Loan as deposit?

E

edladd

Guest
Will a bank accept a deposit if it is a Credit Union loan? I assume that having loan repayments will reduce your mortgage total (less capacity). But is it likely that the bank will just flat out refuse the mortgage in this scenario?
 
NorfBank said:
Your deposit must be from an unborrowed source so your scenario would likely result in a refusal.

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That's presuming the bank know where the deposit came from. I have heard they cannot check credit unions to see your borrowings there so it is up to you to disclose that the deposit is a CU Loan and you may not do so. I'm not saying this is the correct thing to do just that I have heard it mentioned.
 
Some CUs are not on the ICB - some are not.
Check www.icb.ie

If the CU is not on the ICB, you better make sure that no direct debits are going from your bank to pay it.
The bank will also look for the build up of the "savings" to make sure it is not a loan.

The lenders are not stupid, if they think it's a loan, it gives them reason to decline - they are looking for reasons to decline..
 
NorfBank said:
Some CUs are not on the ICB - some are not.
Check www.icb.ie

If the CU is not on the ICB, you better make sure that no direct debits are going from your bank to pay it.
The bank will also look for the build up of the "savings" to make sure it is not a loan.

The lenders are not stupid, if they think it's a loan, it gives them reason to decline - they are looking for reasons to decline..
Click to expand...

Would you clarify for poster build up of savings- How far back in savings account will they go?

Just say you have to build up deposit of €30k would they go back to start of 30k savings or how far back will they reach ie would they stop at 12 months
 
No worries.

Seriously - they will go back as far as they like.

I have had a strong application with a build up of savings where statements were requested back to 1996 i.e when the opening balance was 0 punts. I kid you not.
 
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