Will a credit union loan show up on my credit report & affect a mortgage application.

Stickit2theman

I'm saving for a deposit to get a mortgage. I'm a bit short of the 5% minimum so I was thinking of taking out a credit union loan. Would this show on my credit report?

Tixy

Your mortgage lender will ask for evidence of where the deposit has come from, and once you tell them it is borrowed will very likely not be prepared to accept your application.

Credit union loans often don't appear on credt file (depends on the union you would need to check with yours), but you'd still need to declare the loan/debt on your mortgage application.

Stickit2theman

Can they check your savings accounts or is it on a declaration basis.

kirkbyinfurnesslad_2

Credit union loans are normally very small

How much were you needing

Tixy

They may ask to see bank statements yes. But you will be expected to declare it anyway. And obviously you need to tell the truth on your application so that it is not fraudulent.

Stickit2theman

Only about 1k short of the 5% + fees but after speaking to a mortgage advisor I'm now looking at cheaper houses which I can easily afford.

Stickit2theman

Btw the banks have no room to talk when it comes to fraud! PPI springs to mind