Advice needed on mortgage approval from AIB or BOI???

stressederic

Hi all,

This is my situation...urgent advice needed.
I am a permanent teacher. Gross pay 43,000
My husband is not permanent. He works for an agency as a healthcare assistant. Gross 23,000.
We have 23,000 in savings, no loans and ex credit rating.

We have seen a house we are interested in for 257,000. We can be "gifted" 20,000 from parents. Wondering what chance is on receiving a mortgage for the rest of the money and who is the best bank to go with??

Would any portion of my husbands income be taken into account seeing as he's not permanent?

Thanks in advance!

The_Conductor

My own preference would be to go for BOI over AIB- they're a lot easier to deal with- however you really need to research the market (NIB have some interesting options at the moment as well- and I'm sure there are others out there too)

Normal (not that anything is 'normal' anymore)- might be 5 times the primary and once the secondary (different lenders have different rules- as always do your own research). By this measure- you'd get the 250k, however you'd prob need both your savings and the 20k gift to get you to an 80% mortgage level- which is what most lenders are looking at.

You're in a good position at the moment- you really need to gather information and figure what is best for you.

S.

dark_shadow

I personally went with boi over AIB. Boi have higher interest rates but where willing to give me more money so I chose them.

nemo32

I went to both BOI and AIB when I was applying, BOI were not too bothered in given us the mortgage and AIB were very helpful and alot more positive on getting us approved. AIB had better LTV and rates so I was happy that they approved our application within the week.

stressederic

I have applied through AIB. Found them absolutely brutal. No customer service or advice whatsoever. I am really disgusted by them actually. I am 2 weeks waiting on a reply and I have a booking deposit on a house and they had all my original documents which has delayed things even more. Have approached BOI and have received much better advice so hopefully wont have to go through the disappointment and waste of time with AIB again. Basically the short answer with AIB is, if u are married and both partners are not permanent, forget it. I hope BOI arent the same. Anybody else I could try?

Midnight Sundance

Did u try EBS? They usually are quite good to teachers. (if they are still doing mortgages that is....)

stressederic

Yes tried EBS. They will give 80% max although 90% advertised on website. Again because husband not permanent, this is really going against us. Max they will give me is 190,000 which isnt even 80% of what we need

Sala

I know a few people who have successfully gotten approval in principle from AIB but when it comes to actually going to buy the house the bank keeps coming back with questions, requesting more documents etc. One case they changed the amount of approval substantially for the specific house meaning they couldn't afford to buy it anymore.

The_Conductor

Sala wrote: »

I know a few people who have successfully gotten approval in principle from AIB but when it comes to actually going to buy the house the bank keeps coming back with questions, requesting more documents etc. One case they changed the amount of approval substantially for the specific house meaning they couldn't afford to buy it anymore.

I'd echo this.
Approval in principle- is very different from full approval- and in all the recent cases I'm familiar with- the terms and conditions eventually applied to the borrower were significantly different (and more onerous) than those discussed at a branch level.

RATM

Would suggest to the OP to find a good broker as they know all the ins and outs of each specific lender and the which is most likely given their circumstances.

Sala

If I was a cynic I'd say they don't really want to lend to most of the people they approve, but like to keep busy doing the approval process! I am having difficulty getting approval just because they keep asking for stuff, want to discuss more stuff etc. not that they have refused, they seem to be stalling. That said, I know one person buyinga house and they are encouraging them to borrow even more more money than they want :rolleyes:

Zamboni

stressederic wrote: »

Yes tried EBS. They will give 80% max although 90% advertised on website. Again because husband not permanent, this is really going against us. Max they will give me is 190,000 which isnt even 80% of what we need

Have you considered that a house priced at €257k is simply beyond your means?
Why not wait and save or go for a lower priced property?

dark_shadow wrote: »

I personally went with boi over AIB. Boi have higher interest rates but where willing to give me more money so I chose them.

