Saving/Applying for a mortgage 2015/16/17/18/19

Smiley012

Arsen5 wrote: »

My question is does this two refusals necessarily mean bad credit report from ICB (had few missed direct debits before but very good repayment on a small personal loan for nearly two years)or it's due to something else (bank statement all over the place with a lot of to & fro transfers between me and a couple of few friends) I requested ICB report on my self and hopefully will get it within 3-4 days. If that's the case can I do anything to improve a bad ICB report before 5 years?.
Thanks in advance.

Check your ICB. I had a couple of missed credit card payments back in 2012, and this was a reason why I was declined through KBC. Despite a very good explanation, and proof to support why they were missed payments, I was still declined.

The random payments between friends will also flag up. If it's a lot of many, and your explanation isn't very strong, they won't like it.

Once your see your ICB, you'll see how good or bad the situation is. There are lenders who will only look up to 2 years of your ICB, so if it's before then, there's still hope to get approval.

Generally declines don't seem to be one main reason, they seem to be a number of contributing factors. Trying to mitigate against the risks is the best way to go - have solid explanations around missed payments and random money transfers - that will help your case.

Monife

Smiley012 wrote: »

Check your ICB. I had a couple of missed credit card payments back in 2012, and this was a reason why I was declined through KBC. Despite a very good explanation, and proof to support why they were missed payments, I was still declined.

The random payments between friends will also flag up. If it's a lot of many, and your explanation isn't very strong, they won't like it.

Once your see your ICB, you'll see how good or bad the situation is. There are lenders who will only look up to 2 years of your ICB, so if it's before then, there's still hope to get approval.

Generally declines don't seem to be one main reason, they seem to be a number of contributing factors. Trying to mitigate against the risks is the best way to go - have solid explanations around missed payments and random money transfers - that will help your case.

Does having no credit history affect a mortgage application? And also, does a mortgage refusal (or many) affect your credit history?

Arsen5

Smiley012 wrote: »

Check your ICB. I had a couple of missed credit card payments back in 2012, and this was a reason why I was declined through KBC. Despite a very good explanation, and proof to support why they were missed payments, I was still declined.

The random payments between friends will also flag up. If it's a lot of many, and your explanation isn't very strong, they won't like it.

Once your see your ICB, you'll see how good or bad the situation is. There are lenders who will only look up to 2 years of your ICB, so if it's before then, there's still hope to get approval.

Generally declines don't seem to be one main reason, they seem to be a number of contributing factors. Trying to mitigate against the risks is the best way to go - have solid explanations around missed payments and random money transfers - that will help your case.

Thanks a lot, I'm very bad with managing my finances despite very good income. Anyway of revoking a bad ICB report?(no outstanding bills for now, closed my credit card 2014, uptodate with a small loan for nearly two years, and although irregular but excellent savings in few months). I'm really stressed out about this.

audi12

Arsen5 wrote: »

Thanks a lot, I'm very bad with managing my finances despite very good income. Anyway of revoking a bad ICB report?(no outstanding bills for now, closed my credit card 2014, uptodate with a small loan for nearly two years, and although irregular but excellent savings in few months). I'm really stressed out about this.

Where you buying dublin or outside you do know house prices fell last month outside dublin came out in the news today

Sleepy

Just got word that our mortgage has been approved and the valuer has been instructed.

Thanks to killers1 here on boards, he's been brilliant for us to-date.

athtrasna

Mod note

Arsen5 you posted the same post twice on this thread (less than 24 hours apart) and also on another forum on boards. This is against boards rules so please take care not to do that again. Thanks

lawred2

Arsen5 wrote: »

Smiley012 wrote: »

Check your ICB. I had a couple of missed credit card payments back in 2012, and this was a reason why I was declined through KBC. Despite a very good explanation, and proof to support why they were missed payments, I was still declined.

The random payments between friends will also flag up. If it's a lot of many, and your explanation isn't very strong, they won't like it.

