Getting a mortgage @24 with probably the worst credit

beaner92

So I got a new job about a year ago. Pays great. Lived at home for a year and got to save 70% of my salary. Combined with my girlfriend we have about 55k saved(half is money my father gave me).

My girlfriend has taken out 2 loans in the past. Ive taken out a 2K student loan with aib, then a 1500 euro loan w the credit union and a student credit card with aib with a limit of 600e. and a student credit card issued to me by BOI with a limit of 1000e.

Anyway I started college at 17 finished at 21. So I had all these loans and credit cards at 19/20. And boy did i F up. i paid back the AIB 2k loan several months late. paid back the credit union loan several months late. The credit card with aib ignored till i got a job and cleared it out. Got a few of those letters threatening collection agencys etc.

The worst one was the one with Boi. I set up a plan where every month 92e will go to the my boi debit account and then the cc will be paid from there. And totally forgot about the card . It wasn't until i left my last apartment in december that I opened a shaving kit that i got some christmas's ago that I saw the card and I was like fccccckkkkk. So I called Boi, my account had been cancelled.

they couldn't even tell me anything about the credit card?

SO before anyone tells me how irresponsible I was I know.

Now my girlfriend and I have savings of 55k and we would like to get on the property ladder.

Is it even worth my time applying. Also I don't want to apply with her if applying together links her credit history to mine. Thus Fcking her up too.

Thanks folks

johnnyskeleton

You could get your icb report and see what it says. I suppose its better that the loans have been repayed even if late rather than not at all

CS2811

beaner92 wrote: »

So I got a new job about a year ago. Pays great. Lived at home for a year and got to save 70% of my salary. Combined with my girlfriend we have about 55k saved(half is money my father gave me).

My girlfriend has taken out 2 loans in the past. Ive taken out a 2K student loan with aib, then a 1500 euro loan w the credit union and a student credit card with aib with a limit of 600e. and a student credit card issued to me by BOI with a limit of 1000e.

Anyway I started college at 17 finished at 21. So I had all these loans and credit cards at 19/20. And boy did i F up. i paid back the AIB 2k loan several months late. paid back the credit union loan several months late. The credit card with aib ignored till i got a job and cleared it out. Got a few of those letters threatening collection agencys etc.

The worst one was the one with Boi. I set up a plan where every month 92e will go to the my boi debit account and then the cc will be paid from there. And totally forgot about the card . It wasn't until i left my last apartment in december that I opened a shaving kit that i got some christmas's ago that I saw the card and I was like fccccckkkkk. So I called Boi, my account had been cancelled.

they couldn't even tell me anything about the credit card?

SO before anyone tells me how irresponsible I was I know.

Now my girlfriend and I have savings of 55k and we would like to get on the property ladder.

Is it even worth my time applying. Also I don't want to apply with her if applying together links her credit history to mine. Thus Fcking her up too.

Thanks folks

You can check your credit rating in advance, this should give you a good idea if it's worth applying, you might be pleasantly surprised!

I'm currently in the proccess and have found many banks comment on age.(I'm 24 too ) it's so frustrating!

smelly sock

24 is very young to be getting a mortgage. Keep saving in a proper bank account fit for purpose and go back in 3-4 years.

scouserstation

You could try Pepper home loans, they seem to be willing to give a mortgage with dodgy credit history

TimeToShine

55k is a fair chunk to have, if you're on a permanent contract you should go in and have a word. Banks are pretty loose these days.

tedpan

smelly sock wrote:

24 is very young to be getting a mortgage. Keep saving in a proper bank account fit for purpose and go back in 3-4 years.

Why not do it young? The sooner you start, the sooner it's paid off.

I'd say go for it OP

scouserstation wrote:

You could try Pepper home loans, they seem to be willing to give a mortgage with dodgy credit history

They were tiny amounts, I don't think his history is that bad. The 55k in savings should show the OP is a changed man who's grown up and hopefully more responsible.

