Husband missed payment on BOI loan now has bad credit history

TrishSimon

The title of my thread is not very clear but here goes I am looking for advice on this situation.
May 2012 my husband missed a payment of € 365.77 on a BOI loan, he also then missed a payment of same amount March 2013 which I of course knew nothing about until we went for a mortgage and the ICB for him came up with a bad credit history.
In May 2013 he made a lodgement to clear the two payments and bring them up to date and the loan account for the past 18 months is paid on time and in full and BOI acknowledge that and have stated his account is in good order and that we have to wait until May 2015 when they will contact ICB and update the account as it will be 24 months by then.

I am just wondering is there anything we can do because I have a perfect credit history I already have a small mortgage since Feb 2009.
It has ruined any chance we had of buying now and we have the deposit and legal fees, stamp duty all ready to go.
We are renting and I am just sick of it at this stage

chris85

TrishSimon wrote: »

The title of my thread is not very clear but here goes I am looking for advice on this situation.
May 2012 my husband missed a payment of € 365.77 on a BOI loan, he also then missed a payment of same amount March 2013 which I of course knew nothing about until we went for a mortgage and the ICB for him came up with a bad credit history.
In May 2013 he made a lodgement to clear the two payments and bring them up to date and the loan account for the past 18 months is paid on time and in full and BOI acknowledge that and have stated his account is in good order and that we have to wait until May 2015 when they will contact ICB and update the account as it will be 24 months by then.

I am just wondering is there anything we can do because I have a perfect credit history I already have a small mortgage since Feb 2009.
It has ruined any chance we had of buying now and we have the deposit and legal fees, stamp duty all ready to go.
We are renting and I am just sick of it at this stage

Not really anything can be done to change the record on the ICB of the missed payments. The bank will only amend if there in error and thats not the case here as payments were missed.

The best thing you can do is show the mortgage lender there are no issues now and loan up to date and convince them these previous payments are not a reflection of your current repayment ability. Could be worth going through a broker who would maybe be able to put the case forward in the best way for you. Brokers typically are good for dealing with situations like this as they have a relationship built with the banks.

TrishSimon

chris85 wrote: »

Not really anything can be done to change the record on the ICB of the missed payments. The bank will only amend if there in error and thats not the case here as payments were missed.

The best thing you can do is show the mortgage lender there are no issues now and loan up to date and convince them these previous payments are not a reflection of your current repayment ability. Could be worth going through a broker who would maybe be able to put the case forward in the best way for you. Brokers typically are good for dealing with situations like this as they have a relationship built with the banks.

Thanks Chris85, we already did the whole mortgage process with a broker who in fairness was brilliant he tried for 5 weeks to get a bank to give us a mortgage AIB in fact just wanted us to save more money but KBC were the ones who flagged the ICB report. The broker has a great relationship with the banks he is in the business 16 years he told us to leave it for a few months and save more money and then come back to him.
My husbands loan account has been in order for 18 months now and all payments previous to and after the missed payments were on time he just took out too much money one day before the loan was due, stupid on his behalf I know.

TrishSimon

chris85 wrote: »

Not really anything can be done to change the record on the ICB of the missed payments. The bank will only amend if there in error and thats not the case here as payments were missed.

The best thing you can do is show the mortgage lender there are no issues now and loan up to date and convince them these previous payments are not a reflection of your current repayment ability. Could be worth going through a broker who would maybe be able to put the case forward in the best way for you. Brokers typically are good for dealing with situations like this as they have a relationship built with the banks.

We don't have kids, have the deposit, legal fees, stamp duty, one credit card always paid no car loans, bills always paid and he has the BOI loan with me having a mortgage with KBC. The broker said we are ideal but once the ICB report comes up like that there is nothing you can do.

NewCorkLad

Have you spoken to BOI regarding getting a mortgage, they do not deal with the broker market currently so your broker will not mention them and as they can see the reason for the bad ICB and your husbands good track record since then they may be more flexible.

