Mortgage approval refused

Daragh86 · 03-09-2009 7:39am #1

Hi,

I'm new to this so my apologies if I mess up!

I recently found a house I was interested in buying, it was advertised for 160,000 - just out of my price range. I went to the local mortgage broker and had a chat with him. I have 13,000 in savings in the credit union so he applied for mortgage approval to PTSB. He said it was a strong application and should get approval so I put in an offer on the house which was accepted at 127,500, delighted. But...PTSB refused my approval because I had a small personal loan (€2000 outstanding). So I cleared the loan within a couple of days and reapplied to PTSB (I have to go with PTSB because they offer a 40 year mortgage term - 35 years with other banks doesn't leave me with enough net income after mortgage repayments - apparently...although it would leave me with 1300pm after mortgage repayments - who can't live on 1300pm?)

Anyway, got word back yesterday that PTSB refused my application again using the excuse that my current account statements said I was using my overdraft facility too often. I have a very small €200 overdraft facility which I do use because thats what it was set up for but I have never gone past the 200 euro.

Everything checks out fine - never missed or was late with a loan repayment, never had a credit card to mess up, my credit report is perfect, etc.

I earn 26720pa with 1260pa bonus guarenteed. I am in a full time, permanent junior managerial position within a stable very large company. I have no children, no outgoings, no car or personal loans anymore (at the time my personal loan repayments were 135pm).

I dont know what to do now, any advise would be great.

Dabko · 03-09-2009 4:23pm

Daragh

Get in line my friend!!
Banks arent lending to normal folks, full stop. As a broker told me, unless you are 2 guards earning 100k a year or you come from serious money, dont bother wasting your time - you'll only leave question marks on your irish credit bureau report.
The banks are spending tax payers money on advertisments telling everyone how they are offering great deals on first time buyer mortages...bla bla bullsh1t.

Also, its nothing personal either, the underwriters in banks are just afraid of their sh1tes right now. Money is costing too much to buy, especially for banks with the exposure the Irish lads do.

Davy · 03-09-2009 5:32pm

Dabko wrote: »

Banks arent lending to normal folks, full stop. As a broker told me, unless you are 2 guards earning 100k a year or you come from serious money, dont bother wasting your time

Well that's not true, Ebs and aib offered me more than the OP and im not a guard on a 100k a year, and i applied on my own.

Op i would try BOI, EBS or AIB. Its going to take a little of your time to go into them to have a chat, but bring all your paperwork, stuff about the property included and they will give you a guide their and then.

Toots · 03-09-2009 9:14pm

Dabko wrote: »

Daragh

Get in line my friend!!
Banks arent lending to normal folks, full stop. As a broker told me, unless you are 2 guards earning 100k a year or you come from serious money, dont bother wasting your time - you'll only leave question marks on your irish credit bureau report.
The banks are spending tax payers money on advertisments telling everyone how they are offering great deals on first time buyer mortages...bla bla bullsh1t.

Also, its nothing personal either, the underwriters in banks are just afraid of their sh1tes right now. Money is costing too much to buy, especially for banks with the exposure the Irish lads do.

Dabko, please don't post speculative/sensationalist stuff like without any concrete facts to back it up.

Davy wrote: »

Well that's not true, Ebs and aib offered me more than the OP and im not a guard on a 100k a year, and i applied on my own.

Op i would try BOI, EBS or AIB. Its going to take a little of your time to go into them to have a chat, but bring all your paperwork, stuff about the property included and they will give you a guide their and then.

+1, OP I can tell you for sure that these three are definitely lending to FTB's because I personally know several people who have recently gotten mortgages from them. The only think I can think of that might be counting against you is the amount you're looking to borrow. Some banks have a minimum threshold for mortgages and you might be falling below it. Not sure though. Best bet is arrange a meeting with the mortgage advisor in one of these and discuss it with them.

ntlbell · 03-09-2009 9:20pm

Daragh86 wrote: »

Hi,

(I have to go with PTSB because they offer a 40 year mortgage term - 35 years with other banks doesn't leave me with enough net income after mortgage repayments - apparently...although it would leave me with 1300pm after mortgage repayments - who can't live on 1300pm?)

