Two mortgage refusals what now?

Jeff Le bowski

I've been refused by two banks for a small mortgage and was looking for anyones views on where to go next?

I've been to the credit union and they will give me more than i could have got on a mortgage i just need to make up the 40% before they will give me the loan.

The only other option i can think of and i'm in last chance saloon is for a council mortgage?

Anyone got one or in the process?

Or any other suggestions all welcome because i am absolutely sick to the teeth of paying more rent than i would if i had a mortgage.

I have 10% of the property i would like plus all other fees etc

The banks refused me because my earnings were too low as a single applicant plain and simple

Cheers!

Mr.McLovin

you qualify for a council mortgage after two refusals so get the refusals in writing to send with your application.

each council does it differently as far as I know best give them a buzz

There are various threads on it might be best to do a search and check some of them out, some of the schemes maybe obsolete now

cat123456

Are you sure your earnings are the only reason they refused you? They usually just approve you for a lower amount in this case. There isn't really any way around the multiples of income they give you unless you save more money. Don't despair. I know it is a really tough process. What about looking at a cheaper house? A smaller house is still better than renting.

cat123456

Sorry jeff I didn't read your post correctly re the earnings. I see your predicament. Hopefully the other poster can help.

snubbleste

http://homechoiceloan.ie/

Jeff Le bowski

Need to earn over €35,000 !!

That rules that out...

aaakev

snubbleste wrote: »

http://homechoiceloan.ie/

never knew about that! cheers

JohnBee

Jeff Le bowski wrote: »

I've been refused by two banks for a small mortgage and was looking for anyones views on where to go next?

I've been to the credit union and they will give me more than i could have got on a mortgage i just need to make up the 40% before they will give me the loan.

The only other option i can think of and i'm in last chance saloon is for a council mortgage?

Anyone got one or in the process?

Or any other suggestions all welcome because i am absolutely sick to the teeth of paying more rent than i would if i had a mortgage.

I have 10% of the property i would like plus all other fees etc

The banks refused me because my earnings were too low as a single applicant plain and simple

Cheers!

I am confused. Surely being refused by 2 banks is a sign that you are a poor risk. Why would you want to set yourself up in that situation? Renting isn't all bad. Most people applying for a mortgage view their current income and expenses. If you lost your job would you have sufficient liquidity to cover mortgage payments for 6 months while looking for a new job? Would you be able to cover the mortgage if you took a pay cut or got some unexpected expense?

Even in the celtic tiger I aimed low and took out a small mortgage when many colleagues were borrowing double. At the time the bank would have given me probably 200000 more than I actually took. Thus, despite a 30% pay cut and a recession I still was able to pay my debts when colleagues suffered.

Jeff Le bowski

JohnBee wrote: »

I am confused. Surely being refused by 2 banks is a sign that you are a poor risk. Why would you want to set yourself up in that situation? Renting isn't all bad. Most people applying for a mortgage view their current income and expenses. If you lost your job would you have sufficient liquidity to cover mortgage payments for 6 months while looking for a new job? Would you be able to cover the mortgage if you took a pay cut or got some unexpected expense?

Even in the celtic tiger I aimed low and took out a small mortgage when many colleagues were borrowing double. At the time the bank would have given me probably 200000 more than I actually took. Thus, despite a 30% pay cut and a recession I still was able to pay my debts when colleagues suffered.

I'm paying more in rent than i would if i had a mortgage,all i wanted was €70,000 and i have my 10% plus fees and more they still wanted to give me a 35 year mortgage if i earned more in my job or had a second applicant to go on the mortgage ..and this is after me asking them if there was any minimum salary required to take out a mortgage and they said no,all based on your ability to repay when really it's €25,000 per apllicant,KBC is €30,000...I could move back home to my aul one and save close to €16,000 a year and will probably have to at this stage

Villa05

Try Bank of Ireland. I know single applicants on less than 35k that got a mortgage. Might also be worthwhile to use a mortgage broker.

Jeff Le bowski

Villa05 wrote: »

Try Bank of Ireland. I know single applicants on less than 35k that got a mortgage. Might also be worthwhile to use a mortgage broker.

Maybe read my last post again

Eric Cartman

Jeff Le bowski wrote: »

Need to earn over €35,000 !!

That rules that out...

maybe a mortgage isn't for you so , thats hardly an inordinately high amount of money in mortgage world.

thats would only fund a 115k ish mortgage under the new rules.

edit : read above post. thats pretty bad form if you only need 70k , if you have an income over 20k i can't see why they would decline for that kind of cash. If its under 20k most jobs in that bracket have little security which would worry a lot of banks.

Jeff Le bowski

I don't see how?

I'm paying €550 in rent and have been for 2 and a half years ,that's €16,500 down the drain and i've saved €12,000 in a year,the house i want is around 70k hardly a huge amount of money when the credit union is willing to give me more than i need as long as i have 40%

My job only pays 21k but i would nearly be as well off to give that up sit on the dole and claim rent allowance instead if renting is the way to go, as all the saving and good credit history etc means nothing to the banks in reality you just need a well paid job

Greyian

Jeff Le bowski wrote: »

I don't see how?

I'm paying €550 in rent and have been for 2 and a half years ,that's €16,500 down the drain and i've saved €12,000 in a year,the house i want is around 70k hardly a huge amount of money when the credit union is willing to give me more than i need as long as i have 40%

My job only pays 21k but i would nearly be as well off to give that up sit on the dole and claim rent allowance instead if renting is the way to go, as all the saving and good credit history etc means nothing to the banks in reality you just need a well paid job

I know if I was working in a bank, I'd have some concerns over some of your figures.

You're earning €21,000 a year, which is €1,554/month net. You say your rent is €550/month, and you saved €12,000 in a year (€1,000/month), which means after paying your rent and factoring in your savings, you have €4/month to feed yourself, pay bills, cover car/public transport etc etc. It would seem there is something else going on there to be honest.

Teyla Emmagan

Have you checked your rating with the icb? If you have a load of strikes you are out of luck until your record clears

Tigger

Greyian wrote: »

I know if I was working in a bank, I'd have some concerns over some of your figures.

You're earning €21,000 a year, which is €1,554/month net. You say your rent is €550/month, and you saved €12,000 in a year (€1,000/month), which means after paying your rent and factoring in your savings, you have €4/month to feed yourself, pay bills, cover car/public transport etc etc. It would seem there is something else going on there to be honest.

i assume the 21k is take home
so the op has €7 a day which is loads for food transport insurance etc

Jeff Le bowski

My missus pays bills too,i was going for a mortgage on my own because i make huges amounts of money

Jeff Le bowski

21k is take home btw

markc2951

Would you consider a log cabin at a low cost.Im in the process of painting a new one on the inside.

Sitting room,kitchen,bathroom,4 rooms inc en suite

Michael D Not Higgins

Jeff Le bowski wrote: »

My missus pays bills too,i was going for a mortgage on my own because i make huges amounts of money

If you're applying alone, will the bank assume all household costs are borne by you? Could be why you're hitting a brick wall.