Mortgage refusal... Advice needed!

Ninjamog

So myself and the OH have applied for a mortgage with the EBS that has been denied in full on the grounds of a rental property.

I, on my own, have a mortgage on an apartment which was my/our principle residence. Until we decided to move out and rent it so we could save a deposit for a house.

We have in the last year saved a substantial deposit (which makes not a blind difference to the banks )

So happy with our deposit and confident of our income etc we applied for a loan.

We are both in full time employment, no credit history issues etc... that was all fine.

The reason we were given for the application in full being denied was they where not accepting the apartments location for rental.... which I can't get my head around as it is currently rented! Also all other rentals in the area get snapped up within days! So not like there isn't a rental market out there!

I am so disappointed and totally baffled with their decision.

Has anyone else experienced similar?

Should we try for a mortgage with another bank or are they all going to come back with the same excuse?

Any advice would be appreciated!

eyescreamcone

Your application is made a bit more awkward through having the apartment.

Go and talk to a mortgage broker.
He'll be able to tell you if you have a chance elsewhere.

sawdoubters

apply some where else


whats your mortgage on the place

4th horsemen

Work mate in similar situation, Cannot get mortgage cause she has apartment in Dublin.
We had KBC into our workplace doing a kbc information morning tea break thing where they were there for an hour and anyone could go in and see what they had to offer etc, they seemed confident enough bout giving her a mortgage.
Weather they actually will or not is another story but was positive.

We talked with BOI over a year ago about mortgage, very unhelpful and saying we needed this that and the other before we should apply. We already had just about everything ready.

We then went with a broker, who got all our stuff together and when they were happy with everything they did portfolio and applied to all the banks etc (think it was 6, incl BOI) We got approved by all banks incl. bank of Ireland(we did not go with them)

But my advice would be Broker also, We used Mortgage line and person who dealt with us was very good

Ninjamog

4th horsemen wrote: »

Work mate in similar situation, Cannot get mortgage cause she has apartment in Dublin.
We had KBC into our workplace doing a kbc information morning tea break thing where they were there for an hour and anyone could go in and see what they had to offer etc, they seemed confident enough bout giving her a mortgage.
Weather they actually will or not is another story but was positive.

We talked with BOI over a year ago about mortgage, very unhelpful and saying we needed this that and the other before we should apply. We already had just about everything ready.

We then went with a broker, who got all our stuff together and when they were happy with everything they did portfolio and applied to all the banks etc (think it was 6, incl BOI) We got approved by all banks incl. bank of Ireland(we did not go with them)

But my advice would be Broker also, We used Mortgage line and person who dealt with us was very good

Yeah we were thinking of going with a broker, the thoughts of all the paperwork again...

Is easy to get very disconcerted when the first place you try says no out right!

4th horsemen

Yeah exactly, The good thing with brokers is that they will spot any discrepancies or missing things or if something is needed before they even apply for you, so by the time they do apply all is in order and if they are applying for you then they feel you are in a good position to be approved

Ninjamog

4th horsemen wrote: »

Yeah exactly, The good thing with brokers is that they will spot any discrepancies or missing things or if something is needed before they even apply for you, so by the time they do apply all is in order and if they are applying for you then they feel you are in a good position to be approved

Yeah funny thing is that's exactly what the EBS said they did...

4th horsemen

I think some places are more concerned with having people apply than actually approving them.
They will say all the good things and then give a refusal

wuffly

Are you currently paying rent? At the moment lenders want to see that you are capable of paying rent and saving for a deposit, back in the day so many people moved home saved liked crazy and then got a mortgage that they couldnt afford because they cut back so much for the deposit and continuing like that isn't feasible. Rental can only account for so much of your income anyway. Which branch did you try? Underwriting is all head office but a decent branch if they believe in your application will push for you. Suggest Rathmines or Rathfarham. As the others have a said a broker can make the world of difference also.

Ninjamog

wuffly wrote: »

Are you currently paying rent? At the moment lenders want to see that you are capable of paying rent and saving for a deposit, back in the day so many people moved home saved liked crazy and then got a mortgage that they couldnt afford because they cut back so much for the deposit and continuing like that isn't feasible. Rental can only account for so much of your income anyway. Which branch did you try? Underwriting is all head office but a decent branch if they believe in your application will push for you. Suggest Rathmines or Rathfarham. As the others have a said a broker can make the world of difference also.

