Mortgage Refused!!

barrymac20

Myself and my girlfriend were this week refused a mortgage due to the fact that her name is on the irish credit bureau (ICB) because of some trouble she last year with credit card repayments totalling €400. I am now trying to get mortgage with my dad as gaurantor but would be hoping that myself and my girlfriend can re mortgage in a couple of years. However we have been told that her name will be on ICB for 5 years and we are worried that we will not be able to get mortgage until that time is up.
Does anyone have any experience with this? She has a good job now and if she has a clean bill of health for the next couple of years would the banks still turn her down? Any help or advice would be appreciated.

P.S. Sorry if i havent explained situation properly!!

unclebill98

So, she was a bad girl.

Whats exactly on the ICB? Has that bad debt been paid off? Is it still on going?
If she could address the issue of the ICB, there might not be a need to have your dad there.

There was a long tread about ICB a few weeks back, best to look it up.

barrymac20

her credit card was revoked due to missed repayments. The debt has been cleared off in full but her name will still remain there for 5 years. Apparently there is nothing anyone can do to get her name off it!!

unclebill98

Ah right, thats it.

Well it shows the bank that the person had a small debt and dealt with it wrong enough for it to be reported onto the ICB.

Have you explained to the bank that said no, that the debt is all cleared?

Chances are you'll have to explain what happened to any bank you'll deal with in the future.

Does the gf have proof of the credit card being sorted???

ircoha

barrymac20 wrote: »

Myself and my girlfriend were this week refused a mortgage due to the fact that her name is on the irish credit bureau (ICB) because of some trouble she last year with credit card repayments totalling €400. I am now trying to get mortgage with my dad as gaurantor but would be hoping that myself and my girlfriend can re mortgage in a couple of years. However we have been told that her name will be on ICB for 5 years and we are worried that we will not be able to get mortgage until that time is up.
Does anyone have any experience with this? She has a good job now and if she has a clean bill of health for the next couple of years would the banks still turn her down? Any help or advice would be appreciated.

P.S. Sorry if i havent explained situation properly!!

IMO they are just using that as an excuse in the current climate and also because it was not disclosed on the app or in discussions: they found it and nobody likes that, if u are upfront then it is better.

I have got loans for client with this problem but it is clearly stated in the cover letter.
On another matter, if u remortgage later with ur gf will she get the FTB grant on 2nd hand prop; I dont know

unclebill98

I think both Party must be 1st time buyers to get the grant. So a re-mortgage is going to stop that.

Toots

unclebill98 wrote: »

I think both Party must be 1st time buyers to get the grant. So a re-mortgage is going to stop that.

Yes, that is true. When my bro in law bought his house they had to pay stamp duty, cos his GF bought a house with her ex, and he was a first time buyer.

Op, if the GF has proof that her debt was repaid in full, the bank will probably need to see that before they'd reconsider their decision. Did ye go to a broker or deal with a bank directly? A broker may have an idea of banks who have loaned to people in the past who are in your situation? That said though, with the way banks are being in a minute, you may have trouble getting approval with your GF's credit rating.

barrymac20

At the time of our application we didnt know that she had been reported to the ICB and thats why we didnt mention it. We're dealing with a broker and they basically told us that in the current climate if you dont tick every box then all (or most) lenders will say no. We can only hope that the climate improves and the banks relax over the next couple of years.
I have a question in relation to what you're saying about FTB grant. How does remortgaging work? If i already own the house (joint mortgage with Dad) and i want to remortgage (on my own) do i have to pay stamp duty? Even though i already own the house? Surely not.

barrymac20

unclebill98 wrote: »

Ah right, thats it.

Well it shows the bank that the person had a small debt and dealt with it wrong enough for it to be reported onto the ICB.

Have you explained to the bank that said no, that the debt is all cleared?

Chances are you'll have to explain what happened to any bank you'll deal with in the future.

Does the gf have proof of the credit card being sorted???

Yes and yes. The ICB has been updated showing the closing balane on the card as €0.

unclebill98

Well i would explain that to the bank that refused you and see if they change there mind.

Mitzy

Which credit card company was it through? This can make a bearing on the lenders decision also.

MortgageBrbr

Point 1 : If you give a valid explanation to the lenders as to the reason of the revoked credit card they may take a second look at it.
If not there are a number of other lenders out there which you could try.

Point 2: If you purchase the property and in a number of years your girlfriend wants to go on the mortgage as a FTB. There will be no stamp duty to be paid, because effectively you already own the property and as your girl friend is a FTB. Stamp duty will not apply.

Anything else let me know.