Credit Rating

Unfortunately i have no idea of interest rates, do they make a huge difference to mortgage repayments? he has sent off his form to the ICB to check his credit rating so we are just waiting on that now.
 
a massive massive difference every month . Buy a €2 calculator for yourself.

Prime Mortgage 35 years €300k , 4.2% interest
Sub Prime Mortgage 35 years 300k, 7% interest

(figures below from) http://www.jeacle.ie/mortgage/ie/

Repayments monthly are therefore either

€1364 at 4.2% (normal variable not discount variable which would bring them below €1300 in year one)
€1917 at 7%

Frankly if you do not understand the immediate effects of interest rates when they are rising every few months at present and will continue to rise until next year then you have no business getting yourself a mortgage at this time

What rate did the broker quote ye and was that before or after the last interest rate rise ???
 
Personally I dont think thats a very fair comment that I have no business getting a mortgage if i do not not understand the immediate effects of rising interest rates. A lot of people are clueless when it comes to getting a mortgage and all the jargon that goes along with them, thats why i am on this site to get a better understanding of things. But thats your own opinion.

I havent gone to a broker yet as we are awaiting the credit report.
 
I would expect the broker to quote you a rate of around 5.5% from a sub prime lender if those misses are noted in the credit report , higher if he is self employed .

If not you may get a prime lender as indicated.

Use the calculator I linked. Thats what its for.

Also note that your term may be lengthened by your lack of leverage and that this may have an effect on insurance costs , if your term was shorter the insurance costs could be cheaper depending on age etc.

If a smoker who gives up now the savings on insurance would be massive one year later...once the ICB is clean (if applicable ) .



these are all factors .
 
thanks for the help. would our mortgage (if we got one) the whole duration of it be with a sub-prime lender?
 
no because you can remortgage (with some prime lender ) eventually when the ICB record is clear .

is he self employed though ???

if a civil servant they can be most forgiving .
 

JennyD, thats what this site is for, its how I understood all the ins and outs of my mortgage, so you have every right to ask these questions.

Hope everything works out for you
 
MoneyZone if your desperate a proper bank should take you on after 6 -12 months of not missing payments.
 
2pack: No he isnt self employed. and unfortunately not a civil servant. so its not all bad news at least.

momomo: thank you and so do I!!

niamh80: ill check that out thanks!
 
self employed persons with credit impairment may end up paying this 7% rate, if he is employed and has been there for a while you will end up paying 1-1.5% over prime variable I would think (5.5% ish at present) .
 
i see. I emailed moneyzone with a query, told them situation and just informed them of what our combined income was, how much did they think we could get a mortgage for and would the interest rates be higher and they just replied with "If you would like to call me I can definitely help you geta mortgage". should i be believing this?
 
A lot of companies want to get you on the phone as opposed to providing info via e-mail.
 
yes they seem to be able to give them my friend went to them as her husband had a bad rating and they were getting it straight away as it happened when they went to there own bank manager which had given them a refuseal with the letter of approval from Money Zone the other bank decided to give them the money but €25,000 less which was fine for them MoneyZone rates are a lot dearer but it's a start if you can manage for a few months before the normal banks will take you on.By the way when Money Zone received all the paper work they had an answer the following day.
 
The interest rates seem pretty high but i suppose we have no choice really. thanks for that its good to know that we could possibly still get a mortgage tho.
 
JennyD said:
The interest rates seem pretty high but i suppose we have no choice really.
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Of course you do-you don't have to take out a mortgage/buy a property now-wait until your credit rating will allow you to borrow at standard rates.
 
Have you been turned down by the prime lenders yet?? If not I think they are the first ones to approach.
 
No havent approached sub-prime lenders, just assumed that they wouldnt come near us.
 
I wouldn't make any assumptions if I were you. Check everything out in order to get the best deal. ( I take it you meant 'prime' lenders).
 
JennyD said:
No havent approached sub-prime lenders, just assumed that they wouldnt come near us.
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Jenny, from the first page on this thread people, including myself, have advised that you try prime lenders and see what happens. You seem to have ignored that advice in favour of a sub prime lender. I would suggest again that you try talking the bank that you and your partner had trouble with, and see what comes out of it.
 
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