My mate had 50k of gambling debt over the space of 4 years, borrowed off everyone and rarely paid anything back. He met a woman, they saved hard for 3 years and now has a nice house and two cars.

Wesser

Without making any comments on your relationship.... be careful.of buying a house with someone you're not 100% sure if your future together. If you split up it gets very very messy. Please not i dont know anything aboit your relationship so dont take it to heart. Just general advice.

MissShihTzu

I don't think 24 is too young. I bought my first property in London at 22!

ELM327

scouserstation wrote: »

You could try Pepper home loans, they seem to be willing to give a mortgage with dodgy credit history

Not if it's on the ICB less than 4 years, they aren't
Trust me!

beaner92

appreciate all the responses folks. I was thinking of just going to see an independent mortgage advisor. And see what their advice would be. but ill request a credit check from the icb. very nervous. if i decide to continue saving and I get my savings up to 100k in the next 2 years @26. Would it be easier to secure a mortgage then?

Stheno

beaner92 wrote: »

appreciate all the responses folks. I was thinking of just going to see an independent mortgage advisor. And see what their advice would be. but ill request a credit check from the icb. very nervous. if i decide to continue saving and I get my savings up to 100k in the next 2 years @26. Would it be easier to secure a mortgage then?

Your in report wil list any arrears or late payments for the last five years and they stay there for five years after they occur.
Get a copy of your in report and see when it will be five years that you will be in the clear

Wanderer78

go off traveling for a while op, dont mind getting involved in this nonsense, life really is too short

wordofwarning

beaner92 wrote: »

appreciate all the responses folks. I was thinking of just going to see an independent mortgage advisor. And see what their advice would be. but ill request a credit check from the icb. very nervous. if i decide to continue saving and I get my savings up to 100k in the next 2 years @26. Would it be easier to secure a mortgage then?

IMO it would not a make difference if you had €250k in the bank in 2 years. I know someone who rejected a mortgage based on the fact, they missed a single credit card payment years ago. You on the other hand have a collection of bad debts. Someone sitting in the underwritting department of bank is going to see you have a history of not being bothered to pay off your debts. They are not going to be too comfortable giving you a massive mortgage

Avatar MIA

wordofwarning wrote: »

I know someone who rejected a mortgage based on the fact, they missed a single credit card payment years ago.

Not likely, even then the missed payment would have to be within 5 years to have any effect.

s4uv3

wordofwarning wrote: »

I know someone who rejected a mortgage based on the fact, they missed a single credit card payment years ago. You on the other hand have a collection of bad debts.

I think someone has been telling you porkies

Wanderer78

Wanderer78 wrote: »

go off traveling for a while op, dont mind getting involved in this nonsense, life really is too short

Don't get this type of advice, telling someone to blow a heap of money travelling rather than being sensible and buying a house while you are young is terrible advice imo. Look at all the people stuck paying massive rent and unable to buy etc, bet they wished they were in a position to buy at 24 and already have a big dent in their mortgage before most others even get one.

scouserstation

ELM327 wrote: »

Not if it's on the ICB less than 4 years, they aren't
Trust me!

Really? They seem to be marketing themselves as the champions of helping people with previous credit issues, if you have to wait more than 4 years you may aswell wait the extra 12 months and get a clean ICB rating

Wanderer78

Manuel Small Podium wrote:

Don't get this type of advice, telling someone to blow a heap of money travelling rather than being sensible and buying a house while you are young is terrible advice imo. Look at all the people stuck paying massive rent and unable to buy etc, bet they wished they were in a position to buy at 24 and already have a big dent in their mortgage before most others even get one.

