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Are any banks doing 95% mortgages???

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  • 29-05-2008 9:14pm
    #1
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭


    Does anyone know??? Need help urgently!!


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    #2
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Toots85 wrote: »
    Does anyone know??? Need help urgently!!

    What what what????????? The bank won't give you one? The conservative bastards!!!!!!!


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    #3
    MortgageBrkr
    Closed Accounts Posts: 11 ✭MortgageBrkr


    Unfortunately practically all of the banks have reduced their loan to value to 92%. You could try raising the extra finance you need in a credit union?


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    #4
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Don't mean to sound smart, but you know that housing crash that the anarchist wanted? Well it looks like they 're kind of getting their way. Now, even less people will be able to own their own home. That coupled with the international Credit Crisis (caused by the yanks) means 92% is the max a bank will consider and even then I think they would prefer an even lower LTV.

    As mentioned, the credit option is one route that some people take. Many also borrow the rest from their parents. If the parents don't have that kind of cash lieing around (very few do!), then they can do an equity release on their own home (ie, if you needed 30K to make up the shortfall, then your parents would get a mortgage of just 30K on their own home, gie you the money and you make the repayments for them etc)


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    #5
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    Some banks, and some might say foolish ones, are still doing 100%.

    You'd need absolute job security before they will even consider you though.


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    #6
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    stepbar wrote: »
    What what what????????? The bank won't give you one? The conservative bastards!!!!!!!

    Hehehe! No I was lucky and got mine in the good old days of the 100% mortgage.

    It's one of my friends got her 95% approved and signed the offer letter and all and then the bank turned around and said they're only doing 92% now so they can't have the 95% but they're supposed to be closing on their house in 2 weeks!! There's a difference of 15k and if they can't come up with the money they'll lose the house. I would have thought once everything had been signed the bank would have to honour it???


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    #7
    DJDC
    Closed Accounts Posts: 365 ✭✭DJDC


    Hehehe! No I was lucky and got mine in the good old days of the 100% mortgage.

    Earlier than 2004 I hope...otherwise you certainly aint lucky because the chances are you in are in negative equity!


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    #8
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Well I'm not planning on selling it anytime soon, or trying to borrow any money secured on it, so it doesn't really matter whether or not I'm in negative equity.

    Anyhoo, back OT can anyone tell me what the chances are of the bank honouring their original offer?


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    #9
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Toots85 wrote: »
    Hehehe! No I was lucky and got mine in the good old days of the 100% mortgage.

    It's one of my friends got her 95% approved and signed the offer letter and all and then the bank turned around and said they're only doing 92% now so they can't have the 95% but they're supposed to be closing on their house in 2 weeks!! There's a difference of 15k and if they can't come up with the money they'll lose the house. I would have thought once everything had been signed the bank would have to honour it???

    If true, thats illegal. A offer letter is a legally binding contract and the bank can not refuse it once signed.

    I've only found this out about a month ago after i had issues. Contact you solicitor and get them to contact the bank.


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    #10
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    DJDC wrote: »
    Earlier than 2004 I hope...otherwise you certainly aint lucky because the chances are you in are in negative equity!

    Depending on the situation, negative equity is not the sinkhole that many commentators effusively harp about.

    This sensationalism, and sweeping generalisation, is media fodder bought up by the masses.


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    #11
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    Toots85 wrote: »
    Hehehe! No I was lucky and got mine in the good old days of the 100% mortgage.

    It's one of my friends got her 95% approved and signed the offer letter and all and then the bank turned around and said they're only doing 92% now so they can't have the 95% but they're supposed to be closing on their house in 2 weeks!! There's a difference of 15k and if they can't come up with the money they'll lose the house. I would have thought once everything had been signed the bank would have to honour it???

    To add to Bill's comment:

    It is illegal for the bank to withdraw it if your friends had signed, and returned the offer to the lender, in the presence of their solicitor.


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    #12
    sofireland
    Registered Users Posts: 1,245 ✭✭✭sofireland


    Don't most banks have a time limit to draw funds from when the offer is signed?


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    #13
    barrymac20
    Registered Users Posts: 125 ✭✭barrymac20


    IIB homeloans. i think


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    #14
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    sofireland wrote: »
    Don't most banks have a time limit to draw funds from when the offer is signed?

    Drawdown limits are normally,

    House purchase: Six months,
    Self Build: Twelve months.

    After that the mortgage must be re-sanctioned. Which is normally not a problem. A declaration is normally needed from the applicants to state there income has not changed etc, this might need salary certs etc.


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    #15
    ircoha
    Closed Accounts Posts: 2,290 ✭✭✭ircoha


    kaiser sauze wrote: »
    To add to Bill's comment:

    It is illegal for the bank to withdraw it if your friends had signed, and returned the offer to the lender, in the presence of their solicitor.

    Only if the docs do not contain a material adverse change clause, or similiar in the small print.

    The other aspect is that the loan letter will specify an asset value and if the asset value is now less before draw down....

    Signing in the presence of a solicitor has even credence now than it had, they are becoming a discredited profession


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    #16
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    The bank are well within their rights to withdraw the offer, however the customer would be well within their rights to sue said bank (AFAIK due to the Consumer Credit Act).


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