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mortgage refused

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  • 08-02-2015 10:07pm
    #1
    reddub2015
    Registered Users Posts: 13 ✭


    I'm new to this forum but I need some advice. I applied with bank of ireland for a mortgage of 247k four months ago and got refused there on Friday. One of the conditions was I had to sell the property is was living in. Which I did.

    Some background: we earn 94k gross income in stable full time jobs, no other debts - paid off car loan in 2013 and cleared the credit card in the first half of 2014. Savings and equity is 38k. My credit rating is impeccable. The reason they refused is that the said I was not saving 300 per month (but I was paying 300 off the credit card each month. Apparently paying off the credit card doesn't count as savings because you are paying interest on it. Sounds like horse sh*t to me.

    Any opinions or advice? Surely they could of told me this before I sold my house and not wait 4 months stringing me along.


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    #2
    fits
    Registered Users Posts: 13,503 ✭✭✭✭fits


    Seems like a tough decision. Have you been saving since the credit card was paid off? Record savings for six months and reapply? Or try with someone else.


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    #3
    reddub2015
    Registered Users Posts: 13 ✭reddub2015


    fits wrote: »
    Seems like a tough decision. Have you been saving since the credit card was paid off? Record savings for six months and reapply? Or try with someone else.

    Trying Someone else. I have been saving since September. Very unprofessional, first time dealing with bank of ireland. Hellish experience really, having to tell my wife that we lost our house and have no mortgage approval.


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    #4
    audi12
    Banned (with Prison Access) Posts: 890 ✭✭✭audi12


    reddub2015 wrote: »
    I'm new to this forum but I need some advice. I applied with bank of ireland for a mortgage of 247k four months ago and got refused there on Friday. One of the conditions was I had to sell the property is was living in. Which I did.

    Some background: we earn 94k gross income in stable full time jobs, no other debts - paid off car loan in 2013 and cleared the credit card in the first half of 2014. Savings and equity is 38k. My credit rating is impeccable. The reason they refused is that the said I was not saving 300 per month (but I was paying 300 off the credit card each month. Apparently paying off the credit card doesn't count as savings because you are paying interest on it. Sounds like horse sh*t to me.

    Any opinions or advice? Surely they could of told me this before I sold my house and not wait 4 months stringing me along.
    earn 94 k but cant save an extra 300 a month you serious


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    #5
    First Up
    Registered Users Posts: 14,822 ✭✭✭✭First Up


    reddub2015 wrote: »
    I'm new to this forum but I need some advice. I applied with bank of ireland for a mortgage of 247k four months ago and got refused there on Friday. One of the conditions was I had to sell the property is was living in. Which I did.

    Some background: we earn 94k gross income in stable full time jobs, no other debts - paid off car loan in 2013 and cleared the credit card in the first half of 2014. Savings and equity is 38k. My credit rating is impeccable. The reason they refused is that the said I was not saving 300 per month (but I was paying 300 off the credit card each month. Apparently paying off the credit card doesn't count as savings because you are paying interest on it. Sounds like horse sh*t to me.

    Any opinions or advice? Surely they could of told me this before I sold my house and not wait 4 months stringing me along.

    How much is left on the credit card?


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    #6
    Arbiter of Good Taste
    Registered Users Posts: 2,200 ✭✭✭Arbiter of Good Taste


    reddub2015 wrote: »
    Trying Someone else. I have been saving since September. Very unprofessional, first time dealing with bank of ireland. Hellish experience really, having to tell my wife that we lost our house and have no mortgage approval.

    Why do you think paying off the credit card bill is akin to saving? Saving is putting aside cash after you clear your other debts and expenses, which you were not doing.


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    #7
    reddub2015
    Registered Users Posts: 13 ✭reddub2015


    audi12 wrote: »
    earn 94 k but cant save an extra 300 a month you serious

    Had another mortgage 1200 per month, 2 kids, 2 cars to run, normal bills etc. It's not that. The conditions on the offer letter we signed were met. It should not take four months to say No.

    Applied online at the start and when it went to branch level I had to reapply reapply. They lost all the forms I sent in.

    Round in circles for four months. Would never go near bank of ireland again.


