a mortgage, they know your situation and your track record, would they be willing to lend to you?
Often face to face is a better way of doing things as you can explain yourself better.
Click to expand...

Second that ... if you have a long history with BOI and only the one loan you did make good on they might more willing to help...

you can't use the SSIA against the mortgage ,but make sure they know about it becuase it does show you have a good history of saving and money coming down the line soon...
 
Re: Urgent Advice Needed

My sister was recently refused a remortgage due to payment faults on her car loan which weren't her fault, once she got a letter from the lending institute that had made the mess of her account she got her name removed from the black list and then got her mortgage!

What harm would it do to ask the bank to remove your name, the worst that could happen is that they say no but at least you'd know rather than not doing anything!

Good luck with whatever you decide!
 
Re: Urgent Advice Needed

Hi,
Sorry to hear about your dilemma,
I used a guy called Brendan Kelly (a broker) with www.irelandmortgages.com. He sorted us out with a mortgage when no one else would look at us. He was brilliant. If he cannot sort you out with a mortgage, i'd say he will give you any advice for free you need. Very friendly guy.

Good Luck
 
Re: Urgent Advice Needed

Thank you all for your information
2Pack you're a walking bundle of information :)

I've just come off the phone with BOI.
I've told them my dilemma. I also mentioned the "loan protection" which I had taken out on the loan. They told me I wasn't covered for for Maternity unless I suffered sickness and was signed out of work.
They have agreed to write a letter to the IIB to inform them that the reasons I was in arrears to begin with was because of my Maternity leave but will not amend the ICB list.

I've also made an appointment to see the Bank of Ireland manager regarding our Mortgage and see what happens there.

I don't want to get my hopes up.
 
Re: Urgent Advice Needed

Worth a go.
Be positive when you meet them, have all your doccumentation to show that you have been a consistant saver since.
 
Re: Urgent Advice Needed

Pregnancy is not an illness of course :D so be careful here, you should not appear to suggest to them you thought your were covered because you were pregnant, its saying that you expected your loan to be 'paid off' for you. Do not go there.

You story is that you are being asked to suffer too much for one aberration, never mind whether it was 4 payments or 6 payments it was just one episode in a long relationship of mutual benefit to your and your bank before and after . Pregnancy can of course lead to your doctor telling you , nay ORDERING you, to take time off work with the blood pressure and that and your employer may have decided that your sickies (then not now) were a bit OTT and not allowed it. This is more plausible in a new job where you may not get as much time off as you might if established a while .

Therefore your income took a hit becuase of unplanned deductions .

Naturally to avoid losing even more time at work you went private becuase of the queues in public, This cost an unexpected €1500 notes to a gynae.

Cash flow bad as consequence etc .

Throw yourself at their mercy and beg. Its well worth it. make sure you have supporting data especially if your income did see saw back then. Bring statements to the branch.

Read them first to make sure they support your 'case' , you generally find most of them are sympathetic once they hear the full story .
 
Re: Urgent Advice Needed

Sorry, can't be of much help here, just wanted to lend support and say hang in there, have been in a somewhat similar situation but did get there in the end and so will you. Beg and plead, it worked for me.

Excellent advice 2pack, wish I had of known about this website when I was starting out with mortgage, I would have had you all driven mad! ;)
 
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