Completely disagree of course, our housing market is a scam, it has been for a very long time. I'd have to agree with economist Stephen kinsella in that many of those that 'done the right thing' particularly during the boom have been hammered, and some of those that gained, more or less was due to their date of birth. I 'blew' tens of thousands in my twenties on traveling, and I know others, some older, some younger, that 'blew' far more. I've never met a person that regretted it, including me. I'm a part of the generation that got hammered in the recession, and thankfully, somehow, I realised during the boom, it was a scam. Bare in mind, in your twenties, your life is generally more dynamic, I.e. you're more likely to change jobs, change careers, move, not have kids etc etc. Buying a home, can severely curtail your freedom in doing many of these things. Of course if the op buys now and life changes, leading to a need to move, they could always become a landlord, now that looks very incentifying doesn't it!

I do see your logic though, and yes you are correct, but when you're dealing with a highly dysfunctional market, 'doing the right thing' strangely doesn't seem all that good. Op, at least consider it, and well done on saving that amount of money, it shows a lot of your character, but be aware, this could be the only chance in your life to have this amount of savings, life truly creates some strange curveballs. Best of luck

Lumen

Wanderer78 wrote: »

Completely disagree of course, our housing market is a scam, it has been for a very long time

Regardless of whether you think it's a scam, if you aspire to own a house outright in retirement you have to buy it sooner or later.

Old age and decrepitude come to us all, eventually, if we're lucky.

mloc123

Wanderer78 wrote: »

Completely disagree of course, our housing market is a scam, it has been for a very long time. I'd have to agree with economist Stephen kinsella in that many of those that 'done the right thing' particularly during the boom have been hammered, and some of those that gained, more or less was due to their date of birth. I 'blew' tens of thousands in my twenties on traveling, and I know others, some older, some younger, that 'blew' far more. I've never met a person that regretted it, including me. I'm a part of the generation that got hammered in the recession, and thankfully, somehow, I realised during the boom, it was a scam. Bare in mind, in your twenties, your life is generally more dynamic, I.e. you're more likely to change jobs, change careers, move, not have kids etc etc. Buying a home, can severely curtail your freedom in doing many of these things. Of course if the op buys now and life changes, leading to a need to move, they could always become a landlord, now that looks very incentifying doesn't it!

I do see your logic though, and yes you are correct, but when you're dealing with a highly dysfunctional market, 'doing the right thing' strangely doesn't seem all that good. Op, at least consider it, and well done on saving that amount of money, it shows a lot of your character, but be aware, this could be the only chance in your life to have this amount of savings, life truly creates some strange curveballs. Best of luck

Personal story here... We bought at 25, at the time one person I knew said we were mad... Getting tied down... How would you go travelling, move jobs etc..

Anyway, 9 years on... He never travelled, still works in the same location and continues to rent a room in a house with a few other guys. While we have a house, married with a child (as we wanted) our mortgage payment is about the same as his rent for that room.

So you can't stamp everyone into the same mould. If somebody at 24 wants to buy a house, get married and start a family etc.. let them. We have turned into a country of manchilds... People that live like teenagers well into their thirties.

Edit: While we haven't "travelled" we did holiday a lot around the world.. I never saw the attraction of backpacking.

mloc123

mloc123 wrote: »

.

Edit: While we haven't "travelled" we did holiday a lot around the world.. I never saw the attraction of backpacking.

Exactly "going travelling" never appealed to me in the slightest. I might go on holiday once a year but the thought of slumming it around backpacking and spending loads of money in the process (spending and not earning, not progressing career etc) would be as appealing as a punch in the face.

wordofwarning

Avatar MIA wrote: »

Not likely, even then the missed payment would have to be within 5 years to have any effect.

It was within 5 years. The term years ago can include a period of within five years.

Kerry25x

I think its definitely worth talking to a couple banks. The fact that you have a big deposit saved and you did eventually pay off your old debts looks favourably on you.

Saylor Fast Rascal wrote: »

Look at all the people stuck paying massive rent and unable to buy etc, bet they wished they were in a position to buy at 24 and already have a big dent in their mortgage before most others even get one.

