Bureau check for Mortgage

SarahPL

Hi all,

I am preparing to apply for a mortgage and have a question about the bureau check that the bank does.

I have a car loan with the credit union, I have been paying it back now for 12 months. I noted today when checking my statements online that I was in arrears even though I knew I had never missed a payment. Upon ringing the credit union about this, we figured out that when I signed the loan agreement, I agreed to pay €150 fortnightly. However when I set up my standing order from my bank account, I set it up for €300 to be paid into my credit union account monthly.

Therefore, for the first two weeks of every month it looks like I have missed a payment and go in arrears. When the money goes into my credit union account at the end of the month it clears the arrears.

The credit union are happy to supply a letter to inform the bank of this discrepancy. In my credit union statements that I have given the bank it says nothing about being in arrears. My question therefore is, should I ignore this since the bank won't see it on my statement, in case it just draws attention to it and causes confusion? Would the bureau check take into account credit union loans?

Any info would be appreciated! Thanks!

Four Phucs Ache

SarahPL wrote: »

Hi all,

I am preparing to apply for a mortgage and have a question about the bureau check that the bank does.

I have a car loan with the credit union, I have been paying it back now for 12 months. I noted today when checking my statements online that I was in arrears even though I knew I had never missed a payment. Upon ringing the credit union about this, we figured out that when I signed the loan agreement, I agreed to pay €150 fortnightly. However when I set up my standing order from my bank account, I set it up for €300 to be paid into my credit union account monthly.

Therefore, for the first two weeks of every month it looks like I have missed a payment and go in arrears. When the money goes into my credit union account at the end of the month it clears the arrears.

The credit union are happy to supply a letter to inform the bank of this discrepancy. In my credit union statements that I have given the bank it says nothing about being in arrears. My question therefore is, should I ignore this since the bank won't see it on my statement, in case it just draws attention to it and causes confusion? Would the bureau check take into account credit union loans?

Any info would be appreciated! Thanks!

If the credit agreement terms indicate a fortnightly payment of 150 and you are paying 300 per month you will be in arrears of 300 every 12 months or 2 payments every year.Most lenders report to the icb monthly.

However, a missed payment is only reported after it is 30 days past due.Your monthly payments are more than likely rectifying your account each month as you noted above.

I can understand the worry here but wouldn't dwell about it if the credit union are providing a letter highlighting this.

Good luck with the house!

SarahPL

Four Phucs Ache wrote: »

If the credit agreement terms indicate a fortnightly payment of 150 and you are paying 300 per month you will be in arrears of 300 every 12 months or 2 payments every year.Most lenders report to the icb monthly.

However, a missed payment is only reported after it is 30 days past due.Your monthly payments are more than likely rectifying your account each month as you noted above.

I can understand the worry here but wouldn't dwell about it if the credit union are providing a letter highlighting this.

Good luck with the house!

Thank you so much for your reply! Silly mistake on my part, I think I assumed at the time that €300 every month was the same as €150 every two week! Fingers crossed with the letter all should be okay. Thanks again!

Trish56

You can apply for a credit report on www.icb.ie. More than likely it won't show up anything.

restive

I recently applied to switch a mortgage with a bank. I was in the office with the loan manager. She showed me the screen with my balances from other lenders credit union, credit cards (even though there was no balance on any of them). I was refused the mortgage. I enquired why. She said I had missed three payments with my existing lender. I pointed out this was done under boi's offer to all existing customers called Flexi pay available on their website. It did not matter. Take nothing for granted, get the letter.