Once your see your ICB, you'll see how good or bad the situation is. There are lenders who will only look up to 2 years of your ICB, so if it's before then, there's still hope to get approval.

Generally declines don't seem to be one main reason, they seem to be a number of contributing factors. Trying to mitigate against the risks is the best way to go - have solid explanations around missed payments and random money transfers - that will help your case.

Thanks a lot, I'm very bad with managing my finances despite very good income. Anyway of revoking a bad ICB report?(no outstanding bills for now, closed my credit card 2014, uptodate with a small loan for nearly two years, and although irregular but excellent savings in few months). I'm really stressed out about this.

You'll need to be impeccable with your finances for at least 24 months if your ICB is a mess...

That's regular and consistent savings ... the use of standing orders and direct debits

never needing an overdraft

managing your credit card i.e. repaying purchases within the interest free period etc etc

Arsen5

audi12 wrote: »

Where you buying dublin or outside you do know house prices fell last month outside dublin came out in the news today

In Dublin for around €300 k, deposit almost ready and it's a joint application (over 52k each annual salary plus overtime). I don't have the patience to save regularly for one year & keep a tight expenses for long period.

lawred2

Arsen5 wrote: »

audi12 wrote: »

Where you buying dublin or outside you do know house prices fell last month outside dublin came out in the news today

In Dublin for around 300 k, deposit almost ready and it's a joint application (over 52k each annual salary plus overtime). I don't have the patience to save regularly for one year & keep a tight expenses for long period.

maybe a mortgage might not be for you then

Smiley012

Monife wrote: »

Smiley012 wrote: »

Check your ICB. I had a couple of missed credit card payments back in 2012, and this was a reason why I was declined through KBC. Despite a very good explanation, and proof to support why they were missed payments, I was still declined.

The random payments between friends will also flag up. If it's a lot of many, and your explanation isn't very strong, they won't like it.

Once your see your ICB, you'll see how good or bad the situation is. There are lenders who will only look up to 2 years of your ICB, so if it's before then, there's still hope to get approval.

Generally declines don't seem to be one main reason, they seem to be a number of contributing factors. Trying to mitigate against the risks is the best way to go - have solid explanations around missed payments and random money transfers - that will help your case.

Does having no credit history affect a mortgage application? And also, does a mortgage refusal (or many) affect your credit history?

Banks don't know if you have had a "mortgage refusal" - all they know is that another bank has viewed your ICB for the purpose of a mortgage. If a bank raises the question, you don't have to say the outcome. You can simply tell them you're shopping around.

I have heard of many people receiving AIP (approval in principal) from multiple banks.

With regards to the "No credit history" - that is certainly not a sole reason for a mortgage refusal, particularly if they can see that you have been saving, no reckless spending, no paddy power accounts, good job history etc.

Smiley012

Arsen5 wrote: »

Thanks a lot, I'm very bad with managing my finances despite very good income. Anyway of revoking a bad ICB report?(no outstanding bills for now, closed my credit card 2014, uptodate with a small loan for nearly two years, and although irregular but excellent savings in few months). I'm really stressed out about this.

No chances of revoking a bad ICB report - especially not if the ICB report is valid (i.e - you miss a direct debit as a result of a banking error - that would be an invalid mark on your ICB). The only way you can overcome this is by having impeccable finances for 24 months - there are a few banks that would consider you. When did you last miss a direct debit? Don't worry about the stress, I was in the same position as you a couple of months ago! You need the last 2 years of your ICB report to be clean - so if you're last missed direct debit was 18 months ago, you need to wait another 6 months.

We had irregular but excellent savings that averaged out to approximately 2500euro a month. They were absolutely fine with the irregularity.

My suggestion would be to be vigilant about your money - stay on top of your finances for 6 months, regular savings, no missed bills or late payments, don't transfer random amounts of money back and forth between your friends.

