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Are banks really lending?!?!

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  • 02-05-2014 3:18pm
    #1
    gmisk
    Registered Users Posts: 32,801 ✭✭✭✭


    Well are they?

    AIB seem to be offering me a much smaller amount than they were initially.

    I was approved for a mortgage up to 160k previously.....
    In a recent application they suggested I could apply for more (in this case 190k)

    They are now offering me a maximum of 135k.....

    My circumstances haven't changed (in fact I have had a small increase in wages, and saved 1.5k more since my last application, even with wasting close to 1k on valuation and structural surveys on properties!).
    I have 22k in savings..... including a 10k a gift from my parents.
    I honestly don't get their logic in this decision.

    I guess there is nothing else I can do but continue saving for the foreseeable future, the likelihood of finding something for 150k in an ok area ATM seems unlikely with whats on the market.....

    Has anyone had similar experiences to this?


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    #2
    macnug
    Registered Users Posts: 619 ✭✭✭macnug


    gmisk wrote: »
    Well are they?

    AIB seem to be offering me a much smaller amount than they were initially.

    I was approved for a mortgage up to 160k previously.....
    In a recent application they suggested I could apply for more (in this case 190k)

    They are now offering me a maximum of 135k.....

    My circumstances haven't changed (in fact I have had a small increase in wages, and saved 1.5k more since my last application, even with wasting close to 1k on valuation and structural surveys on properties!).
    I have 22k in savings..... including a 10k a gift from my parents.
    I honestly don't get their logic in this decision.

    I guess there is nothing else I can do but continue saving for the foreseeable future, the likelihood of finding something for 150k in an ok area ATM seems unlikely with whats on the market.....

    Has anyone had similar experiences to this?

    Possible policy change or something, try a few others to see if you can get more. I know somone who has just bought a house for 250 but was also allowed to take there 100k negative equity with them so they have a 350k mortgage on a 250k house, both working and getting 70k gross combined, don't know how they got tbh.


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    #3
    gmisk
    Registered Users Posts: 32,801 ✭✭✭✭gmisk


    macnug wrote: »
    Possible policy change or something, try a few others to see if you can get more. I know somone who has just bought a house for 250 but was also allowed to take there 100k negative equity with them so they have a 350k mortgage on a 250k house, both working and getting 70k gross combined, don't know how they got tbh.

    I was offered 170 with BOI before so will go to them, but the rates are better with AIB atm and the offer 92%.
    Tbh the way things are I might be better saving hard for a while anyway.

    I don't really understand how they got that deal either...so they basically have a 140% mortgage?...bizarre


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    #4
    Balmed Out
    Registered Users Posts: 4,716 ✭✭✭Balmed Out


    You have only saved 12k yourself, I don't know the other details but im surprised their willing to loan you so much. Well not surprised but it shouldnt really be much more. Theres no point counting the gift as proof of your ability to save money.


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    #5
    macnug
    Registered Users Posts: 619 ✭✭✭macnug


    gmisk wrote: »
    I was offered 170 with BOI before so will go to them, but the rates are better with AIB atm and the offer 92%.
    Tbh the way things are I might be better saving hard for a while anyway.

    I don't really understand how they got that deal either...so they basically have a 140% mortgage?...bizarre

    I couldn't believe it myself. Unless there is something they are not telling me, as far as I know they have very little saving and the majority of the deposit on the new house is a loan/gift. They have however been paying a mortgage and rent for the past couple of months.


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    #6
    xper
    Registered Users Posts: 1,070 ✭✭✭xper


    gmisk wrote: »
    Well are they?
    I was approved for a mortgage up to 160k previously.....
    In a recent application they suggested I could apply for more (in this case 190k)

    They are now offering me a maximum of 135k.....

    When was "previously"? Pretty sure that the banks tightened their lending criteria (lower multiple of salary, higher stress testing, etc) in the latter half of last year. Looking at the numbers above, I'd guess your salary is in or around 40k if you have no dependants, loans or other financial 'drains', based on AIB's current rules.


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    #7
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    macnug wrote: »
    Possible policy change or something, try a few others to see if you can get more. I know somone who has just bought a house for 250 but was also allowed to take there 100k negative equity with them so they have a 350k mortgage on a 250k house, both working and getting 70k gross combined, don't know how they got tbh.

    Mortgage could be split in two with the original principal on a tracker rate and the "top up" on a standard variable. If you're not in arrears and have good credit history, the banks can be quite flexible.


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    #8
    macnug
    Registered Users Posts: 619 ✭✭✭macnug


    gaius c wrote: »
    Mortgage could be split in two with the original principal on a tracker rate and the "top up" on a standard variable. If you're not in arrears and have good credit history, the banks can be quite flexible.

    You could be right because I know their original loan was tracker and the sale for the first house is nearly completed, while they have just gone sale agreed on second which suggests a degree of separation between the two loans.


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