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Bad Credit Getting a Mortgage

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  • 11-01-2011 12:29pm
    #1
    GampDub
    Registered Users Posts: 227 ✭✭


    Hi,

    Myself any my Partner are currently looking at getting a mortgage. However, I defaulted on a small loan a few years ago that has now since been written off leaving me with Bad Credit rating.

    My Partners rating is perfect.

    Will this affect us getting a mortgage, we have just been told that we would qualify for over 300k on our figures. I'm now worried that we will get our deposit money together and fall at the last hurdle due to my previous misdemeanours!!!

    Is it worthwhile being straight with the bank or seeing how things go???

    Really don't want to mess things up for us!!! Any advise would be greatly appreciated.

    Cheers


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Always be straight with the bank. People fiddling figures, hiding their history and making dodgy promises is what gets people into mortgages that they can't afford.

    It was rife during the boom, and is part of the reason why we have so many defaulters/in arrears at this stage.

    The bank will look at all aspects of the application - although the ICB now issues a credit score, it's not the be-all and end-all like it is in the U.S. If you've been in stable employment since you defaulted, you have no other loans outstanding and it's been a couple of years since the loan was written off, then all hope is not lost.

    Once five years have passed since the loan was written off, it'll no longer appear on your credit record. So by the time you get a deposit together, the problem might just go away.

    If you have the deposit ready and you're starting to look for a mortgage, then you can go to bank now for approval in principle. The bank will then tell you how much they will actually loan you and you can look for properties on that basis. Remember though that just because you've been approved for €300k, you don't have to spend 300k.


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    #3
    bailes
    Registered Users Posts: 52 ✭✭bailes


    Be upfront with any potential lender.

    I agree with Seamus but you need to be aware that a lender will give you an approval in principle without any knowledge of your credit history but when you look for a loan offer they will complete an icb and then will decline the application if you have 'misdemeanors'


    Go to a mortgage broker to give you some assistance there may be a fee involved but usually on a no foal no fee basis.

    i am a mortgage broker and whilst not touting for business if i can help let me know or i can point you in the right direction with a local broker.

    Regards and best of luck


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    #4
    Rabidlamb
    Banned (with Prison Access) Posts: 2,202 ✭✭✭Rabidlamb


    My wife (gf at the time) had a bad credit rating back in 2005 when we applied for our mortgage.
    It meant we could only get a mortgage based on my salary + a guaranteed rent a room.

    We were set to buy a 3 bed semi in Naas for €365k, instead all we could afford was a 4 bed semi near Carlow for €200k.

    I thank jebus everyday since that she was refused.


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