Mortgage financing 100%

outlooks

Hi, in what scenarios would banks approve 100% financing to buy a house?

PaulM1977

No scenarios.

Toots

Can't imagine any scenarios where they'd do that anymore. Even if they wanted to, they probably wouldn't be allowed because of the new central bank rules. I know they've got some wiggle room in terms of multiples and deposits, but they're not allowed to waive them entirely.

JTMan

outlooks wrote: »

Hi, in what scenarios would banks approve 100% financing to buy a house?

Yes. The banks need to apply the new CBI rules in most, but not all cases. The banks are allowed grant exceptions up to a limited number of total exceptions.

A pretty convincing case is required to get a 100% mortgage. For example, very high income potential etc

Trish56

The max finance you will get is 90% and there are no exceptions to this. You won't get a mortgage unless you have savings of the 10% deposit and also have regular savings equal to the monthly stressed repayments. It makes no difference how high your earnings are.

outlooks wrote: »

Hi, in what scenarios would banks approve 100% financing to buy a house?

seklly

You will need to get a time machine

JTMan

Trish56 wrote: »

The max finance you will get is 90% and there are no exceptions to this.

- 80% LTV applies to the vast majority people.
- Around 90% LTV applies is most but not all exceptions.
- 100% LTV or even higher is still possible. The bank has the right to create exceptions. Exceptions might be a negative equity boom time mortgage whereby your new LTV for 2 properties exceeds 100%. Again, it is rare that these exceptions are issued but it can be done and I know people who have got these exceptions.

PaulM1977

New CBI rules don't apply to anyone with a negative equity mortgage. If you are a first time buyer looking for mortgage finance, you won't get 100% finance.

Trish56

Not correct :
First time buyers can borrow up to 90% loan to value subject to income and affordability.

Second time buyers/movers can borrow up to 80% loan to value subject to income and affordability. Exceptions can be made to increase up to 90% and is looked at on a case by case basis.

https://www.centralbank.ie/press-area/press-releases/Pages/CentralBankannouncesnewregulationsonresidentialmortgagelending.aspx

I would question if anyone is getting a 100% mortgage if it is under the Central Bank Regulations!!!!

JTMan wrote: »

- 80% LTV applies to the vast majority people.
- Around 90% LTV applies is most but not all exceptions.
- 100% LTV or even higher is still possible. The bank has the right to create exceptions. Exceptions might be a negative equity boom time mortgage whereby your new LTV for 2 properties exceeds 100%. Again, it is rare that these exceptions are issued but it can be done and I know people who have got these exceptions.

mk229797

The study shows that some €2.3 billion in mortgage loans were offered during the first half of 2016, the vast majority – 93 per cent – covered by Central Bank’s mortgage lending rules.

A 100 per cent mortgage
They may be almost extinct, but the study shows banks are still lending 100 per cent of the purchase price to some borrowers. According to the Central Bank study, a small number of borrowers had a loan-to-value (LTV) of 100 per cent in the first half of the year.

While the average LTV for first-time buyers was 78.6 per cent in the first half of 2016, it doesn’t mean that the average first-time buyer has a deposit of more than 22 per cent. As discussed here, most first-time buyers actually borrow more than this, with the Central Bank study showing that more than 70 per cent of first-timers borrow more than 90 per cent.