I can't believe banks are still giving out 30+ year year mortgages (or advertising them)

crazy stuff.

Apply elsewhere, or bank for 6 months don't go into the overdraft don't use any credit cards etc.

and re-apply.

jhegarty · 03-09-2009 9:29pm

Get you records from the ICB and see if there is an issue.

stepbar · 03-09-2009 9:58pm

Daragh86 wrote: »

Hi,

I'm new to this so my apologies if I mess up!

I recently found a house I was interested in buying, it was advertised for 160,000 - just out of my price range. I went to the local mortgage broker and had a chat with him. I have 13,000 in savings in the credit union so he applied for mortgage approval to PTSB. He said it was a strong application and should get approval so I put in an offer on the house which was accepted at 127,500, delighted. But...PTSB refused my approval because I had a small personal loan (€2000 outstanding). So I cleared the loan within a couple of days and reapplied to PTSB (I have to go with PTSB because they offer a 40 year mortgage term - 35 years with other banks doesn't leave me with enough net income after mortgage repayments - apparently...although it would leave me with 1300pm after mortgage repayments - who can't live on 1300pm?)

Anyway, got word back yesterday that PTSB refused my application again using the excuse that my current account statements said I was using my overdraft facility too often. I have a very small €200 overdraft facility which I do use because thats what it was set up for but I have never gone past the 200 euro.

Everything checks out fine - never missed or was late with a loan repayment, never had a credit card to mess up, my credit report is perfect, etc.

I earn 26720pa with 1260pa bonus guarenteed. I am in a full time, permanent junior managerial position within a stable very large company. I have no children, no outgoings, no car or personal loans anymore (at the time my personal loan repayments were 135pm).

I dont know what to do now, any advise would be great.

I would forget about PTSB if they wouldn't give you a mortgage 4.5 times your salary. It sounds beyond belief that they gave you that excuse. FFS :rolleyes:

In fact, under the Business Lending Code that would not be on. It's time a Personal Lending Code was brought out and people were told why lending facilities were refused instead of branch bankers having to spout out pure lies because they're not really sure why the loan was refused.

I bet you they used the line "It fails Credit Criteria" :rolleyes: I'm guessing that it's the 40yrs that they are having a problem with. Perhaps you should be looking at a term between 25-35 years TBH.

BTW where is the house, is it in Dublin? Fair play for getting an offer accepted 20%+ below the sale price.

Daragh86 · 04-09-2009 7:54am

stepbar wrote: »

I would forget about PTSB if they wouldn't give you a mortgage 4.5 times your salary. It sounds beyond belief that they gave you that excuse. FFS :rolleyes:

In fact, under the Business Lending Code that would not be on. It's time a Personal Lending Code was brought out and people were told why lending facilities were refused instead of branch bankers having to spout out pure lies because they're not really sure why the loan was refused.

I bet you they used the line "It fails Credit Criteria" :rolleyes: I'm guessing that it's the 40yrs that they are having a problem with. Perhaps you should be looking at a term between 25-35 years TBH.

BTW where is the house, is it in Dublin? Fair play for getting an offer accepted 20%+ below the sale price.

The house is in Drogheda, Co. Louth. It's a four bed, ex council house, semi detatched, large rear garden. It's only open to first time buyers (I think it's because it is the first time the property is being sold). It needs work - re wiring, heating, windows, etc. about 10 - 15,000 I reckon but still would be getting it for a song.

My problem is that if I get a mortgage term less than 40 years my net income would be very tight after mortgage repayments (well in the banks eyes). In reality I would have, on a 30 year mortgage term, about 1200 net after mortgage repayments per month, which I could easily live on each month and also save at the same time - banks are mental.

It annoys me that banks can refuse an application that meets every criteria that they have advertised and that they don't have anyone to answer to. I presume theres no one above banks that you can appeal a mortgage refusal with?

