Refused Mortgage

O

Ohmkuhn

Registered User
Messages
7
We were looking for a mortgage to move closer to work place and was very suprised with our own Banks atitude. To start with I have a full mortgage approval(Step further from Approval in Principle the contracts are with solicitor) from another Bank which brings us to 85% percent of our requirements. I have the other 15% + other related costs like solicitor and stamp duty from our own savings built up over years in our own name.

We just wanted to have the extra 5% to bring the approval to 90% so that we could use the deposit money for small home improvement in new home. We were in for surprise when we tried our own Bank with whom we have all our current account and savings for past 15 years. The mortgage advisor was as usual very goody goody and said it can be done. Then came the shock, our Banks home loan department refused the application and denied any reason.

My circumstances
PAYE employed past 6 years 57K basic + performance bonus
Spouse PAYE 6 years 26K basic + performance bonus

Current Mortgage remaining
64K over 7 years monthly repayment 773€, House valued at around 130K so no negetive equity. Its 4 bed semi and professional rent valuer can get upto 700€ rent.
No other loans or credit card outstanding, No childcare cost
Both Non Drinker, Non Smoker and prudent on money
Savings 37K in own name and with same Bank which refused mortgage. These are regular savings built up over years.

I would have imagined our Bank would have offered atleast the same mortgage as other Bank, but it seems they have just lost business acumen to look for right customer.

I would invite from forum any and possible reasons which the Bank even doesn't want to diccuss with us.
 
Try other banks

Similar to you recently, OH refused despite being a great customer. Approval given by another bank. Shop around is my advice, though I am no expert a all. The bank who has had him as a great customer for 20 odd years has just lost him too.......
 
UB long term relationship bore no fruit, AIB great took there time but mortgage in hand.
 
Pretty mad as was exact opposite with my OH! UB said yes despite no account! Glad it worked out for you.
 
The banks don't view long term customers and different than new customers any more. The mortgage apps are done purely on risk right now.

The other thing is that they have limits of what they will lend in specific months and quarters. Things can get refused because of this on occasion.
 
Lenders don,t have to give reasons , remember it is their money !!, What we call sensible lending seems to be lost. Banks are hoarding their Capital, if they weren,t state funded they would be in liquidation.You have a real k37 more than they have !! so congratulations.. Ps be careful with AIB , they will increase rates and are bust and we bailed them out to the tune of 20 billion!!!
 
Recently I approached the Bank of Ireland about the possibility of funding for a property that might come on the market. It was more of get to know you meeting with an Asst Manager. We discussed the proposition and my financial situation in general terms. I was surprised to hear that if I was refused I would be offered a meeting with the staff member in the bank who would be handling my application and that the staff member would go through the reasons for the refusal.
I was surprised as I have been a life long customer of AIB who was refused a loan in the recent past for a good proposition which was seeking a 20% loan and all I got was a very brief phone call telling me that I was refused on a blocked no. I no longer answer blocked numbers.
 
Lenders don,t have to give reasons- Barely legal myopic view by banks one day the tax payer umbrella would be gone but before that right customers would have moved on.
they will increase rates - So do other Banks, utilities and Government itself its just another risk to be mitigated.
 
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