Declined for Mortgage,what next?

L

LITTLECBEAR

Registered User
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Hello

My partner and I have just been declined for a mortgage to build with one of the main banks in Ireland. I was only looking for 130k (would have taken 100k at a push) I have 35k of savings with this bank and a long very good history.

The mortgage was joint and my partner is currently out of work, cant get a sole mortgage as the land is in his name. We were advised by broker that the lack of employment is the reason for decline.

Do you think it is worth having a meeting with the bank manager to see if they will reconsider or what should I do next? I would be able to afford the repayments on my own anyway so Im pretty angry that we have been declined.
 
Assuming you have no level of personal debt and no bad credit rating and are in a permanent job, I can only assume that when the bank stress tested the potential loan( and by that seeing if you could repay the loan were interest rates to rise) that they felt you wouldn't be able to.

you can always ask the bank manager why were you refused and perhaps should consider shopping around with other banks
 
maybe they are doing you a favour,

forcing you to rent for another year,
and saving you from losing another 20-40% of the value of the property??

maybe they are not so bad after all
 
She is building, so I would have thought it is a good time to build. Easy to get tradesmen at very affordable prices (my husbands cousin is building a house, and is getting work done at a fraction of the normal price). If your building it doesnt really matter what the housing market is doing??

So you have a site already so your only looking for the build price.

I would have thought you would qualify on that income for the money your talking about. I would ask to speak to the bank manager and ask for feedback, and then I would shop around. We got a mortgage for far more than that on slightly higher income so dont give up.

Good luck.
caz
 
cazmayo said:
If your building it doesnt really matter what the housing market is doing??
Click to expand...

You're just after saying that your friend is building now for cheaper than during the boom, so yes, build prices are related to property prices.
In my area build prices are down from €100+ per sq foot to €50-60, but these prices will drop further.
 
LITTLECBEAR said:
Hello

My partner and I have just been declined for a mortgage to build with one of the main banks in Ireland. I was only looking for 130k (would have taken 100k at a push) I have 35k of savings with this bank and a long very good history.

The mortgage was joint and my partner is currently out of work, cant get a sole mortgage as the land is in his name. We were advised by broker that the lack of employment is the reason for decline.

Do you think it is worth having a meeting with the bank manager to see if they will reconsider or what should I do next? I would be able to afford the repayments on my own anyway so Im pretty angry that we have been declined.
Click to expand...

100k on a salary of €40,000 is not alot to ask for.

Normally these are reasons why banks will not accept applications:

· Little or no Credit card arrears
· Overdraft Facility should be low (preferably not in use)
· Strong /low LTV – Max LTV 80%
· Strong Salary – Preferably no more than 5 x Gross Salary
· Minimum Employment Duration 1 Year

Since the land is in his name, technically you would be taking out a mortgage on property thats not even yours, so it makes sense for the banks not to give out the mortgage.

Have you looked into the possibility of being put as joint owner of the land. ?

You should then be able to apply as Joint owners, for a joint mortgage.
 
I rang the bank asking them to reconsider, they said they are viewing that since partner is unemployed I am providing for us both - and that is the reason for decline.


Guess I will have to keep looking.

Thanks folks
 
What is the value of the site? What is the nature of your employment, is it permanent etc. What is your partner's qualification and prospects of employment? That fact that the site is not in your name can be an issue. Do you really want to build a house on a site that does not belong to you - that's the way the bank's think when they are giving out loans. Also where are you getting the building costs from. More details will help in getting you better advice. You can try other banks or a broker. Brokers are best for tricky situations as they know the hoops the banks will put you through.
 
Bronte said:
Do you really want to build a house on a site that does not belong to you
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Thats the way the OP should be thinking too. The site should be jointly put in both names. Then you should ask the question, is it the right time to build now when your partner is unemployed.
 
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