My mortgage broker advised me to apply to EBS (they aren't on his list of mortgage providers that he can deal with). Fair play to him he checked it all out himself and said that I meet all their criteria and he got the entire application ready for me to post - on his own time. Actually I should prob mention his name bcause he has done me a huge turn and has gone above and beyond his duties for no cost - Dave Hughes, Blue Sky Mortgages, Drogheda.

So fingers crossed that the woman processig my application in EBS will be in good form by the time she gets around to mine. I'll have to call her up and talk nice to her. This is the last chance unfortunately, other than this its more wasted money and time on rent.

Davy · 04-09-2009 10:48am

Split the difference and go for a 35 year term

egan007 · 04-09-2009 10:58am

What Broker advices you to go to PTSB?
Asking ANY broker worth their socks will tell you BOI and AIB are the only ones with money...

eman66 · 04-09-2009 11:09am

Would they be wondering where he 15k to finish to going to come from?

dotsman · 04-09-2009 12:18pm

Firstly, in today's market, forget the broker and go directly to the source. The only banks worth dealing with are AIB/BOI and EBS to an extent. Apply to one of them directly.

Why he sent you to PTSB is beyond me. Everybody knows they are not open for new business, are far, far more expensive than AIB/BOI and who the hell offers 40-year mortgages these days? Have you asked him/her how much of a commission PTSB would pay him/her as opposed to AIB/BOI?

With regards your loan, they were right to decline you because of it. The most important variable in determining how much to lend is not the "multiple of salary" which some amateur commentators tink. It is the DSR (Debt Service Ratio). This is a percentage of your income that is used to service debt. If you earn €2,226 per month and the highest DSR the bank will deal with is 40%, then the most you can be repaying in any one month is €890 (€2,226 * 40%). If you are using €200 to repay a loan, then the most you can use to service your mortgage is €690.

Next up is the overdraft. From a financially prudent point of view, an overdraft is only intended to be used for emergencies/cash-flow issues. Using an overdraft on a regular basis would be cause for concern. There is also the matter of a cushion. In "today's uncertain world", what do you have to fall back on if you did lose your job? (or got a pay-cut/sick/injured etc.)? You should ideally have several months salary on a deposit (and not being used to buy/furnish the house), to cover the blow of being out of work. In the lender's eyes, the fact that you do not have this means that, should you fall out of work (for whatever reason), you have nothing to fall back on and will immediately go into arrears.

Finally, you mention that the broker said the other bank's 35-year offerings were too high of a DSR? If that is the case (not in work today so don't have access to the software to determine exactly), then, because the difference to repayments between a 35-year and 40-year mortgage is negligible, I would hold off another year and build up the savings some more.

Drumpot · 04-09-2009 3:09pm

dotsman wrote: »

Firstly, in today's market, forget the broker and go directly to the source. The only banks worth dealing with are AIB/BOI and EBS to an extent. Apply to one of them directly.

Just curious why you think a person should go directly to the banks ? Many people who leave themselves at the mercy of banks (ie take all their advice from them) end up paying alot more then if they go through an independent Mortgage broker.

When many People goto banks directly the banks pressurise them into to taking up other policies that would be cheaper through a broker or another company. A broker knows how to deal with banks, many people are intimidated with the lack of information available.

Why not find a broker and let them do all the work (many brokers work off comission basis) and get them to clarify charges to clear up transparancy?

A good broker will definitely get you the best deal on the market and will have a better chance of getting through your application. .

I think people should shop around for brokers, but I never understand how people make sweeping statements like "forget brokers" without factoring in the different qualities a broker brings to a table for MOST people. Some people have bad experiences with one broker and then taint them all with the same brush, misleading as many people as possible with their own ill informed prejudices.

dotsman · 04-09-2009 4:18pm

Drumpot wrote: »

Just curious why you think a person should go directly to the banks ? Many people who leave themselves at the mercy of banks (ie take all their advice from them) end up paying alot more then if they go through an independent Mortgage broker.

When many People goto banks directly the banks pressurise them into to taking up other policies that would be cheaper through a broker or another company. A broker knows how to deal with banks, many people are intimidated with the lack of information available.