Smiley012

Arsen5 wrote: »

audi12 wrote: »

Where you buying dublin or outside you do know house prices fell last month outside dublin came out in the news today

In Dublin for around 300 k, deposit almost ready and it's a joint application (over 52k each annual salary plus overtime). I don't have the patience to save regularly for one year & keep a tight expenses for long period.

I have to say this comment would be a concern. When you have a mortgage, you absolutely have to be patient and pay off your mortgage over the time period agreed to with the bank - which is essentially the same behaviour as saving regularly.

Smiley012

Smiley012 wrote: »

, don't transfer random amounts of money back and forth between your friends.

What's the issue with this anyway? I'd imagine its common enough for people, particularly those house sharing to have fairly regular back and fourth transfers.

I'd have a few a month going to/from my account with people paying me for bills I paid, the gf giving me money for stuff I paid/me giving her money for stuff she paid, money to/from other family members for group presents, money to/from parents for different things etc etc. Don't see why this would be looked on as abnormal behaviour.

Smiley012

Azalea Screeching Padding wrote: »

Smiley012 wrote: »

, don't transfer random amounts of money back and forth between your friends.

What's the issue with this anyway? I'd imagine its common enough for people, particularly those house sharing to have fairly regular back and fourth transfers.

I'd have a few a month going to/from my account with people paying me for bills I paid, the gf giving me money for stuff I paid/me giving her money for stuff she paid, money to/from other family members for group presents, money to/from parents for different things etc etc. Don't see why this would be looked on as abnormal behaviour.

I spoke to my bank, and I spoke to 2 different mortgage brokers. They both said that one of the things underwriters look for is unexplained random sums of money. I'm sure small amounts here or there don't break the bank, but I would imagine the larger sums would require a detailed explanation.

When they went through my statements I had to explain every single transaction that was not a normal POS transaction.

"Oh, Mr Financial-Advisor - that e180 was for a hen party to my friend, that e50 was for a season of tag rugby"

As long as it has a solid explanation, I'm sure it's all good. Just my experience!

L1011

Azalea Screeching Padding wrote: »

What's the issue with this anyway? I'd imagine its common enough for people, particularly those house sharing to have fairly regular back and fourth transfers.

I'd have a few a month going to/from my account with people paying me for bills I paid, the gf giving me money for stuff I paid/me giving her money for stuff she paid, money to/from other family members for group presents, money to/from parents for different things etc etc. Don't see why this would be looked on as abnormal behaviour.

Random transfers suggest off the books borrowing/repayments for one thing.

Jet Black

Smiley012 wrote: »

Banks don't know if you have had a "mortgage refusal" - all they know is that another bank has viewed your ICB for the purpose of a mortgage. If a bank raises the question, you don't have to say the outcome. You can simply tell them you're shopping around.

Just to add to this from my experience from working in a bank, if it shows on your ICB that bank x and bank y checked you credit history then you checked it, the underwriters would think that you were refused then checked your history to see why. Best to only check it if you think there is a problem that you can fix.

Arsen5

Smiley012 wrote: »

I have to say this comment would be a concern. When you have a mortgage, you absolutely have to be patient and pay off your mortgage over the time period agreed to with the bank - which is essentially the same behaviour as saving regularly.

I have been paying rent for the last 8 years no issues with that at all. It's the regular saving & keep a normal looking band statement.

slowjoe17

Arsen5 wrote: »

I have been paying rent for the last 8 years no issues with that at all. It's the regular saving & keep a normal looking band statement.

I totally agree with your point-of-view here - it shouldn't be any of the banks' business.

Unfortunately, they disagree. They will give you the benefit of the doubt in a couple of circumstances:
1. you have significantly more than a minimum deposit.
2. you have a brilliant track record on saving.

It doesn't sound like you have either of these bases covered. You may not like it, but your best chance is to knuckle down and save exactly the same amount for several months, and have a conversation with the banks later in the year. That amount should be more than a grand. Banks don't count rent for credit purposes (obviously madness) so you need to do something else.

