AIB approval in principle, but Ulster rejects because of unpaid credit card

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Topdec

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Hi I have been approved for a Mortgage with AIB emortgages after sending in all my paperwork. I also applied to Ulster Bank and they said I have an judgement against me for a Credit card bill that was repaid although very late. This is going back to 7 years ago when I ran into issues with my health. I was self employed in the trade and unable to work this put my finances under pressure all I could afford was the rent and bills.
My worry now is as I have been approved and placed a successful bid on a house will it fall though when I go to drawdown with AIB does anyone know the process? I assume they done checks as they had all paperwork submitted a week or two before offering the loan. From talking to the team on the phone the application went off to the advisor/underwriters who approved.
I have my current, credit and savings accounts with AIB and have not missed any DDs and have cleared balance on card month end, I have about 30k savings and this has been built up saving 1k a month on top of 1500 rent.

Has anyone got this far to be declined at a later stage? Or does anyone know the process eg will the team have checked my history already before offering the loan?

Thanks in advance Declan.
 
Do you have a copy of your loan offer? Does it mention anywhere that it is subject to various things of which one is a credit check?

Normally credit checks would be done before approving anything but things like 'approval in principle' are usually subject to tons of things so which do you have, a full loan offer or just an initial approval letter?

If that judgment is showing on your credit rating then AIB are going to see it too, hard to imagine they would not do a credit check before issuing a loan offer.
 
When it went to the next stage they asked a question on my bonus and they said before we carry out our credit assessment can I clarify something. I sent my reply and the next message was to say that they were pleased to informe me my mortgage had been approved for X amount the header of that message was Credit approval.

They have said this is subject to a number of things like property details, rate I want applied, solicitors details, if new build evidence builder is approved by revenue that’s it really.
 
Dunno so, hard to imagine a bank making a loan offer without a credit check and if they did one hard to imagine they wouldn't have queried it with you with a judgment on it. Hopefully all will be ok.
 
Hi, do you know if a judgement was ever registered?
Was the card originally with UB?
 
Speaking to AIB in the last few weeks and they happened to mention that they differ from other banks in that they do full approval up front rather than an approval in principle that requires further dotting of I's and crossing of T's.

This was with regard to getting approval for a loan amount without a specific property in mind.
 
Topdec said:
they said I have an judgement against me for a Credit card bill that was repaid although very late. This is going back to 7 years ago when I ran into issues with my health
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Hi Topdec

Check your ICB record. I would say that if you have repaid the money you owe, it is no longer on your ICB record which is why AIB didn't see it.

If the problem was with Ulster Bank, it is they who have the record, not the ICB.

It's also possible that it is still noted on your ICB record, but that AIB has ignored it as it was from 7 years ago.

But first thing is to check your ICB record and I would guess that will put your mind at ease. If the record is wrong, for example, if it shows a judgement which was satisfied, then get it corrected as quickly as possible.

Brendan
 
Thanks for all the replies sorry I’m only getting back now I’ve had a lot on.
I didn’t have the card with Ulster Bank.

Since I posted another lender approved my Mortgage and I’ve gone sale agreed on a house with booking deposit paid, valuers has sent in the details to the bank. The bank has also sent out the offer latter and they have said they are happy to lend what I asked for. Not sure if they just didn’t check as far back as Ulster but they never mentioned the judgement.

Things are looking up just hope there are no last minute blips.
 
I suggest you speak with your solicitor to identify if any issues might arise (and the reason I originally asked if a judgement had been registered).
When I was drawing down my Mortgage with AIB, my solicitor completed a judgement search on me fir the bank - I know because someone who shares my full name did have a judgement registered against them, and I had to provide a list of all my previous addresses to show it wasn't me.
 
Thanks RedOnion I will get this looked into ASAP as I don’t want any issues when it come to drawdown stage.

Would it be normal that some banks would pick it up before offering AIP and others after making a full loan offer?
 
It could be possible. UB might have a database of judgements that they check against at an early stage. There are even differences in how / when they do an ICB check so I wouldn't be surprised.
There's a cost to running a full judgement check, so most banks only do it just prior to drawdown.
 
Thanks again RedOnion, Sure you think BOI have offered me the Mortgage (I have the offer letter) will do a judgement check before drawdown?
This judgement wasn’t against a mortgage and the outstanding balance is fully paid up with all costs will show up later in the process?
 
It's quite possible, but I'm not familiar with the process. A chat with your solicitor would be best step.
As the debt was cleared, it should be possible to get the judgement cleared. Again, your solicitor would help here, but it might cause delays in the process.
 
Just back to give an update . I applied to another bank while looking around at houses and they also approved my application and the loan amount was a little higher. I found a house went sale agreed signed contracts with a closing date this Friday got an update today that the Bank have release the funds so all worked out for me. Thanks for the advice.
 
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