Mortgage Declined due to ICB

Hi
We had approval in principle for remortgage of existing house & to cover extension of house. We were looking for 62% mortgage and we have a considerable amount of savings. We have no debts and have never had a direct debit bounce or cheque declined. We have been over drawn on our account approx twice for about 100 euro.
AIB did a credit check an declined mortgage on basis of unsatisfactory operation of accounts.

Does this mean we will be declined everywhere or what options do we have ?

I have applied to ICB directlty for copy of this report.

Thanks

You should try a good reputable broker with access to a large number of lenders- this will increase you chances of getting an approval.

AIB are refusing cases hand over fist at the moment. It is easy to take out full page adverts in papers to inform people that they are open for business etc, but this is all only PR & spin. They are refusing cases left right & centre so even though they have been recapitalised they appear in no hurry to actually lend any money.

If your credit history is as good as you have outlined you will have no problem soucing a 62% mortgage approval subject of course to earning sufficient income to qualify.

Best of luck with it.

Cannonball said:

We have no debts and have never had a direct debit bounce or cheque declined. We have been over drawn on our account approx twice for about 100 euro.
AIB did a credit check an declined mortgage on basis of unsatisfactory operation of accounts.

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Based on the reason given, it would appear that the AIB were not happy with your current account performance and not an ICB check.

You could appeal this but will need to get some facts straight first.
- Do you lodge to your savings accounts monthly?
- If so, did your savings standing order make you overdrawn?
- Do you have an overdraft facility?
- If so, were you over your agreed overdraft limit by €100?
- How long were you overdrawn for?
- How recently were you overdrawn?
- Was it your mortgage DD that made you overdraw your account?
- Has your salary recently reduced and would AIB have a reason for believing that you will be overdrawn more frequently in the future.

In short, if the bank (and not just AIB) feel that you are stretched at your current level of borrowing they will decline.

If you can demonstrate that your new mortgage is less then what you currently pay for your mortgage and put aside for your savings, you may have a chance. This is especially true if you can demonstrate that the reason you were overdrawn is because of moving funds to a savings account and nothing more than that.

AIB are one of the strictest lenders and they put a lot of emphasis on how your current accounts are run when underwriting applications.

As the ICB will only detail missed payments, yours should be clean so AIB should not give your ICB reports as a reason for declining. It seems to me that they are either hiding behind the ICB report or that there has been a miscommunication from them as to why they declined your case.

AIB have the most competitive rates at the moment, so they have a lot of applications and can cherry pick from them.

As Yellow Belly said, try a broker or apply directly to other banks. If your ICB report is clean then you should be approved elsewhere.

Thnaks Vor,

Ver helpful post. I'm in the middle of applying with AIB, and was very concerened that I had gone into overdraft when my savings came out. It was only for a couple of days, but I just hope she sees that it was because of savings.

Least I know what I can say if anything comes up