Key Post: Raising the dreaded deposit

Credit Union

would it not be possible to pay back the credit union loan within a year of buying the house by remorgaging the house for that amount,telling the bank you want to make home improvements?that way u will not be in debt to the CC and u will own a house?
 
Re: Credit Union

Hi YP - That might be possible, but it would depend on continued growth in property prices, which is by no means guaranteed. You'd certainly want to have a contingency plan in place to cover the scenario where property prices remain flat or even drop.
 
Remorgage to pay of CC loan deposit

yes i was thinking of doing that.i mean even if house prices go down,the fact that i got a mortgage for 90% of the value of the house means i could remortgage for 100%,this would mean i could pay of the CC loan,keep the repayments at the same level by increasing the duration of the loan,and own a house at the end of the day! how long after getting a morgage does a bank allow you to remortgage(would they suspect on what u were doing)?
thanks
yp
 
Re: Remorgage to pay of CC loan deposit

the fact that i got a mortgage for 90% of the value of the house means i could remortgage for 100%
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I don't think the bank will allow 100% remortgages. They will want to keep the same maximum LTV (loan to value) ratio (i.e. 90%) - so you'll be relying on the house increasing in value by approx 10% to implement this plan.
 
Re: Remorgage to pay of CC loan deposit

I suppose you could remortgage for 100% of the original purchase price if the market value has increased sufficiently by the time that you go back to the lender? Perhaps that's what was meant by the above?
 
Credit unions

I heard recently that Credit Unions now have to disclose any loans you have to mortgage lenders.
Anyone know if there is any substance to this?
 
Its possible not probable (yet)

Yes. The old 'deposit from Credit Union and Mortgage from bank' scnario is becoming an endangered species.

Credit Unions were not members of the Irish Credit Bureau in the past. Therefore they didn't check your maybe dismal records with banks and they did not report your maybe dismal record with them either.

This splendid isolation is coming to an end as SOME of the 500 Credit Unions in the Country join the ICB . I am not sure which ones .

The upshot is that the Bank MAY find out where you got that deposit where they could not easily do so before before ! Only about 10% of Credit Unions will join If I remember but they will tend to be bigger ones
 
Credit Unions

yeah I heard that the League of Credit Unions are under major pressure to disclose all borrowings, should be interesting to see the level on undisclosed borrowings out there

by the way, lenders normally ask for 3-6 months bank records when applying for a mortgage, so if there are standing orders to your credit union, they will ask for a statement, same way with people who have deductions on their payslips to credit unions, this can catch people out

also lenders are obliged to query lump sum lodgements to bank accounts under the money laundering legistlation, so 'gifts' from parents will more than likely have to be proved fairly soon, ie copy of parents bank records to show they had the money in the first place
 
Money Laundering Considerations Apply

Too much of it in a very few Credit Unions, also downright fraud. The Credit Bureau is accessible to the Guards as well as the banks and will provide heads up of strange 'loans' as soon as they are granted .

One credit union is being very closely watched as it is at risk of being used in large scale 419 fraud . If it does not cop on it pronto will be shut down soon .

These risky ones constitute only about about 10 out of 500 and are normally in big cities. By comparison I would point out that the eircom employees who got €100000 each from their windfall this year managed to bankrupt their own credit union at the exact same time.

What a bunch
 
Money Laundering Considerations Apply

> The Credit Bureau is accessible to the Guards as well as the banks and will provide heads up of strange 'loans' as soon as they are granted .

But aren't CUs (and the loans that they grant) still outside of the scope of the Irish Credit Bureau or are some or all CUs no participating?



I think the issue of legitimate loan disclosure between the CU or the CU member and other lenders is a different one to the issue of alleged fraud and other shenanigans in some CUs (or tax evasion in most as a result of the erstwhile laws governing taxation of CU accounts and self declaration/assessment of interest/dividends).

For what it's worth the current rules regarding taxation of CU accounts is outlined here:

[broken link removed]
 
Credit Unions and ICB

some are participating in the ICB or are just about to but not all of them .

some are being 'made' to and some 'choose' to and some have good enough systems that they don't 'have' to if you see my meaning .
 
Credit unions

Thanks all.
looks like the net is about to tighten,though for reasons of money-laundering rather than young decent people trying to scrape up a deposit. Maybe another step towards 100% mortgages like they seem able to offer in other countries without bankrupting the population.
Thanks again for the updated info
 
Re: Money Laundering Considerations Apply

"eircom employees who got €100000 each from their windfall this year managed to bankrupt their own credit union at the exact same time. "
Could you clarify this please?
 
Re: Money Laundering Considerations Apply

A reply to an earlier question in this thread : my credit union said the max that would lend is E30k. (maybe other CU have different maxima).
In general I find that CU ask very few questions before granting a loan, in particular if you have a good credit history with them.
I recommend if you are planning to take a big loan from the CU, to take a small one first and pay it off with no problems. (Note you have to have the first loan FULLY paid off before they will grant you the new bigger one).
 
Re: Credit Unions and ICB

lawbones said:
some are participating in the ICB or are just about to but not all of them .

some are being 'made' to and some 'choose' to and some have good enough systems that they don't 'have' to if you see my meaning .
Click to expand...
The is an interesting update in today's Indo on the progress (or lack of same) regarding use of ICB by credit unions.
 
Re: Money Laundering Considerations Apply

But aren't CUs (and the loans that they grant) still outside of the scope of the Irish Credit Bureau or are some or all CUs no participating?
Click to expand...
According to today's Sunday Business Post, some 32 CU's have applied to join the Irish Credit Bureau.
 
I would be careful about getting a credit union loan, and thinking it won't show up on a review by a mortgage lender. Many credit unions have become members of 'ICB?' and their loan information is available to lenders. I had loan with Tullamore Credit Union, and thought as above that it wouldnt show. Didnt declare it as had funds to repay loan, but was waiting for cash to come from various sources in Uk to clear.

Be sure your local credit union is not reg before you go this route, could you not consider a 100% mortgage
 
just found this on a particular credit union site...

"A condition of a credit union using such a service (ICB) means that they must share credit agreements and repayment history. This can only be done with permission from the credit union member, both at loan application to look up the person in respect of other loans and also in respect of repayment of this loan"

 
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