Thanks very much. The present situation is that the lovely branch manager is appealing the decision with the under-writers. He was confident that it was a strong application and appears surprised. The difference in the amount applied for and amount offered is €75,000, threatening the viability of the move.
Our LVR was fine (70/30); our ICB record is pristine; our affordability is fine; our repayment capacity for stress tested mortgage is fine; our track record with the same institution is perfect (and +10 years). My partner is self employed, I am full time, permanent PAYE in a stable sector. However, his income represents only 16% of our total income.
To achieve all that we hoped to borrow we would have been seeking an exception on the LTI, i.e. a multiple of 4. I thought we had a strong case for this, given the following:
- Combined income far in excess of what I believe is the norm for allowing exemptions
- Single exemption required, i.e. not looking for a LVR exemption too
- Strong credit rating/ payment record with same institution
- Early in the year so exemptions not used up
- Reasonable amount, i.e. not a major exemption amount, nor too small to make it not worth their while to devote an exemption
- In addition, there was clear evidence of additional income but in a format that they could not accept as baseline income. Fair enough.
- The same institution met me 6 months ago, told us what we could borrow and sent us away to show a six month capacity to repay/saving history
Perhaps none of the above is relevant for underwriters. And I could understand if they simply said they wouldn't move past the 3.5 income multiplier. But my major gripe is that what they have offered is under 3.5. I assumed that we would be offered at least 3.5 x our basic income.