A bank will be concerned that you and your partner might be about to start a family in the near future, threatening one of your salaries for a period, so you really need to polish some apples.

Obviously, the usual financial advice about clearing credit card balances first applies.

Good luck!

Arsen5

slowjoe17 wrote: »

I totally agree with your point-of-view here - it shouldn't be any of the banks' busines
!

Thanks, when I first talked to them they said regular rent is counted as a regular saving if they're showing on bank account, but now they look for extra regular saving. Still waiting on the last bank to answer (as well as an optimistic broker!)otherwise I will try my best to save as much as I can and try again around November/December should have much more than the deposit by then.

REFLINE1

Smiley012 wrote: »

Arsen5 wrote: »

Thanks a lot, I'm very bad with managing my finances despite very good income. Anyway of revoking a bad ICB report?(no outstanding bills for now, closed my credit card 2014, uptodate with a small loan for nearly two years, and although irregular but excellent savings in few months). I'm really stressed out about this.

No chances of revoking a bad ICB report - especially not if the ICB report is valid (i.e - you miss a direct debit as a result of a banking error - that would be an invalid mark on your ICB). The only way you can overcome this is by having impeccable finances for 24 months - there are a few banks that would consider you. When did you last miss a direct debit? Don't worry about the stress, I was in the same position as you a couple of months ago! You need the last 2 years of your ICB report to be clean - so if you're last missed direct debit was 18 months ago, you need to wait another 6 months.

We had irregular but excellent savings that averaged out to approximately 2500euro a month. They were absolutely fine with the irregularity.

My suggestion would be to be vigilant about your money - stay on top of your finances for 6 months, regular savings, no missed bills or late payments, don't transfer random amounts of money back and forth between your friends.

Just to clarify- Direct debits missed will only show up on your ICB report if they were for a loan payments? for example a missed dd relating to another bill (sky/UPC for example) thats not in the 6 months statements you submit for mortgage application isn't going to be an issue as i understand.

Obviously its different if you are applying with your own bank as they can look back as far as they like.

_feedback_

Hi all, a new addition to the (early) preparation for mortgage application. Just a couple of things you may be able to help me on

We have a fair idea of what needs to be done prior to applying (hopefully Jan 2017). Would it be an idea to talk to someone now (broker etc.) or closer to the time of application?

Myself and my siblings previously inherited and sold a house and my part of the deposit will be made up of funds from that. I'm saving a couple of hundred a month for the next six months, plus rent of 700. My other half is saving a lot more and pays the same rent. Does this sound ok (if I don't go overdrawn?)

Also, the inherited house doesn't affect my FTB status does it?

Bradz213

_feedback_ wrote: »

Hi all, a new addition to the (early) preparation for mortgage application. Just a couple of things you may be able to help me on

We have a fair idea of what needs to be done prior to applying (hopefully Jan 2017). Would it be an idea to talk to someone now (broker etc.) or closer to the time of application?

Myself and my siblings previously inherited and sold a house and my part of the deposit will be made up of funds from that. I'm saving a couple of hundred a month for the next six months, plus rent of 700. My other half is saving a lot more and pays the same rent. Does this sound ok (if I don't go overdrawn?)

Also, the inherited house doesn't affect my FTB status does it?

You'll basically need to show 6 months of stress testing ie showing you can afford the mortgage. The qualifying sum i think varies depending on bank. Some want you to save maybe 1.2 X mortgage monthly repayments so if your mortgage would be €1000. You need to show savings of €500 per month (€1200 (€1000 x 1.2) less €700 rent). I'm not sure on the exact stress testing methods

audi12

_feedback_ wrote: »

Hi all, a new addition to the (early) preparation for mortgage application. Just a couple of things you may be able to help me on

We have a fair idea of what needs to be done prior to applying (hopefully Jan 2017). Would it be an idea to talk to someone now (broker etc.) or closer to the time of application?

