Any excuse not to give out a mortgage??

nowye'retalking

Does anyone know if banks are even lending money anymore??? We have out a bid on a house and it was excepted, we are still waiting ofr Loan Approval form the bank, they came back saying that I had a few late payments with a credit card- does this mean NO MORTGAGE???
Oh god please say no… We are so stressed from this whole ordeal… Can someone please help?
Are the banks just looking for any excuse not to give out a mortgage??

Thanks for reading my RANT!!! I;'m so stressed rite now... Its just one thing after another...:(:(

Fatloss08

im afraid to say , i think there looking for any reason and are more strict due to the fact that the banks were throwing cash at people and now there in it to ther necks

i hope you do get

ntlbell

why don't you call the bank and ask or apply to another bank.

banks are giving out mortgages mostly if you have the following

a decent size deposit...

proof that you can afford the re-payments, (will generally be shown by how you saved for the deposit)

The house is affordable.....

You're in a "secure" profession

have an impeccable credit history

if any of the above is not true you may have problems but banks are dishing out cash.

Fatloss08

ntlbell wrote: »

why don't you call the bank and ask or apply to another bank.

banks are giving out mortgages mostly if you have the following

a decent size deposit...

proof that you can afford the re-payments, (will generally be shown by how you saved for the deposit)

The house is affordable.....

You're in a "secure" profession

have an impeccable credit history

if any of the above is not true you may have problems but banks are dishing out cash.

whats secure these days ???

MarkR

Fatloss08 wrote: »

whats secure these days ???

Repo man. Seriously though, they were talking on the radio today about something similar. AIB, Bank of Ireland, and Halifax are the three biggies actively seeking new customers.

Sizeable deposit, permanent employment (not in construction), and a reasonable credit history are what's important. Go to those banks and see what they say.

Mena

Fatloss08 wrote: »

whats secure these days ???

Civil Service

ntlbell

Fatloss08 wrote: »

whats secure these days ???

What was secure before "these days" ?

EKRIUQ

ntlbell wrote: »

What was secure before "these days" ?

Permanent teachers, Gardai, Nurses, county council job, public service jobs

321654

Banks are still giving out mortgages alright. Dont mind all the talk about no mortgages. you'll get one no problem as long as you've in employment for at least a year. Shop around the different banks to get the best mortgage.

The_Conductor

Mena wrote: »

Civil Service

Don't bet on it- they are saying they want a 20% reduction in headcount........
No-where is safe. A doctor in the HSE might be safe- admin staff certainly are not.

amdublin

Late payments on credit cards have always been a red flag for banks (not just a new phenomenon).

Like put it this way. If you gave a friend a lend of euro100 and they were late paying it back to you (or never paid it back) would you be quick to lend them money again?

Firetrap

When did you make those late credit card payments? It might be a good idea for you to get a look at your credit report from the Irish Credit Bureau =>Link here - it only costs €6. At least then you can see what's on your record and what the bank is seeing. It takes 5 years for these sorts of things to roll off your record.

It says on their website:

Your credit report includes:
your name, date of birth, address(es) used by you in relation to financial transactions
the names of lenders and account numbers of loans you currently hold, or that were active within the last five years;
repayments made or missed for each month on each loan;
the failure to clear off any loan;
loans that were settled for less than you owed; and
legal actions your lender took against you


As an aside, perhaps you might consider paying your credit card bill by direct debit. At least then, your repayments will be made on time and you won't run into this trouble again.

jdivision

nowye'retalking wrote: »

they came back saying that I had a few late payments with a credit card- does this mean NO MORTGAGE???

How many is a few? You've a bad credit history, from their point of view if you're not paying back your credit card what happens when you have to pay back a mortgage and you have a bad month? Don't blame the bank for your mistakes, at least these days they're being somewhat prudent when it comes to lending.

John Mason

[QUOTE=EKRIUQ;public service jobs[/QUOTE]

no,i am public service, and we have just been giving our voluntary redundancy package, they are getting rid of 74 people out of 220.

