Mortgage question

Dublinandy3 · 07-03-2025 05:20PM #1

Hi All,

We're just going through the process of remortgaging with aib, currently with BOI. On one of the messages they said this:

As part of the assessment we need you to prove you have the ability to repay the mortgage at a slightly higher level. This is normally done by savings, rent, recently cleared loans etc. You currently have proven you can repay a mortgage of €1034 per month which is lower than we would require. Do you have any other regular outgoings we can consider?

Obviously I know we'll be paying more, the interest rates have gone up. Between my wife and I we have a combined salary of over 100k a year, we have debts but nothing major or unmanagable, we have no bad debt history. Is this line saying we don't currently fulfil the criteria to be given a mortgage?

I'm slightly confused.

Nody · 07-03-2025 06:02PM

They are saying you are failing their stress test (i.e. higher monthly cost then currently; usually a couple of percentage point higher interest rate) for a mortgage currently because based on your expenses they budget you can only repay a bit over 1k a month and are asking you to help them pass the stress test by showing other savings / costs etc. you could throw in to the pot.

Padre_Pio · 07-03-2025 06:44PM

Did you submit payslips and bank account info to them already?

And all your savings/shares/loans etc.

Dublinandy3 · 07-03-2025 07:13PM

https://www.boards.ie/discussion/comment/123241984#Comment_123241984

I did, my wife thinks it may be that we overpay on both our loans and also on our current mortgage, and pay 400 p/m into a sharesave scheme that gets deducted from my payslip.

I'll go back to them. Maybe if we stop all the overpayments and the share save that'll be ok, as they're around 1k a month on their own.

gandalfio · 07-03-2025 08:25PM

Curious about this. Say you take our your first mortgage fixed for 5 years at x per month. Then over those 5 years your outgoings increase significantly (having more children, credit union loans taken out etc) and are very different to when you first got the mortgage. Is there a possibility that when you go to remortgage when the 5 years is up that the banks won't accept because you fail the stress test? Where would this leave someone if they're living in the home with 25 years left on the mortgage? Could the bank repossess?

Geuze · 07-03-2025 09:39PM

I presume here that by "re-mortgage", you mean switch lender, i.e. repay old mortgage, and start a new mortgage.

Yes, you may not be able to switch lender, as your finances have changed.

This means you would stick with the original lender, and repay the original mortgage.

Jim2007 · 08-03-2025 10:02AM

https://www.boards.ie/discussion/comment/123242077#Comment_123242077

They are assessing your ability to pay under a given set of circumstances, your current overpayments etc… have little to do with their assessment - it is assumed that you will not continue to over pay when you are under financial stress.

And to be brutally honest, their models are not particularly stressful, so if you are not meeting their requirements, I'd be extremely cautious about going beyond those limits because that is how people got themselves into serious difficulties last time around. There are many factors not considered in their models, for example the EU's commitment on military spending will suck billions of Euros out of the commercial lending market, there is an estimated trillion Euros of corporate financing that will need to be refinanced over the next five years and so on, these factors are not even considered.

Ints · 08-03-2025 10:35AM

When i applied for mortgage few years back, only BOI could give me enough. AIB was giving me 30% less them BOI. Shop around and you will be surprised. Avant mortgage might be cheapest on the market. or just stay with BOI.

Dublinandy3 · 11-03-2025 06:08PM

Just to follow up on this in case anyone is interested. It seems everything was fine. I'm not sure why they said that as I ended up just telling them what they already knew and they just moved the application process on. Maybe they didn't look at my documents properly or something, but all good now.

JVince · 13-03-2025 12:16AM

https://www.boards.ie/discussion/comment/123254538#Comment_123254538

They don't really "look" at documents. Figures are entered into the system and a result is spewed out. If if doesn't match parameters they then send it for review by a human and once the answers are valid (as in your case), its rubberstamped.

ted1 · 17-03-2025 09:57AM

PTSB and Avabt have the best rates and also give cash back. Would you not try them ?

Dublinandy3 · 17-03-2025 01:00PM

https://www.boards.ie/discussion/comment/123272012#Comment_123272012

Aib are fine now, for what we want they have a better overall package than ptsb and avant, when you take into cash back, term, rates etc.

Mortgage question

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