Myself and my siblings previously inherited and sold a house and my part of the deposit will be made up of funds from that. I'm saving a couple of hundred a month for the next six months, plus rent of 700. My other half is saving a lot more and pays the same rent. Does this sound ok (if I don't go overdrawn?)

Also, the inherited house doesn't affect my FTB status does it?

you might want to see what the market is like in jan 2017 first before you make all these long term plans house prices are all over the place. Fell the last two months outside Dublin inside dublin prices dont know what their doing. Hardly want to be buying if prices are falling

Utah

Bradz213 wrote: »

You'll basically need to show 6 months of stress testing ie showing you can afford the mortgage. The qualifying sum i think varies depending on bank. Some want you to save maybe 1.2 X mortgage monthly repayments so if your mortgage would be €1000. You need to show savings of €500 per month (€1200 (€1000 x 1.2) less €700 rent). I'm not sure on the exact stress testing methods

For us they said whatever the mortgage repayment would be at the current rate plus 2%. So KBC were testing at 5.75%....or something like that and as long as your saving + rent is below that, there should be no issue.

_feedback_

Between rent and savings I'll be €900 PM. My other half will be at about €1300 PM

Isn't that taken all together?

ie. if we were looking to apply for something with repayments of €1200 (total), we have been showing that we are capable of €2200 between us?

(We have enough for a deposit already, but this is merely to show them what they need to see)

Sleepy

If you already have the deposit and have a demonstrable repayment capacity of nearly twice the repayments you're in an extremely good place to be getting approval.

Bradz213

_feedback_ wrote: »

Between rent and savings I'll be €900 PM. My other half will be at about €1300 PM

Isn't that taken all together?

ie. if we were looking to apply for something with repayments of €1200 (total), we have been showing that we are capable of €2200 between us?

(We have enough for a deposit already, but this is merely to show them what they need to see)

Yeah it's your combined so you are well covered. Just don't take anything out of your savings. Save less if you have to but once you put money into a savings account don't withdraw

Utah

_feedback_ wrote: »

Between rent and savings I'll be €900 PM. My other half will be at about €1300 PM

Isn't that taken all together?

ie. if we were looking to apply for something with repayments of €1200 (total), we have been showing that we are capable of €2200 between us?

(We have enough for a deposit already, but this is merely to show them what they need to see)

Yes that's it. So even if rates went up and you had to pay 1400/1500 you're still in good shape.

Smiley012

REFLINE1 wrote: »

Smiley012 wrote: »

Arsen5 wrote: »

Thanks a lot, I'm very bad with managing my finances despite very good income. Anyway of revoking a bad ICB report?(no outstanding bills for now, closed my credit card 2014, uptodate with a small loan for nearly two years, and although irregular but excellent savings in few months). I'm really stressed out about this.

No chances of revoking a bad ICB report - especially not if the ICB report is valid (i.e - you miss a direct debit as a result of a banking error - that would be an invalid mark on your ICB). The only way you can overcome this is by having impeccable finances for 24 months - there are a few banks that would consider you. When did you last miss a direct debit? Don't worry about the stress, I was in the same position as you a couple of months ago! You need the last 2 years of your ICB report to be clean - so if you're last missed direct debit was 18 months ago, you need to wait another 6 months.

We had irregular but excellent savings that averaged out to approximately 2500euro a month. They were absolutely fine with the irregularity.

My suggestion would be to be vigilant about your money - stay on top of your finances for 6 months, regular savings, no missed bills or late payments, don't transfer random amounts of money back and forth between your friends.

Just to clarify- Direct debits missed will only show up on your ICB report if they were for a loan payments? for example a missed dd relating to another bill (sky/UPC for example) thats not in the 6 months statements you submit for mortgage application isn't going to be an issue as i understand.

Obviously its different if you are applying with your own bank as they can look back as far as they like.

Your ICB will show loan or credit card payments that have been missed.

Glen_Quagmire

Anyone know how banks are currently looking at mortgage applications from people working in the construction industry?