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AIB and their Mortgage criteria.

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    #32
    Sparky_Larks
    Closed Accounts Posts: 32 ✭Sparky_Larks


    Got a Mortgage a year ago with AIB

    I had just started a new job and was on probation. Once I had a letter saying I was finished my probation, had no other problems.

    I had no other loans, no car ,credit card even overdraft wasn't being used.
    Had the deposit in the bank, it had been saved over the previous few years

    Intrestingly before I had the letter they would give my wife less then they would have given her on a single application. The reasoning was that if I lost my job she would have to support me.


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    #33
    jackal
    Registered Users Posts: 794 ✭✭✭jackal


    We had the same frustrating experience with AIB. Friendly in branch mortgage staff led us on a merry dance, put all the figures into computer and computer says yes, even got to the stage of opening current accounts for us for deposit of pay etc. Then got the phone call... Because herself is unemployed they wont offer a mortgage - even though the repayments were under 35% net of income.

    No lower offer, no nothing. We are not in a position to supply you with a mortgage at this time.

    I was not really committed to buying anything anyway (this was spring 2010) so it was not like we missed out on a 'dream house', but going from approved for 300k+ to not approved for anything was a bit shocking.

    With any of the banks the moral of the story - and I have been told this by a relation who works in the mortgage dept of a bank - is that the local branch mortgage advisor/bank manager have ZERO influence now, so do not get your hopes up based on what you hear in branch. Your application gets sent off to HQ for a credit committee to decide on, and as people are pointing out, they are looking for excuses not to give mortgages at the moment.


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    #34
    Treehouse72
    Registered Users Posts: 1,003 ✭✭✭Treehouse72


    I do hope that everyone contributing to this thread realises that the subject of the thread is not actually mortgage funding. It's something else. Presumably I don't need to join those dots.


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    #35
    spockety
    Moderators, Education Moderators Posts: 5,468 Mod ✭✭✭✭spockety


    jackal wrote: »
    We had the same frustrating experience with AIB. Friendly in branch mortgage staff led us on a merry dance, put all the figures into computer and computer says yes, even got to the stage of opening current accounts for us for deposit of pay etc. Then got the phone call... Because herself is unemployed they wont offer a mortgage - even though the repayments were under 35% net of income.

    No lower offer, no nothing. We are not in a position to supply you with a mortgage at this time.


    Is that to suggest that AIB are no longer willing to provide mortgages to single income families?


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    #36
    bugler
    Registered Users Posts: 3,436 ✭✭✭bugler


    Refusals seem rampant at the moment. To be outright refused is better than to be led on thinking you'll get the mortgage before having the plug pulled later.

    Unfortunately the banks have resorted to deception to make it seem they're lending (see BoI's marketing). Better transparency in this process would actually help to return the market to something resembling a functioning position. Instead we have banks pretending they're lending, and customers fooled into thinking they're buying.


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    #37
    jackal
    Registered Users Posts: 794 ✭✭✭jackal


    spockety wrote: »
    Is that to suggest that AIB are no longer willing to provide mortgages to single income families?

    Well, we are not a "family" as such, not married, no kids. The rationale they gave us, which was not put in writing, was that because she was not working, I would have to support her. They must have a figure somewhere for this that they throw into calculations. With this unknown monthly amount and their more rigorous stress test, they said that it pushed me over the acceptable % of income, but were not specific.

    They said to come back when we are both working full time. I could always apply on my own (it was suggested by the branch guy), but I thought that lies, inflated salary statements and optimism got plenty of the people in this country into a mess, so I will leave it.

    Incidentally, BOI would give us some money, so I guess you could say they "approved us" like the 100 per day in their adverts, but what we asked for was twice what they approved us for, so yeah thanks but no thanks.


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    #38
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    What income multiple were you looking for- out of interest?
    They are supposed to working off a strict 3.5 times primary and twice secondary.......


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    #39
    spockety
    Moderators, Education Moderators Posts: 5,468 Mod ✭✭✭✭spockety


    If you're not married, and your partner isn't contributing to the mortgage, I don't understand why AIB are taking her into account at all. For all intents and purposes, on paper she is a stranger to you.

