refused mortgage what now?

[Babsi]

Looking at the figures, you are looking for 95% mortgage (275/290). AIB's policy in the past was 93% max so i think its going to be tough to get any lender to do 95% at the moment. If you could bring it less that 90% then you might stand a chance.

Thanks for the advice Big - we are looking for at least 90% but we never thought we'd get 95%?
Thanks for all of the advice - on the signing of contracts - we never ever would have let them be exchanged and our solicitor advised us of this. If the house sale fell through it wouldn't be the end of the world but we would love to have full mortgage approval in place - I think we just presumed it would be ok because we have no loans and have a lump sum etc.
Anyway thanks again - we shall go and try Halifax amongst others!!

 

[sadie]

We have 2 children and applied to Halifax. We only have one modest income and were refused a mortgage outright because Halifax is one institution where if you have children they apply their 'responsible lending' criteria pretty hard.
Initially we were told we'd get 180k. Then we didn't even qualify for the minimum 75k. So try Halifax, but they may not be your best option if you have children. We got approval for a mortgage with our own Bank of Ireland after.

 

[Babsi]

Sadie, thanks for that - I called them and they said their LTV for movers is now at 80% (says 90% on their website) which wouldn't be enough for us at the moment and we have 2 children. Think BOI might be getting a call - we bank with them - they did say once our property was sold to come back to them but again that was last year. I'll just plod along and keep trying!

 

[Bronte]

OP have you done the figures on a 95% mortgage. 95% mortgages have resulted in a lot of people being in negative equity. A 95% mortgage over 30 or 40 years is even worse. Similarly a low introductory rate while helping initially does not give a borrower a sense of reality should rates rise so I hope you're stress testing yourself.

 

[Babsi]

Sorry, just looked at my first post - my figures were all over the place - the house is valued at 295,000 and we were looking for mortgage of 90-92% if possible so that would be: 265,500 - 271,400. We have no loans, no childminding fees, and earn 74,500 (both salaries). We can afford mortgage at the moment as we are paying a small one now and putting Eur: 500 a month into credit union.