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Settled for less than full - can I get mortgage in future?

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  • 04-02-2017 2:06pm
    #1
    McNulty
    Registered Users Posts: 130 ✭✭


    I bought a house in Meath in 2006 on a 35 year mortgage with PTSB. After three years I moved to the UK and let out the property. About two years ago I had a cardiac arrest while out running in the U.K. which coincided with the property becoming vacant and me running up arrears

    Very fortunately I made a recovery and my family made almost instant contact with PTSB who were incredibly helpful. After some negotiation we agreed that the property could be sold and a figure (we essentially split the difference between what we owed after sale, and paid half) could be paid to them in full with no damage to credit record. I remortgaged my house in the UK to get the sum and its eventually now gone through. I've just had a letter from them saying my Irish credit record on ICB now shows the profile code of L for settled for less than the full amount.

    While I'm a Brit, my wife and daughters are Irish and we hope to return one day and buy a house again in Ireland. Does anyone know if this L on my code would damage our chances of getting a mortgage in future? The profile code did actually originally show W for written off, but they have amended to L. Advice welcome


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    #2
    L1011
    Registered Users Posts: 68,900 ✭✭✭✭L1011


    The loan should drop off the ICB record after 5 years. After this time the biggest limiting factor is likely to be that life insurance will, unfortunately, be hard to get or extremely expensive due to having had the heart attack. Irish insurers are much more cautious than in the UK and specialist risk insurers barely exist.


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    #3
    SteoL
    Closed Accounts Posts: 1,545 ✭✭✭SteoL


    L1011 wrote: »
    The loan should drop off the ICB record after 5 years. After this time the biggest limiting factor is likely to be that life insurance will, unfortunately, be hard to get or extremely expensive due to having had the heart attack. Irish insurers are much more cautious than in the UK and specialist risk insurers barely exist.


    Is that true though, about 5 years? A colleague of mine applied for a mortgage during the boom. They were rejecting his application based on late payments on a loan from 14 years prior! I was shocked as thought they would only look back 5 years. He did get the mortgage in the end but there was a lot of resistance initially.


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    #4
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,920 Admin ✭✭✭✭✭Toots


    SteoL wrote: »
    Is that true though, about 5 years? A colleague of mine applied for a mortgage during the boom. They were rejecting his application based on late payments on a loan from 14 years prior! I was shocked as thought they would only look back 5 years. He did get the mortgage in the end but there was a lot of resistance initially.

    It'll drop off the ICB 5 years after the debt is settled. However, if he was applying for the mortgage in the same bank as the loan, it could have shown up on their own internal systems.


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