Mortgage company wants clarity on lodgement

micro said:
Ok I have a slight problem I think.
I am applying for a mortgage for an affordable home. I have gone through a broker and accepted all their advice/recommendations.
I earn a pretty good salary, but considering current climate I do not want to overstretch myself.
I have 2 loans (car loan with credit union + bank loan for college fees). I was advised to declare my bank loan but as my CU loan is not on my ICB, I should leave it off and this would allow more leeway with the bank. As a result, I was approved for about 200k or thereabouts. This is way more than I need, and as I only want a one bed (I know more difficult to sell, but this is just about getting foot on the ladder cheaply) I reckon I only need about 130k. I asked broker to reduce AIP to 160k (the max I feel i can afford) which would allow me a bit of choice (hopefully), but I still plan to go for the cheapest option available.
The bank have approved again, but they want clarity about a 11k lodgement into my account (my CU loan!). The broker said to leave it with her and she'd see what she could come up with. I don't like lying anyway, and I felt letting them know originally would give them more accurate view.
Any suggestions as to what I could claim this money was for? If I said it was gift from parents would they dig any deeper?
Should I just get them to re-do AIP, or will the fact that I have omitted info be a massive problem now?
Besides all that IMO the fact they would give 200k with a loan already shows the banks have learnt nothing!
Feeling v stressed about the whole thing now :(
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If you say it's a gift, you will need a gift letter from your parents stating that they have given the gift and will not have any beneficial interest in the property.
The bank is well within their rights not to offer you any mortgage if you lied on the application. They may now suspect you have other undeclared loans.
Your broker is an idiot but it's not the end of the world, use another broker or apply directly to the bank and be upfront about both loans. If you have the repayment capacity to carry both loans and the mortgage then you should be fine unless the AIP has already been coded onto the lenders main system - then you may have a problem. If so apply to another lender.
 
At this stage don't keep lying. Don't try and say it's a gift if it's not.
If you can't get the mortgage because of the two loans then you simply cannot afford it and may get yourself in financial difficulty. Try and pay the loans off, rent for a while, there will be houses available once the loans are paid off.

Coded means put on the lenders central system.If it is and you apply direct then you will already be on the system so questions will be asked. Some underwriters just give a handwritten AIP that is not coded onto the lenders system.
 
It might be cleanest to abandon that application altogether. I would certainly abandon the broker in question. S/he sounds unsavoury. Take your application directly to banks other than the bank which raised the question. If affordability is looking good, why jump through hoops that a broker created for you unnecessarily? I just availed of AIB's first-time buyer's rate of 2.99% myself. I know navigation through the process can be difficult.
 
"People do this 'omitting' business the whole time"

I am glad to hear that banks are exercising diligence. I still don't understand what would motivate a broker to encourage you to, lack of professionalism aside, lie on an application that would not warrant lying. The "old" rules no longer apply in that banks are performing the kinds of checks that should have been performed on every application in the past. Do you want .5% of the loan amount to go to the broker who has been more of a hindrance than a help? In any case, make sure you do your own rate-shopping before you sign anything.
 
Well I never - Brokers encouraging people to lie about loans - to enable the borrower to get more money and the broker to get more commission!
These type of lying cheating brokers - and I am sure this is not the only one - are part of the reason for the massive increase in house prices over the last few years. They - (sometimes working hand in hand with estate agents) allowed borrowers to trick lenders into borrow more than they could afford - and now people are in trouble with repayments.
Maybe they should be reported to the Financial Regulator - but we all now know that they are as useful as a chocolate teapot.
 
Apply to the bank yourself and if they question the CU loan that you now declare tell them the broker told you not to declare it last time. It's ppl like your broker who give the rest of the industry a bad name.
 
Tell them that you had no idea that credit union loans had to be put down as your broker advised you as such.
 
