Declined for Mtg with AIB any point looking elsewhere???

Hi,

im single with 1 dependent
Salary: 38k with 8k gtd bonus with further 6kpa expenses
Permanent employment started 6 mths ago - left previous employment after 8 years)

I have a buy to let mtg of approx 130k with UB
Monthly mtg of 400eur
Rental income of 360eur per month (long term tenant)
No childcare expenses (parents look after child when working)
Rent of 400eur per month
Savings of approx 30k - regularly saving 400eur per month for past 12 months
No arearrs or negative history

i recently applied to AIB for a mtg of 140k max (would probably accept 130k) & have been refused due to what they stated where the stress tested repayments on my existing mtg & that as my bonus isnt paid until Jan they cannot accept this even though it is stated in the Salary Cert signed by the CEO of my company & have been told to re-apply in 6mths time

i have an appointment with PTSB today & after being declined ive applied to BOI & KBC both of whom are to return with details soon.

My query is (apologies for the length of the post!!) is it even worth my while applying elsewhere seeing that AIB have already declined the mtg ie is a record kept of the fact that i have been declined & are the banks very restrictive on the mtg criteria, the big thing for me with AIB is that they took into account 50% of my rental income on the BTL

Thanks B

No bank will be aware of a decline from another bank. If the 8K bonus is to be taken into account it must be classed as part of your permanent salary. Expenses are not included as they are assumed to cover refunds of costs incurred. Savings record is a positive and you should shop around. BoI have a good record of approving new loans for 1st time buyers. You unfortunately will not be classed as a FTB. Have you looked at why you need to hang on to the BTL property? most banks will discount rental income to allow for costs and vacancy periods. 50% is a bit steep however.

Myself and partner recently applied for a mortgage with AIB as that is where we had always banked and had our savings, they declined us on the basis that they wanted us to save an extra €500pm, we also applied with BOI and UB and both banks approved us for the amount we needed. I would definitely go and apply with all banks and hopefully you will get approval...good luck.

44brendan said:

Have you looked at why you need to hang on to the BTL property? most banks will discount rental income to allow for costs and vacancy periods. 50% is a bit steep however.

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Thanks for the reply,
the only reason that i need to hang on to the BTL is the current LTV is poor, i would imagine a current value of approx 60k vs mtg of 130k leaving 70k NE

Thanks for the replys, ill be shopping around & fingers crossed i can get some form of good news!
Just out of curiousity can i rule EBS out given that they are owned by AIB?

Yep. Makes sense with the rent more or less matching the mortgage payment. You seen to have your head screwed on well in terms of your approach to this proposal. Hopefully you well get a positive response from one of the other banks. Good luck!

I agree with the advice from 44brendan and ash26. I was a lifelong customer of Aib with an excellent record which they had to acknowledge but I was refused. The only thing different to ash26's situation was mine was a BTL. I approached BoI and Ulster bank and while I never even stood in a branch of either of them I was approved by both of them. When you are approaching the other institutions make sure you have all the documentation that was required by Aib and have everything updated incl. salary bank statements as close as you can to your date of application. Do not give up hope and good luck to you.

Someone reminded me recently of the old banking advert about "the bank that likes to say Yes". Well I've always found AIB to be "the bank that likes to say NO" and this thread seems to reinforce that opinion.