Financial guidance...

HiGlo

(apologies, I'm slightly cross posting this as it is probably more relevant to this forum than the other one I posted it in...)

Right,
I’ve been having the thinks recently about mortgages, savings, etc. and I really need to ship myself into shape….
I am pretty bad with money and spend most of my time living in the moment. I have almost no savings and I’m pretty sure I have a really bad credit rating.
If I do have a dodgy credit rating is there a chance no bank will touch me? Even for a small mortgage?

I want to get my finances in order and start proper savings, pension (well, restart my pension that I used to have) and just behave like a proper grown up – for once!
Where should I start? Should I actually check my credit record myself with the ICB first? Or speak to a bank and ask their advice? Or would I be better to sort myself an independent financial advisor to guide/assist me?

Any help/advice?


Also, I am in a slightly different (lucky!) position in that due to a significant inheritance the mortgage I would need would only be a bit of a top up (maybe €50-70K). This means my LTV would be pretty low and also my repayments would be roughly €300-500 per month so manageable. I earn €32k a year so technically would be able to borrow up to about €110k
Would this make a difference when proving my ability to repay? Like given that I don’t have a great history of savings, if I start saving like €500 a month now for the next 6 months would that be enough for stress testing?

I guess really what I want to know is, where to start?? Would a broker/financial advisor be money well spent? Or just get my ass in gear myself?

blondchick

The first thing you need to do is get a copy of your credit report. In the current climate you will not get a mortgage with a bad credit rating and it is five years before missed payments etc are removed from your credit rating. In the meantime to obtain a mortgage you need to demonstrate that you will be able to make the repayments to to set up a standing order to a savings account is a good start. If you have any outstanding debts you need to clear them as this will impact on your ability to borrow. Good luck!

HiGlo

I got my ICB report in the post yesterday

The only indication on it is that I have revoked credit card. The card was issued in 2007 but I haven't had an actual physical credit card since 2010/11 when no card was sent to me when the original expired. I have fully paid this card off since August 2014.
According to the ICB report the Scheduled Removal Date is September 2018. Does this mean that this card will sit on my record till then?? Or does it just mean that's the current expiry date on the card (even though I don't have a physical card?). Does anyone know can I contact the bank and ask them to close that credit card account? Would that make any difference?

I have a savings account with Ulster Bank (I'm a PTSB customer) and it's completely unconnected to any telephone or internet banking so I have to physically go to the bank to withdraw money. However it is where I have been saving my fees for college (studying part time but finished now) so I have withdrawals here and there as payments were due.
I haven't touched it now since probably around May. I was planning on using what's in there for spends for a trip to Australia over christmas, but maybe I'm better to leave it and use it as my proper savings account - my problem is that it's labelled as "college savings" on the transfer so would it loose weight as say mortgage savings? Is it possible to rename it just "savings"?

Sorry these are probably all questions for the bank really, but just in case anyone here knows.......
Would it be worth just going in to my bank and sitting down with someone to discuss my situation and what I'll need to do to be able to get a small mortgage next year.

HiGlo

I got my ICB report in the post yesterday

The only indication on it is that I have revoked credit card. The card was issued in 2007 but I haven't had an actual physical credit card since 2010/11 when no card was sent to me when the original expired. I have fully paid this card off since August 2014.
According to the ICB report the Scheduled Removal Date is September 2018. Does this mean that this card will sit on my record till then?? Or does it just mean that's the current expiry date on the card (even though I don't have a physical card?). Does anyone know can I contact the bank and ask them to close that credit card account? Would that make any difference?

I have a savings account with Ulster Bank (I'm a PTSB customer) and it's completely unconnected to any telephone or internet banking so I have to physically go to the bank to withdraw money. However it is where I have been saving my fees for college (studying part time but finished now) so I have withdrawals here and there as payments were due.
I haven't touched it now since probably around May. I was planning on using what's in there for spends for a trip to Australia over christmas, but maybe I'm better to leave it and use it as my proper savings account - my problem is that it's labelled as "college savings" on the transfer so would it loose weight as say mortgage savings? Is it possible to rename it just "savings"?

Sorry these are probably all questions for the bank really, but just in case anyone here knows.......
Would it be worth just going in to my bank and sitting down with someone to discuss my situation and what I'll need to do to be able to get a small mortgage next year.

blondchick

The credit card will sit on your record until 2018, the credit card account most probably is closed but it would be no harm to contact the bank and make sure this is the case.

You can just rename your account "savings account" and rename the narrative on your bank account "to savings account". In reality though these details are just administration and would not really have any bearing on a banking decision regarding a mortgage or loan. However it is probably as well to have them changed as it just saves on explanations should you be putting in a loan application.

The credit card being revoked will have a bearing on your ability to borrow. The fact that it is paid off is good. It would be worthwhile going to your local bank to discuss a loan. I would bring the ICB report with you because the person who will discuss the lending with you most probably wont have access to that. Tthey will be far better able to assist you if they know the information that the ICB will show up.

Hope that is of help.

HiGlo

That's a great help thanks....
I have a week off work soon so I think I'll arrange an appointment with my bank and sit down and discuss with someone where I am, what steps I need to take etc..

Thank you.