Advice-Bad Debts-want to use Start Mortgages
- Thread starter dani
- Start date
Re: Bad Debts-want to use Start Mortgages
Consider also that once you apply for a mortgage with the boyfriend his ICB record is linked to yours. In other words he inherits your credit rating - which means if he has good credit today, he can kiss goodbye to it. Did the financial adviser warn you of this? That will also be permanent - until one of you writes to the ICB to dissociate yourselves: from NIB's t&cs for Easy accounts -
2Pack said:
Consider also that once you apply for a mortgage with the boyfriend his ICB record is linked to yours. In other words he inherits your credit rating - which means if he has good credit today, he can kiss goodbye to it. Did the financial adviser warn you of this? That will also be permanent - until one of you writes to the ICB to dissociate yourselves: from NIB's t&cs for Easy accounts -
Hey guys
Well Mortgage broker said that we could still get 250K with Start Mortgages not 50 K . Also interest rate is about 5% at the moment . I do as I said take on board what you are saying however I am spening nearly the same amount on rent at the moment that I would be on a joint mortgage .As I said would love to hear from someone who used Start or GE Money for this type of Mortgage .
Well Mortgage broker said that we could still get 250K with Start Mortgages not 50 K . Also interest rate is about 5% at the moment . I do as I said take on board what you are saying however I am spening nearly the same amount on rent at the moment that I would be on a joint mortgage .As I said would love to hear from someone who used Start or GE Money for this type of Mortgage .
G
Guest107
Guest
interest rate 5% against normal 3.5% for an FTB
http://www.jeacle.ie/mortgage
doing the magic 250k borrowed over 30 years calculation Start are charging you a premium of €220 a month for your impairment .
you pay 1342 a month not 1122 . Thats not too bad.
as they will not discount in 3 years meaning you will want a better deal then ....
1. what is the exit cost and terms
2. 5% fixed or 5% variable , fixed is very costly to exit , variable less so ??
and
note that 1 years interest on your mortgage , just that alone, is €12500 when calculating exit penalties .
http://www.jeacle.ie/mortgage
doing the magic 250k borrowed over 30 years calculation Start are charging you a premium of €220 a month for your impairment .
you pay 1342 a month not 1122 . Thats not too bad.
as they will not discount in 3 years meaning you will want a better deal then ....
1. what is the exit cost and terms
2. 5% fixed or 5% variable , fixed is very costly to exit , variable less so ??
and
note that 1 years interest on your mortgage , just that alone, is €12500 when calculating exit penalties .
G
Guest107
Guest
if its in their standard terms its OK to charge , INBS were not forthcoming with their standard terms .
their irish website tells you nothing .
[broken link removed]
their irish website tells you nothing .
[broken link removed]
Hey guys
Its me again the girl who was asking about Start Mortgages . My BF met with our broker today and he advised me to clear my debt with the 10 K we have for the deposit cos he reckons he can still get us a prime lender mortgage for 100 % . Now is it just me or does this sound crazy . Am daring to hope but from everything I have read and the research I have done it does not ring true .
Dani
Its me again the girl who was asking about Start Mortgages . My BF met with our broker today and he advised me to clear my debt with the 10 K we have for the deposit cos he reckons he can still get us a prime lender mortgage for 100 % . Now is it just me or does this sound crazy . Am daring to hope but from everything I have read and the research I have done it does not ring true .
Dani
Why not try a prime lender? You have nothing to lose. The worst thing that can happen is that you get turned down, in which case you can take up the Start mortgage. You seem reluctant to clear your loan with your savings but you said that you are getting a bonus from your job in a couple of months which, with your loan cleared, you could then put towards your house (same thing really?!)
You can ask your broker but I would recommend that if you are going to a prime lender you should maybe mention your credit history. By not doing so you may find that your mortgage is pre approved only to be refused later when they run a credit check - you may be giving yourself false hope. I also understand that lenders are more sympathetic to borrowers who disclose this type of information.
