Mortgage with bad ICB report

[Steve12345]

Hi all,

I was hoping to look for a mortgage in the near future. My ICB report shows 3 loans/cc. Loan 1 (less than 10K)and the CC were completed in Dec 15. Loan 1 had lots of arrears. The cc had 4 blips over the 24 months before it was closed by my choice. Loan 2 was started on Dec 15 as a restructuring of the other two. Loan 2 has a perfect repayment record over the last 24 months.

Loan one and the cc will stay on the report until 2020. Loan 2 will be payed off in full in the next month or two.

My question is will the banks take any consideration of my recent clean repayment history? Or am I stuck because of the issue in my past.

Thanks.

 

[Dave_Curry_IMC]

Pepper Money shouldn't have a problem with your adverse credit history as (i) it was on unsecured debt and (ii) it was more than two years ago. The other lenders would most likely range from very difficult to impossible. It all depends on how acceptable the reasons for the arrears were, to what extent things have changed/improved since then (e.g. better paid job in a more stable industry, etc.), and how well the issue (and the overall application) is presented.

Best regards,
Dave Curry CFP®
https://www.linkedin.com/in/davecurryirl

 

[Steve12345]

Thank you Dave. Much appreciated. Things have significantly improved in the past couple of years.

Otherwise I would be looking at post 2020 to be considered by others?

 

[Dave_Curry_IMC]

Otherwise I would be looking at post 2020 to be considered by others?

Yes, unless one or more of them would be prepared to overlook the arrears. A little bit of discretion can be shown, depending on the severity of the adverse credit, and on the other strengths of the application. Some banks even have an internal limit for the number of credit policy exceptions that can be made in any given year.