OP have the bank come back to and said you cant have the mortgage. late credit card payments if they are more then 3 years old will not be investigated

ntlbell

pink fluffy bunny wrote: »

no,i am public service, and we have just been giving our voluntary redundancy package, they are getting rid of 74 people out of 220.

OP have the bank come back to and said you cant have the mortgage. late credit card payments if they are more then 3 years old will not be investigated

Well they were the ones who told HIM about the late payments.

I'd say that means they were investigated...

jimmycrackcorm

I can't believe that they queried the late credit card payments. I'm regularly a few days late with those - it's just pure laziness and nothing to do with repayment capacity.

ntlbell

jimmycrackcorm wrote: »

I can't believe that they queried the late credit card payments. I'm regularly a few days late with those - it's just pure laziness and nothing to do with repayment capacity.

how do you think a bank should work out who's lazy and who missed the payment?

if a DD was setup for the minimum payment it shouldn't ever be an issue...

a bank can only go what's put in front of them...

Firetrap

I think some banks are stroppier about late credit card payments than others. Especially if you've got a lot of debt and you're late a lot.

nowye'retalking

Sorry haven’t wrote back I keep meaning too.. I did a credit check and this is the story… I have had 2 loans and a mortgage before, credit history on those perfect all ticks never missed a payment etc ( only sold out house in fed- cleared mortgage and had 30k left over still have this as deposit).. Then the next page a “Halifax credit card”, with 1’s, 2’s, 3’s etc and a P standing for “pending legal action…. For guess what wait for it... €40 government levy charge… I cleared my card a 18mths ago and moved house as we bought a house never told CC company as I presumed it was paid off!!!!!!!!!!!!!!!!!!!!!! So they were sending me letters upon letters ( which I swear to god I never received…..)

Now… bank tells me forget it!!!!!!!!!!!!! I actually cried… I asked them how €40 could ruin, our whole life practically!!! My husbands Credit history is impeccable but still the €40 seems to be the ONLY reason we were knocked back!! I can show that I can pay a mortgage as well and a loan @ the same time and never missed a payment but a stupid government levy fee is all it took to knock us back… Renting now with no positive outlook anymore.. Lost our house we had a bit in for, Kids devastated, xmas ruined for me anyway.. I cant seem to see light at end of the tunnel.. €850 a mth on dead rent for god knows how long…

Moral of story… Don’t miss a payment of a trivial thing like a credit card that they gave out sooooooooooooo easily… Sorry if I have spelling mistakes just so hurt and angry!!!!!!!!!!!

SimpleSam06

In three or four years time the banks should start loosening their strictures on lending somewhat. Until then consider yourself fortunate that you are renting in a renters market, and can negotiate lower prices while you build up a nest egg for when you buy again, which should coincide with the bottom or near the bottom of the market. I'd view it as a provisional win, tbh.

jimmycrackcorm

nowye'retalking wrote: »

I asked them how €40 could ruin, our whole life practically!!!

What did the bank say in response? Have you tried ringing up Halifax and explaining the situation to them and ask them to correct the entry?

RoadRunner

Chin up nowye'retalking.. this is your blessing in disguise

Besides if you wait a year or two house prices should be a fair bit cheaper. Some say up to 20% cheaper. Buy then instead.

Rent for 18months is about €15000
If you could get a 20% reduction on, say, a €250000 house 18 months from now you could save yourself nearly €50000

Firetrap

jimmycrackcorm wrote: »

What did the bank say in response? Have you tried ringing up Halifax and explaining the situation to them and ask them to correct the entry?

Good question. I see from the ICB's website that you can ask your lender to contact the ICB and get them to amend your report if there's a mistake on it. If your story is the way it happened, you should do everything in your power to get your credit report amended.

Now, on the rent is dead money thing...which would you rather be doing? Paying a massive mortgage on a house that's losing value month by month? Or paying rent and putting the balance aside so that you can build up a bigger deposit and buy your dream home at a lower price down the line?

Frugallady

Hello all! I'm here in Pennsylvania, USA. Used to live in Ballincollig, Co. Cork for many years.

