Refused mortgage - what next?

Twinkle123

Hi folks,

My partner and I have been refused a mortgage due to our credit rating. We've only just had the call from our mortgage broker to break the news. He has advised us to get an ICB report for us both so we can pin point where we fell down but just from looking at the ICB website we have a fair idea it was due to failed direct debits that have occurred (but have always been settled) over the last 5 years.

My question really is what next? Is renting our only option until we get ourselves sorted out or does the 'Rent to Buy' option still exist?

We both still live at home but it really is time for us to move out...

Many thanks in advance,

A woman on the EDGE!!

Sleepy

Rent to Buy is a scam, plain and simple, avoid like the plague.

IIRC, you need 3 years without a missed DD or SO to qualify for a mortgage so while saving your deposit it's best to leave enough of your savings in your current account to cover a months worth of DD's. A chat with your local branch manager might help if you can point to your savings record over the last 5 years but otherwise ye may just have to keep saving for a while....

Eldarion

Are the missed debits on a joint account in both your names or is it just one of ye tanking your credit rating? If one of you are clean, he/she could apply for a mortgage on their own, you'll obviously get approved for a lot less but it's an option you could look at.

chris85

Missed DDs do not show on the ICB anyways. If the DD/SO was to pay a loan/credit card than the missed payment on this account would show. Good to get the report to be sure how it is.

Twinkle123

Hi guys,

Thanks so much for the replies...

I know I missed 2 credit card DD's on the day they were due but they were paid in full literally the following day...

I guess it really is just a waiting game now to see what the reports say when they arrive next week.

What a great way to start a bank holiday weekend

TrishSimon

Twinkle123 wrote: »

Hi guys,

Thanks so much for the replies...

I know I missed 2 credit card DD's on the day they were due but they were paid in full literally the following day...

I guess it really is just a waiting game now to see what the reports say when they arrive next week.

What a great way to start a bank holiday weekend

If the DD was paid the following day I would suggest you go to the credit card lender and tell them you are looking to get a mortgage etc that you got the report on yourself and these two missed payments were on it and can they contact ICB and have the marks against you removed they can do this no problem seen as it was the following day they were paid its not like it was weeks or months, there is no harm talking to them.
In Oct 2012 my direct debit for my mortgage was due on the 30th and because of a bank holiday weekend it did not get allocated until the 4th of November even though I had paid it on time the result was a mark against my name with ICB which I was not allowing to happen so I got in touch with my bank and seen as it was their fault it was allocated a few days after I paid I kept on at them to revoke the missed payment with ICB they didnt want to and it went on for 3 months but finally I got them to take it back because it really wasn't my fault and I'm glad I did as now everything goes on the ICB even your credit union but see will your bank do that for you they might just oblige.

Twinkle123

Thanks for that, I really would literally sell my soul at this stage so making a call to the CC people would be a piece of cake!

All I can do is try I suppose!

Really appreciate the advice

riclad

my friend was refused a mortgage,
SHE got a dublin city council mortgage,about 7 years ago.
on a private 1bed apartment,
off thomas street.
80k.
SHE had to pay 50/50 rent ,mortgage for the 1st 3years til,
she switched over to a 100 per cent mortgage.

THIS Scheme is designed for people on lower income,
under 40k salary.approx.
SHE could have chosen to buy any private house ,apartment in dublin city,
as long as its in a certain price range ,and pass.es the council survey .
ie no structural problems.or major repairs needed.

ie its not limited to coucil tenants, or buildings.
she was single at the time.
IT was not a joint mortgage.

Eldarion

riclad wrote: »

my friend was refused a mortgage,
SHE got a dublin city council mortgage,about 7 years ago.
on a private 1bed apartment,
off thomas street.
80k.
SHE had to pay 50/50 rent ,mortgage for the 1st 3years til,
she switched over to a 100 per cent mortgage.

