Bank won't send mortgage refusal letter

lightspeed

Hi a friend of mine currenty lives in a council house which he and his brother have continued to pay the rent on each month. Both of their parents have passed away and neither has a steady suppply of work. They applied to get a mortgage from the council who valued the house at just over €85000 and said they would need to get a mortgage of around €43,000 as they have lived there all of their lives and in all that time the rent has been paid each month from when their parents were alive til now.

Under the house purchase scheme they have to provide an accountants report and audit of their income and their P60 over the past few years. They have done their best to provide all if this information but their is also a requirement that they provide 2 letters of refusal from a bank to grant them a mortgage. They have tried to apply for the €43,000 over 20 years. The trouble is that none of the banks will even process an application because they dont meet the minium criteria but they also wont send out a refusal letter.
As a result it seems impossible for them to meet the requirements of providing 2 letters of refusal from a bank.
i printed off the screenshot of an online application they made to KBC which states on it that they dont meet the criteria for mortgage but its not on headed paper so i know if this will do. They also got a loan refusal letter from the credit union but were advised that this will not do as the credit union dont deal with mortgages and can only grant or reject loans.

Considering the circumstances does anybody know of any legal argument that could be made here against either the requirements under the house purchase scheme or the banks refusal to send them the required letters?

I assume its because the banks want to be able to say that they actually are granting loans and mortgages to people and if so many applications are rejected and the statistics are gathered, they wont be able to make that argument.

What a corrrupt country this really is.
Banks get bailed out, People get screwed. Enough bull**** systems in place to ensure the flow of corporate dominance is continued and enhanced.
"IS féidir linn" my bollax

Lantus

Sounds like the banks are playing with semantics.

If the application criteria were met then they would be stamping mortgage approved everywhere.

If the application criteria isn't met it should be a refusal.

The banks seem to be assessing all applications and creating a new criteria where if they think for a second they wont be able to get an approval statistic then they just say the criteria were not met.

Shoddy and sneaky but as we all know there is no greater power than the banks. Dont see how they will get this swung in their favour. Possibly legal advice needed.

killers1

lightspeed wrote: »

Hi a friend of mine currenty lives in a council house which he and his brother have continued to pay the rent on each month. Both of their parents have passed away and neither has a steady suppply of work. They applied to get a mortgage from the council who valued the house at just over €85000 and said they would need to get a mortgage of around €43,000 as they have lived there all of their lives and in all that time the rent has been paid each month from when their parents were alive til now.

Under the house purchase scheme they have to provide an accountants report and audit of their income and their P60 over the past few years. They have done their best to provide all if this information but their is also a requirement that they provide 2 letters of refusal from a bank to grant them a mortgage. They have tried to apply for the €43,000 over 20 years. The trouble is that none of the banks will even process an application because they dont meet the minium criteria but they also wont send out a refusal letter.
As a result it seems impossible for them to meet the requirements of providing 2 letters of refusal from a bank.
i printed off the screenshot of an online application they made to KBC which states on it that they dont meet the criteria for mortgage but its not on headed paper so i know if this will do. They also got a loan refusal letter from the credit union but were advised that this will not do as the credit union dont deal with mortgages and can only grant or reject loans.

Considering the circumstances does anybody know of any legal argument that could be made here against either the requirements under the house purchase scheme or the banks refusal to send them the required letters?

I assume its because the banks want to be able to say that they actually are granting loans and mortgages to people and if so many applications are rejected and the statistics are gathered, they wont be able to make that argument.

What a corrrupt country this really is.
Banks get bailed out, People get screwed. Enough bull**** systems in place to ensure the flow of corporate dominance is continued and enhanced.
"IS féidir linn" my bollax

If they apply via a broker the application will be declined and the broker will get written confirmation from the 2 banks required.

lightspeed

but if they apply through a broker is it not the same thing? Will they not just get a phone call and no letter?

ive been trying to find other instant online applications like on the KBC website but only ones i found seem to only offer a call back. One of the brothers told me that the woman he spoke with at the council actually told him that some people forge letters and that she has seem some drastic ones done. So i assume some people just copy and paste a banks logo and type up their own letter refusing themselves a mortgage.

They dont have a computer and want me to try and do the same for them but im not to keen to do so as it seems better to do it the legit way, but that does not seem possible. One of the applications I filled out yesterday online had a list of AIB and others. Im not sure if this was the exact one but this site does the same
http://www.irelandmortgageonline.com/apply_mortgage.php.

The trouble is that after filing out the application it just says someone will contact you by phone and to be honest id have my doubts that you even get a phone call unless you continued to pester them.

killers1

lightspeed wrote: »

but if they apply through a broker is it not the same thing? Will they not just get a phone call and no letter?

ive been trying to find other instant online applications like on the KBC website but only ones i found seem to only offer a call back. One of the brothers told me that the woman he spoke with at the council actually told him that some people forge letters and that she has seem some drastic ones done. So i assume some people just copy and paste a banks logo and type up their own letter refusing themselves a mortgage.

They dont have a computer and want me to try and do the same for them but im not to keen to do so as it seems better to do it the legit way, but that does not seem possible. One of the applications I filled out yesterday online had a list of AIB and others. Im not sure if this was the exact one but this site does the same
http://www.irelandmortgageonline.com/apply_mortgage.php.

The trouble is that after filing out the application it just says someone will contact you by phone and to be honest id have my doubts that you even get a phone call unless you continued to pester them.

DO NOT get involved in forging bank letters!

That site is a mortgage brokerage where you're giving them an idea of the application. I doubt you'll hear back from them once they see the mortgage can't be done. Its not actually an application being sent to a bank. If a broker actually submits the application they'll get written confirmation of the decline. Alternatively bring all the docs into a bank branch, see the branch manager, ask him to review and see if it would be approved or not and ask for a letter to confirm it's a decline.

StillWaters

Have they actually gone into a branch, preferably their local one and asked, or have they just rang the national number?

indiewindy

lightspeed wrote: »

Hi a friend of mine currenty lives in a council house which he and his brother have continued to pay the rent on each month. Both of their parents have passed away and neither has a steady suppply of work.


What a corrrupt country this really is.
Banks get bailed out, People get screwed. Enough bull**** systems in place to ensure the flow of corporate dominance is continued and enhanced.
"IS féidir linn" my bollax

so, they are looking for a mortgage while not in permanent employment or even regular employment. They would appear to be wasting their time.Surely the council will do the same.