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Sub Prime Lenders

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  • 08-07-2008 3:55pm
    #1
    alottodo
    Closed Accounts Posts: 45 ✭


    Firstly apologies if this is in the wrong category.

    Myself and my partner are currently trying to buy our first house but unfortunately my credit history is not great. (basically borrowed money for another person through a separate account and they stopped paying it back)

    Anyway, just wondering if there is anyway of getting around using a sub prime lender, or if this is my only option which one is the best to use?

    Thanks
    alottodo


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    #2
    mcaul
    Closed Accounts Posts: 1,493 ✭✭✭mcaul


    Some banks will look at it on a case by case basis.

    IIB are particularly good especially if you can show them ability to pay and have more than normal deposit. (approx. 15%)

    If the situation with the bad credit is cleared at this stage, you shouldn't have too much of a problem if your expalnation is acceptable.

    They may also insist that any current loans either of you you have are cleared.

    Irish Nationwide & EBS are also ones to consider.

    Avoid the subprime providers at all costs unless absolutely necessary.


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    #3
    alottodo
    Closed Accounts Posts: 45 ✭alottodo


    It's been paid off since last Feb but banks (PTSB, AIB, BOI, Ulster Bank) all seem reluctant to help, I will try the banks you mentioned.

    Thanks


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    #4
    sunnysoutheast
    Registered Users Posts: 2,072 ✭✭✭sunnysoutheast


    I wouldn't necessarily take this too personally.

    The lending criteria have been tightened significantly in recent months, including a stress test to see if the loan is affordable if interest rates go to 8%. Head offices can override approvals given at branch level. Many banks don't actually have all that much money to lend due to the cost of interbank finance.

    Avoid the sub-primes. Remember also that, in many cases, trying to buy a house at the moment is like catching a falling knife.

    SSE


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    #5
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Moved to Banking, Insurance and Pensions.

    dudara


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    #6
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    IIB are sub prime lenders albeit not the most expensive of the breed.


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    #7
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Does it show up as a completed debt on your ICB?

    If you must go with a sub lender watch out for crazy interest rates. I've seen quotes with interest rates as high as 9%. When banks are where doing them at 5%. If its your only option I would be renting. In a few years time with a good run account you could be able to get a bank to give you a mortgage. The difference in interest rates could be years added onto the mortgage and 10000's extra money paid out.


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