# Sold house, repaid mortgage now PTSB wont give us another mortgage



## HarryB (8 Dec 2014)

Question: do banks have to play fair regarding mortgages.
History. in 2008 the crash killed my business and we had to move counties for work.  Couldnt sell our newly built dream home and had to therefore rent and keep a mortgage going.....pretty tough going.  PTSB eventulally agreed to interest only payments whilst the house was sold, but it took 2 years !  Finally sold the house in 2011, lost our own money and ended up with 70 k of negative equity ( took 6 months for the bank to agree as we were one of the first like this...stress....) We bought an old house for 124k, and spent 2 years doing it up and sold it for 210k after a lot of hard work and putting all our money into it. This meant we could clear all our negative equity ,ie pay the bank 76k  and have some for fees etc.  We went back to PTSB to look for a new mortgage of 200k (ie what they had given us 2 years earlier). They strung us along for months , eventually saying they would "consider" a mortgage of 165k to build.  This took a long time and we had to sign the contracts for sale of our own house( cash buyer) or we would have lost the sale before PTSB gave us a formal loan offer.  They then refused point blank to give us anything.  Since they gave us the original negative equity loan, our financial circumstances were much improved, (we got rid of 2 credit cards and a car loan) which included a shortfall agreement with one of the card companies (also a lot of hardwork).  So in nother words we worked hard, repaid them 70k in unsecured debt .....drastically reduced our debts/payments from what they had previously ok'd ........and then shafted us.  Now because of the interest only payments and the shortfall agreement on the credit card, nobody will give us a mortgage for the next 4 years, and I'm 43 now with no security for my family.
My question... do PTSB have to be fair and reasonable with clients


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## 44brendan (8 Dec 2014)

Sorry to hear of your difficulties and I'm afraid you are stuck with this decision. Not much use now, but you can negotiate when you are in a position of strength. I.e. before you pay them off. It would appear that they strung you out in order to get back the money owed!!


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## Brendan Burgess (8 Dec 2014)

Hi Harry

I don't follow your story. 

Could you set it out chronologically. 

Having said that, brendan's answer is correct. No lender has to give you a mortgage. 

Brendan


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## HarryB (15 Dec 2014)

Hi Guys,sorry for the slow reply.
I know they didnt have to give me a mortgage,and i know they strung us along till they got their money. My point is , 2 years ago they gave us a mortgage for 200k (which included 76k of unsecured debt) and even though our financial situation is greatly improved ( huge reduction in our own personal debt, c/card, car loans etc) they refused us for even a smaller amount whilst stating "they would consider a 165k mortgage .  I know its business, but dont they have some ethics code they have to adhere to?


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## kmick (15 Dec 2014)

Its nothing to do with ethics - this is a checklist process done by back office assessors in strict complinace with lending criteria provided to them by the banks risk department. One of these would include
Qx. Missed a payment in the last 5 years YES/NO 

If the assessor puts a yes tick in that box you are in trouble. All the other good behaviour shown by you is mostly irrelevant to them.


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## HarryB (15 Dec 2014)

Hi Kmick. They suited themselves this time.  Our last mortgage was for 200k (included 76 negative equity) and at that time we had large credit card debt and missed payments, but they disregarded these.  Now, after we played ball and worked hard to repay them and reduce their unsecured exposure , they shift the goalposts....


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## HarryB (15 Dec 2014)

Hi Brendan
A rough order would be :
-2008   PTSB lend us 200k for house 1
-2009   Move county and have to rent and pay mortgage
-2010   PTSB agrees to interest only mortgage while we try to sell house
-2012   Finally sell house.  Have large credit card debt and car loan. PTSB give us mortgage of 200k , 124 to buy a house with 76 in unsecured negative equity ( still have MBNA and car loans.
2013    Agree shortfall repayment with MBNA, balance written off (7k), clear wife C/card and car loan.  only have 2 credit union loans left.  Use all our own money to renovate house. Have offer on the house. August 2013 apply to PTSB for mortgage to see what they would lend us after we sold house. Told in Nov that they wouldnt lend 200, asked about a lower amount.  Many emails later ....
2014 May...PTSB email saying "credit dept would look at at self build upt to 165k"  want full breakdown of costs and plans
2014   July....PTSB NOW have problem with ICB  record
2014    August... Sell house for 210k (profit of 86k) repay PTSB full amount 
2014    PTSB  get back to us with a straight refusal ( 1 week after closing sale)
They really strung us along the whole time


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## Bronte (16 Dec 2014)

Forget about fair and reasonable with banks

What exactly do you have as regards assets, debts and income right now.  

What do you wish to buy.


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## kmick (16 Dec 2014)

HarryB said:


> Hi Kmick. They suited themselves this time. Our last mortgage was for 200k (included 76 negative equity) and at that time we had large credit card debt and missed payments, but they disregarded these. Now, after we played ball and worked hard to repay them and reduce their unsecured exposure , they shift the goalposts....


 
Harry I feel your pain, its frustrating and back in day where banking was done with a friendly face you knew (rather than some guy or girl marking a checklist it was easier to get a loan). Thing is through no fault of your own you got into difficulty paying your mortgage and that follows you for 5 years (where from any banks perspective you are essentially a flashing red sign). Think of it from your perspective if you were a businessman and you lose money from a transaction with a customer and then subsequently that customer comes back looking for credit - you are going to think long and hard. If its any consolation BOI and AIB both flatly turned me down for a loan in the last 12 months with a perfect credit history, 50% of the equity and two people in the house working.


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## Fin Crusader (22 Dec 2014)

Ptsb wants to reduce its mortgage loan book, recently it failed the ECB' s stress test and is looking for a capital injection, so new mortgages are not a priority unless  you are a sure bet.


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