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Joint Mortgage one with bad credit rating can we still get a mortgage?

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  • 16-12-2017 1:45am
    #1
    embarasssing
    Registered Users Posts: 8 ✭


    Hi

    So not known to me my partner apparently has a bad credit rating, she missed two credit card payments and had her card cancelled.

    We had already applied for a mortgage which got rejected because of her bad credit rating.

    Now we have applied for credit reports on both of us and her bank is looking into her situation but are doubtful it will be overturned.

    Now I just want to know how screwed are we? We are deposit ready both in full time jobs with two dependants and we are going for first time buyers.

    I'm gutted thought we had everything in place and was fair certain our application would be accepted we have now been blacklisted by that bank for 12 months. 12 months feel like an eternity away especially with rising house costs.


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    #2
    Mrs OBumble
    Registered Users Posts: 25,936 ✭✭✭✭Mrs OBumble


    Do you really want to take on a major debt with someone who didn't tell you up front about an issue like that? What if shes got some other financial secrets.


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    #3
    NORWOOD1
    Registered Users Posts: 73 ✭✭NORWOOD1


    If the ICB comes back with anything on it your going to have trouble getting a mortgage with a bank, but there is an option for people with bad credit history (takes 5 years to come off the ICB)

    Most councils do what’s called an Annuity loan, basically you get your mortgage through the council rather then a bank, one of my mates got it from the limerick council a few years back, same situation as you. I know to qualify you need to be refused a mortgage from 2 different banks

    https://www.limerick.ie/sites/default/files/media/documents/2017-09/Annuity%20Info%20Leaflet%202016.pdf


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    #4
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    You won't get anything until your and your partner's ICB report is clear for at least 5 years. Some banks are 7years (KBC).
    The banks will let you apply, tell you you meet teh criteria.
    Then the underwriters will turn you down, the bank let you appeal, and then turn you down again. Repeat ad nauseum until the 5 years pass.

    From harrowing and painful personal experience.


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    #5
    axcel
    Registered Users Posts: 70 ✭✭axcel


    Know of someone who had this issue and they were told Pepper was the only mortgage provider who would consider them. But the rates are extortionate. otherwise their mortgage broker told them it's a 5 year wait until it''s cleared from ICB, and that 5 year clock only starts once the credit card debt is cleared so I'd get onto her to do that. They went with just one person on the mortgage then, obviously restrictive then tho limit wise.


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    #6
    embarasssing
    Registered Users Posts: 8 ✭embarasssing


    Thanks for all the info so far.

    The annuity mortgage sounded interesting but we don't meet the criteria unfortunately.

    The replies make for harrowing reading, she has the credit card reviewing it with the branch to see if they can turn it around but was already told highly unlikely. I've asked her to go to the branch directly and speak with them see if there's anything that can be done to at least make it better.

    I have been in touch with a broker who said it may not be the end it depends on what the credit report says. So it's an anxious wait for that .

    I've heard there are some who will charge exorbitant interest rates but that may be the only option we have. how well I can live with that over years would remain to be seen.

    I also don't think I could even apply on my own as we currently live together and have two children banks would see straight through it.


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    #7
    embarasssing
    Registered Users Posts: 8 ✭embarasssing


    i would also like to note she has said the it was two missed payments and the debt on the card has been getting paid since and is down to 700 euro.

    I don't know if the amount makes a difference or not.


    From reading around we need to clear it which once we talk to the branch I think will be done as soon as possible.


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    #8
    astrofool
    Registered Users Posts: 16,641 ✭✭✭✭astrofool


    You should have paid off that €700 debt before applying for the mortgage at all, any loans, no matter how small, will impact the amount you can borrow, significantly.

    I'd be paying it first thing tomorrow.


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    #9
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    astrofool wrote: »
    You should have paid off that €700 debt before applying for the mortgage at all, any loans, no matter how small, will impact the amount you can borrow, significantly.

    I'd be paying it first thing tomorrow.
    I got my mortgage approval last week with an outstanding personal loan and 6k outstanding credit card debt.
    Makes it difficult but not impossible.

    Missed payments mean it's not possible though. My net debt was approx 14k and I still got a mortgage of about 80% of what I was "entitled" to under ICB. And that's because I only applied for that amount. If I had missed payments I wouldnt have got anything.


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    #10
    Cuddlesworth
    Registered Users Posts: 13,991 ✭✭✭✭Cuddlesworth


    ELM327 wrote: »
    I got my mortgage approval last week with an outstanding personal loan and 6k outstanding credit card debt.
    Makes it difficult but not impossible.

    Missed payments mean it's not possible though. My net debt was approx 14k and I still got a mortgage of about 80% of what I was "entitled" to under ICB. And that's because I only applied for that amount. If I had missed payments I wouldnt have got anything.

    I don't understand, if you had money for a deposit why not pay off the debt? this isn't America, we don't reward people for overspending.


