Mortgage arrears cleared - would i be considered for new joint mortgage ?

Teddy's girl

Registered User
Messages
7
Hi

I lost my job like many back in early 2014 due to economic downturn. I was unable to pay all my mortgage until I returned to work late 2015.

Since that time, I increased my mortgage repayments and paid off the arrears in 2019.

I also had my credit card revoked and am due to clear that loan by end of year.

Both debts will be repaid by me in full with no write downs. I specifically wanted this as I wanted to repay every penny that was owed to me at the time.

Since then, Ive married and have kids in 2018 & 2019.

My husband has an excellent credit history and no previous issues with credit.

We earn a combined e91,300 and have savings of e20k.

The banace on my mortgage is circa 143k, house is 2 bed and worth approx 250k.

Would the banks consider a mortgage application from me or will I have to wait 5 years until credit report is erased.

Thanks in advance
 

Teddy's girl

Registered User
Messages
7
Why are you not clearing your credit card now?

It makes no sense to have cash when you have a loan in default.

The 5 years starts when you have cleared all defaulting loans.

Brendan
I set up a repayment plan with Calbot for the credit card and as there was no interest accruing I thought it might be a good idea to have a current loan showing a history of payment monthly repayments on the loan whilst also serving my current mortgage and savings regularly.

Should I just clear the loan now or is there any point in proceeding in above ?

Thanks for responding x
 

Teddy's girl

Registered User
Messages
7
How is the credit card debt currently appearing on your ICB and CCR reports?
It's not appearing on ICB report (as time has gone) however I assume its on the CCR report as it is a current outstanding loan with Calbot. Will the fact I am repaying this loan help our future mortgage application or go against me?

I was going to send in note to CCR to outline i was redundant to explain the mortgage and credit card arrears. The mortgage arrears should come off in next 4 months from both reports as I cleared arrears 20 months ago and have been paying monthly mortgage repayments back since September 2015.
 

RedOnion

Frequent Poster
Messages
4,436
Get a copy of your CCR report first. There's a form on their website where you request it.

I'd suggest you pay it all off, and show monthly savings.
 

Brendan Burgess

Founder
Messages
40,565
Should I just clear the loan now or is there any point in proceeding in above ?
Yes.

What do you think a mortgage lender would think of an application from someone who currently has a loan of €10k in default while having €20k in the bank?

My conclusion would be that this person is hopeless with money or dishonest and therefore I would not lend them money.

If they get into difficulty with their mortgage they would not clear the arrears so that they could build up a cash reserve.

Brendan
 

Teddy's girl

Registered User
Messages
7
How is the credit card debt currently appearing on your ICB and CCR reports?
Oh apologies I think you might mean how it is showing up on ICB & CCR reports.

Its not showing on ICB report however it is showing as 'Current Status' revoked credit card
Get a copy of your CCR report first. There's a form on their website where you request it.

I'd suggest you pay it all off, and show monthly savings.
That's great thank you for your advice
 

Teddy's girl

Registered User
Messages
7
Yes.

What do you think a mortgage lender would think of an application from someone who currently has a loan of €10k in default while having €20k in the bank?

My conclusion would be that this person is hopeless with money or dishonest and therefore I would not lend them money.

If they get into difficulty with their mortgage they would not clear the arrears so that they could build up a cash reserve.

Brendan
Hi Brendan

Thanks for your response.

I think youve answered my questions, I will move to clear it off ASAP.

It is only an o/s balance of e2k left on it so I will sort it out now.
 
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