TrishSimon

NewCorkLad wrote: »

Have you spoken to BOI regarding getting a mortgage, they do not deal with the broker market currently so your broker will not mention them and as they can see the reason for the bad ICB and your husbands good track record since then they may be more flexible.

I never knew they don't deal directly with the broker market at the time they did mention for us to come in a speak to them about getting a BOI mortgage but I felt it was just to fob us off because at the end of the day they will revert to the ICB the broker said they will go on that.
Maybe its worth looking into, my husbands aunt has just retired as a financial advisor for BOI so she is going to contact some friends in BOI to see where we can go from there.
Its quiet frustrating for me because I am over the top about keeping finances in order but thanks for the info.

NewCorkLad

Myself and a friend have both recently gotten approved with BOI after having trouble with Haven(AIB) & KBC so its definitly worth a try. Their interest rates arent as attractive but you can switch after 5 years penalty free.

TrishSimon

NewCorkLad wrote: »

Myself and a friend have both recently gotten approved with BOI after having trouble with Haven(AIB) & KBC so its definitly worth a try. Their interest rates arent as attractive but you can switch after 5 years penalty free.

Okay good to know thanks for that information you are very helpful

NewCorkLad

TrishSimon wrote: »

Okay good to know thanks for that information you are very helpful

Good luck

DYLF

Your ICB is nothing more than a report. It shows the number of payments in arrears over the last 2 years. This is why you would have been advised to wait 6 months before applying again. What banks use to determine whether or not to give you a loan is your credit score which is calculated by a number of different companies. Different banks will use a different company to determine your credit score and hence some will offer you a mortgage and others wont.Your best option, if you are not prepared to wait, is to shop around with a couple of different banks.

Saipanne

DYLF wrote: »

Your ICB is nothing more than a report. It shows the number of payments in arrears over the last 2 years. This is why you would have been advised to wait 6 months before applying again. What banks use to determine whether or not to give you a loan is your credit score which is calculated by a number of different companies. Different banks will use a different company to determine your credit score and hence some will offer you a mortgage and others wont.Your best option, if you are not prepared to wait, is to shop around with a couple of different banks.

I thought it was five years. And every Irish bank uses in house credit scoring.

DYLF

it is kept for 5 years but the report only shows the last 2

Saipanne

DYLF wrote: »

it is kept for 5 years but the report only shows the last 2

Interesting. I made a boo boo last year, and I was wondering how long it lasts.

DYLF

how much of a boo boo? AFAIK it only affects your credit rating if its over 1 months payment and over 30 days passed the date it was supposed to be paid.

TrishSimon

DYLF wrote: »

Your ICB is nothing more than a report. It shows the number of payments in arrears over the last 2 years. This is why you would have been advised to wait 6 months before applying again. What banks use to determine whether or not to give you a loan is your credit score which is calculated by a number of different companies. Different banks will use a different company to determine your credit score and hence some will offer you a mortgage and others wont.Your best option, if you are not prepared to wait, is to shop around with a couple of different banks.

Thanks DYLF I do understand the ICB report I have gotten them for years on myself and in recent years for my husband.
I already have a mortgage with KBC myself and they went on the ICB report however AIB saw the ICB report and were not worried but said we needed to save some more money. BOI have said in May they will contact the ICB as it will have been 24 months by then and will have it updated.
We are renting at 1100 pm so for me that is a complete waste so that is why I was hoping to try another bank we have been told to go to BOI as they dont deal in the broker market at the moment but we have decided to hold out until May and save a few grand more then re apply.
The broker was great at the beginning but as soon as he heard there was the blip on my husbands ICB report we were blanked so I have asked him back for all our documentation and we will do our own thing in May.

Saipanne

DYLF wrote: »

how much of a boo boo? AFAIK it only affects your credit rating if its over 1 months payment and over 30 days passed the date it was supposed to be paid.

Yeah, it was more than that, unfortunately.

TrishSimon

The end result is we will have to wait till May for it to be exactly 24 months and then we can reapply for a mortgage in the meantime we will save more money with my credit union and hope for the best for the summer of 2015