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    #11
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    Cuddlesworth wrote: »
    I don't understand, if you had money for a deposit why not pay off the debt? this isn't America, we don't reward people for overspending.

    That's a little bit condescending.

    I had money for the deposit and some debt.
    If I use the money for the deposit to pay the debt, no debt and no deposit equals no mortgage.


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    #12
    spaceHopper
    Registered Users Posts: 3,992 ✭✭✭spaceHopper


    I'm always fighting with the bank over my CC, I used to have a standing order to pay something off it each month but they stopped allowing that through the internet banking. I've missed so may payments every time they phone me ask them if I can set up a standing order, then they go ways granted I always pay it though.
    It made do difference for our getting a mortgage. Is there something else here? How long and how much money are we talking about with here, which bank?


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    #13
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    spaceHopper wrote: »
    I'm always fighting with the bank over my CC, I used to have a standing order to pay something off it each month but they stopped allowing that through the internet banking. I've missed so may payments every time they phone me ask them if I can set up a standing order, then they go ways granted I always pay it though.
    It made do difference for our getting a mortgage. Is there something else here? How long and how much money are we talking about with here, which bank?

    For me?
    I've had the card 10 years, limit nearly €13k. Never a missed payment. Balance varies between 0 and 10.
    Card with AIB.
    Mortgage through BOI.


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    #14
    conf101
    Registered Users Posts: 1,037 ✭✭✭conf101


    Could you get the debt paid off immediately and then get the ICB report cleared so that you can apply to another bank?

    I discovered I had a bad credit rating when I applied for a mortgage. It was due to a previous credit card which I thought had been closed, but the bank had never closed it. Stamp duty built up on it and, since I wasn't receiving statements, it went into arrears and was cancelled. Even though, IMO, it was the banks fault, I cleared it straight away and my ICB report was corrected. When I was applying for mortgage approval with subsequent banks I was up fron and told them about it straight away. Didn't cause any issues and I got the approval I needed


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    #15
    spaceHopper
    Registered Users Posts: 3,992 ✭✭✭spaceHopper


    ELM327 wrote: »
    For me?

    Are you the OP?


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    #16
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    spaceHopper wrote: »
    Are you the OP?
    No need to be rude, you were the next comment after my post and asked some information relevant to what I said.

    Perhaps you could space hop back to civility, minus the sarcasm.


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    #17
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    ELM327 wrote: »
    I got my mortgage approval last week with an outstanding personal loan and 6k outstanding credit card debt.
    Makes it difficult but not impossible.

    Missed payments mean it's not possible though. My net debt was approx 14k and I still got a mortgage of about 80% of what I was "entitled" to under ICB. And that's because I only applied for that amount. If I had missed payments I wouldnt have got anything.

    The "good times" are back, lending to people who either can't afford it or cannot manage their money. It's disheartening to read this.


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    #18
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    davo10 wrote: »
    The "good times" are back, lending to people who either can't afford it or cannot manage their money. It's disheartening to read this.
    Can't afford it, really? :rolleyes:
    Considering that my repayment capacity was 500% as per the mortgage rep, I don't see that as correct in my case.

    Compared to my P60 for the last 3 years I borrowed approx 1.35 times my gross salary. If that's not prudent I don't know what is.


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    #19
    ArtyC
    Registered Users Posts: 1,504 ✭✭✭ArtyC


    I got approved with a bad credit rating. I had two missed payments from years ago. I was in contact with the bank at the time and cleared the whole loan early. I applied with the bank I had got the bad credit rating with... they could see it was a minor slip and that I fixed the problem . I was upfront and honest about it . My saving the last three years was impeccable.... try to talk to the bank where the bad credit rating came from

    Good luck with it .


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    #20
    LuckyLloyd
    Registered Users Posts: 36,339 ✭✭✭✭LuckyLloyd


    davo10 wrote: »
    The "good times" are back, lending to people who either can't afford it or cannot manage their money. It's disheartening to read this.

    Nothing brings out the quick incorrect moral judgment quite like the topic of money management, eh?

    I personally think the idea that you would deny a mortgage to someone because they missed a credit card payment five years ago or threw €20 on Paddy Power madness, but there you go.


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    #21
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    LuckyLloyd wrote: »
    Nothing brings out the quick incorrect moral judgment quite like the topic of money management, eh?

    I personally think the idea that you would deny a mortgage to someone because they missed a credit card payment five years ago or threw €20 on Paddy Power madness, but there you go.

    Unfortunately, we should know more than most the misery mismanagement of money can have on immediate family and society as a whole.

    Interest rates on savings is virtually zero, interest rates on loans and credit cards is very high in comparison, it therefore stands to reason that if you have a substantial amount on deposit, clearing high interest debts is good money management.

    Bragging about how much you earn, how much you have on deposit and how much you can borrow kinda loses its credibility when you don't see the benefit in clearing a 14k debt.

    Lending is based on risk, if you have a history of missing payments, then the risk of default on a loan is higher so banks won't lend. If a friend asked you for €1000 and you knew he/she was unreliable, would you loan him/her your €1000?