THIS Scheme is designed for people on lower income,
under 40k salary.approx.
SHE could have chosen to buy any private house ,apartment in dublin city,
as long as its in a certain price range ,and pass.es the council survey .
ie no structural problems.or major repairs needed.

ie its not limited to coucil tenants, or buildings.
she was single at the time.
IT was not a joint mortgage.

What's with the random capitalisation of pronouns? I was full sure you were making a distinct point that your friend was female and was waiting for bomb drop of how you were denied because you were male.

Borderfox

Next application bring all the documentation to support that you paid the dd aswell as talking to the cc company

riclad

Well .this scheme is open to single people ,
or couples,
Look on dublin city council website,
or google council mortgage dublin ie,
eg couple earning 35k x 2,
70k could apply,
last time i checked.eg
designed for people on lower incomes who need housing.
the legal fees ,on it maybe larger than a standard mortgage,
as the 1st 3 years you are on 50/50 rent , mortgage.

rtron

Hi OP
As mentioned above check your County's (Not sure that you live in Dublin) - Council for a council Mortgage.
Part of the criteria for county council Mortgages is that you have been refused a mortgage. (Or so I heard)

One estate agent advised me in our locale, that councils have loads of money for this type of thing but you may require a larger deposit than the banks

Trish56

Twinkle 123
You need to wait for ICB reports to see where you missed payments as paying your credit card payment one or two days late should not give you a bad credit rating. Once you receive the report and identify the problem you should then contact the bank/credit card company and get copies of statements to check if the information is correct. There are plenty of errors made by financial institutions on the Credit Bureau. If one of one have a bad credit rating can the other not apply for a mortgage in the sole name.

Twinkle123 wrote: »

Hi folks,

My partner and I have been refused a mortgage due to our credit rating. We've only just had the call from our mortgage broker to break the news. He has advised us to get an ICB report for us both so we can pin point where we fell down but just from looking at the ICB website we have a fair idea it was due to failed direct debits that have occurred (but have always been settled) over the last 5 years.

My question really is what next? Is renting our only option until we get ourselves sorted out or does the 'Rent to Buy' option still exist?

We both still live at home but it really is time for us to move out...

Many thanks in advance,

A woman on the EDGE!!

Mrs OBumble

Twinkle123 wrote: »

We both still live at home but it really is time for us to move out...

Ahh, are you really telling us that you think the only way for you to move out of your respective mammy's houses is to get a mortgage and buy a house together?

With respect, are you really old/mature enough to be undertaking a transaction of such complexity and size?

The obvious answer to your "what next" question is: rent a place together, and see how you get on as a couple without having a huge joint financial commitment. Do not even consider getting a mortgage together until you have done this for at least one year.

And sort yourselves out financially. There is no reason for a DD to ever fail.

Twinkle123

Mrs OBumble wrote: »

Ahh, are you really telling us that you think the only way for you to move out of your respective mammy's houses is to get a mortgage and buy a house together?

With respect, are you really old/mature enough to be undertaking a transaction of such complexity and size?

The obvious answer to your "what next" question is: rent a place together, and see how you get on as a couple without having a huge joint financial commitment. Do not even consider getting a mortgage together until you have done this for at least one year.

And sort yourselves out financially. There is no reason for a DD ever fail.

There's always one who likes to kick people when they're down...

D3PO

Twinkle123 wrote: »

There's always one who likes to kick people when they're down...

Since when is telling somebody the truth kicking them when there down ?

Do a search on here tell me how many threads you find with. I split up with my ex we own a house how can i get off the mortgage or similar.

somebody who still lives with mammy and thinks they should go and buy a house with somebody needs to hear things like was posted.

its insanity in the extreme.

Twinkle123

D3PO wrote: »

Since when is telling somebody the truth kicking them when there down ?

Do a search on here tell me how many threads you find with. I split up with my ex we own a house how can i get off the mortgage or similar.

somebody who still lives with mammy and thinks they should go and buy a house with somebody needs to hear things like was posted.

its insanity in the extreme.

