Just been refused a mortgage - Any suggestions?

S

Sound_Out

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Hello following on from my previous email..

i have just been refused a (100%) mortgage with the bank I have been with for the past 12 years. Needless to say I'm very upset. Especially as the mortgage would have been less then our rent etc, etc and easily manageable

The Mortgage was for 213,000
I earn 35,600 and my partner earns 10,000 part time as she is a stay at home mum for most of the working week.
We also wanted to add our childrenss allowance to the income and had a room rented out with my younger sister for 350 pcm to help us out. Sadly these were not taken into consideration at all which is terrible. We only have one loan for the amount of 147 pcm. That is the extent of our short term debt.

I really cannot believe that I was refused because we apparently do not earn enough.

I am desperate to apply again to another institution but I'm wondering if my own bank wont help me are we wasting our time. Its very sad especially with a young child to worry about. I would be grateful for anybodys thoughts on the matter or advice. Many thanks again
 
Sound_Out said:
Hello following on from my previous email..

i have just been refused a (100%) mortgage with the bank I have been with for the past 12 years. Needless to say I'm very upset. Especially as the mortgage would have been less then our rent etc, etc and easily manageable

The Mortgage was for 213,000
I earn 35,600 and my partner earns 10,000 part time as she is a stay at home mum for most of the working week.
We also wanted to add our childrenss allowance to the income and had a room rented out with my younger sister for 350 pcm to help us out. Sadly these were not taken into consideration at all which is terrible. We only have one loan for the amount of 147 pcm. That is the extent of our short term debt.

I really cannot believe that I was refused because we apparently do not earn enough.

I am desperate to apply again to another institution but I'm wondering if my own bank wont help me are we wasting our time. Its very sad especially with a young child to worry about. I would be grateful for anybodys thoughts on the matter or advice. Many thanks again
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did they say how much you could borrow, or was it your tax issues/empolyment history that was causing the problems ?

any chance they would give you a 92% mortgage ?

what are the chances you can pay off that loan , even a small loan makes a big difference to the amount you can borrow..
 
Hi, it was apparently because the stress tested mortgage would exceed 40% of our disposable income. The employment / tax history was absolutely fine I am led to believe. I'm just astonished to be honest. Quite stunned.

Regarding the loan, we just cleared off 2 other personal loans prior to applyijng in order to bring down our outgoings. We really couldnt afford to pay off the last remaining loan unfortunately.

Unfortunately we do not have a deposit for a 92% mortgage, we have been renting together for the last 8 years so never have really been in a position to save a huge amount.

Thanks for your help

Ps - After my initial meeting with the bank they seemed to think that 240,000 would be my maximum. Providing I cleared off 2 loans. Strange.
 
Go to a broker.
My bank (aib) wouldn't give myself and my partner a mortgage but we had 3 mortgage offers with the broker. We borrowed the deposit from the credit union.
 
From experience The Irish Nationwide will give a mortgage to absolutely anyone.
 
Talk to a mortgage broker. Maybe someone who has that type of experience on AAM can give advise. Rea brokers and Liam Ferguson who are mortgage brokers regulary give advise on AAM.
 
Hello,


I am a mortgage broker, and I have just run your figures through one lenders calculations and you would qualify for the amount needed,
 
anyone notice that on that mortgages.ie site, if you put your salary as 30000 (no bonuses etc) that the max mortgage is 155000 but with a salary of 30500 the max is 153000... why?
 
The Irish Nationwide will give a mortgage to absolutely anyone.
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they dont do 100% though.

based on income and other outgoings realistically you qualify for approx €205,000, you would qualify for €230,000 without the loan.

have you any chance of repaying the loan?????
 
, tell us more of your situation, ie what u earn what u want , maybe your parents could go on application with you
 
Sound_Out said:
I really cannot believe that I was refused because we apparently do not earn enough.
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Can I suggest you read your post in the cold light of day.

You want a mortgage of just shy of six times your gross annual salary.

Why should they take your kids allowance into the equation? Or your sisters rent? She could leave next month.
 
Of course if you go the right routes and ask the right question and tell them the right answers they will give it to you or very close to it. But you need to do the figures to see if you realistically can afford it the bank will give you anything you want just the regulators that will give them a doing over if they give ya too much. I went to aib and asked them for more than 5 times my salary and they said no way and i got no where near what i needed. A broker got me what i wanted and it was funnily enough with the same bank that refused me haha. They did give me more than the formulas says but my track record was excellent and had 10% and income covered cost just the formula was very hard and denied me so I am well able to cover the costs and renting as you hope to do. But realistically i am taking a chance that if it goes up 2% and I cant rent I am staying in every weekend and not saving, would have to pull out of the ssia etc. But the chance of both those happening in the next year is slim and even two yrs and I plan to have a whack off my mortgage off at that stage and increased my salary as I am with a good employer. See what I mean about looking at your whole finiancial situation is it a good renting area as you may not be able to rely on your relation to always rent nor can you ask them for money if they themselves are out of work.

Good luck
 
As far as I know I believe you have to earn a combined income of 70,000 euro to qualify for a 100% mortgage.
 
Smiler - I can only go by what the bank initially agree to give me. They told me I would eligible for a mortgage of between 220,000 and 240,000 based on the combined incomes. They initially told me it would be better still if I could rent a room and to include every single scrap of other incomings as 'other income'. So in the "cold light of day" you can imagine my surprise when when they chose to omit 2 of the sources of income.

I suppose if my sister 'could leave next month' I could also theoretically fill the room the next day in the land of guessing and what if. I stuck to the banks rules. Nothing more, nothing less.
 
As far as I know I believe you have to earn a combined income of 70,000 euro to qualify for a 100% mortgage.
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Only BOI and ICS have a minimum income requirement for 100% - €35,000 for a single applicant €60,000 for joint, PTSB, UB, EBS and FA do not have minimum income requirements.

Also note that lenders only allow for room rental for single mortgage applicants, they do not allow for room rental in the family home.

None of the mortgage lenders will factor in childrens allowance, surprised your bank indicated they would.
 
Having worked in mortgage lending I can see your point, but rental income will not be taken into account in most circumstances, especially in the case of 100% mortgages.. Also, if the property was a self build then no institution will lend 100% for it, furthermore, childrens allowance is never taken into account.. Finally, some institutions will not entertain 100% except in the case of high earning professionals, eg doctors, accountants etc.. best advice is to try another lender or else introduce some of your own equity to the deal..
 
I have to say, although I feel for anyone in the position of trying to buy their first house in this climate, Im glad to see that some lending institutions are being responsible about how much debt they allow people to get into. When I was buying my first house 7 years ago, the limit was three times my salary. Thankfully back then that was enough to actually buy a house but now it seems they will lend any amount to anyone. And three times your combined salaries is nowhere near enough for what you want to spend.

You'll definitely get a mortgage from somewhere. Some institutions actually encourage you to be "economical with the truth" I was actually told to borrow the deposit from the CU but not mention it. I was also then told to declare that the house was more expensive than it was because I could then borrow more (when the limit was 90%) and I was buying from a family member so I could make an arrangement with them to "buy the contents for cash". Basically they encourgaged this sort of thing in order to be able to lend me the money.

Good luck with it, but keep trying and you will definitely get the mortgage.
 
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