Are the banks lending? I think not...

waitingforBB

Hi All,
just to share my experience. I have a variable rate mortgage with a certain lender(PTSB), but after shopping around, decided to pursue a 'switch' to another lender to avail of a better variable rate.
I rang the AIB inititally and gave all the details, which were essentially, mortgage outstanding of 295K, LTV< 80%. Joint income over 100K, no other loans, 2 children under 6 and savings of about 20K. Excellent credit history etc..Perfect candidates in my mind (I am biased of course) All seemed good as I prepared to switch until I got a letter from AIB saying that they were declining my application due to the fact that we didnt fit into their lending criteria. No other explanation and I didnt follow up.
Followed the same process with BOI and got the same response.
I've since changed my mortage term with my lender from 30 years to 20 to take advantage of the drop in rates.

So as in the title, in my experience, the major banks are not lending....

af_thefragile

Banks aren't lending as readily as they used to before (learning from their mistakes maybe?).
But the banks need to continue to lend cuz if banks stop lending out loans, the whole financial system will come to a halt. Its just how the modern monetary system is designed. Hence, banks need to continue lending to keep the cash registers ticking.

This is why you're seeing all these schemes like the one in UK (and a similar one in USA) where you get £2k for scraping your old car in exchange to buy a new one. An incentive for people to take loans and spend the money into the system.

hellboy99

A mate of mine was recently looking for a loan of €4000, no bad credit history what so ever, credit card of €500 (always paid before time, before interest kicking in and has never been over the limit) no other loans, full time job and a annual wage of just under 20K. He tried AIB, BOI, PTSB and Hallifax, all of them declining his application as he didnt fit into their lending criteria

waitingforBB

Yet the banks publicly say that they are 'open for business'?
One of the reasons behind the state 'propping up' these institutions was that they start to allow money to flow into the economy...
A friend of mine was also asked recently to turn his business overdraft into a term loan, with no extension...
Seems Joe taxpayer is again being made a fool of

Martyr

Seems Joe taxpayer is again being made a fool of

of course he's been made a fool of..he might get angry, but will never do as much as complain about it on facebook, bebo, boards.ie ...some letters to the editor of a newspaper...thats about the height of it.

i'm not talking about any 1 individual here, i'm referring to everyone in the country unhappy with the way things are.

everyone is quite content to sit back and do nothing, so why bother complaining at all?

are you all chained to ground? is there something stopping people from getting on to the streets and shouting about whats going on?
lets be slaves to a bank, lets take responsibility for government incompetence and cronyism. :rolleyes:

if people aren't ready and willing to act upon their anger towards the system, may aswell sit back mute with a smile on their face.

if i was Gary Keogh, i'd have brought hand grenades to that EGM, fcuk eggs.

hellboy99

Martyr wrote: »

if i was Gary Keogh, i'd have brought hand grenades to that EGM, fcuk eggs.

He vented his anger along with everyone else that was there at that meeting, as did the people at the recent BOI meeting too, and what happened, nothing, "I'm sorry we lost your money", a slap on the wrist and a get of a jail free card.

A lot of people are probably thinking what can we do and if we do is there any point ?
If the people/share holders that invisted their money can't get any accountability or a proper form of justice and the recent/past revalations made by former AIB group internal auditor Mr McErlean that got "swept under the carpet", what hope is there when it's so clear that the whole system in this country is corrupt from the top down, and the top starting with our government.

Nody

hellboy99 wrote: »

A mate of mine was recently looking for a loan of €4000, no bad credit history what so ever, credit card of €500 (always paid before time, before interest kicking in and has never been over the limit) no other loans, full time job and a annual wage of just under 20K. He tried AIB, BOI, PTSB and Hallifax, all of them declining his application as he didnt fit into their lending criteria

Sorry but no bank will loan any cash with out security these days.

eamonnm79

LTV< 80%.

When was the last time you got it valued?

waitingforBB

it was valued just over 2 weeks ago

Owen

The banks are definitely lending, I have a settlement of 15k on my car, and they still gave me a large business startup loan this week.

Lizzykins

I know a few people who've gotten loans in the past few weeks including one student who got a loan of 5k no bother.

Martyr

funny thing is, those in debt up to their eye balls now but with a good credit rating will get loans from the bank no problem, they might just be managing to pay back for now..then somewhere in the future, be it weeks, but more likely months... those people can't pay it back and the taxpayer will have to cough up more money for them again..

but, nothing ever changes, "should commit suicide" in couple of years i guess.. :rolleyes: