Mortgage ICB

Pjmag

Hi all,
We have put in a joint mortgage application on a €50k mortgage, pre approved so just submitted documents.We have €10k deposit gifted to us,house is €60k. We paid off 2 overdrafts and and small credit card so no outgoings at all.
We are currently renting the house we want to buy and an offer to buy at a knock down price has arisen. Bit of a rushed application as a result.One missed DD on statement(stupid mistake) and I had a loan that went into arrears in 2006 which was then paid off early on ICB report that is due to be removed in October.I had bad health then and lost my job.
Will those 2 blips ruined our otherwise perfect application?
Our rent is more than the monthly mortgage repayments and we have a flawless SO in paying the rent for over 6 years.

alibab

Pjmag wrote: »

Hi all,
We have put in a joint mortgage application on a €50k mortgage, pre approved so just submitted documents.We have €10k deposit gifted to us,house is €60k. We paid off 2 overdrafts and and small credit card so no outgoings at all.
We are currently renting the house we want to buy and an offer to buy at a knock down price has arisen. Bit of a rushed application as a result.One missed DD on statement(stupid mistake) and I had a loan that went into arrears in 2006 which was then paid off early on ICB report that is due to be removed in October.I had bad health then and lost my job.
Will those 2 blips ruined our otherwise perfect application?
Our rent is more than the monthly mortgage repayments and we have a flawless SO in paying the rent for over 6 years.

It's hard to say without information re incomes for the amount you are borrowing . I can only give you my experience and it's not positive . Like you had everything in place approval was basically guaranteed etc . Much to my surprise a missed store card payment showed on my ICB . Bank made contact and I was shocked . I assured them it was a error not me and they said If I could prove this clear ICB then we were good to go .

I cleared it within 2 weeks bank admitted there error and cleared my ICB . Back to bank who then changed goal posts despite assurances and wanted another 2 months proof of savings etc . So despite mine being a error they are still not assured .

I now have a application in with Aib as had enough and although they say all is on order ie approval in principle I do not trust this till I have full mortgage approval letter to be honest .

It's been a long process and I had no loans , credit cards and meet the criteria ie income left after mortgage on stress test .

Pjmag

Thank you for the reply. I guess we have to wait and see. A 6% stress test with monthly repayment come out as same as current rent so bank said that was very good.
My main question is if a missed loan payment due to personal issues and financial difficulties at the time which were then paid off early before the term was due and is also near the removal date of ICB( ie 5 years ago)an immediate mortgage refusal?!

alibab wrote: »

It's hard to say without information re incomes for the amount you are borrowing . I can only give you my experience and it's not positive . Like you had everything in place approval was basically guaranteed etc . Much to my surprise a missed store card payment showed on my ICB . Bank made contact and I was shocked . I assured them it was a error not me and they said If I could prove this clear ICB then we were good to go .

I cleared it within 2 weeks bank admitted there error and cleared my ICB . Back to bank who then changed goal posts despite assurances and wanted another 2 months proof of savings etc . So despite mine being a error they are still not assured .

I now have a application in with Aib as had enough and although they say all is on order ie approval in principle I do not trust this till I have full mortgage approval letter to be honest .

It's been a long process and I had no loans , credit cards and meet the criteria ie income left after mortgage on stress test .

alibab

In my case they told me yes anything on the ICB was immediate refusal no talking about it or explaining it and even tough I cleared it I felt application was tainted and barriers put in my way . I am also very comfortable even with stress test etc but and it's a big but I am automatically on the back foot and considered a risk to them as a single mum with 2 kids so this does not help me also .

Nothing is straight forward .

Eldarion

Pjmag wrote: »

Hi all,
We have put in a joint mortgage application on a €50k mortgage, pre approved so just submitted documents.We have €10k deposit gifted to us,house is €60k. We paid off 2 overdrafts and and small credit card so no outgoings at all.
We are currently renting the house we want to buy and an offer to buy at a knock down price has arisen. Bit of a rushed application as a result.One missed DD on statement(stupid mistake) and I had a loan that went into arrears in 2006 which was then paid off early on ICB report that is due to be removed in October.I had bad health then and lost my job.
Will those 2 blips ruined our otherwise perfect application?
Our rent is more than the monthly mortgage repayments and we have a flawless SO in paying the rent for over 6 years.

Couple of things here I would point out. I think you're confusing monthly outgoings with debt in your post here, monthly outgoings are as simple as ESB, gas, food, petrol etc. Debts would be overdrafts, credit cards, car loans etc. Debt repayments are outgoings yes but just because you don't have them doesn't mean you don't have outgoings.

I really wouldn't congratulate yourself too much for clearing off 2 overdrafts, the banks don't want to see ANY overdrafts ever when assessing an application for a loan. It's a clear sign you could not budget properly and went into the red as a result. There might be a good reason but the facts are what matter.

Another red flag would be is that you don't have proof of savings, your deposit has been gifted to you. Your monthly rent would have to be significantly more than your anticipated monthly mortgage repayments the banks are going to see it as an indicator that you might miss repayments. There's a lot of extra little costs that go with ownership that you're not accounting for here, you can't look at simple rent versus mortgage repayments.

That all being said, 50k is car loan range and may be viewed at a little less strictly. Without providing more details as to your family size, your joint income, job status etc I wouldn't be able to say one way or the other as to whether your application would likely to be approved.

Pjmag

Hi Eldarion,
I fully understand the difference between debt and outgoings,we have no debt outgoings,goes without saying we have utilities etc to pay.
We got rid of 2 overdraft facilities from current accounts,that does not mean it they were been used or in the red as you described.No congratulation to ourselves here just stating facts.No need for condescending tone of you though.
We have savings just not savings for a deposit as stated this opportunity has presented itself so the typical mortgage readiness would not apply to this case.
Our current rent would cover monthly mortgage repayments,property tax,life insurance and home insurance and some left over after that.
I wasn't as such looking to see if our mortgage would be approved or not I had a specific question that I mentioned in original post.
May I ask what your relevant experience is on this matter?As in are you qualified or are you talking from personal point of view?
Thanks for reply either way.

Eldarion wrote: »

Couple of things here I would point out. I think you're confusing monthly outgoings with debt in your post here, monthly outgoings are as simple as ESB, gas, food, petrol etc. Debts would be overdrafts, credit cards, car loans etc. Debt repayments are outgoings yes but just because you don't have them doesn't mean you don't have outgoings.

I really wouldn't congratulate yourself too much for clearing off 2 overdrafts, the banks don't want to see ANY overdrafts ever when assessing an application for a loan. It's a clear sign you could not budget properly and went into the red as a result. There might be a good reason but the facts are what matter.

Another red flag would be is that you don't have proof of savings, your deposit has been gifted to you. Your monthly rent would have to be significantly more than your anticipated monthly mortgage repayments the banks are going to see it as an indicator that you might miss repayments. There's a lot of extra little costs that go with ownership that you're not accounting for here, you can't look at simple rent versus mortgage repayments.

That all being said, 50k is car loan range and may be viewed at a little less strictly. Without providing more details as to your family size, your joint income, job status etc I wouldn't be able to say one way or the other as to whether your application would likely to be approved.

Eldarion

Pjmag wrote: »

We paid off 2 overdrafts and and small credit card so no outgoings at all.

This does not read like you "removed the facility" this reads that you went into overdraft and paid the outstanding amount to bring you back to the black.

Pjmag wrote: »

Will those 2 blips ruined our otherwise perfect application?

This is the question you're referring to? To answer, it doesn't help but it's not where the bigger red flags are as the application isn't perfect to begin with.

Try not to make it personal Pjmag, argue the post not the poster. I could specify all that you ask but I won't as it would make it personal and there's no need. Apologies if my post came off condescending, it was not intended as so.

Pjmag

My question was about the ICB report and the missed DD.

Eldarion wrote: »

This does not read like you "removed the facility" this reads that you went into overdraft and paid the outstanding amount to bring you back to the black.



This is the question you're referring to? To answer, it doesn't help but it's not where the bigger red flags are as the application isn't perfect to begin with.

Try not to make it personal Pjmag, argue the post not the poster. I could specify all that you ask but I won't as it would make it personal and there's no need. Apologies if my post came off condescending, it was not intended as so.

Pjmag

It's ok,ultimate answer comes from the bank anyway.

Pjmag wrote: »

My question was about the ICB report and the missed DD.