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AIB Mortgage approval - My experience

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    #32
    mbg
    Registered Users Posts: 6 ✭mbg


    Savings wont be going there just day to day banking. Can you suggest a bank that is better to deal with? Until now I have never dealt with any of the banks like this. I owe nothing I borrow nothing I pay all bills on time so I am surprised I am having such trouble getting an answer to my mortgage applications. All information greatly received.


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    #33
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    murphaph wrote: »
    Why in god's name? By all means get your mortgage from them if you're happy with that product but put your savings where you get the best return and your current account where you pay the fewest fees. BoI don't fall in to either category.

    I would out of principle due to the way we are being treated.


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    #34
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    AIB are definitely lending however they are inundated with applications so it is taking 10 working days currently to get a decision. They stress test repayments currently at 6.24% this will increase to 6.64% in June when they increase their variable interest rate. To qualify for a mortgage you need a clean credit history and show repayment capacity - show evidence that you have been paying rent and or savings monthly.

    ggg21 based on your information, you should have no problem qualifying for 230k.
    Stress tested repayments on a mortgage of 230k over 35 years at 6.24% would be €1345 per month so you need to show savings/rent of this amount to qualify.
    Trish F


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    #35
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    Trish56 wrote: »
    AIB are definitely lending however they are inundated with applications so it is taking 10 working days currently to get a decision. They stress test repayments currently at 6.24% this will increase to 6.64% in June when they increase their variable interest rate. To qualify for a mortgage you need a clean credit history and show repayment capacity - show evidence that you have been paying rent and or savings monthly.

    ggg21 based on your information, you should have no problem qualifying for 230k.
    Stress tested repayments on a mortgage of 230k over 35 years at 6.24% would be €1345 per month so you need to show savings/rent of this amount to qualify.
    Trish F

    Hi Trish,

    Spoke to a broker and a mortgage co-ordinator from another branch and explained my situation, I have a clean credit history (including a 3k loan I took out when I was 18 and paid back without a single payment being missed or late), we are renting which is 800/month and saving a MINIMUM of 200 (100 each) a month. The mortgage would work out at around 650 from year 2-35 (obviously taking interest into consideration). about 5 years ago we were saving a lot more than 200 euro per month as we were living in my parents house, we moved out 2 years ago which dropped our saving amount, but as I said, minimum 200 a month, average is about 400 a month, sometimes higher sometimes lower.

    No idea why it has taken nearly 4 weeks at this stage.


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    #36
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Hi Karlitto,
    It's possible branch may have delayed submitting your application to the lending Department by a few days. Another reason for the delay could be after 10 working days in the system they may have requested additional information from the branch and when received your file would go back into the queue again.
    Don't worry it looks like your application will be approved however it may not have been packaged very well in the branch hence the delays.

    Trish


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    #37
    Rebel1977
    Registered Users Posts: 802 ✭✭✭Rebel1977


    Do all Banks have the criteria of €2050 for joint application to be left over after the proposed mortgage payment has been stress tested ? And €250 per child ?


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    #38
    ggg21
    Registered Users Posts: 4 ✭ggg21


    thanks for your input TRISH56, much appreciated..hopefully it will go through no problem. I first went to a broker who told me the most anyone would give was 180k without even looking into my full details. I actually found the person in AIB i dealt with much better so hopefully it will go well now.


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    #39
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    ggg21 wrote: »
    thanks for your input TRISH56, much appreciated..hopefully it will go through no problem. I first went to a broker who told me the most anyone would give was 180k without even looking into my full details. I actually found the person in AIB i dealt with much better so hopefully it will go well now.

    Any idea why the broker told you that €180k would be the max you'd get? What age are you?


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    #40
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Rebel 1977
    All banks have different policies, criteria, interest rates etc. so no the €2050 and €250 per child would not apply to every lender but they would have the same attitude regarding repayment capacity in so far as you have to prove that you can afford the stress tested repayments.

    ggg21 I am surprised that a broker would inform you that you would only qualify for a mortgage of 180k but as killers 1 mentioned it may have something to do with your age (over 30) or indeed due to the repayments on your credit union loan. I however ignored these as your net disposable income was way above €1300 for a single person and you could have offset your savings against the loan and repaid in full from other savings. Other reasons could be are you paying maintenance etc. or Broker may not have access to all the lenders.
    Trish 56


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    #41
    ggg21
    Registered Users Posts: 4 ✭ggg21


    Ya, i am 35 so maybe that was the reason. not paying maintainence.The broker said the lenders also required that my credit union loan be cleared first before they would lend to me at all but AIB have not asked this yet so im hoping its ok. To be honest i just gave my details over the phone to this broker and she then checked what amount lenders would lend to me wheras AIB i submitted my details proper. I think you are right and the broker didnt have access to all lenders. Anyhow, im happy dealing with AIB so far so hopefully it will stay that way!!


