Hard 2 get another top up ???

zetorman

Are we the only ones having difficulty getting TOP UP loans ? Took out our original 20 year mortgage in 1985. Never missed a payment...never late with a payment ....PERFECT RECORD.
First child went to college in 2003 followed in later years by 2 more children. Each year applied for and got a top up loan to finance third level costs....our record was still the same i.e PERFECT CUSTOMERS.
BUT THIS year they have put us through HELL to get our usual top up ....even got us to re value our house.
Worst of all we have been told this is the last top up we will get.
WE ARE STUNNED ???? PERFECT RECORD for 26 years and now treated like this. Are we the only ones?

noworries

From what I hear from former colleagues you were lucky to get the top up.
Nothing to do with your record but the credit policy is tighter than a ducks
arese for the foreseeable future.

the_syco

zetorman wrote: »

BUT THIS year they have put us through HELL to get our usual top up ....even got us to re value our house.

The loan is against your house. Now that house prices have fallen, and some people are in NE, there is a risk that the loan may be worth more than the house.

zetorman

That is the really frustrating part. House valuation is €250,000 and the top requested was only for €30,000 ???????????????. Very frustrating and leaving to seek another lender does not look to be a runner either.

phormium

You are stunned! How? Banks are not lending, what you got in the past is irrelevant, I would say you have been extremely lucky to get it at all. It is like living in a different country lending wise, now that is not necessarily a bad thing but hard to imagine you would be surprised by how difficult it was to get it.

zetorman

WHY are banks not lending ?? Banks make their money by charging INTEREST on their loans. A good customer with a perfect repayment record going back 26 years involves no risk on their part. If the likes of us cannot get loans then they have really ceased trading as a bank.

phormium

I'm not saying its right that they are not lending or that you are a bad risk but that is what is happening.

Many many moons ago when I first worked in a bank, the amount of money available to lend as mortgages was a percentage of what the branch got in as deposits in previous month. This was back in the days before computers! This meant that there was regularly a waiting list for loans waiting until the branch had an allocation of money to lend, it was often 3 months or more long, I am sure there are plenty of people who remember those days.

Fast forward to when the banks no longer had to wait for deposits in to lend they could just borrow money themselves on the market and re-lend it at higher rate so I imagine the difficulty now is twofold. Who the hell will lend them money and while people are supposed to be saving more it seems the big investors, pension funds etc, are pulling their money out of the part nationalised banks so their deposits are down as well.

I think in general it is only the non Irish banks that are doing any bit of lending, I could be wrong and I am sure there are brokers here who will know the exact state of play right now but it's just a right mess now.

zetorman

I understand the logic from THEIR side of the fence but as a parent I feel trapped !! Not enough savings to pay for kids in college, salary on the way down and now cannot borrow ??? Stealing not really an option !! Can anyone see a way out for me ??:mad:

hmmm

Banks can't easily get funding these days. Without funding they cannot offer loans.

The ECB are providing billions of funding in the background but they're worried that we are going to default (it doesn't help when our political parties are all putting this forward as a promise).

amdublin

zetorman wrote: »

I understand the logic from THEIR side of the fence but as a parent I feel trapped !! Not enough savings to pay for kids in college, salary on the way down and now cannot borrow ??? Stealing not really an option !! Can anyone see a way out for me ??:mad:

You're not really painting a great picture for yourself of the type of risk a bank wants take on