Why not find a broker and let them do all the work (many brokers work off comission basis) and get them to clarify charges to clear up transparancy?

A good broker will definitely get you the best deal on the market and will have a better chance of getting through your application. .

I think people should shop around for brokers, but I never understand how people make sweeping statements like "forget brokers" without factoring in the different qualities a broker brings to a table for MOST people. Some people have bad experiences with one broker and then taint them all with the same brush, misleading as many people as possible with their own ill informed prejudices.

Brokers were useful during the boom, when there were a huge number of players in the market offering a huge number of products that were constantly changing.. Rather than filling out all the forms and sending in the relevant documentation to 10 different banks, then dealing with the various queries/communications, a customer could just deal with 1 broker, saving a lot of time and ensuring that they were presented with the cheapest options.

Nowadays, there are only 3 institutions recognised as being active in the market, and they are offering only a small range of products. Therefore, within a few minutes, a customer can easily compare the different products and choose which one is best for them. Likewise, because there are only 3 institutions, there is not as big a saving with regards to the documentation.

Brokers don't get the customer a better deal. Their sole purpose is to cut down on the hassle involved in choosing/applying, a hassle which doesn't really exist any more (due to lack of products). The disadvantage of using a broker is the potential that the broker is not recommending the best product by mistake, or worse, that they are making the recommendation based on the size of their commission or relationship with a specific bank.

I'm not quite sure what you mean by people being pressurised by banks into getting other policies. Are you referring to life assurance, mortgage protection, mortgage payment protection, home insurance etc? If so, except for MPP, these are all necessary products. The fact that the banks are offering them (usually at a discount) is not pressurising a customer. Under CPC, all customers are aware that they have a choice in relation to them and are under no pressure to purchase from the same institution as their mortgage provider.

If people are really feeling that pressurised, perhaps they should not be taking out a mortgage in the first place. For most people, obtaining a mortgage will be the single biggest financial transaction of their lives. If they do not understand the ins and outs of getting a mortgage, then they really need to take some time out.

For my part, I first went to a broker (one of the main high street ones) 4 years ago, and got offered a mortgage that I knew was far from the best for me (a smaller sum than I was looking for and trying to get me to fix at a ridiculous rate). I approached 2 banks individually, and in both cases got offered much better deals. Went with one of the banks, took their home insurance (at the discount offered to me, it is still the cheapest I can get), but approached several insurance brokers who (despite all dealing with the same insurance companies) offered my a wide range of prices on the same policies and I went with the cheapest on the market.

Drumpot · 04-09-2009 4:56pm

dotsman wrote: »

Nowadays, there are only 3 institutions recognised as being active in the market, and they are offering only a small range of products. Therefore, within a few minutes, a customer can easily compare the different products and choose which one is best for them. Likewise, because there are only 3 institutions, there is not as big a saving with regards to the documentation.

Brokers don't get the customer a better deal.

The disadvantage of using a broker is the potential that the broker is not recommending the best product by mistake, or worse, that they are making the recommendation based on the size of their commission or relationship with a specific bank.

I'm not quite sure what you mean by people being pressurised by banks into getting other policies.

If people are really feeling that pressurised, perhaps they should not be taking out a mortgage in the first place.

Before I say anymore. I dont have a problem with people disliking brokers. I have a problem with people that assume all brokers are the same soley based on their own experiences and dismiss the broker industry in a matter of fact way.

Different people can have different experiences with Brokers. .

Like many people who have issues with brokers, your assumption that brokers will be motivated by commission is assuming that all brokers do not act in the best interests of their clients. A good broker knows that by looking after your clients properly, they will recommend you to somebody else and you will not need to spend any money on marketing. .

Your statement of "brokers dont get customers the best deal" is based on your experience. Are you guaranteeing this statement as a fact or is this your opinion based on your limited experience ?

As far as your statement on "banks giving discounts in the branches", I have met many a client who were sold "whole of life" policies for Mortgages. Perhaps you are savy in how you deal with your finances, but not everybody is and not everybody knows what questions to ask .