Also, just to clear up a few points - Start lend up to 92% for FTBs and 90% for remortgages (not 80% - 85%). Each case is assessed individually based on a number of factors including how recent the missed/late payments etc were and how bad they were. Interest rates, LTV etc are then determined by this - although they may charge up to double the interest rate is is rare that this happens., it is usually in the region of an extra 2%, although this may be more or less depending on the risk factor.
Finally, brokers get paid LESS commission from Start and generally speaking a lot more work is required in processing an application with an adverse lender.
You can ask your broker but I would recommend that if you are going to a prime lender you should maybe mention your credit history. By not doing so you may find that your mortgage is pre approved only to be refused later when they run a credit check - you may be giving yourself false hope. I also understand that lenders are more sympathetic to borrowers who disclose this type of information.
Also, just to clear up a few points - Start lend up to 92% for FTBs and 90% for remortgages (not 80% - 85%). Each case is assessed individually based on a number of factors including how recent the missed/late payments etc were and how bad they were. Interest rates, LTV etc are then determined by this - although they may charge up to double the interest rate is is rare that this happens., it is usually in the region of an extra 2%, although this may be more or less depending on the risk factor.
Finally, brokers get paid LESS commission from Start and generally speaking a lot more work is required in processing an application with an adverse lender.
From what I have read of your situation so far, you are reasonably well off, not sure how you managed to get so far in debt but can understand that just a couple of bad months can cause this. From what I can see, however, I don't think you've really taken in the impact of this - you still haven't answered my question about how your boyfriend is going to inherit your bad credit and how this might impact you both?
If your situation is fairly good I would guess that the only impact is on your credit rating, and therefore you'd certainly be in a position to save before buying. However you do seem determined to get onto the housing ladder, regardless of having to pay an extra premium - which unfortunately from friends experience of lenders later - which might turn out to be a lot more difficult than you think.
I am speaking from hard experience here as myself and my partner decided to go it alone on house buying because of the impact my poor credit might have, not only on the likelihood of getting a mortgage, its size and its terms, but the fact that both of us would be basically labelled with bad credit whether the attempt succeeded or failed. Its a quite serious thing to take on. Do you really want your boyfriend to be in a position where he cannot get a normal loan or a credit card for the next 5 years and maybe more? That is something you really need to discuss.
Secondly, and again from my partner's hard learned experience, what the broker promises you and what he/she delivers might not be the same. My partner was waved a potential mortgage of 30k more than in the end they were able to get, and even then on ridiculous terms and conditions. They were not told of these ridiculous terms (i.e. parents going guarantor AND putting down a cash security of 1 years repayments for 12 months at least) initially. The broker said "you'll be in your house by the end of April" and the entire process has dragged on so much we are now wondering if we'll even have the keys by the end of June.
All I am saying is that you *could* end up very disappointed if you take this brokers advice at face value without considering the outcome and implications. You very well may end up with no mortgage, no house and your boyfriend's credit rating ruined. Think it through seriously!
If your situation is fairly good I would guess that the only impact is on your credit rating, and therefore you'd certainly be in a position to save before buying. However you do seem determined to get onto the housing ladder, regardless of having to pay an extra premium - which unfortunately from friends experience of lenders later - which might turn out to be a lot more difficult than you think.
I am speaking from hard experience here as myself and my partner decided to go it alone on house buying because of the impact my poor credit might have, not only on the likelihood of getting a mortgage, its size and its terms, but the fact that both of us would be basically labelled with bad credit whether the attempt succeeded or failed. Its a quite serious thing to take on. Do you really want your boyfriend to be in a position where he cannot get a normal loan or a credit card for the next 5 years and maybe more? That is something you really need to discuss.
Secondly, and again from my partner's hard learned experience, what the broker promises you and what he/she delivers might not be the same. My partner was waved a potential mortgage of 30k more than in the end they were able to get, and even then on ridiculous terms and conditions. They were not told of these ridiculous terms (i.e. parents going guarantor AND putting down a cash security of 1 years repayments for 12 months at least) initially. The broker said "you'll be in your house by the end of April" and the entire process has dragged on so much we are now wondering if we'll even have the keys by the end of June.