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    #8
    reddub2015
    Registered Users Posts: 13 ✭reddub2015


    Arbiter of Good Taste wrote: »
    Why do you think paying off the credit card bill is akin to saving? Saving is putting aside cash after you clear your other debts and expenses, which you were not doing.

    I was thinking having zero personal debt was the place to be. Never thought it was saving but thought it showed that I was able to service extra debt. Actually counted for nothing in the end - saving or showing ability to pay. I was actually saving aswell but not 300 pm.

    My main gripes was the length of time it took to refuse and the resubmitting of the same forms again and again.


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    #9
    Amirani
    Moderators, Society & Culture Moderators Posts: 12,524 Mod ✭✭✭✭Amirani


    Your savings are very low for a mortgage of that size.


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    #10
    reddub2015
    Registered Users Posts: 13 ✭reddub2015


    First Up wrote: »
    How much is left on the credit card?

    Zero left and cancelled. Looking back over the statements I only bought ****e I didn't need.


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    #11
    Dave1014
    Registered Users Posts: 64 ✭✭Dave1014


    Got ours through EBS and found them fantastic to deal with. Just make sure no online betting/gambling on bank statements even if you just do you €5 bet it's frowned upon. Photocopy everything before you submit....and appeal BOI decision.


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    #12
    Kristopherus
    Registered Users Posts: 11,907 ✭✭✭✭Kristopherus


    Diego Simeone wrote: »
    Your savings are very low for a mortgage of that size.

    There are a lot of places he could walk into with €38k in his back pocket and 2 P60s showing an income of €94K and be accepted. After watching a family member being put through the ringer by Bank Of Ireland , I would advise anyone thinking of going to them for a mortgage to exhaust all other options first.


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    #13
    mickman
    Closed Accounts Posts: 4,661 ✭✭✭mickman


    Kristopherus wrote: »
    There are a lot of places he could walk into with €38k in his back pocket and 2 P60s showing an income of €94K and be accepted. After watching a family member being put through the ringer by Bank Of Ireland , I would advise anyone thinking of going to them for a mortgage to exhaust all other options first.

    Agreed. I went for a self build mortgage to them and hte list of conditions was a joke. They wanted an estate agent to write a letter basically guaranteeing that i would receive x ammount for rent on my current house. I went to AIB and was approved in a week with no such conditions


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    #14
    reddub2015
    Registered Users Posts: 13 ✭reddub2015


    That's what I was thinking. I should have been accepted on the back of the 38k and p60's. I wouldn't even use their atm's again. Absolute bastards. If you put a condition in to sell your house and then refuse four months down the line is a disgrace. My wife was in tears when I told her.


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    #15
    my friend
    Banned (with Prison Access) Posts: 7,129 ✭✭✭my friend


    reddub2015 wrote: »
    That's what I was thinking. I should have been accepted on the back of the 38k and p60's. I wouldn't even use their atm's again. Absolute bastards. If you put a condition in to sell your house and then refuse four months down the line is a disgrace. My wife was in tears when I told her.

    Stay calm, go to Ulster Bank.


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    #16
    professore
    Closed Accounts Posts: 5,857 ✭✭✭professore


    Wow ... there is no way in hell I would sell my house in that circumstance. I'd need the money in my bank account first.


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    #17
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Bank of Ireland would be known to be very conservative when it comes to assessing mortgage applications. All lenders however look for prove of repayment capacity. For example if you wished to borrow 250k over 30 years the stressed mortgage repayment would be circa €1500 therefore you need to provide evidence that you have paid this out over the last 6 months....If you were paying €1200 for your old mortgage well then they would look for proof of savings or repaying a short term loan of €300 and I am surprised that they did not take into consideration the monthly repayments on the credit card. I think a good mortgage advisor or a broker could have packaged your mortgage application better.

    Is the 38k actually saved or is it equity from the sale of your previous home.

    You really should have no problem getting approval from one of the other lenders however you need to submit your application quickly and correctly in order to get approved under the existing credit criteria and policy before the new Central Bank Regulations come into play.

    You can actually apply for approval in principle without having found a suitable property and this will be valid for 6 months. If you wait until the new regulations come into place you will need a 54k deposit on a purchase price of 270k while at the moment you can borrow 248k on a purchase price of 270k only needing a deposit of 22k.

    Best of luck.

    Trish


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