If you are so distrusting of brokers and want to put the work in, why not do your own research take it to a broker and see if they can do any better? What do you lose ?

My point on people being pressurised is that when people are looking for mortgages , banks can and have pressurise them into taking out Pensions and Life assurance through them. I know this happens (have several clients who will testify to this) and its done in a way to make the client feel that they will not get a loan or mortgage if they do not take these policies with the bank.

Knowledge is power in this industry, I believe to leave yourself at the mercy of the banks is asking for trouble . .

In essence, your post was written because you found brokers to be unhelpful and self serving. Thats fair enough and should be obviously highlighted by people when they are unhappy with the service they get. That said, you should not taint a whole industry because of your own prejudice towards them. Also, you should not assume that people do not get intimidated by going into self interested banks. Good Brokers can help take some of the stress out of applying for mortgages among other things and they work for the client (As opposed to the bank official thats only interested in selling the banks products).

You are entitled to your opinions but should put "I think" on front of general statements as they suggest that you are quoting facts, as opposed to your personal opinions from your personal experience with brokers.

dotsman · 04-09-2009 5:23pm

Drumpot wrote: »

Before I say anymore. I dont have a problem with people disliking brokers. I have a problem with people that assume all brokers are the same soley based on their own experiences.

Different people can have different experiences with Brokers. .

Like many people who have issues with brokers, your assumption that brokers will be motivated by commission is assuming that all brokers do not act in the best interests of their clients. A good broker knows that by looking after your clients properly, they will recommend you to somebody else and you will not need to spend any money on marketing. .

Your statement of "brokers dont get customers the best deal" is based on your experience. Are you guaranteeing this statement as a fact or is this your opinion based on your limited experience ?

As far as your statement on "banks giving discounts in the branches", I have met many a client who were sold "whole of life" policies for Mortgages. Perhaps you are savy in how you deal with your finances, but not everybody is and not everybody knows what questions to ask .

If you are so distrusting of brokers and want to put the work in, why not do your own research take it to a broker and see if they can do any better? What do you lose ?

My point on people being pressurised is that when people are looking for mortgages , banks can and have pressurise them into taking out Pensions and Life assurance through them. I know this happens (have several clients who will testify to this) and its done in a way to make the client feel that they will not get a loan or mortgage if they do not take these policies with the bank.

Knowledge is power in this industry, I believe to leave yourself at the mercy of the banks is asking for trouble . .

In essence, your post was written because you found brokers to be unhelpful and self serving. Thats fair enough and should be obviously highlighted by people when they are unhappy with the service they get. That said, you should not taint a whole industry because of your own prejudice towards them. Also, you should not assume that people do not get intimidated by going into self interested banks. Good Brokers can help take some of the stress out of applying for mortgages among other things and they work for the client (As opposed to the bank official thats only interested in selling the banks products).

You are entitled to your opinions but should put "I think" on front of general statements as they suggest that you are quoting facts, as opposed to your personal opinions from your personal experience with brokers.

I get what you are saying, and to clarify - Yes I do understand that some brokers are better than others. But for me, the problem is - how does a customer know which broker is the best? For most people, they will go to whatever broker they see advertised or has an office near where they live/work/shop etc. Or perhaps they may go to one that is suggested by a friend/family-member.

But, by your argument, people who need brokers are those who may be ignorant of how mortgages work. But, at the same time, are these same people not going to be ignorant of how mortgage brokers work? Even when a friend/family member recommends a broker, are they not basing it on their one experience? Chances are that friend/family-member doesn't even know if they got the best deal, because, in all likelihood, they too were ignorant of the mortgage market.

For me, it is very simple. People owe it to themselves to do their research first. They don't need to be an expert in financial products, but have a basic knowledge of:

How mortgages work
What mortgages are available on the market
What rights/obligations they have

and should not be relying on a broker to do this for them. If they have this basic knowledge, then yes, they should, as I did, go to a broker just to see what is on offer (and if the mortgage broker meets their expectation, then feel free to use the broker, thus reducing their own paperwork/headaches). But, if the mortgage broker doesn't meet their expectations, and especially in today's market of very few products, they should equally apply directly to the banks.

