# Effect of Split Mortgage on ICB Credit Rating



## Dublin Divorce (11 Jun 2019)

Does anyone know the effect of a split mortgage (20% in a moratorium) on a credit rating?  Thanks to family there were never any arrears, late or missed payments while it was negotiated and everything agreed has been paid on time since.
I believed my credit history was clear as nothing was ever due outside of agreements, but AIB have just refused a car loan on the basis of a credit check.  
I've requested a copy of my ICB report but it will take time to arrive, so thought I would ask here if it is automatically the restructure doing the damage or the possibility of an error on the file?


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## Brendan Burgess (11 Jun 2019)

How can you afford to borrow money to buy a car when you can't afford to meet your mortgage repayments?  It would have been grossly irresponsible of AIB or any other lender to give you a loan, when your mortgage has been restructured.

Of course, the split mortgage is recorded. 

I advise people who have a split mortgage to review whether or not they still need it so that they can start repairing their credit record.

Brendan


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## Dublin Divorce (11 Jun 2019)

Thank you. That’s very clear.
The terms of the restructure were that if I had any increase in income 50% was to be paid as a monthly overpayment and I could keep the other 50% which is what, following a good promotion, I have been doing. I was looking to use my 50% to upgrade my car to give me better reliability, but completely get the point that I do have excessive lending in my name (thanks to my ex leaving me with responsibility for the full joint mortgage payments).
Thanks again.


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## demoivre (11 Jun 2019)

Plenty of garages out there offering car finance to people with impaired credit records.


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## LolaG19 (16 Aug 2019)

Without knowing the terms of the split mortgage, AIB restructuring documentation usually has a clause that  borrowings over €500 must have Bank’s consent


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