New Mortgage application

markl12000

Hi there,
My wife and I applied to AIB for a mortgage of €250000 6 months ago. We had just cleared all our debts after the wedding but had no savings. Between us we earn roughly €75K gross. We were gifted a site from my wife’s father. We are applying for a self build mortgage and had all the planning granted. Initially AIB told us that they wanted to do a 6 month stress test of putting away the mortgage repayment per month plus a worst case scenario interest rate of 6% and then come back to them. After meeting last Friday they now say we need to have the cost of the fees covered from the county council along with all other fees combined. This is the first many of my friends have heard about this. If fact my engineer who is covering a few self build projects at the moment says he has never heard of this either. My sister in-law who is up to first floor level on her self build says BOI never even mentioned the county council fees in her application. I am just wondering has anybody else had any experience with this sort of issue or are we just being given the run around by AIB. Do the banks even take into consideration assets, i.e. the site?

lollymob

Hi Markl12000,
I was approved for a 220k mortgage with BOI in December 2012. I did have to include Council fees with the costings for the house. We also have to spend 30k of our savings before we make a drawdown.
lollymob

killers1

markl12000 wrote: »

Hi there,
My wife and I applied to AIB for a mortgage of €250000 6 months ago. We had just cleared all our debts after the wedding but had no savings. Between us we earn roughly €75K gross. We were gifted a site from my wife’s father. We are applying for a self build mortgage and had all the planning granted. Initially AIB told us that they wanted to do a 6 month stress test of putting away the mortgage repayment per month plus a worst case scenario interest rate of 6% and then come back to them. After meeting last Friday they now say we need to have the cost of the fees covered from the county council along with all other fees combined. This is the first many of my friends have heard about this. If fact my engineer who is covering a few self build projects at the moment says he has never heard of this either. My sister in-law who is up to first floor level on her self build says BOI never even mentioned the county council fees in her application. I am just wondering has anybody else had any experience with this sort of issue or are we just being given the run around by AIB. Do the banks even take into consideration assets, i.e. the site?

AIB do take the site value into account, but they will only lend 100% of the actual build cost. They like applicants to have savings behind them to cover cost overruns & other expenses like council fees etc. When you were told to save for 6 months they were basically declining your application on the basis that either you couldn't show a repayment capacity for the amount you required or they felt you didn't have sufficient spare funds in the background to cover the general costs associated with a self build project. They're not really giving you the run around but are confusing the issue by referring to the council fees. What they really mean is that they are willing to lend 100% of the build cost but want to be satisfied that you have enough savings to cover everything else & any possible cost overruns.