Urgent Advice Needed: Mortgage Refused because I have bad credit

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CCOVICH said:
It's ultimately central underwriting that make the decision-you don't get to meet them so body language etc is irrelevant. They will base their decision on hard facts.
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I'm not sure if this is purely true as I was refused a credit card once but when I went into the bank in person to sort something else out they said that if I want a card that they could get one for me no problem and she did!
 
CCOVICH said:
it's just that 'good vibes' etc are of little or no use IMHO.
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Aww CCOVICH...Lighten up a little

I'm being realistic and I know that all the nice people here who have wished me luck and have given me advice won't win over the ICB, but it's nice to know that in my hour of darkness that people have bothered to wish me luck and though it won't approve a mortgage for me, it will at least make me feel a little better.
Even discussing the issue and getting advice has helped in one way or another.
 
Samson26 said:
I'm not sure if this is purely true as I was refused a credit card once but when I went into the bank in person to sort something else out they said that if I want a card that they could get one for me no problem and she did!
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Point taken, but a credit card is a very different proposition to a mortgage-the risk to the bank is much greater for a mortgage and therefore underwriting is much more stringent.
 
By the way CCOVICH, what's your honest opinion on it?
Do you think I've got a chance?
 
Honestly, yes, on the face of it you would appear to have a chance. Unfortunately my opinion counts for nought here.

What I would say is this-if you are refused for 100%, or can only finance at a high rate, i.e. if the terms are such that your financial situation post-mortgage is 'dangerous' or stressful-I would advise you to walk away. You are far more likely to enjoy your home if you can afford it with some room to spare every month. I have seen too many-'need a home at all costs' threads on AAM recently.
 
bmg said:
Aww CCOVICH...Lighten up a little

I'm being realistic and I know that all the nice people here who have wished me luck and have given me advice won't win over the ICB,
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Only an amendment to your record will expunge the ICB record. Only a human with authority in BoI can do this. You have set out to find one . Thats the most you can do ....although you could also become a Buddhist and change your name to Shree Vishnatha


Exactly, we all know what happened becuase we were all told what happened and some of us know that there but for the grace of God/Luck/Parents/Partners go we too .

I'd personally hope that someone with a perfect record so far reads this and pulls back from the brink once they realise what an inflexible monster that bloody ICB is.

Here is the other side of the coin

My wife was refused a €10k loan on a €50 salary a few years back. She had rung the number on some bumf in an envelope because it was Sunday. The bumf said she was preapproved ( back then they could) She had been so solvent for so long that she

1. Had no cc
2. Had no loans for 5 years
3. Had no mortgage (we were getting one )
4. Had sizeable savings but not with that bank as we were carpetbagging over in INBS at the time .

But she had no record of paying anything to anybody for any reason for 5 years. She was refused . She was refused by a computer . She rang her branch on monday morning and told them she expected the 10k in her account by 10am on tuesday morning and that she would come into them to sign either of 2 forms

a) the one closing her account or
b) the loan form for the 10k

The money was waiting for her in her account.

It took a human to tell the computer though .
 
Thank you!
And I totally agree that if it doesn't work out and we are refused by the BOI then I don't see Start Mortgages being an option for us. I've got to be realistic and it will "sadly" mean walking away.

With BOI they require the combined salaries to be €60000 before you qualify for the 100% mortgage. The Manager phoned me today to inform me that we were €2000 short (don't know why he didn't mention that yesterday). However as my Partner works in a family business we can get him an increase (even if it is temporary to cover us).
 
If he can get a letter to say that his bonus is guaranteed to be, say, €2,500 this may swing it. Or that he is guaranteed to receive a salary increase of €3,000.

Remember-the lending decision is based on ability to pay- so if it don't exist, don't make it up.
 
CCOVICH said:
Remember-the lending decision is based on ability to pay- so if it don't exist, don't make it up.
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Yes, I agree, but we've done the sums and with what we are both currently earning we can afford the 100% mortgage.
 
After factoring in interest rate increases etc?

On the plus side, did you include TRS relief on the interest payments?
 
CCOVICH said:
After factoring in interest rate increases etc?

On the plus side, did you include TRS relief on the interest payments?
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On the TRS we stand to save approx €100/month. But as the Bank Manager pointed out (and probably rightly so), this €100 will be eaten up with others - as in Life Insurance, House Insurance etc.
He advised us not to look at it as extra money because realistically it won't be.

As for the interest rates, honestly I probably don't know too much about them to decide which ones were the better (looking further down the line) I know, not ideal when you are taking out a long term (life term) loan.
We discussed the different rates available and he recommended the 2yr fixed.
 
 
Re: Urgent Advice Needed


I can really sympathise with you here as I basically had to let my partner go it alone on buying a house because I anticipated we'd end up in the situation you were in. As it happened it was also BOI but it was 4 years ago.

The thing I found out was that BOI had not put the correct information on my ICB record. They simply stopped reporting on it, leaving a blance of 1755 (which I guess lenders read as being unpaid) instead of stating that the balance was cleared in full. As a result I was turned down for loans several years down the road. After finding this (go to www.icb.ie and get your ICB record first) I contacted BOI at careline@boimail.com and they now changed the status to C - which means "cleared" and stated that it was cleared in full on the date cleared). The thing was - I never knew this until I contacted ICB.

Now that I think about it, BOI refused to let me renegotiate my loan at the time, lucky you that they let you do that. I simply went on paying my monthly payment (couldn't afford to pay more) and stayed 3 months in arrears, just paid off the loan 3 months late. However it sounds like they might not have put this on the ICB record.

I'd suggest that you get onto ICB - if its not incorrect, then I think Sarah from REA's advice is the best you can take.
 
Hi llf12,

Thanks for your post.

As I mentioned in previous posts, ICB list will not be amended. The simple facts (as harsh as they may seem), is there is no mistake on my ICB record. I did go into arrears. Yes it was during a very difficult period in my life, I was on Maternity, major decrease in the wages every week (approx €265) but it still remains as bad credit due to not meeting the payments. In hindsight I should have made some arrangements with the bank but I didn't. Why I didn't I'll never know...I suppose theres something about going to the bank with a sob story that didn't appeal to me at the time, I was so wrapped up in the new baby, busy, tired you name it...but hey, It's appealing to me now, in fact I'd get down and beg!
 

Fair enough - its really hard at the time, I do know from my own experience.

Of course maybe you didn't end up any worse off - when I did go to BOI they made a complete sham of it and asked me to take out a new loan. Which I applied for . . . and they then turned me down for. Then they refused to negotiate . . . you were lucky to strike a deal in the first place.

Still its no consolation - but 5 years go by scarily fast . . .
 

lff12, I can't believe they gave you the option of applying for a new loan and then turned you down..thats awful.
I suppose I was lucky that I got a chance at the time to reschedule the loan.
It's a waiting game for me now...
 
Hi all.

Broker got in touch with us today. She had sent out application to Start Mortgages just in case things don't work out with the BOI.
We've got back an "approval in principle". €250000 Mortgage, 35yr term @ 6.25% Standard Variable.
This would cost a fortune on Monthly payments right?
Would we be mad?
 
To summarise... (ignoring owner occupier mortgage interest tax relief, mortgage protection life assurance premiums etc.)

€250K over 35 years at 6.25%:

Monthly repayment: €1,468
Total interest cost: €366K
Total repayments: €616K

Just for comparison...

€250K over 35 years at 3.5%:

Monthly repayment: €1,033
Total interest cost: €184K
Total repayments: €434K
 
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