Going of topic here but I have to disagree with that. I saved a big chunk of cash and went travelling at 24, at the start of the recession when house prices were a lot cheaper. I'm sure I could have a cheaper mortgage with more paid off and probably even a nicer house if I'd stayed to settle down but I wouldn't trade those years in for anything and I doubt many former travelers would! There is always time to settle down later and money will always come and go....life is for living.

Avatar MIA

wordofwarning wrote: »

It was within 5 years. The term years ago can include a period of within five years.

As could 2 years ago technically, but doesn't sound right, likewise being rejected because of 1 missed payment.

Dial Hard

There's no such thing as too young to buy, imo. I bought at 23.

Unfortunately, I let my sister buy me out when I moved in with my now ex-husband and am now back renting. Wish I'd stayed put!

CS2811

I'm 24 and hoping to buy soon. For me, I want a to buy my own home. I think we have a terrible habit of telling people how to live their life - if someone wants to go travelling at 24 or buy a house - let them.

grilledcheese

As someone who works in the mortgage industry I can give you some insight. The person who recommended Pepper are probably correct as they are most likely your best bet.
I would recommend getting an ICB report and seeing how it is. Your ICB will only show you the last 2 years and some banks can look back to as many as 7. For instance in my experience PTSB will only look back 2 years but KBC will look much further.

To the people saying they are small amounts and can be easily explained; you are very wrong.
They take even one minor missed payment very seriously.

I would definitely recommend going to a mortgage brokers rather than a directly to a bank. There is a misconception that brokers are affiliated with certain banks which isn't true, generally they will work to get you the best possible mortgage.
Enquire about fees but usually they are free of charge to the client, except in some cases, like when someone has ICB issues but I still think it is worth enquiring about.

Also, do not hide these missed payments from your broker as the banks will come back with it and may point blank refuse to give you a mortgage for not disclosing it.

If your ICB is too bad to get a mortgage at the moment, which happens in some cases, a broker will be able to tell you when it will be clear again and when to come back. In that case, just keep saving the same amount and don't take out any more loans or credit cards.

sunrainmooncl

Saylor Fast Rascal wrote: »

Don't get this type of advice, telling someone to blow a heap of money travelling rather than being sensible and buying a house while you are young is terrible advice imo. Look at all the people stuck paying massive rent and unable to buy etc, bet they wished they were in a position to buy at 24 and already have a big dent in their mortgage before most others even get one.

I reckon you haven't travelled? :eek:

sunrainmooncl

sunrainmooncl wrote: »

I reckon you haven't travelled? :eek:

Nope, never interested me in the slightest. Far too busy studying, working etc.

Of course I've seen plenty of the world on holidays which is the ideal way imo.

conf101

Kerry25x wrote: »

I think its definitely worth talking to a couple banks. The fact that you have a big deposit saved and you did eventually pay off your old debts looks favourably on you.



Going of topic here but I have to disagree with that. I saved a big chunk of cash and went travelling at 24, at the start of the recession when house prices were a lot cheaper. I'm sure I could have a cheaper mortgage with more paid off and probably even a nicer house if I'd stayed to settle down but I wouldn't trade those years in for anything and I doubt many former travelers would! There is always time to settle down later and money will always come and go....life is for living.

It's different strokes for different folks I guess but I agree with you. I went travelling for a few years. I'm back 3 years now and am almost at the point of buying my first house. Yes rent is a killer and has made saving for a deposit really difficult, yes house prices are higher than what they were 3 years ago.

Do I wish I already owned my own home? You bet! Do I wish I'd bought 4/5 years ago instead of going travelling? Hell no!

Telling a 24 year old to blow their savings on travelling isn't the most prudent advice. But telling them that there's no rush to jump into a mortgage and maybe look at other options is good advice IMO. If they go for the mortgage and it;s right for them, all well and good. But you don't want to look back and wish you'd spent your mid-20s seeing the world when it's too late.