I agree with the above - come clean, and tell the bank what you were advised.
I used to work as a mortgage underwriter dealing soley with applications referred from brokers. Believe me, the bank will know what they are like. From my own experience, we used to take anything said by the broker with a pinch of salt as, at the end of the day we knew they were just hungry for their commission (not all brokers obviously - but we could spot the difference). On that basis, we would look at the clients supporting documentation (bank statements / loans etc) which had to be provided as per Bank policy and come to our own conclusions / dig deeper. We were by no means "lead" into lending the money by the broker. I came across a number of instances where customers didn't declare loans but "caught them out" either through a large lump sum deposit on the statement, a monthly direct debit from the account to another bank or on ICB. any underwriter with a bit of cop on will be well used to this and I don't think your application will be dismissed as a result. The lender will just have to take this debt into account when calculating your qualifying amount. €11k won't make too much of a difference.
 
Grace80 said:
I agree with the above - come clean, and tell the bank what you were advised.
I used to work as a mortgage underwriter dealing soley with applications referred from brokers. Believe me, the bank will know what they are like. From my own experience, we used to take anything said by the broker with a pinch of salt as, at the end of the day we knew they were just hungry for their commission (not all brokers obviously - but we could spot the difference). On that basis, we would look at the clients supporting documentation (bank statements / loans etc) which had to be provided as per Bank policy and come to our own conclusions / dig deeper. We were by no means "lead" into lending the money by the broker. I came across a number of instances where customers didn't declare loans but "caught them out" either through a large lump sum deposit on the statement, a monthly direct debit from the account to another bank or on ICB. any underwriter with a bit of cop on will be well used to this and I don't think your application will be dismissed as a result. The lender will just have to take this debt into account when calculating your qualifying amount. €11k won't make too much of a difference.
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Grace80 - tyour comments are interesting. When you or your co-workers spotted an obvious attempt to hide existing loans or to inflate income figures - would you still deal with that customer based on the true figures or would you refuse them a loan? Also - if certain brokers were known to be lying or encouraging clients to lie - would they keep their relationship with the lender and continue to refer borrowers - or would they be no longer allowed to refer borrowers to you? Did any brokers ever get reported to the Regulator?
 
irishlinks said:
Grace80 - tyour comments are interesting. When you or your co-workers spotted an obvious attempt to hide existing loans or to inflate income figures - would you still deal with that customer based on the true figures or would you refuse them a loan? Also - if certain brokers were known to be lying or encouraging clients to lie - would they keep their relationship with the lender and continue to refer borrowers - or would they be no longer allowed to refer borrowers to you? Did any brokers ever get reported to the Regulator?
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This was a hard one to get around - there was no way of exactly proving that the client / broker was lying as it would usually be a case of playing dumb "oh we didn't know we had to factor that in" etc etc (as per the OP). If additional information / borrowings etc came to light after initial assesment or AIP, the case would be fully reassesd. The main thing we came across was brokers stating a client was earning more than they actually were (say, by overstating commission / bonuses / expenses) etc. But once we received the suppoting docs, the true picture would be come apparant (either by annualising payslips or taking p60 earnings). the broker is only there to recommend the client - it is up to the underwriter to request ALL back up documentation before assesment. This was our rule of thumb and as my employers policy was very strict in that regard, we could make our own decision on whether to approve / decline an application. There is only so much of a yarn a broker can spin cos if you get all the docs, the real facts become apparant. At the end of the day - the buck stops with the Bank lending the money. The broker is only the "Introducer / Intermediary" and the Bank makes the decision.
 
You're looking to borrow over a hundred thousand euro from someone and you're lying to them about your financial circumstances on the advice of a "professional" mortgage broker.

The mind boggles.

micro, not only would I refuse to lend you a red cent and blacklist you FOREVER, i would look at referring your application to the legal department as an attempt to extract funds under false pretences.

I hope there are serious civil penalties enacted for people like you who lie when they're attempting to obtain credit. And your mortgage broker should be disbarred from working in finance. They are a petty crook wearing a suit, nothing more.

I would encourage you to withdraw your application for credit immediately and report the mortgage broker to the financial regulator.

And the next time you go looking for a six figure sum from a financial instiution don't lie to them.
 
I gave you my advice. Withdraw your application and report the broker to the authorities.

The widespread skulking acceptance of this kind of chicanery is what has the country in such a bloody mess!

You got harsh judgement because you are engaged in a deception, and you deserve it.
 
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