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    #42
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    Rebel1977 wrote: »
    Do all Banks have the criteria of €2050 for joint application to be left over after the proposed mortgage payment has been stress tested ? And €250 per child ?

    2050 is AIB, and they deduct 100 per child. Just FYI


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    #43
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Karlitto wrote: »
    2050 is AIB, and they deduct 100 per child. Just FYI

    Rebel1977 is correct, AIB's policy is that a couple need €2,050 to cover living expenses and you need to add €250 per dependent to this figure.


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    #44
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    ggg21 wrote: »
    Ya, i am 35 so maybe that was the reason. not paying maintainence.The broker said the lenders also required that my credit union loan be cleared first before they would lend to me at all but AIB have not asked this yet so im hoping its ok. To be honest i just gave my details over the phone to this broker and she then checked what amount lenders would lend to me wheras AIB i submitted my details proper. I think you are right and the broker didnt have access to all lenders. Anyhow, im happy dealing with AIB so far so hopefully it will stay that way!!

    The monthly repayment amount to your CU loan is key here. A salary of €60k over the term you qualify for (30 YRS) will allow you to borrow a max loan amount of €248k from AIB. The stressed mortgage repayment on €230k is €1,414pm. Your savings and rent total €1,350pm which falls short of this figure and equates to a loan amount of circa €220k which they may pull you back to if you need to retain the CU loan so as to have enough funds to complete the purchase. If you can repay the CU loan from savings and still have enough funds to complete the purchase you will be approved for the €230k you asked for.


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    #45
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    killers1 wrote: »
    Rebel1977 is correct, AIB's policy is that a couple need €2,050 to cover living expenses and you need to add €250 per dependent to this figure.

    I am currently going through mortgage approval with AIB, I was told 2,050 for living expenses, and 100 per child (mind you, it may have been misinformation, and I wouldn't be surprised as it wouldn't be the first thing they have said that wasn't true, and the fact it does not apply to us anyway)

    But yea, it changes from bank to bank I spose.


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    #46
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Karlitto wrote: »
    I am currently going through mortgage approval with AIB, I was told 2,050 for living expenses, and 100 per child (mind you, it may have been misinformation, and I wouldn't be surprised as it wouldn't be the first thing they have said that wasn't true, and the fact it does not apply to us anyway)

    But yea, it changes from bank to bank I spose.

    Karlitto, did the person who told you it was €100 per child also tell you that you'd have a decision back in 2-3 days?! It's definitely €250 per child.


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    #47
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    killers1 wrote: »
    Karlitto, did the person who told you it was €100 per child also tell you that you'd have a decision back in 2-3 days?! It's definitely €250 per child.

    Yep, and that's my point :)


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    #48
    Tombo2001
    Registered Users Posts: 6,523 ✭✭✭Tombo2001


    chris85 wrote: »
    Overreaction much? Contacting a TD to sort out a mortgage application, Are you having a laugh?

    .

    Buying a house is one of most important things anyone will do in their life.

    Do it wrong and you will be sufferring for years as thousands of people know.


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    #49
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    Tombo2001 wrote: »
    Buying a house is one of most important things anyone will do in their life.

    Do it wrong and you will be sufferring for years as thousands of people know.

    THANK YOU! Someone who see's reason....

    She contacted me back and gave me some useful information on how to proceed.


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    #50
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Tombo2001 wrote: »
    Buying a house is one of most important things anyone will do in their life.

    Do it wrong and you will be sufferring for years as thousands of people know.

    You are wrong.

    A mortgage is the most important and biggest financial transaction most people will make in their lifes. I completely agree. However if the customer is unhappy with the process they have the banks internal complaints procedure available to them. If unhappy with this the financial services ombudsman can be called to review the matter.

    It is a complete overreaction to have a TD involved. TD's are there to deal with policy and issues affecting society as a whole. They are not there to help someone push through their mortgage application quicker.

    Has the OP exhausted the banks complaints procedure and contacted the FSO? Hasnt been mentioned here so will assume no. So we must ask why not?Sure we will just scrap these processes and all complaints can be routed directly to Enda Kenny. :rolleyes:


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    #51
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    chris85 wrote: »
    You are wrong.

    A mortgage is the most important and biggest financial transaction most people will make in their lifes. I completely agree. However if the customer is unhappy with the process they have the banks internal complaints procedure available to them. If unhappy with this the financial services ombudsman can be called to review the matter.

