Ideal candidate cant get a mortgage

ebrab04

I am so desperate I hope someone out there can help me I am just so angry I have just found out that I have been turned down for another mortgage,,, yet another one I have applied and been turned down by AIb, BOI, Ulster Bank, Permanent TSB and the EBS, between myself and my partner our incomes total €37,000 and we have thanks to the sale of a previous house and some other savings around €125,000 in the bank and we applied, 5 times, for €160000 loan over 40 years, the repayment would be basically nothing. We have tried absolutely everything I am desperate, because we had to sell our previous home when the time was right to get the most money from it we have been living in my inlaws for almost the past year. The only additional factor is that we are only 23, yeah long story as to how we bought the other home... I am so desperate my taxes are going to recapitalising the banks and stimulating the economy and I cant even get a 57% mortgage.... Newsflash THE GOVERNMENT CLEARLY HAVE NO MONEY!!! I am at the end of my rope does anyone out there have any other ideas as to where we can go to get this small mortgage It is so devastating we are actually trying to build, we have a site and I dont know how much longer we can put off paying for it and I am terrified we are going to loose it we can build the house for around €120000 but we need this money.Any ideas??

rainbowtrout

I could have this wrong but it sounds to me like you are saying that you want to pay for the site and build a house for €280,000 as 57% is €160,000.

I don't think the problem is that you are only looking for 160k, I think that it is the fact that you are looking for almost 4.5 times your combined wages.

Are your jobs stable and are they in an area that of employment that is considered stable? I'm also assuming that if you are both working fulltime that neither of you are earning much above minimum wage so if interest rates were to go up and they will in the future, they won't stay low forever what would your ability be to meet the repayments.

I bought my house in 2003 (just before 100% mortgages came in) and I was earning 35K at the time, I got a mortage for 140K but I had to jump through hoops to get it and show all the paperwork to prove my earnings. I had the deposit saved. However I had a permanent job (teaching) and I'm on an incremental pay scale so in the long term I was a safe bet with an annual pay increase and I was looking for less than what you're looking for. I would say there's a combination of factors that you're being refused. Salary multiples, low income, possible job instability.

RoadKillTs

Yes I would say that the problem is that you and your partners combined salary would be considered low and thats probably why they are don't want that to lend that amount of money to you. I doubt it is to do with your age.

Also in your case the bank would be taking on extra risk as you are not borrowing to buy a house, you are borrowing to buy a site / build a house.

Would it be possible to bargain with the land owner and the property developer to lower the price?

Apart from that all you can do is try and save more and maybe source extra income.

All the best

partyguinness

On 37k pa between the 2 of you...ideal candidate?

Mate I dont think so and no offence but with such low wages its prob fair to say that you both do not have the best of jobs or qualifications.

Therefore you are prob at a high risk of unemployment and therefore not an ideal candidate. Now that is just a generalisation from that combined salary. 23? go out and have some fun..whats the hurry..the banks are prob doing you a favour.

Banks are stressing test for a 5% interest rate at the moment by all accounts.

BuffyBot

Plus, if you've been applying left right and centre, it may not help when they credit check..but as said above, the biggest issue is probably income related.

Drumpot

General guidelines:

• Salary, max 5-6 times
• Deposit, minimum 8%
• LTV, max 92%

• Other loans and Liabilities
• Property situated near a town (resale value)
• Strong Job, minimum 6 months (not on probation, only with TSB), mainly work off min 1 year

Did the banks not explain why they refused your application? It doesnt sound like its your times salary thats the problem (and anyways, mortgage companies dont work off times salary, its ability to repay).

Reasons that you would be declined (based on what you have written) would be:

- Credit Rating
- Your jobs (ie security in them, if you are in construction in any form , not a chance)

I would contact the banks that declined you. Until you know why you were declined it will be difficult to offer proper advice.