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    #22
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    davo10 wrote: »
    Unfortunately, we should know more than most the misery mismanagement of money can have on immediate family and society as a whole.

    Interest rates on savings is virtually zero, interest rates on loans and credit cards is very high in comparison, it therefore stands to reason that if you have a substantial amount on deposit, clearing high interest debts is good money management.

    Bragging about how much you earn, how much you have on deposit and how much you can borrow kinda loses its credibility when you don't see the benefit in clearing a 14k debt.
    Assuming this is directed at me, this is the final time I'm going to ask you politely to not foster your (inaccurate) opinions on me.

    I'm not going to reply to you further so please don't bother.


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    #23
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note: stop the personal digs please.

    davo10, you're not in possession of all of the facts regarding any posters personal finances. Stop making judgments as if you were.


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    #24
    Cuddlesworth
    Registered Users Posts: 13,991 ✭✭✭✭Cuddlesworth


    LuckyLloyd wrote: »
    or threw €20 on Paddy Power madness, but there you go.

    Missed payments on credit cards, yeah. Its a bit stupid. They gave out to me for a missed payment. It was the annual tax on a card I didn't use for 2 years that I didn't notice and it flew through underwriting once there was a easy answer.

    But if you ever worked in the industry you would know that the decent into addiction there is fast and hard. 20 quid in paddy power can just flip into 200, then 2000, then 20000. There is a reason they flag gambling as top priority. And I just worked the desk at a dog tracks decades ago, with such easy access to it now, I can't imagine it would be much better.


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    #25
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    embarasssing wrote: »
    i would also like to note she has said the it was two missed payments and the debt on the card has been getting paid since and is down to 700 euro.

    I don't know if the amount makes a difference or not.


    From reading around we need to clear it which once we talk to the branch I think will be done as soon as possible.

    Did you say her credit card was revoked? It would be unusual, in my experience, for a bank to revoke a credit card for 2 missed payments. How long ago did this happen?


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    #26
    Interested Observer
    Registered Users Posts: 13,105 ✭✭✭✭Interested Observer


    davo10 wrote: »
    Unfortunately, we should know more than most the misery mismanagement of money can have on immediate family and society as a whole.

    Interest rates on savings is virtually zero, interest rates on loans and credit cards is very high in comparison, it therefore stands to reason that if you have a substantial amount on deposit, clearing high interest debts is good money management.

    Bragging about how much you earn, how much you have on deposit and how much you can borrow kinda loses its credibility when you don't see the benefit in clearing a 14k debt.

    Lending is based on risk, if you have a history of missing payments, then the risk of default on a loan is higher so banks won't lend. If a friend asked you for €1000 and you knew he/she was unreliable, would you loan him/her your €1000?

    You know absolutely nothing about the poster you're pontificating about. An anecdote does not equal data. There's really no evidence at all of a credit bubble at the moment, if you're going to be making posts like you are at least provide some evidence.


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    #27
    Rothmans
    Registered Users Posts: 1,805 ✭✭✭Rothmans


    Cuddlesworth wrote: »
    Missed payments on credit cards, yeah. Its a bit stupid. They gave out to me for a missed payment. It was the annual tax on a card I didn't use for 2 years that I didn't notice and it flew through underwriting once there was a easy answer.

    But if you ever worked in the industry you would know that the decent into addiction there is fast and hard. 20 quid in paddy power can just flip into 200, then 2000, then 20000. There is a reason they flag gambling as top priority. And I just worked the desk at a dog tracks decades ago, with such easy access to it now, I can't imagine it would be much better.

    I thought that online gambling thing was an old wives tale, no? As long as you're not spending a significant amount that would interfere with your repayment capacity, that is.


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    #28
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Rothmans wrote: »
    I thought that online gambling thing was an old wives tale, no? As long as you're not spending a significant amount that would interfere with your repayment capacity, that is.

    No, it's still looked at unfavourably. Ideally, if you're planning on going for a mortgage, the account should be squeaky clean, like not even doing the lotto online.


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    #29
    Tara1975
    Registered Users Posts: 11 ✭Tara1975


    https://www.boards.ie/discussion/comment/105591056#Comment_105591056




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    #30
    Tara1975
    Registered Users Posts: 11 ✭Tara1975


    Hi

    I have a similar issue

    I have a bad credit rating on C/C Where the central creit bureau say i missed payments

    It reflected on a government duty where interest was charged & i disputed as never received this

    spent 6 mths chasing credit card company,

    credit card company refuse to remove late payment

    Central credit bureau - say its vendor issue.

    Any suggestions on how to get a mortgage so we do not have to wait 2-5 years



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    #31
    Tara1975
    Registered Users Posts: 11 ✭Tara1975


    Can i ask has any 1 sucessfully got a mortgage with bad creidt rating

    I can not get a council mortgage as i am 2nd time buyer he is 1 st time buyer



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