Actual Lending Banks

N

NDynamite

Registered User
Messages
52
Hi there,
I wonder would somebody tell me what banks are actually lending...
First time buyer - 280k, have large deposit.

I hear it's only about 2 and the rest are putting obstactles in the way?

Thanks
N
 
They are all lending once you have:

1) repayment capacity (proof you can meet projected stress tested mortgage repayments i.e mortgage repayments at a rate of 6%)
2) strong savings
3) secure employment - the longer you are in your job the better
4) full time and not on probation
5) steady credit balance in current account
6) no missed payment/overdrawn/referral fees
7) enough disposable income to comfortably live on after projected mortgage repayments

You could call the above obstacles, banks prefer "lending criteria"

[broken link removed]
 
What banks have you talked to? The big two are difinitely lending and as NorfBank says - have your affairs in order.
 
I just got a new mortgage from AIB, so they are lending.

But as mentioned, I would say it depends a lot of the potential risk you present to them. Perhaps they are only lending to safe options at the minute. I had a large deposit too, plus a relatively small mortgage amount over a reduced term.
 
I got a mortgage with my partner from ICS Building Society. We had a large deposit also.
 
Thanks guys,
Another way of phrasing the question would be...
What banks have arranged their criteria so as to eliminate 99 pc of people from possibly getting a morgage with them?

I suppose if affairs are in order - shouldn't be a problem, I just don't want to waste time going to a place where everybody knows they are lending nothing.

Cheers for the replys, what a superb website this is.
 
DOES ANYONE KNOW THE FORMULA THE BANKS ARE USING NOW TO CALCULATE THE AMOUNT OF A LOAN THEY WILL GIVE A CLIENT?

Sorry to butt in here but my son is thinking of buying a house and I was just wondering if anyone knows what formula the banks and building societies are presently using to work out how much of a loan they will give someone based on their earnings?
 
There is no set formula but I set out a summary of the conditions above. The old days of a formula like 5 times income are over. If you cannot show that you have repayment capacity then you will not get a mortgage.
 
NorfBank said:
The old days of a formula like 5 times income are over.
Click to expand...
It's amazing how 5 times income is considered the old days! that was a phenomenon of the ridiculous lending practices of the 2000's. Prior to that "the old days" formula was 2.5 times principal salary and 1 times the second salary. This was probably a little too conservative, but only a little.

The economic environment will influence the inital credit decision. i.e. banks will lend conservative multiples of salary when there is greater potential for redundancies, such as in recessions. On the other hand, they will lend greater multiples when the economy is expanding.
 
I would guess you will not get 5x your salary now tbh.

More like 4 or less I'd say.

Also, I'd say you definitely need a substantial deposit, as it shows you are able to save. I think banks are chatting about them giving out 92% mortgages again like they used to do before the madness of 100% mortgages, but to be honest again I'd say they will be very fussy who they give 92% out to.

When I got my first mortgage the paperwork seemed to be very willy-nilly. This time they went into so much depth looking at info on me/wife and everything had to be perfect.

Suppose thats not a bad thing.
 
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