Refused mortgage because of returned direct debit can we appeal?

K

Karencc

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We were declined a mortgage because I have two returned direct debits on my current account.
I have been saving with the credit union (1000per month) which has in turn put my current account under pressure but I felt it was the right thing to do (I now understand it was silly) there were literally two returned direct debits 35 sky and 50 eircom both of which were taken out a few days later and account was fine. I thought bank may understand my thinking behind it and see all the money is there I've just been distributing it differently.
Is it worth my while appealing this? Or does this flat mean no?
 
Hi Karen

It's a commercial decision, whether a bank lends to you or not. It's not appealable to some independent group e.g. the Ombudsman Service.

You could try appealing within the bank but I don't know whom you would write to.

You should probably talk to a mortgage broker who might be able to present your case in a better manner.

Brendan
 
Can I switch lenders for neg equity mortgage?

Basically am with aib 86k neg equity
House sale agreed and have applied for new mortgage
Am I stuck with aib or can we choose to borrow full amount from another bank?
Or could we pay off 86 to aib while simultaneously paying a new mortgage with new lender?
 
Karen

I have merged your two threads as they are related.

So, you were refused a negative equity mortgage?

That is a bit more understandable. The banks are very strict about these. So any blac mark at all would frighten them.

To answer your question, no other bank will give you a mortgage with an LTV over 90%

It's unlikely that they would give you a fresh mortgage either.
 
Ok it's just frustrating as they see we can afford repayments but I have managed my finances badly. I have a great amount of savings and have shown 1000 per month over past number of years but this has caused the odd direct debit not being met as I put the savings as my first priority
 
Do people still sit down with a bank manager and talk through finances or is it purely based on info input into a computer?
 
It seems from this thread that you were refused a negative equity mortgage, then you were approved, now you are refused again, I suspect that they just don't want to give it to you.

Brendan
 
I think I am confusing the bank because they are confusing me.
In relation is the refusal they also said I was relying too heavily on my parents for deposit which seems unfair as they are my parents and have offered to gift us the deposit.
I have only 8 in savings I meant I have been putting 1000 euro into the credit union for almost 5 years without fail. I have had loans/ withdrawals but I thought this would show we can comfortably live without that 1000 a month. I am probably thinking it all wrong. They first refused and were very apologetic as they said they had no idea where the person dealing with us had got the figures from. We then submitted more statements and payslips and have now been refused based on these two things.
Can I sit down with someone at the bank and discuss what we need to do? Ex: keep current account in good shape, improve savings and reapply? Or do I need to accept this now?
I also assume they won't let the sale of our own house to through now? As we were refused a mortgage full stop not just the amount we were looking for.
 

I don't really know where to start with this.

Putting €1,000 a month into your credit union , but taking it out again, isn't saving? In 5 years, you have saved €8,000. That is around €130 per month.
 
So u think I'm wasting my time trying to convince them?
We had a wedding and 3 babies in those 5 years so ate our savings a good bit. I stupidly thought it at least showed capacity to save and to live without that amount of money.
I guess we are probably defeated at this stage there doesn't seem to be a way round this one!
 
To be blunt about it Karen, I would say that you are wasting your time trying to convince them. You probably have confused them and yourself in the past.
You cannot eat into your savings and have them at the same time.
 
Unfortunately,you haven't shown the ability to save 1k a month or anything like it,because you haven't done without it.
 
If you were saving €1,000 a month over 5 years, then you should have €60,000 in the credit union, no ?

A wedding and 3 children are not exceptional events, it's life.......

I think you need to get your head around your own finances before you go back to the bank again, you should be leaving a surplus in your current a/c's every month and only putting extra money into a credit union a/c.
 
As I said they have based their refusal on the fact that these two direct debits were returned. They should be able to see from our monthly net that we can comfortably afford repayments. Do u think we could keep our 86k as a loan with aib and look elsewhere for a mortgage? Rearranging finances from here on in and waiting 3 months?
 
I can't see details of your income, age or other relevant points in this thread. I haven't looked at other threads.

What's the value of the home you're in at the moment?

I'll assume that the mortgage balance is €86,000 higher than this.

What's the value of the property you would like to move to?
 
Ok I bought my home for 260 sale agreed now at 138 we have 86k negative equity.
The house we want to purchase we have sale agreed at 205. Our new mortgage would be 274600.
I am a teacher on 45k a year my husband who is not on the current mortgage as I bought this house alone is just below 30k a year so 75k total income.
We are being offered help we need (money/ guarantor/ anything!) by both sets of parents but not sure if even that will help now?
 
In my opinion, the bad news is that you're not going to buy this house right now. But you can strengthen your position to try again in about 6 or 7 months' time.

8% deposit on €205,000 = €16,400 + Stamp Duty €2,000 + legals €2,500 = roughly €21,000 deposit required.

Assuming that you're young enough to get a 25 years mortgage (not over 40), stress-tested repayments on €274,600 over 25 years are around €1,850 per month. So the amount you need to be saving is a minimum of €1,850 less your current mortgage repayment.

Do that for 6 or 7 months, don't take any money out of your savings, keep your current accounts in credit at all times and try again next year.

The only other alternative I can see is if your parents are willing and able to clear your €86,000 negative equity with a gift. Sell the current house, rent for a while, build up your savings, keep your current accounts in credit and you should get a mortgage from another lender.
 
I am 28 so able to get a 33 year mortgage as hubby is 31.
There is no stamp duty on this particular property.
I am just uncertain as to why they can't just see that the money is all there but just badly distributed.
I hate giving up so I am going to meet with them once last time.
I think the 86k gift wouldn't make a difference as they turned us down full stop they didn't say they were willing to give us even the same mortgage as we have now or less.
Am I dreaming thinking its worth a go? Perhaps offer more as a deposit and ask for a lesser mortgage? Spell it out that we are going to now incur fees for nothing, have been given terrible advice from them and a new phase is opening in our estate in the next few months where houses are on the market for 20k less than the price we have been offered?
Be blunt! Am I dreaming?
 
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