Mort App / Ailing Business / Credit Checks

[Rusty Cogs]

A friends business is in difficulty with solicitors letters for monies owed. He sees this situation as temporary and when things have picked up he will apply for a mortgage. Will the banks have 'sight' of his company's difficulties when they do a background check on him ? (I imagine he will apply for a mortgage in both his and his partners name).

 

[NorfBank]

It depends if the "monies owed" have been registered on the Irish Credit Bureau. As he has received solicitors letters then I presume they have been registered so yes the lenders will see these missed/late payments when they search his credit history if he applies for a mortgage.
This will also affect a joint applicant if both incomes are being used to fund the mortgage.

 

[Rusty Cogs]

The monies owed are for a one off charge (unlike say your credit card or ESB bill). Would the creditor's solicitor be duty bound to go off and register that debt with the ICB as soon as they got involved ?

I suppose he could apply for the mortgage in his own name and hope the bank isn't clever / thorough enough to do an ICB search on both him and his business. Maybe this is wishful thinking ?