Arrears on old personal loan ( currently paying off) but applying for Mortgage for 2n

birdofparadise

Hi so I just wondered does anyone have any advice or have they been in this situation.
I took a small personal loan pre boom times for car and home improvements etc. I got a huge pay cut during the crash and as result i couldn't afford to pay the loan repayments for some time. one thing led to another ( i wont go into why, health/family reasons)and it was sent on to the banks solicitors and i arranged a payment plan. i've steadly repaid it for the last 3 years, and I have about 4 payment left. its about 1,500 left on it and hopefully i will have this paid off in the next 3 months.
All through this i kept up the my mortgage repayments with my partner. I never missed one but the time has come where we are back on track financially and we want to move out of our current home within the next year.  We are lucky enough that the area we want to move to is within our budget and we should get back enough from selling our own property to pay for deposit, stamp duty etc on a new property so its not about the financials my question is I now have a bad credit score as result of the personal loan arrears. While i have never missed a single payment on my mortgage this credit rating will still effect me going for a new mortgage?
Has anyone on here been in this position,is there any thing i can do?  
Will I have trouble getting  mortgage as result of this? will it affect the amount they are will to lend us?
I've only preliminary contacted the bank we have our mortgage with at the minute. its a different lending institution from where i had the personal loan and obviously they haven't ran a credit check as I have only asked for info based on what we are earning at the min and our outgoings. 
It feels so ridiculous as it was such a tiny loan in the grand scheme of things but could it effect our chances of getting a mortgage. 
any advice would be appreciated thanks

Fol20

birdofparadise wrote: »

Hi so I just wondered does anyone have any advice or have they been in this situation.
I took a small personal loan pre boom times for car and home improvements etc. I got a huge pay cut during the crash and as result i couldn't afford to pay the loan repayments for some time. one thing led to another ( i wont go into why, health/family reasons)and it was sent on to the banks solicitors and i arranged a payment plan. i've steadly repaid it for the last 3 years, and I have about 4 payment left. its about 1,500 left on it and hopefully i will have this paid off in the next 3 months.
All through this i kept up the my mortgage repayments with my partner. I never missed one but the time has come where we are back on track financially and we want to move out of our current home within the next year.  We are lucky enough that the area we want to move to is within our budget and we should get back enough from selling our own property to pay for deposit, stamp duty etc on a new property so its not about the financials my question is I now have a bad credit score as result of the personal loan arrears. While i have never missed a single payment on my mortgage this credit rating will still effect me going for a new mortgage?
Has anyone on here been in this position,is there any thing i can do?  
Will I have trouble getting  mortgage as result of this? will it affect the amount they are will to lend us?
I've only preliminary contacted the bank we have our mortgage with at the minute. its a different lending institution from where i had the personal loan and obviously they haven't ran a credit check as I have only asked for info based on what we are earning at the min and our outgoings. 
It feels so ridiculous as it was such a tiny loan in the grand scheme of things but could it effect our chances of getting a mortgage. 
any advice would be appreciated thanks

Unfortunately if you look at it from their point of view. If the Loan figure was so ridiculous you should have been able to pay it and now when your coming back to them asking for substantially more I know what I would say.

Pepper might be a bank you could look into. I think they might be approachable if your history isn’t perfect. You may pay a higher interest rate though due to your own rating.

birdofparadise

i was looking for advice from people who have been in a similuar situation and not your opinion on "what you think the bank would say if you were them" but thanks though for replying.
I completely have no problem with the fact that i might be penalised for not making my loan repayments. i signed the contract for loan after all!!!!  In the crash I got a 25% wage cut on a salary of 29k , that with mortgage repayments etc  and other personal circumstances which i don't need to explain here, meant that meeting the loan repayments at €200 a month unfortunately just wasn't physically possible.

I have actually arrived home to find out I had finished paying my loan of yesterday. i thought i had 3 month left. So I'll just do what i should of done in the first place and ring the bank directly and discuss this.

Fol20

I’m not giving my opinion. I’m just reversing it and looking from the banks point of view. Yes I understand people fall on hard times however you are now looking for more money and with proven inability to pay back smaller loans( again I’m not trying to put you down, it’s just fact and can happen to the best of us.

I recommended taking a look at pepper as they might be more open to your circumstances