Exceptions on 3.5 times salary for mortgages

rodge123

Myself and my Fiancee applied for a mortgage on a fixed price new build with Bank of Ireland.
We both have an excellent savings history and stable well paying jobs.

The bank manager said that we should be fine getting approval for 3.5 times our salary.

We were looking to borrow 3.6 times our salary.
Our LTV is 68%.

The manager said they were not allowed approve the 3.6 for us. No real explanation given.

She made it sound like it was the central bank refusing it - my understanding is that it's the banks decision as they are allowed make exceptions in 20% of salary multiples cases?

I'm with the bank the last 15 years and this has really annoyed me.
On what basic do they decide who to give the exceptions to?

Sarn

Unfortunately being a bank's customer offers no advantage over a non-customer. There are rumours that some banks have already exhausted the exemptions for this year which is why it may not be an option at the moment.

the groutch

yep, that seems to be the consensus, that the banks got a bit carried away with their exceptions and can't do any more this year.
It wouldn't surprise me if they said yes if you ask again in January.

Oral Surgeon

But if they can make an exception for one in five cases, then if four other standard mortgages are approved, your one in five exception can then be considered. They can't "exhaust" their quota on a percentage!!

Shooter_galway

I'm sure its a little more complicated then that, there are guides as to how many can be an exception 20% is not set in stone..

Sarn

If the banks gave out more than 20% of the euro value in mortgages they will have effectively exhausted their exceptions until it drops below it again. As they approach the limit they will be more selective.

I guess it depends on how the banks have worked out how the exemptions were applied. Did they estimate them on a yearly basis and use them up at the start or were they worked out on a quarterly basis?

Quorom

Try again in early January 2016

rodge123

Quorom wrote: »

Try again in early January 2016

Yes the manager said that she was told that we could try this and would probably be successful.

It's not an option at the moment as we would then lose out on 2% cashback offer which expires 31st December.

EGavigan

Are you sure you will be eligible for the cashback offer? Their advertisements state that it applies to mortgages drawn down between 3rd June 2015 and 31st Dec 2015? I note that you are building your house so I expect that none of the mortgage will be drawn by 31.12.15?

rodge123

EGavigan wrote: »

Are you sure you will be eligible for the cashback offer? Their advertisements state that it applies to mortgages drawn down between 3rd June 2015 and 31st Dec 2015? I note that you are building your house so I expect that none of the mortgage will be drawn by 31.12.15?

Yeah we will be ok as long as we make the first stage drawdown by 31st December.

Alrite Chief

Many exemptions being made so far this year? More specifically to the 20% deposit restrictions?