It does seem that bank are not lending these days and the sheer fact that they turned someone down for a mere 40 Euros ($55.46) seems to be proof of it. But some people here in the USA (especially the Realtors et al) seem to continue to deny it and say that people are getting mortgages. They ARE? WHERE? With restrictions such as not lending to otherwise Credit worthy people for the sake of a mere 40 Euros, someone please tell me WHO exactly is getting these mortgages these days?

Senna

Frugallady wrote: »

Hello all! I'm here in Pennsylvania, USA. Used to live in Ballincollig, Co. Cork for many years.

It does seem that bank are not lending these days and the sheer fact that they turned someone down for a mere 40 Euros ($55.46) seems to be proof of it. But some people here in the USA (especially the Realtors et al) seem to continue to deny it and say that people are getting mortgages. They ARE? WHERE? With restrictions such as not lending to otherwise Credit worthy people for the sake of a mere 40 Euros, someone please tell me WHO exactly is getting these mortgages these days?

edit; just realised your talking about the USA.

Me, i have mortgage approval from EBS, Ulster Bank and AIB. I'll be drawing down within the month.

They are lending, but its not at 2005/6 'take as much as you want' levels, they are stricter on what amount you can afford to pay back and they need to see that you have a history of saving. This is a good thing, if they (the 3 above + halifax, all looking for new business) wont lend to you it mean you don't meet the criteria. Not their fault YOU dont meet the criteria, except of the last 5 years it was always hard to get a mortgage, i'd even say its easier now than in the late 90's and defiantly easier than the 80's.

The banks know the market is dropping and are factoring this in to lending amounts too. This can be tough, especially if you've found a house you want, but lifes tough, no one has a god given right to a mortgage, but at the end of it all, the banks are actually doing you a favour, wait and that dream house will be cheaper, your mortgage will be less every month and you'll have the house paid off even quicker.

Firetrap

I think the OP's in a different boat though. Because she says there was some sort of mix-up about the €40 credit card levy, her credit rating's been affected. Pending Legal Action on one's credit report would have always been a stumbling block. I guess in times past, someone like her would have been able to go get a sub-prime mortgage.

ascottdub

Hello,

I am also trying to buy and definetely worry about cc history. I have 1 card and while I lived aboard, it was late more than a few times.
However, over the last year I have not had a late payment???
Any opinions if this will crucify me? I have no other cards, haven't applied for any either. If I pay the card off totally (bout 1800) will that help?

To the girl with the 40 euro levy, if that card was closed and paid off, I would most certainly be contacting them. Personally, i'd be livid and wouldn't let it drop either. That was their error and 1 that needs to be fixed. I'm surprised the bank didn't tell you that & certainly if you were standing there crying.
What is with some of these people? The mortgage person must have known that she could go to the cc company and ask that they change it.

ntlbell

ascottdub wrote: »

Hello,

I am also trying to buy and definetely worry about cc history. I have 1 card and while I lived aboard, it was late more than a few times.
However, over the last year I have not had a late payment???
Any opinions if this will crucify me? I have no other cards, haven't applied for any either. If I pay the card off totally (bout 1800) will that help?

check your credit history with the ICF and see whats on it

ascottdub

Just order a copy a while ago.

If the history of the card IS on there, should I just go ahead and pay it off?

Would rather do that, then be refused for late payments that were years ago

Thanks

ntlbell

ascottdub wrote: »

Just order a copy a while ago.

If the history of the card IS on there, should I just go ahead and pay it off?

Would rather do that, then be refused for late payments that were years ago

Thanks

A lot of the time they're not on it depending on who the bank is.

I'm not sure paying the card of removes the bad payments AFAIK they stay on it for 7 years.

open to correction on this tho

leeroybrown

You come across this problem from time to time with credit cards. In quite a lot of cases a card is paid off and cancelled after it has been marked as active for the annual government levy but before the charge has been levied.

Contact the Halifax and explain that you had cleared all debts on the card, had moved house and were unaware that it was still active. If you push gently and plead extenuating circumstances you might be able to clear the debt and get the problem resolved.

The OP can now bung their spare cash in a high interest deposit account which will be comfortably beating inflation, get this issue cleared up and hopefully buy when the market drops even more.