Mortgage application and bad credit

olduscRY

Registered User
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Hi everyone. I wold be very grateful if anyone could provide a bit of guidance on a situation I have landed myself in through my own stupidity.

I opened a student account with a bank that I did not use on a day to day basis in 2008/9 to avail of an overdraft offer of €650. Not a smart idea but seemed like it to a poor student!

I went into the overdraft and paid it off a number of years later. I didn't close the account and forgot about it. Sometime in 2016 I encountered some money difficulties and raided the account again. I always had the intention to pay it off but to be honest I continued to put it on the never never. I suppose I didn't really appreciate that an overdraft is a loan and didn't treat it like I was missing credit card or personal loan payments

The overdraft was written off in December 2018. I haven't seen my credit score but I am certain it is obliterated.

I am now thinking about purchasing a property with my partner. I have a good permanent job with a salary that increases every year and bonuses. My partner has the same and we have a combined gross income of around €160,000. We have combined savings of €80,000 and an impending gift of €50,000 from family members. I have a credit card with a €1,000 limit which I haven't used in years and which is fully paid off. I took out an educational loan some 6 years for €7,500 which has been fully paid off with no missed payments.

Sorry for a lot of background detail, but I suppose my question is am I mad for even thinking about a mortgage now? Should I simply wait until December 2023 (five years since write off) or would it be worthwhile going to a broker? I have read that Finance Ireland can be forgiving towards credit issues with unsecured debt if it is more than two years ago. Is an overdraft write something they might be likely to be lenient towards?

I don't have any excuse for failing to pay the overdraft, other than I didn't think they would write it off, and that I would get around to it someday. Stupidest thing I have ever done, for sure!

Anyway, bit of a ramble! Thanks!
 
Sorry, just to add, my partner has a spotless credit record. Also, when the gravity of the situation struck me I called the bank to see if I could pay it off and they said that as it had been written off there was nothing I could do. Thanks.
 
Request copies of your ICB and CCR credit reports, see what they say and work from there.
 
would 650 quid really stand against you given you are not abusing your current credit card?
That's the thing, I am really not certain. You hear plenty of horror stories about mortgage applications and as far as I am aware a write off of any amount gives an automatic credit score which would put off most banks. Given that it has been written off I also don't think there is anything you can do to rectify it but wait for the 5 years to elapse. If I could pay it off I would!
 
The overdraft was written off in December 2018. I haven't seen my credit score but I am certain it is obliterated.

When someone decides to write off a loan, it simply means that the no longer consider it a good loan and make provision in their accounts accodingly. It does not absolve you from having to pay it off.

Unless the bank slips up somewhere, you can expect it to appear on the CCR until such time as it is settled.
 
When someone decides to write off a loan, it simply means that the no longer consider it a good loan and make provision in their accounts accodingly. It does not absolve you from having to pay it off.

Unless the bank slips up somewhere, you can expect it to appear on the CCR until such time as it is settled.
Oh OK, I have requested a copy from ICB so will see what is on it. I spoke to someone in the bank about a year ago and asked if I could pay it off and they said that I couldn't?
 
CCR is the definitive credit report used by lenders I believe. I ordered mine in the autumn and it took 5-6 weeks to arrive (by email).

I ordered ICB which I think arrived the same day as ordering.
 
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