# Mortgage - Bad Credit Rating (I think)



## worried123 (2 Aug 2012)

Hi all,

I am wondering what are my options in this situation.


A number of years ago I feel into arrears on my credit card (Ulster Bank - Mastercard), I am not trying to make excuses but I was young and also my father was sick for a number of months with MS and liver failure and unfortunately passed away during this period and I let things slip. I didn’t pay attention to the requests from Ulster Bank and it was only after a few months that I fully cleared the debt but this is showing up on my ICB report as a revoked credit card and then C for cleared, which it was but I was wondering is there anything I can do/ask Ulster Bank to help me with regards to my credit rating, is there precedence for compassionate circumstances in this area in that Ulster request that its removed from the ICB report?

Also when I initially requested the credit card as a student in 2003, my limit was 550, this limit was increased by Ulster to nearly 3000 without my permission, I noticed today that on the National Consumer Agency’s site that:

_Under the Central Bank’s Consumer Protection Code your credit card company cannot increase the limit on your card without you asking them to do so._

I never in all of the years I had the card requested any increase in the limit, I know that doesn’t excuse my situation but I was wondering would it help when discussing with Ulster Bank that they shouldn’t have increase my limit and if they could remove it from my history.

*Back to present day*, my current salary is 44k, no debts, no cc debt. Car loan of 470 per month is due for completion in the next few months (having been paying that for past 5 years, never missed a payment).

My wife's mother passed away last year, leaving herself and her brother as the sole owner's of the property. Now we are interested in buying it, it is valued at approx 115k, we are looking for about 60k to pay him off for his share. Wife will legally own half the house once probate is complete.

We also have 13k in a savings account from her mother's estate that we hope to use as savings.

Since the mortgage is realitivly small, way smaller than the car repayments that I am currently paying is there any chance of me getting a mortgage or is the credit rating going to knock me for six? 

Thanks for any advice.


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## wbbs (2 Aug 2012)

Firstly the Central bank section about not increasing limits is relatively new, it was common practice years ago.

Regarding your problem credit rating, it is unlikely that UB will remove that from ICB, I would be more inclined to apply for a mortgage and explain to the lender you are applying to what happened with the card during your father's illness and subsequent death.   There is not a lot of decision makers in the banks these days unfortunately so it will be hard to get anyone to go outside criteria which will be your major problem.  Would nearly be inclined to try a broker with this case.


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## iscritto (2 Aug 2012)

I agree with Wbbs, can't see UB taking it off the ICB  but you could ask.  Increasing the limit was the done thing up to a few years ago. So you won't be able to use that argument. How long ago since you cleared the cc, it will come off your ICB 5yrs after that. If you have a copy of your ICB it should tell you on it when the loan is due to be removed. Might be the best option to wait if all agree, as if you apply now and you do get approved your interest rate will be higher as a result.


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## Time (2 Aug 2012)

It will be 5 years from when the debt was cleared for it to drop off.


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## GettingThere (3 Aug 2012)

Yep 5 years after clearance is the key.

I had a financial challenge when in college with a student loan...Cleared it not long after graduating after many letters from the bank over years which I ignored. 

Anyway I thought all was good and got a mortgage etc many moons ago without issue. However I looked for a car loan after that (probably 4.5 years after clearing the loan and had paid cash for first car) for 10K and was refused due to my record on ICB.

Wife took out the loan for the car instead and I got my records the next year and all was clean..and have since had several loans and mortgages.

Bottom line if there is an ICB record against you it will take 5 years to clear after you have cleared the loan in question. Although when I rang BOI who I had the errant loan with initially and explained that I was a student when I had my problems they said they would issue me a loan at the time with no issue (but I was beligerent with them as they had lodged the bad record with the ICB and I just bawled them out.....amazing the naiavety of youth!!).


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