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Should I mention previous debt problems in mortgage application

  • 07-05-2016 7:49pm
    #1
    dbagman
    Banned (with Prison Access) Posts: 1,216 ✭✭✭


    So in short, I missed a few payments on a loan and had another written off years ago. Young and stupid. Anyhow now Im going for a mortgage and have been asked in a form if iv previously had any debt problems. As these were so long ago they are no longer evident on my ICB report. They were there but are long over the 5 year period and as such have disappeared. My question is should I mention these in my mortgage application. Or as they are off my ICB report and I assume now untraceable will I be better off just saying nothing? I dont want to lie but I dont want to put my application in jeopardy unnecessarily.Thanks in advance


Comments

  • #2
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,921 Admin ✭✭✭✭✭Toots


    Per the Charter
    Toots wrote: »
    No Dishonest Dealings.
    Don't ask how to get around repaying debts/defaulting/giving false information for loans etc - basically if it's not above board, and legal, it's not allowed. This includes advising posters to do it/how to do it.
    You need to provide true and accurate info on your mortgage application, you'll be signing a section at the end that states that the information you've provided is true.


  • #3
    NIMAN
    Registered Users, Registered Users 2 Posts: 33,758 ✭✭✭✭NIMAN


    dbagman wrote: »
    So in short, I missed a few payments on a loan and had another written off years ago. Young and stupid. Anyhow now Im going for a mortgage and have been asked in a form if iv previously had any debt problems. As these were so long ago they are no longer evident on my ICB report. They were there but are long over the 5 year period and as such have disappeared. My question is should I mention these in my mortgage application. Or as they are off my ICB report and I assume now untraceable will I be better off just saying nothing? I dont want to lie but I dont want to put my application in jeopardy unnecessarily.Thanks in advance

    Time for you to do whatever you think is right, methinks.

    But remember you are going to put your signature to it all, and it will be legally binding.


  • #4
    dbagman
    Banned (with Prison Access) Posts: 1,216 ✭✭✭dbagman


    Toots wrote:
    You need to provide true and accurate info on your mortgage application, you'll be signing a section at the end that states that the information you've provided is true.


    I'm not looking for info on how to falsify a loan application or breaking the law. Simply enquiring if it's necessary to bring up a bad debt from years ago. Were talking a decade plus ago here. And not for huge sums of money. If it's not on my ICB report is it worth mentioning is all I'm asking. I'm not providing false information if I'm not providing the information full stop. That would be my personal view on it. But like I said I don't want to lie in my application if it came to light and would be viewed as such.


  • #5
    Mongfinder General
    Registered Users Posts: 1,992 ✭✭✭Mongfinder General


    dbagman wrote: »
    I'm not looking for info on how to falsify a loan application or breaking the law. Simply enquiring if it's necessary to bring up a bad debt from years ago. Were talking a decade plus ago here. And not for huge sums of money. If it's not on my ICB report is it worth mentioning is all I'm asking. I'm not providing false information if I'm not providing the information full stop. That would be my personal view on it. But like I said I don't want to lie in my application if it came to light and would be viewed as such.

    If you want to stand a chance of getting a mortgage, don't mention your priors. It is up to the lender to ask prudent questions and do their own due diligence.


  • #6
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    If you apply to the same bank that you ran into trouble with, it will still be on your records so beware.

    dbagman wrote: »
    So in short, I missed a few payments on a loan and had another written off years ago. Young and stupid. Anyhow now Im going for a mortgage and have been asked in a form if iv previously had any debt problems. As these were so long ago they are no longer evident on my ICB report. They were there but are long over the 5 year period and as such have disappeared. My question is should I mention these in my mortgage application. Or as they are off my ICB report and I assume now untraceable will I be better off just saying nothing? I dont want to lie but I dont want to put my application in jeopardy unnecessarily.Thanks in advance


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  • #7
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    Test the water, try getting approval with one bank and if anything shows up, then you can take it from there, i.e. if you have a decent explanation as to why this happened and that it was so long ago then it may not be a problem for you. Pick a bank that would be the lowest on your list of preferable lenders and apply to them.
    Also, have you had any personal loans since then that show you have a good credit profile?


  • #8
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    If the question being asked is not answered correctly then you are potentially committing a fraud by trying to obtain a loan by deception.

    It's pretty harsh, but there you go.


  • #9
    billymitchell
    Registered Users Posts: 11,996 ✭✭✭✭billymitchell


    Why don't you ask a Mortgage broker about it?


  • #10
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    billymitchell wrote: »
    Why don't you ask a Mortgage broker about it?

    Engaging someone to tell lies for you? That's still potentially fraud surely?


  • #11
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    For God's sake the poor chap was young and foolish and did not realise at the time that missing a few payments would affect his credit rating for the rest of his life. He probably now has a partner and maybe family, hopefully he learned his lesson and don't have to suffer or more importantly his family for the rest of their life.

    The bank's done a lot more harm to us as a country with their reckless lending during the Celtic tiger years and then we bailing them out so it's a minor issue that he omits to disclose that he missed a few payments 8/10 years ago.
    Best of luck in your mortgage application. Pity the banks and the Regulator weren't so honest years ago.
    Henry Ford III wrote: »
    Engaging someone to tell lies for you? That's still potentially fraud surely?


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  • #12
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    Trish56 wrote: »
    For God's sake the poor chap was young and foolish and did not realise at the time that missing a few payments would affect his credit rating for the rest of his life. He probably now has a partner and maybe family, hopefully he learned his lesson and don't have to suffer or more importantly his family for the rest of their life.

    The bank's done a lot more harm to us as a country with their reckless lending during the Celtic tiger years and then we bailing them out so it's a minor issue that he omits to disclose that he missed a few payments 8/10 years ago.
    Best of luck in your mortgage application. Pity the banks and the Regulator weren't so honest years ago.

    Ignorance of potential consequences isn't much of an excuse is it?

    p.s. Everyone hates what the Banks did, but it still doesn't give anyone a moral carte blanche to attempt obtain finance through deception.


  • #13
    KrakityJones
    Registered Users, Registered Users 2 Posts: 370 ✭✭KrakityJones


    I would suggest applying for a copy of your credit report from icb.if your bad past loan shows up on it you need to declare that, if it doesn't then it no longer applies and does not need to be mentioned, that is not illegal that is why these records have a time limit.


  • #14
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    He mentioned in his original post that his credit report with ICB is clean as it happened many years ago.
    KrakityJones wrote: »
    I would suggest applying for a copy of your credit report from icb.if your bad past loan shows up on it you need to declare that, if it doesn't then it no longer applies and does not need to be mentioned, that is not illegal that is why these records have a time limit.


  • #15
    KrakityJones
    Registered Users, Registered Users 2 Posts: 370 ✭✭KrakityJones


    Trish56 wrote: »
    He mentioned in his original post that his credit report with ICB is clean as it happened many years ago.

    My mistake, in that case there would be no need to mention it, it doesn't exist - you have no black marks on your history, if you had they have expired to let you get on with your life.


  • #16
    billymitchell
    Registered Users Posts: 11,996 ✭✭✭✭billymitchell


    Henry Ford III wrote: »
    Engaging someone to tell lies for you? That's still potentially fraud surely?

    I meant more ask a mortgage broker for advice on the situation, and if they would know how the banks would treat an application in which the OP admitted to their previous debt issues.

    Some banks may not care at all about it, others could shut the door straight away. Banks may not have any way to find out about it, but maybe they do!

    It may cost a few quid to ask a mortgage broker, but it might give the OP peace of mind all the way through the mortgage application process, which I am assuming they are looking for.


  • #17
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    Lenders won't like a history of bad credit and unpaid debts.

    I've no idea would it ruin anyone's chance of obtaining a mortgage, so perhaps your idea of asking a mortgage broker has merit?

    It's certainly a better idea than lying on an mortgage application.


  • #18
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    Henry Ford III wrote: »
    Lenders won't like a history of bad credit and unpaid debts.

    Not necessarily true, if there is a history of bad credit but it is being dealt with/repaid, and there is a proper explanation for this, then the banks will look at a mortgage application and if they qualify for the mortgage required even with the previous bad credit still being paid, the applicant may still be approved.


  • #19
    chefwes
    Registered Users Posts: 271 ✭✭chefwes


    My advice is be up front and honest with the bank. By all means run your query by a broker but I think if you neglect to tell the bank it will look unfavourable on your part. Everybody makes mistakes and you've dealt with the matter so you have nothing to hide. As other poster has said if you have a reason or explanation if they ask you then give it to them. Nobody's perfect and plenty of us have dropped the ball at some stage, your only human and by showing the bank your being open and honest will stand to you in the long run.


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