Honestly everyone else that has posted has been helpful. You have definitely not.

2013LEO

Twinkle123 wrote: »

Hi folks,

My partner and I have been refused a mortgage due to our credit rating. We've only just had the call from our mortgage broker to break the news. He has advised us to get an ICB report for us both so we can pin point where we fell down but just from looking at the ICB website we have a fair idea it was due to failed direct debits that have occurred (but have always been settled) over the last 5 years.

My question really is what next? Is renting our only option until we get ourselves sorted out or does the 'Rent to Buy' option still exist?

We both still live at home but it really is time for us to move out...

Many thanks in advance,

A woman on the EDGE!!

In a previous post 3 years ago you talk about having your house up for sale, would this be why the bank refused you?

funkey_monkey

How old are you twinkle, if you don't mind me asking?

I see what the tohers are now saying and I would tend to agree. Takeout a rental property for a year and see how you both get on living together etc.

I'm assuming here that you've not lived together previously, is that correct? If so, it is a great way to test the waters. The dynamics of a relationship changes when you are with someone 24/7 living, eating & sleeping with them.

If however, you have lived together previously and have moved back home in order to save up for a property then carry on...

Chazz Michael Michaels

Twinkle123 wrote: »

Hi folks,

My partner and I have been refused a mortgage due to our credit rating. We've only just had the call from our mortgage broker to break the news. He has advised us to get an ICB report for us both so we can pin point where we fell down but just from looking at the ICB website we have a fair idea it was due to failed direct debits that have occurred (but have always been settled) over the last 5 years.

My question really is what next? Is renting our only option until we get ourselves sorted out or does the 'Rent to Buy' option still exist?

We both still live at home but it really is time for us to move out...

Many thanks in advance,

A woman on the EDGE!!

Does your partner gamble with his card? If so, that's something banks have alarms for.

Twinkle123

2013LEO wrote: »

In a previous post 3 years ago you talk about having your house up for sale, would this be why the bank refused you?

Hey, no it's definitely not that...All my affairs regarding that have always been in order...never missed a DD payment or had anything outstanding...

2013LEO

Twinkle123 wrote: »

Hey, no it's definitely not that...All my affairs regarding that have always been in order...never missed a DD payment or had anything outstanding...

Either ye fell down on your partners side or theres a mistake along the way and if thats the case I hope ye are able to get it sorted easily and quickly, its hard but ye'll have to wait and see whats in the report. Best of luck OP.

Twinkle123

Chazz Michael Michaels wrote: »

Does your partner gamble with his card? If so, that's something banks have alarms for.

Definitely not...the last thing I'd be doing is buying a house with a gambler!

I've had access to all his accounts as well as I've been the one organising everything so I know we're ok in that aspect...

Twinkle123

2013LEO wrote: »

Either ye fell down on your partners side or theres a mistake along the way and if thats the case I hope ye are able to get it sorted easily and quickly, its hard but ye'll have to wait and see whats in the report. Best of luck OP.

Thanks so much 2013LEO...keeping my fingers crossed it's fixable whatever it is!

Mrs OBumble

Twinkle123 wrote: »

... I've been the one organising everything so I know we're ok in that aspect...

Ding, ding, ding, ding .. relationship warning bells going off here.

Twinkle123

funkey_monkey wrote: »

How old are you twinkle, if you don't mind me asking?

I see what the tohers are now saying and I would tend to agree. Takeout a rental property for a year and see how you both get on living together etc.

I'm assuming here that you've not lived together previously, is that correct? If so, it is a great way to test the waters. The dynamics of a relationship changes when you are with someone 24/7 living, eating & sleeping with them.

If however, you have lived together previously and have moved back home in order to save up for a property then carry on...

Both 33 this month...

We have lived together so we know excatly what we are getting into...

cookiecakes

D3PO wrote: »

Since when is telling somebody the truth kicking them when there down ?