We are one of those "moved home and saved like crazy" crew.

At the end of the day that wasn't a cause for concern for the bank or the underwriters.

As I previously posted, the problem is my apartment. Not our income and expenditure.

I think the general consensus is to go with a broker.....so will give that a go and hopefully it will all work out thanks!

wuffly

I know but 'the reason' and the reason they give you aren't always the same. (Worked with a building society back in the day) Hope it works out!

murphaph

http://www.boards.ie/vbulletin/member.php?u=143901. Going by the great reviews he gets I'd say contact him by PM and take it from there.

my friend

Ninjamog wrote: »

We are one of those "moved home and saved like crazy" crew.

At the end of the day that wasn't a cause for concern for the bank or the underwriters.

As I previously posted, the problem is my apartment. Not our income and expenditure.

I think the general consensus is to go with a broker.....so will give that a go and hopefully it will all work out thanks!

If your apt is in neg eqt then loan amt will be reduced by that amount

Are you seeking to borrow the max multiple x salary? If you are and apt is under water that's what's killing it.

Also, EBS is owned by AIB, the EBS offices are gen. Tied brokers, AIB would rather write the business as it saves them commission

You need to analyse your numbers and go to Ulster Bank & AIB

Ninjamog

my friend wrote: »

If your apt is in neg eqt then loan amt will be reduced by that amount

Are you seeking to borrow the max multiple x salary? If you are and apt is under water that's what's killing it.

Also, EBS is owned by AIB, the EBS offices are gen. Tied brokers, AIB would rather write the business as it saves them commission

You need to analyse your numbers and go to Ulster Bank & AIB

The apartment was valued a few months back and currently stands at just over 5k negative equity. I don't think this is a significant amount to refuse us in full. Please note the apartment is rented and rent is covering mortgage repayments.

Yes we are looking to borrow the max they are willing to lend, but as it stands the ebs have not given us a reduced amount. They are not willing to give us anything, this is where my confusion lies.

my friend

Ninjamog wrote: »

The apartment was valued a few months back and currently stands at just over 5k negative equity. I don't think this is a significant amount to refuse us in full. Please note the apartment is rented and rent is covering mortgage repayments.

Yes we are looking to borrow the max they are willing to lend, but as it stands the ebs have not given us a reduced amount. They are not willing to give us anything, this is where my confusion lies.

The rent from your 'investment' property is not factored using contemporary criteria, your mortgage on that property is seen as a liability

You need to deduct whatever your payment is on the current mortgage from what you think you can borrow

Also your existing property will be most likely subject to a interest rate rise as it will become an investment property upon you purchasing a house for your home.

If you really need all the cash to buy the home you desire you may need to consider offloading the apartment

Ps. As I stated already, forget about EBS

Ninjamog

my friend wrote: »

The rent from your 'investment' property is not factored using contemporary criteria, your mortgage on that property is seen as a liability

You need to deduct whatever your payment is on the current mortgage from what you think you can borrow

Also your existing property will be most likely subject to a interest rate rise as it will become an investment property upon you purchasing a house for your home.

If you really need all the cash to buy the home you desire you may need to consider offloading the apartment

Ps. As I stated already, forget about EBS

Yes have already come to the conclusion that the ebs is a waste of time and energy...

The apt has already been subject to the interest hike as it's been rented over a year and so was declared an investment property from then.

And as for off loading.... that would be a no go... I'd be leaving my own mother homeless!

my friend

Ninjamog wrote: »

Yes have already come to the conclusion that the ebs is a waste of time and energy...

The apt has already been subject to the interest hike as it's been rented over a year and so was declared an investment property from then.

And as for off loading.... that would be a no go... I'd be leaving my own mother homeless!

I suggest you talk to UB and AIB

Keep the chin up, the hardest application is the first, you have all your documents, get cracking Monday.

Ninjamog

my friend wrote: »

I suggest you talk to UB and AIB

Keep the chin up, the hardest application is the first, you have all your documents, get cracking Monday.

Thanks my friend!

You're right, defo time to stay positive!