Will I get a mortgage after neglecting/delaying to pay my student credit card debt

Hi all,

I’ve been reading this thread and wondering if anyone can offer me some advice - also related to CCR Report and looking for mortgage approval soon.

In 2017, I had a credit card with a bank. I was in college at the time and stopped paying the credit card in 2019 as I couldn’t keep up with the payments . I got a copy of my CCR report two years ago and saw that the credit card was showing as revoked credit card/written off in the status section. I went to the bank and paid it off in full two years ago. I wasn’t sure at the time if this would change my CCR report situation however I did owe them the money and they advised me to proceed (obviously) so I did.

However, the CCR report status for this credit card remains the same - removed credit card/written off - which I’m not sure is right or wrong? It does say 0 Euro at the top of the CCR in the amount financed section. I also didn’t know whether the bank entering the positive payment I gave two years ago would reset the clock on how much longer the loan will be on my CCR so I never asked them to change it.

What’s weird is I have gotten other loans approved of over 10000 from other financial institutions since then with no questions asked re CCR.

My concern of course is when I go for mortgage approval that this issue will haunt me still. As it was written off in 2019, I expect it to leave my CCR Report next year. However, if I wanted to go for mortgage approval earlier, should I get the status of the debt updated on the CCR report as it would look better or can the bank even do that? Maybe I should request a letter from them instead stating that is was fully paid off two years ago?

Secondly, how will this effect my applications for a mortgage do people think? Should I really wait until it’s gone from my report?

Thanks all in advance for your help!

Ideally it would be gone from the report.

Just out of curiosity, if it was written off in 2019, does it disappear from the CCR five years from then, or five years from when you paid it off two years ago? And if you hadn't paid it off at all, would it linger forever?

You should get an updated CCR anyway - costs nothing - and you'll have a better idea of where you are.

Thank you both for your responses.

@Right Winger - I don’t know the answer to the above either. I presume 5 years from 2019 write off it will disappear as I got a new CCR report a few months after it and it didn’t show the payment being made. There was no change to it at all - I only that payments older than 5 years had disappeared.

Right Winger said:

And if you hadn't paid it off at all, would it linger forever?

Click to expand...

Ideally, that is how the system should work. If people don't pay their debts, then potential lenders to them should be protected from them.

Brendan

Sunnydai said:

I was in college at the time and stopped paying the credit card in 2019

Click to expand...

Sunnydai said:

As it was written off in 2019,

Click to expand...

"stopped paying" doesn't mean "written off" ?

The reality is that people's attitude towards paying their debts doesn't change that much. If they don't fancy paying their student debt, then they are much less likely to pay their mortgage when the going gets tough.

The CCR protects you from borrowing what you can't repay and protects the bank from lending.

Brendan

Brendan Burgess said:

"stopped paying" doesn't mean "written off" ?

The reality is that people's attitude towards paying their debts doesn't change that much. If they don't fancy paying their student debt, then they are much less likely to pay their mortgage when the going gets tough.

The CCR protects you from borrowing what you can't repay and protects the bank from lending.

Brendan

Click to expand...

Well, forgive my cynicism, but the CCR is run by the Central Bank. Which has a stellar record of protecting consumers from unfair and dodgy banking practices. Doesn't it? Oh, wait....

Let's be realistic here. The Central Bank can and does protect the banking system and individual banks. It has very little interest in protecting borrowers, except to the extent that it wants to protect banks from making bad loans. It does this way more in the interests of banks not of borrowers.

Hi Right Winger

If you were lending your own money, wouldn't you want to know if the person to whom you were lending had a history of not paying their debts?

And the banks are lending the depositors' money.

Brendan

Brendan Burgess said:

Hi Right Winger

If you were lending your own money, wouldn't you want to know if the person to whom you were lending had a history of not paying their debts?

And the banks are lending the depositors' money.

Brendan

Click to expand...

I quite agree, Brendan. But that's looking at things from the bank's point of view! And as I said, the Central Bank is very good at protecting the banks' interests. Customers' interests? Not so much.

Right Winger said:

But that's looking at things from the bank's point of view!

Click to expand...

Yes, they are lending the money?

The Central Bank should not be protecting people who chose to renege on their credit card debt and only paid it when they realised that it would prevent them getting a mortgage.

The Central Bank has a very intrusive Code of Conduct on Mortgage Arrears and Mortgage Arrears Resolution Process to protect consumers who got into difficulty. Over 120,000 borrowers who engaged with their lender had their mortgages restructured.

About 30,000 tracker mortgage holders got trackers back and compensation who would have got nothing without CB intervention.

But in other areas - especially interest rates and vulture funds, they are not doing a good job.

Brendan

Yep, that's a more balanced view, I reckon. Although, I'd give some credit to the government of the day for forcing them to introduce the MARP out of sheer panic at the thought of the consequences of not doing so.
At best, the Central Bank might be regarded as adequate in some aspects, but never excellent.

Thanks everyone for your responses.

What are your thoughts re a mortage application before this has disappeared from my CCR Record?

Is this two year clear record that I need or a five year record? I have seen both referred to.

Sunnydai said:

Thanks everyone for your responses.

What are your thoughts re a mortage application before this has disappeared from my CCR Record?

Is this two year clear record that I need or a five year record? I have seen both referred to.

Click to expand...

My understanding is that the bank will only have settled the loan on the CCR on date you made the final repayment. The 5 year clock will start from this date.

Different lenders will have different policies in terms of what weight they will afford to the issue but it will likely result in refusal from some/most of the mainstream mortgages providers, although they make changes to their approach fairly regularly. A broker would have a better feel for which lender(s) might overlook it. Some credit unions offer mortgages now too and they would be far more likely to make an exception.