Car Loan Approval Failure

Went to get a car loan this week and it was bluntly rejected.

I understand that because I am on a mortgage restructure (for three years), that this has a negative effect on my credit rating. Never missed a payment but had restructured. House is not in negative equity (but close) I reckon.

I genuinely didnt think that restructuring my mortgage would have this negative effect, my own cash flow is fine. Thing is, I need to change my car (kids). Looking at a €15k loan which is secured on the asset (Hire purchase).

From what I can see, I have no chance of getting a personal or HP loan as the bank is thinking that suddenly I might go down the route of a PIP.

Bit of a nightmare as there is no way out, unless I start performing fully with my mortgage.

Anybody else in the same situation?

Have you checked your credit rating with ICB? It's fairly cheap and worthwhile knowing what's in it - it's not always accurate and may need to be amended.

The banks are gone ultra conservative, did you go through your branch or direct?

They look at your ability to repay a loan, if you have restructured a mortgage you have said to them that you can only afford to pay X per month on loans.

Now you are saying that you can afford x+y on loan repayments.

Have your circumstances changed to allow the extra?

Banks are turning down applications as they are looking at your net income deducting loan repayments and expenses and if the result is too low then the answer is NO.

I think you should go through your branch but if you have told the mortgage co you can only afford €1,000 per month you need to justify how you can now afford the extra car repayments.

This is the new reality I'm afraid but hopefully someone in the branch will help you out.

dieter1;
Go online and get form Irish Credit Bureau ICB , send it off and then you will know if credit rating was dented.
From what you say it looks like you went to the Bank you have restructured the Mortgage with,in that case I would be surprised if they would give you a car loan.

Depending on what year car , what deposit etc might be no harm to go to any garage and put in a request for a Hre Purchase loan.The Car manufacturers now have their (own) packages.

George Mourdant is financing cars in Clonmel, might be an option.

Why not consider a cheaper car (be it model, make, year, fuel that you comprise on)...husband first car HP//never again..start small and work up...

Sandals said:

Why not consider a cheaper car (be it model, make, year, fuel that you comprise on)...husband first car HP//never again..start small and work up...

Click to expand...

+1
Consider going to the UK and get value over there.
15k a lot on a car loan, especially when secured on the asset.
The second market here is mad because there is no supply due to the lack of sales since 2008.
There is value in UK, especially if you go east of Manchester and even east of London.
In case you think its a rare activity, there are 2 folk employed full time in the nct centre in Ballymun just doing VRT on imported cars.
You can get the vrt calc, as well as all the paperwork on the revenue web site