Now there is an echo from the past.

wexford12

Anyone know what % AIB OR BOI lend I see EBS is 80% are the others more

nemo32

wexford12 wrote: »

Anyone know what % AIB OR BOI lend I see EBS is 80% are the others more

Hi Wexford, That info can usually be found quite quickly on there websites and depends on your circumstances but when I applied in Jan as a FTB BOI were offering 90% LTV and AIb 92%

Sala

Zamboni wrote: »

Have you considered that a house priced at €257k is simply beyond your means?
Why not wait and save or go for a lower priced property?

I don';t think it is beyond their means in that they could well afford that mortgage, it's more the perceived instability of her husbands job. Minus the deposit, a mortgage of 217k is sustainable. I would argue that even on the one teachers salary they wouldn't starve anyway

Zamboni

Sala wrote: »

I don';t think it is beyond their means in that they could well afford that mortgage, it's more the perceived instability of her husbands job. Minus the deposit, a mortgage of 217k is sustainable. I would argue that even on the one teachers salary they wouldn't starve anyway

I agree it could be done but it would be very dependent on their other expenditure.
But most importantly, the bank don't think it's a runner and have already declined the first attempt.

Man007

Sala wrote: »

I know a few people who have successfully gotten approval in principle from AIB but when it comes to actually going to buy the house the bank keeps coming back with questions, requesting more documents etc. One case they changed the amount of approval substantially for the specific house meaning they couldn't afford to buy it anymore.

We went with aib and had no problems at all approved in principle within 10 days and no questions when we decided on house even though it needed some work.

We had the whole thing wrapped up in 8-10 weeks can't we went through a broker maybe this is the key they dealt with everything and kept pushing the bank along so I would advise going this route.

stressederic

Hey,
Thanks for the replies! Zamboni , I appreciate the concern and I did start to think this myself because if the initial rejection, but I have done up a budget and I think we could def afford it. As was said by somebody else,the rejection was based on my husband not being permanent, but thing is his job is prob more perm than most perm jobs but just can't change contract because of embargo in HSE! We are very good with money and paying rent whilst saving good bit on top of that! Anyway just to update u, AIB got back today with offer of 80,000 bahahaha! I said this to advisor in BOI and he is still very confident that we should get 220,000 or at very least 190,000 based on myself alone, now that is some difference! Anyway thanks for all ur advice! Did not realise how stressful this would be! I hope it works out because the house is really worth it! I'll keep u all updated anyway

stressederic

Yes MAN007 I would defo advise to go with broker, I wasted so much time and it could cost us the house:( still think I should have been given some sort of advise/support from AIB even though I went directly and as a result I am closing all my accounts with them! (as if they care, but itl be their loss when I win the euromillions any day now!)

killers1

It's impossible to say if a mortgage is within someones means solely on their income level.. I've had clients earning €40k per annum who have savings of €200k built up solely from salary and conversely I've met clients who earn €200k a year and haven't got €5k saved! I don't think anyone should make an assumption on whats affordable for someone else solely based on their income as their financial management could either be exemplary or leave a lot to be desired...

Newaglish

stressederic wrote: »

Hey,
Thanks for the replies! Zamboni , I appreciate the concern and I did start to think this myself because if the initial rejection, but I have done up a budget and I think we could def afford it. As was said by somebody else,the rejection was based on my husband not being permanent, but thing is his job is prob more perm than most perm jobs but just can't change contract because of embargo in HSE! We are very good with money and paying rent whilst saving good bit on top of that! Anyway just to update u, AIB got back today with offer of 80,000 bahahaha! I said this to advisor in BOI and he is still very confident that we should get 220,000 or at very least 190,000 based on myself alone, now that is some difference! Anyway thanks for all ur advice! Did not realise how stressful this would be! I hope it works out because the house is really worth it! I'll keep u all updated anyway

Have you considered that the fact that you are both permanent does not mean you will both have those incomes forever? What if you ever want to have children?

boardie100

..... plus have you factored in high interest rates sometime in the future?.... no point doing up a budget on historically low interest rates