It is people's dependence on brokers, and misguided belief that a broker is the best way to go, that I have a problem with.

To bring this back to the OP, their broker is obviously wasting their time:

not advising them to clear the loan before even bothering to apply
not improving their current account performance before applying
applying to PTSB when it is extremely unlikely PTSB will engage with a new customer
applying to PTSB when they are far more expensive than the banks that are open for business.

FFS, the mortgage broker even said it was a "strong application and should get approval" when clearly it wasn't and shouldn't. By cutting out the middle man and sitting down with and speaking directly to an advisor in the branch, they will cut through all this and will receive advise immediately on most/all problems with the application.

Drumpot · 04-09-2009 5:44pm

dotsman wrote: »

FFS, the mortgage broker even said it was a "strong application and should get approval" when clearly it wasn't and shouldn't. By cutting out the middle man and sitting down with and speaking directly to an advisor in the branch, they will cut through all this and will receive advise immediately on most/all problems with the application.

My post was more generic to people who class brokers in the same light . . I wont defend a broker who's chooses products for clients based soley on how much commission they can get (as opposed to clients best interest).

I assume your post was in relation to this client specifically. You say cutting out the middle man means you get direct access to a branch adviser which assumes a branch adviser will give you the best advice for you. . Its no less more assumptive then by assuming brokers will misadvise for their own gains in many circumstances. . It also assumes you have a better chance of getting a better deal going directly to a bank. I know of cases where people got superior terms by going through a broker after going directly to the bank themselves. I dont assume this is always the case, but your post suggests that going directly is always more beneficial which again is a matter of opinion.

I agree that people should make themselves as educated as possible regarding something as big as a mortgage and most financial policies. I just dont see the problem with people doing research (like you have done) and negotiating a better deal with a broker (which happens).. You seem to have alot of faith in the banking industry to suggest that they all give you the best advice thats available or appropriate to their needs.

By my arguement everybody should consider using abroker whether they do research or not, hell go to several brokers and let them work for you. If you dont know what you are doing, chances are you are just as likely to be ripped off going into a bank yourself as you are to be ripped off by a "dodgy broker". If you do your own research, i just dont see what you have to lose seeing if a broker can do any better. In some cases Brokers get offers that are not available to the general public. .

Daragh86 · 09-09-2009 8:19am

I got a phone call from EBS yesterday evening to let me know my mortgage application was approved!!

Toots · 09-09-2009 6:21pm

Congratulations!

eman66 · 09-09-2009 6:35pm

Good to hear. Very best of luck.

JuniorB · 09-09-2009 8:58pm

Mighty news Darragh. Congrats and best of luck with the new gaff.
Just to add some balance - we were recently refused a mortgage by BOI, AIB and EBS..... and got one from PTSB !

Drumpot · 09-09-2009 11:28pm

Congradulations Daragh . . Best of luck with your new venture . .

Daragh86 · 10-09-2009 7:51am

Thanks everyone.

I've come to the conclusion that banks are mental and haven't a clue what they're at. Once I have a mortgage and I'm not renting I'm happy though. Renting was going to be costing me at least 700pm and the mortgage on the house I've had an offer accepted on will be 454pm - can't beat it. Even if I loose my job and am on social welfare I'd still have enough for 2 or 3 pints a week

Happy days!

Another question though....

I've been saving with the credit union for about 3 and a half months now and I am looking for a loan to do up the house. I haven't had any regular saving pattern, just what I can afford when I can afford it. What would my chances be? I'm full time permanent in my job. I've saved a good lump in 3 and a half months.

demondrive · 13-09-2009 11:04am

hi all
need advice . i am in process of applying for mortgage with broker. my income is 27000 and 2000+ overtime per annum. i have 20000+ in credit union.i pay rent of 500 a month. would the banks look at my rent as an ability to repay mortgage or will it effect my application. i have no loans of any kind
any advice would be welcome. the house that i am after is in the regian of 165000
cheers

