Applying for a mortgage, I have good credit rating but husband €5k restructured loans

M

mairesile

Registered User
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Hi I'll just outline the situation we are in,

Myself and husband wish to apply for mortgage as first time buyers. I have a permanent job as a primary school teacher, we have a deposit and I've a perfect credit rating.

My husband is also in permanent employment as a chef, however he has a bad credit rating with ICB. Before we were married and during the boom he bought a very expensive car which after losing his high paid job he could no longer afford to pay for. He renegotiated to pay less but he went into arrears. Eventually the car was taken back and sold and he is now paying difference on car which is just €5,000.

I feel that we will pretty much be rejected on this and just want to know if there is any point in even applying for a mortgage or is there anyway around this?

Because of my job will the take my wages and history into account more then his?

I'm planning on talking to a broker on Monday.

Has anyone else been in a similar situation? I feel so disappointed as aside from this black mark we only have a small credit union loan.

I'mpretty sure it won't be approved, but is there an alternative way of getting a mortgage like me going in with my Mam?
 
Sorry but if your husband is still paying off a restructured loan where the car was repossessed, I think you'd be turned down by all banks.

My only suggestion would be to pay off the remainder of his loan now from savings, continue to save regularly and wait a few years.
 
Yeah, I think so just difficult to wait few years as we have a child and want more :
Would it be possible for me to buy with someone else?
 
We had exactly the same issue, first unfortunately you haven't a chance of getting a mortgage at the moment, a bad icb record is an automatic refusal afaik and because you are married you cannot buy a ppr on your own or with anybody else bar your husband. You are talking as things currently stand worst case 5 years after the final payment is made for a mortgage application.

Your husband owes 5k, but you have a deposit saved ? why didn't you pay off the loan ?

In my wife's case it was an issue going back to her student days, that only surfaced when we went for a mortgage, thankfully due to the fact that we could show that the lending institution had an incorrect address and the fact that they are winding down their irish loan book, we were able to get them to agree to wipe the icb record, if we paid the balance in full immediately, which they did.

Your first step is to talk to the bank in question......and pay off the loan asap.
 
As other people are saying.

1. Talk to your broker
2. Pay off the 5,000
3. Open a monthly direct debit savings account immediately and start paying in about 200 euro more than your mortgage repayment would be per month.


It's going to take a while to find a house talk to banks etc, so if you are starting afresh with bad loan gone and building up a new savings profile this will mean you are starting to tick the boxes for what the banks are currently looking for.
 
Thanks for the advice, yes we had been considering paying off loan upfront but banks said it would still come up as arrears so wasn't sure if it wud make much difference.
I suppose as it was my husbands debt I was letting him pay it off monthly.
I'll def get more advice from broker and please god it won't take as long as 5 yrs to get a house. But I suppose I'm thinking that if it will be 5 yrs to get a clean slate with ICB well it will be paid by then anyway!!!
Anyway thanks again for help, if anyone else had similar issues let me know
 
ok thanks for that. If we cleared the loan and put extra effoort into saving would banks look favourably on that so as they may take you off ICB? Or is that impossible?

Thanks for advice.
 
mairesile said:
If we cleared the loan and put extra effoort into saving would banks look favourably on that so as they may take you off ICB? Or is dat impossible?
Click to expand...

The ICB can usually only be changed if there was an error on the record.

But if you've cleared the loan and saved towards your deposit, a prospective lender might take a decision to ignore what's on the ICB on the grounds that it's in the past and your husband has sorted out his finances and stayed on the financial straight and narrow since. The more time passes between when you clear off the loan and when you're applying for a new one, the more likely this will be.
 
Did you get a copy of your husbands ICB file to make sure it is on it? You would be surprised as to how many things don't get reported to the ICB. More than likely it is there but no harm checking.
 
Yes we got a copy of file and it shows up all his arrears.

Im just wondering though, now the banks basically get and outside agency to approve mortgages would they really take it on a case to case basis. My idea is to immediatly pay off loan and start saving more....in the hope that maybe next yr they might consider us.

Can the bank you have loan with actually remove you from ICB rating?
 

Banks make their own decisions as to who they approve and who they don't.

The ICB is just a bureau that holds information about existing loans that all participating banks can access. The ICB don't make any decisions or offer opinions - they just hold information.
 
No I understand the ICB just holds the info....But the 2 banks I went to told me that they no longer make the descision in the local branch but that the application is sent off to be approved or denied and that they have no influence over the decision making.
 

Decisions are made at the bank's Head Office. That's just logistics. The decisions are still made by employees of the bank who will look at the whole application and the big picture generally.
 
Yes but its not like you can go in and talk to those who are actually making the final decision. So you maybe don't have the chance to explain how things went wrong!!??
 
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