All I am saying is that you *could* end up very disappointed if you take this brokers advice at face value without considering the outcome and implications. You very well may end up with no mortgage, no house and your boyfriend's credit rating ruined. Think it through seriously!
Start do NOT pay additional commission to brokers and, under the Consumer Credit Act, they can not charge a redemption penalty on a variable rate homeloan. Get your facts right guys. Their interest rates depend on the level of risk - i.e. the number of arrears/judgements and the loan to value. REA have an agency with them although I haven't personally placed any cases with them.
Sarah
www.rea.ie
Sarah
www.rea.ie
G
Guest107
Guest
Thanks sarah, there are no T&Cs on their website and dani wont quote them or post them like she was asked toSarah W said:
ages ago . I therefore had to go by their policies in the UK where they trade as Kensington and know how to charge for everything, eg £120 for a letter and you get a letter every time you miss a payment for any reason . Can they charge 'documentation' or 'administration ' of any sort ?
What is their redemption policy off a fixed mortgage where they could charge a redemption penalty if you wanted to leave ?
Is it on the annual reducing balance or daily or monthly ??
Can you post their standard T&C's here somewhere or are you forbidden from doing so according to the agency contract you have with start ???
start charge .5% admin fee.
Their early redemption penalty is in line and calculated the same as with prime lenders early redemption of a fixed rate penalty
This is not true, every one has their own individual credit bureau record, The ICB gives a record of the repayment history of loans secured in your name, you cannot have a bad credit history because you live at the same address or indeed share a joint borrowing with someone who does have a bad repayment history.
G
Guest107
Guest
So if you leave , redeem the mortgage, and the outstanding mortgage is 250k at that time you will pay start €1250 for admin and nothing else ???Molly said:
Hi Guys
Thanks for all the replys especially with the information posted about Start . At present my broker is looking into the situation with regard to prime lender but dont think its a liklihood . With relation to my bfs credit rating being affected every one has told us that credit ratings are seperate and mine will not be automatically married to his previous history .
As to how I got this far in debt well started at 20yrs when all the banks were throwing ccards at me and then some college loans and just generall got out of hand ,. I went away travelling and buried my head in the sand which I know so stupid but was different idiot then . Hopefully have learnt some lessons now .
Thanks for all the replys especially with the information posted about Start . At present my broker is looking into the situation with regard to prime lender but dont think its a liklihood . With relation to my bfs credit rating being affected every one has told us that credit ratings are seperate and mine will not be automatically married to his previous history .
As to how I got this far in debt well started at 20yrs when all the banks were throwing ccards at me and then some college loans and just generall got out of hand ,. I went away travelling and buried my head in the sand which I know so stupid but was different idiot then . Hopefully have learnt some lessons now .
G
Guest107
Guest
a judge gives a judgement
G
Guest107
Guest
Ah no, he'll give you one down in the pub if you ask him nicely and buy him a pint
Dani - you say you're getting a bonus - why can't you use it to pay off your debts for starters?
Have you any relations who would lend you the €11,000 and you could pay THEM off instead of a bank? That way, you save interest and as far as the banks are concerned, you are debt free.
You really need to find out from the ICB whet exactly they have on your record.
Clean this bit up first and using a broker like The Irish Mortgage Corporation, you may find some of the places they use would give you 100% but again, it depends on a lot of things such as how long you are with your current employer for one.
Have you any relations who would lend you the €11,000 and you could pay THEM off instead of a bank? That way, you save interest and as far as the banks are concerned, you are debt free.
You really need to find out from the ICB whet exactly they have on your record.
Clean this bit up first and using a broker like The Irish Mortgage Corporation, you may find some of the places they use would give you 100% but again, it depends on a lot of things such as how long you are with your current employer for one.