Mortgages <50% LTV Availability

lryan478

I have just put in an offer on a house after spending months researching locations and properties. The purchase is our main residential home, I have 53% of the purchase price and was looking to borrow the remaining 47% which does not seem to be possible now..

I had been in touch with the BOI throughout the process and they told me I would be ok to borrow this amount taking into account my single income of €26,000 and my good credit rating and also the fact that I had been paying up to €850/month rent..

I am extremely frustrated as I have now been told when I went to draw down the mortgage that they will not be able to give me the full amount I require which makes it almost impossible for me to continue with the Sale..

I would like to know is there anyone else in this situation or is there anyone out there that can help me in any way..

I am a Single mother of 2 and this was my chance to get my-self on the property ladder at long last after years of organising my financial affairs.. :rolleyes:

Liam D Ferguson

Without knowing your full financial details - basic salary, net income, savings, liabilities, age etc., it's hard to give a specific answer. Have you tried other banks or a mortgage broker?

lryan478

Hi Liam

Thank you for your reply. My basic Salary is €26,000 p.a., net being approx. €23,800, my savings are my 53% deposit as I have also cleared all liabilities in the past few years.

I am in the process of meeting with other banks at the moment, AIB are processing my application and I am meeting with Ulster Bank today.

Liam D Ferguson

How much do you need to complete your purchase?

lryan478

I need 80k to complete..

Liam D Ferguson

The problem you're encountering is that banks make their own assumptions about how much you need to earn, just to have the basics for you and your two kids. Some banks would take the view that your take-home pay is only enough to do that and that there's no scope for paying a mortgage also.

You'll need to argue your case based on the fact that you can prove you've been paying rent of €850 per month. Tell them that even if you stress-test your repayment on €80,000 over 25 years at 6% to allow for plenty of future interest rate increases, the repayment would still be less than €520 per month.

lryan478

Thank you Liam, I will certainly use that. I have been to the Ulster Bank yesterday and it is looking much more positive with them. Their calculation of Net Disposable Income is not so harsh thankfully as some of the banks seems to be..