Mr.888 · 13-09-2009 11:42am

demondrive wrote: »

hi all
need advice . i am in process of applying for mortgage with broker. my income is 27000 and 2000+ overtime per annum. i have 20000+ in credit union.i pay rent of 500 a month. would the banks look at my rent as an ability to repay mortgage or will it effect my application. i have no loans of any kind
any advice would be welcome. the house that i am after is in the regian of 165000
cheers

Your income is good that that sum of loan, your savings is very good, paying rent is good if you can show on statements and you haven't missed any, banks love it that you have no other loans outstanding, by the looks of it you have a very very good chance you'd get it, go for it!

Davy · 13-09-2009 12:33pm

demondrive wrote: »

hi all
need advice . i am in process of applying for mortgage with broker. my income is 27000 and 2000+ overtime per annum. i have 20000+ in credit union.i pay rent of 500 a month. would the banks look at my rent as an ability to repay mortgage or will it effect my application. i have no loans of any kind
any advice would be welcome. the house that i am after is in the regian of 165000
cheers

I would agree, you do some in a good position. They may not take the overtime into account unless you can get it in writing that its guaranteed.

One thing that has been mentioned before, is that banks are not lending low sums, but you wont know until you ask. Ebs, aib or boi are the 3 you should try first.

demondrive · 13-09-2009 12:39pm

just one more thing. i have 20000 in credit union. it went in in a lump sum a few weeks back . does that matter just wondering. i also have on average 4000 coming in from other work per annum. prob wont count it though...

Lemlin · 14-09-2009 9:40am

demondrive wrote: »

just one more thing. i have 20000 in credit union. it went in in a lump sum a few weeks back . does that matter just wondering. i also have on average 4000 coming in from other work per annum. prob wont count it though...

The 20,000 will definitely count, although they'll want to know where you got it. If it was a gift from a family member, they may want you to get a note from that family member saying the gift cannot be taken back.

It may also change your application - is the house costing 165k and you are looking to borrow 145k because you have 20k? Or is the house 185k and you want to get 20k?

Either way, I'd say you should be able to get a mortgage for the amount you're asking for.

Watch out though for the bank trying to get commission on certain products. I went into the bank with my partner to get a second mortgage there and the rep was mad to get us to go over 35 years (when we can well afford 30) and buy their life cover, house insurance etc.

demondrive · 14-09-2009 10:17am

i would say i will get house for 160000 so i need 140000. the money is in my own account in credit union.so its looking good hopefully !!!

jc050173 · 15-09-2009 11:42am

Just wondering if anybody has encountered a similar problem & if there is anything that can be done

I applied for a remortgage with equity release to PTSB. I gave them confirmation of my own P60 income which is €60k plus bonus. My husband has P60 income & is also self employed. I gave copies of P60, wages slips etc.. I also gave his accounts for the years 2006 & 2007. PTSB then came back to su & requested certified accounts for 2007, I employed a firm to do this & gave them the relevany information. They then came back & requsted certified accounts for 2008 which aren't due until 31st October but they insisted, we even asked would they issue a loan offer subject to receivng them etc.. I got the account prepared & gave them in & had to join the bottom of the queue to be processed yet again. They have came back several times requesting inforation especially regarding the net profit in the accountants cert & the adjusted net profit as per income tax return. I had to get a letter to explain that adusted net profit appears in the revenue return etc,,, I would have thought that any person dealing with mortgages should be competent in the accounting issues.. Anyways to get to the point after three months of tooing & frowing they came back yesterday & said that credit refused the application based on our occupations, I'm financial controller in an auctionners & my husabnd is in construction, , surely thay should have recognised this three months ago & not put us to undue expense getting certified accounts etc. if they were going to turn us down anyways? Any advice

The Rooster · 15-09-2009 1:21pm

jc050173 wrote: »

Any advice

1. Don't let your work go to waste and apply to a proper bank such as AIB or BoI. EBS are also far more likely to give you a loan than PTSB.
2. Avoid ever dealing with PTSB again.

Mortgage approval refused

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