    Or were you trying to get a sum of money from AIB that would reflect 2 people working?


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    #40
    windsurfer99ie
    Closed Accounts Posts: 184 ✭✭windsurfer99ie


    My own experiences with AIB may be a bit dated but I'd recommend sitting down with a Manager and being prepared making a case as to why you are a good risk :

    Back in 2003 I applied to AIB for about 60% of the value of a home and was getting nowhere. I assumed they knew about my previous home loan with them, that I had substantially paid it off, had no other debts etc. However, when I sat down with them, I realised that they did not know anything about my financial / employment history other than what was actually written on the form despite having been involved with them for a good number of years. When I sat down and made my case the Manager approved the loan straight away. I'd recommend this approach and I do think AIB mortages are good value if you have a relatively low LTV.


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    #41
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    spockety wrote: »
    If you're not married, and your partner isn't contributing to the mortgage, I don't understand why AIB are taking her into account at all. For all intents and purposes, on paper she is a stranger to you.

    Or were you trying to get a sum of money from AIB that would reflect 2 people working?

    I think it was a joint application- which would explain the partner and their income, or lack thereof, being added into the equation.


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    #42
    jackal
    Registered Users Posts: 794 ✭✭✭jackal


    smccarrick wrote: »
    I think it was a joint application- which would explain the partner and their income, or lack thereof, being added into the equation.

    Correct, it was a joint application. I may have had more success with the application as a single applicant, because as a previous poster says, on paper we are not connected. However there was an issue of a gift/slice of equity coming from her side, so I was unsure how to explain that one, (and there would have been a messy tax situation if it were given to me).

    FYI the amount we were seeking was more like 5 times gross income.


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    #43
    Jo King
    Banned (with Prison Access) Posts: 2,139 ✭✭✭Jo King


    windsurfer99ie wrote: »

    Back in 2003 I applied to AIB for about 60% of the value of a home and was getting nowhere.

    2003! That was a different planet.


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    #44
    irlrobins
    Registered Users Posts: 7,541 ✭✭✭irlrobins


    windsurfer99ie wrote: »
    When I sat down and made my case the Manager approved the loan straight away. I'd recommend this approach ..

    I had a similiar experience with AIB last year. I met with a mortgage advisor and he took some basic details and fed them into his mortgage calculator. The amount he offered was not realistic in my opinion, and didn't take into account several factors, such as a lower LTV, proven track record of saving, etc. So I pushed on this and a manager got involved. They requested more info from me (such as proof of savings, bank statements etc). Left it with them for a day and they came back with an amount that was more appropriate.

    So it never hurts to push for a better deal, jsut make sure you can back your argument up with hard evidence. And of course, don't go beyond your means!


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    #45
    Goldenegg
    Closed Accounts Posts: 352 ✭✭Goldenegg


    Myself and my fiance were approved for a mortgage with aib last week. We have a joint income of 75k,i have a loan with 13k left over the next 2years.we realise we were extremely lucky! But would recommend to stay away from credit cards etc,try not to build up much debt. We approached our bank manager to talk about mortgage application and stated our case.


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    #46
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭JoeyJJ


    Goldenegg wrote: »
    Myself and my fiance were approved for a mortgage with aib last week. We have a joint income of 75k,i have a loan with 13k left over the next 2years.we realise we were extremely lucky! But would recommend to stay away from credit cards etc,try not to build up much debt. We approached our bank manager to talk about mortgage application and stated our case.

    Would you mind telling us how much you were approved for? and the LTV is it 92%?


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    #47
    royaler83
    Registered Users Posts: 497 ✭✭royaler83


    JoeyJJ wrote: »
    Would you mind telling us how much you were approved for? and the LTV is it 92%?

    And also how much savings have you as this would be taken into consideration also


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    #48
    Goldenegg
    Closed Accounts Posts: 352 ✭✭Goldenegg


    royaler83 wrote: »
    And also how much savings have you as this would be taken into consideration also

    As we are FTB we were approved for 92% with savings of a little over 14k. The rest of the deposit is coming from both sets of parents. The house was for just under 230k.


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