Loan and mortgage application

Lux23

My partner and I have just started saving for our mortgage, we hope to have the guts of €30k by this time next year so will probably start shopping around for mortgage approval towards the end of 2018. We earn about €95k gross between us, we won't have any debt by then and we have no children (yet!).

The only fly in the ointment is that I was out of work for about 18 months and couldn't keep up with repayments on a loan I had for about a year of that time. I started paying it again about two years ago and it will probably be cleared completely this time next year. I now have a permanent public sector job as well. The loan will still probably be on my credit rating by the end of next year so is it likely to cause problems? Thanks in advance for your advice.

Col_30

Lux23 wrote: »

My partner and I have just started saving for our mortgage, we hope to have the guts of €30k by this time next year so will probably start shopping around for mortgage approval towards the end of 2018. We earn about €95k gross between us, we won't have any debt by then and we have no children (yet!).

The only fly in the ointment is that I was out of work for about 18 months and couldn't keep up with repayments on a loan I had for about a year of that time. I started paying it again about two years ago and it will probably be cleared completely this time next year. I now have a permanent public sector job as well. The loan will still probably be on my credit rating by the end of next year so is it likely to cause problems? Thanks in advance for your advice.

I would probably go to a Broker and apply to everyone.

I do think this will go against you, being honest. You might have to look at lenders like Pepper Money who take a better view of previous credit issues than the usual suspects like BOI, AIB etc.

Having yourselves in the favourable position you are describing will definitely help! The best of luck with it.

Trish56

First thing you should do is apply for a credit report in your name to www.icb.ie . If you wish a lender to consider your application you will need to get a statement for the loan and provide evidence that you were unemployed and if you made an arrangement with the bank regarding the loan. If you have been paying the loan again for past 2 years and also have a good track record of regular savings I think a lender may look positively at your application.

All of this need to be brought to the lenders attention at application stage and a good broker should be able to make a case for you.

Best of luck

Lux23

Ok, so I might need to start getting those documents together. Thanks for the advice.