Do a search on here tell me how many threads you find with. I split up with my ex we own a house how can i get off the mortgage or similar.

somebody who still lives with mammy and thinks they should go and buy a house with somebody needs to hear things like was posted.

its insanity in the extreme.

Both this used to be quite common no? Like it's certainly what my older family members would have done and everyone of them is still married. I'm not saying it works for everybody but I think it's funny that people act like it's such a crazy thing to do when it used to be norm.

The_Morrigan

Mrs OBumble wrote: »

Ding, ding, ding, ding .. relationship warning bells going off here.

There is no need for comments like this.

Mrs OBumble

The_Morrigan wrote: »

There is no need for comments like this.

Apologies, I wasn't trying to be offensive.

But if one partner is doing all the legwork, and the other is totally passive about the process - especially when it sounds like they're not living together now - then that rings alarm bells for me, and may have done for the lender too.

For all the OP knows, the partner could have had had a quiet word with the bank saying that he doesn't really want to go ahead with it.

riclad

Sometimes ,in relationships theres one person who takes care of bills,
booking holidays,finance etc this doesn,t necessarily indicate its a bad relationship.
if you are taking out a joint mortgage,
agree beforehand ,is it 50 -50 both persons pay half,
OR does the person on a larger income pay more?
2 people can get a larger mortgage from the council than 1 .
I think the banks are strict now, they look at your income x3,
and work out could you pay a loan if interest rates increase by 2 per cent ,which is quite possible.
IN the boom a bloke working in a chipper could borrow 100k ,
eg the banks were giving loans to anyone who had a job.
AS we saw,
when the banks get reckless ,
we get a housing BUBBLE,
EG council houses going for 150k plus

prancer

Twinkle123 wrote: »

Hi folks,

My partner and I have been refused a mortgage due to our credit rating. We've only just had the call from our mortgage broker to break the news. He has advised us to get an ICB report for us both so we can pin point where we fell down but just from looking at the ICB website we have a fair idea it was due to failed direct debits that have occurred (but have always been settled) over the last 5 years.

My question really is what next? Is renting our only option until we get ourselves sorted out or does the 'Rent to Buy' option still exist?

We both still live at home but it really is time for us to move out...

Many thanks in advance,

A woman on the EDGE!!

Myself and my boyfriend were in the same situation, at the time I was unemployed- we were renting together and really wanted to get off the market. We went to BOI, EBS, AIB etc- he hadnt permanent job but I had a large amount of savings behind me- together we had about €30k between Credit Unions/Post office etc.

We were refused, simply because he wasnt permanent at the time so we basically saved like mad for a year to see what we could accumulate.

Then one day, this end of terrace house came on the market, it was a shell (previous rental that had been destroyed) and has three good sized bedrooms. Asking price was for way more than we could afford at the time without a mortgage €70k so we put down an offer of €30k more or less as a laugh. That was January 2013, by April 2013, we had the house bought straight out in cash, no mortgage for €32k. it took €20k to do it up (new plumbing, wiring etc plus my uncles a builder and was out of work so paid him for it all)

In the mean time, boyfriend was made permanent and once again we tried for mortgage, I havent my CID yet so still cannot try for one. He was approved for one of €100k so we're going to think about it for a while and see what properties come up on the market. Going to put up the house we are in now for rent (€500 a month- is what is was priced at) because we now have a baby and will be looking for a bigger place. we're hoping to be able to give the property to our son when he is 21 as a place he can rent from us and buy it if he wants.

Moral of my story is don't lose hope. we wanted so much for our first house, we were looking for a year if not two at beautiful huge houses that would have crippled us. We just saved and saved and got extremely lucky and this can happen you too. My brother has more or less just done the same in Dublin, he just bought a house at Christmas (a small 3 bedroom mid terrace, also a shell as a previous rental) and secured it for €50k up by Phoenix Park, on infirmary road.

There are properties out there- you just have to see the potential.

Best of Luck with everything!!