    It is a complete overreaction to have a TD involved. TD's are there to deal with policy and issues affecting society as a whole. They are not there to help someone push through their mortgage application quicker.

    Has the OP exhausted the banks complaints procedure and contacted the FSO? Hasnt been mentioned here so will assume no. So we must ask why not?Sure we will just scrap these processes and all complaints can be routed directly to Enda Kenny. :rolleyes:

    The ombudsman will not intervene in the credit making decision and the decision will not be over turned, however, they review the matter in HOW the decision was made.

    As previously stated, I was not looking for the TD to intervene and push my application through quicker, I was seeking advise on what to do. So, your opinion that my contacting the TD was an over reaction is pointless to me in this thread....

    I am the OP, and currently I am in the middle of the internal complaints procedure. Don't forget, assumption is the mother of all fudge ups.


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    #52
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Karlitto wrote: »
    The ombudsman will not intervene in the credit making decision and the decision will not be over turned, however, they review the matter in HOW the decision was made.

    As previously stated, I was not looking for the TD to intervene and push my application through quicker, I was seeking advise on what to do. So, your opinion that my contacting the TD was an over reaction is pointless to me in this thread....

    I am the OP, and currently I am in the middle of the internal complaints procedure. Don't forget, assumption is the mother of all fudge ups.

    Your complaint is not about their credit making decision. Your complaint initially was the time taken for a decision.

    I am not too concerned if my opinion is pointless to you. Wasnt my aim.

    Edit: And my assumption was correct, you have not exhausted the banks internal complaints procedure as I had in my post.


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    #53
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    chris85 wrote: »
    Your complaint is not about their credit making decision. Your complaint initially was the time taken for a decision.

    I am not too concerned if my opinion is pointless to you. Wasnt my aim.

    Edit: And my assumption was correct, you have not exhausted the banks internal complaints procedure as I had in my post.

    I am currently in process of going through the procedure.

    And you are semi right, my complaint is based around the whole way we were treated, including the time taken.


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    #54
    BuffyBot
    Moderators, Motoring & Transport Moderators Posts: 24,924 Mod ✭✭✭✭BuffyBot


    Folks, pay heed to the warning I made earlier on this thread. I've already had to take actions on previous posts.


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    #55
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Karlitto,
    I presume you have not been declined by AIB just that they are taking so long to give you a decision. I would advise that you ring the Branch Manager and ask for an explanation as to why it is taking so long to process your application. If you get no satisfaction tell/him her you are writing to the CEO to lodge a complaint.
    Trish56


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    #56
    Karlitto
    Registered Users Posts: 456 ✭✭Karlitto


    Trish56 wrote: »
    Karlitto,
    I presume you have not been declined by AIB just that they are taking so long to give you a decision. I would advise that you ring the Branch Manager and ask for an explanation as to why it is taking so long to process your application. If you get no satisfaction tell/him her you are writing to the CEO to lodge a complaint.
    Trish56

    Thanks Trish, I will do,

    I have tried to contact the assistant manager for over a week and a half now, not had a single call back.

    Currently waiting on a reply from my complaint.


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    #57
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Karlitto wrote: »
    Thanks Trish, I will do,

    I have tried to contact the assistant manager for over a week and a half now, not had a single call back.

    Currently waiting on a reply from my complaint.

    No matter how long the mortgage response takes, it will be less than the response to your complaint!


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    #58
    Power2011
    Registered Users Posts: 16 ✭Power2011


    Whats the AIB policy in relation to a teacher on a contract who is not yet permanent can someone shed some light on this for me as I have heard a few conflicting stories on this.


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    #59
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Power2011 wrote: »
    Whats the AIB policy in relation to a teacher on a contract who is not yet permanent can someone shed some light on this for me as I have heard a few conflicting stories on this.

    Depends a little. Have you a CID? If you havent got CID or permanency you will have very little chance of a mortgage. Even with CID you would be a higher risk and may be approved but for a lesser amount.


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    #60
    Rebel1977
    Registered Users Posts: 802 ✭✭✭Rebel1977


    Thought it depends on how many years contract you got ? Thought if you have 4 years completed you got permanency straight away ?


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    #61
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Power2011 wrote: »
    Whats the AIB policy in relation to a teacher on a contract who is not yet permanent can someone shed some light on this for me as I have heard a few conflicting stories on this.

    You'll need to have panel rights, a CID or a permanent role. If your a substitute teacher the first question they'll ask is what happens if the schools numbers are reduced? It'll be the sub teacher who's let go.


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