Will I ever be granted a mortgage??

[Christinexxx]

Hi Everyone,

I'm wondering if you guys can give me any idea as to how bad a situation I am in. It all began back in 2008 when I borrowed E20,000 from the credit union. I had a really good paying job at the time. However that soon changed and I found myself in an awful situation trying to keep up the repayments. It ended up going to court and a more manageable monthly payment was agreed. I have been paying it ever since and in the last few months, have found myself in the fortunate position of being employed with a great company and being made permanent and I have been able to save almost E8000 in the last few months.

I have checked my ICB report a couple of time in the last few years and it kept coming back clear. Call me delusional but I sort of got my hopes up that I might be in with a chance of being granted a mortgage in the near future if I had enough saved and had a clean enough bank account. The problem is when getting advice recently from the bank, I was told that even though my ICB report came back clear, that some other check they carried out showed up my outstanding credit union loan that I am still paying back.

My question is this.. If I cleared my credit union loan with what I have saved, how long will I have to wait before the bank would consider my mortgage application. Obviously I would be planning on clearing my credit union loan and saving for another 12 months. Would I have to wait a number of years before they would consider my application after having such a bad debt with the credit union. As I said, my ICB report is clear they said.

Any thoughts on this would be very appreciated!

Christine.

 

[skrooge]

The bank will review your current outgoings and see that you have an existing loan with a monthly repayment. They will take this into account when assessing how much they will lend to you and how much they consider you can afford to repay each month. How long has it taken you to save your 8k? How much is your monthly repayment on your credit union loan? What is the rate on this loan. You might be better off clearing the credit union loan first but it all depends on the details.

But generally banks will look for 6 months evidence of ability to repay the loan amount under a stress scenario. Might the back also be concerned about the deposit. What value property would you be thinking of?

 

[Magpie]

Have you checked your Central Credit Report? Hardly anyone seems to know this register now exists and is far more extensive than the ICB. It will be where all financial institutions will be checking up from now on, the ICB will become less and less important.