mortgage issue / judgement

H

helan72

Registered User
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Hi hope someone out there can help.

Not sure which area to put this in, so if its in the wrong section sorry and please move, thanks

I sold my house earlier this year so that myself and my partner could purchase our dream house together - we are currently living in his house and will be putting it up for sale soon.

At the weekend we saw the house we want and sent off deposit cheque, happy days.

Last night he tells me that he has a judgement against him that he has just paid off (long and very complicated story). took loan out several years ago - paid back some, stopped paying and ignored letters, judgement registered 2005 and only cleared last month (one lump sum)

We earn 80000 between us, should have approx between 280000 and 330000 (worst/best case) cash if/when we sell the house and the house we are looking at is 480,000 incl stamp.

Is there anyway we would be considered for a mortgage as the judgement has just been cleared. every other loan / cc will be cleared.

I am heartbroken over this whole situation and dont know what to do.
 
Hi Helan,

You will be considered for a mortgage but not with the prime lenders (AIB/BOI/PTSB etc).
You will have to go down the sub prime route i.e Start mortgage, GE money.
You will qualify for the amount you need but the repayment rates will be higher.
 
Thanks Norfbank,

Was really hoping not to have to deal with them but if its the only way, not much choice.

Will give both a call and see what happens.

thanks again
 
Given the low loan to value and good incomes there *may* be a case to me made. Would you consider taking the loan in just your name? (Actually, that puts your partner in a riskier situation, security wise, so I guess the question should be asked of him, not you).

Sarah

www.rea.ie
 
Whilst I agree with norbank, I would still recommend you try a prime lender first, get your partner to clearly outline exactly what arrears there were, and an explanation for them. he will have to be honest and upfront about them. Also get a copy of your ICB and see whats detailed on it. it is worth talking to a broker who can argue the case for you. Underwriters are human too, and if the case is properly presented to them , it may be considered. However He will have to come up with something better than
paid back some, stopped paying and ignored letters
Click to expand...
. this doesn't even wash with a subprime lender.
 
Have a few Start and GE loan offers lately with 8.5 % interest rate. I don't even know if this is the upper limit- I know that they apparently base rate on level of risk. Perhaps one of the brokers can advise the range.

Also was told by a broker the other day that if you have to go with Start/GE type mortgage you have to keep up repayments for 2 years before you can approach 'normal' banks for a loan- is this right?
 
Start rates range from 5.4% to 9.1%.
It is usually 18 months to 2 years before consideration by a prime lender (case by case basis though).
 
I am a broker - and I have a GE Agency - they have brought out a new product recently - basically a route back to prime product. While the intial interest rates start high (very high in some cases) they reduce over the following 2 years. After that time, rates are a bit above high street rates, but not much.
 
5.4% to 9.1%??? - think i will be trying for this on my own at that rate

thanks for all the replies
 
you should be definitely be able to get 150k on your own, depending on the share of the 80k/year, in todays terms having 280-330 cash is a big factor in your favour when you approach a lender...don't be put off, ask your local bank mortgage advisor on there opinion, go online, fill in your details on a quick quote and see what comes up..u never know
 
helan72 said:
5.4% to 9.1%??? - think i will be trying for this on my own at that rate

thanks for all the replies
Click to expand...

Helan

I had trouble getting a mortgage and approached a broker - IFG mortgages and they assessed my situation and sorted the mortgage with IIB.
Its certainly worth trying a broker first anyway.
 
Cheers for all the replies people.

Feeling a bit better then i was, am going to sit down with the broker who helped me buy my original house and see exactly what my/our options are.

will let you know how we get on.
 
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