Equity Release loan refused.

gazzer

[font=Verdana, sans-serif]Hi there. I’m looking for some advice and thought I would ask here. Myself and my partner have a mortgage with Bank of Ireland for the last 7 years. There is currently €155000 left on the mortgage (17 years). I have looked at asking prices in the locality for similar houses and they range from €230000 to €250000. So potentially there is equity there of €29000 that would still keep us just under the 80% loan to value ratio.[/font][font=Verdana, sans-serif]

We had approached BOI to release some equity in our house in order to do some home improvements and to also clear a BOI Personal Loan from our Joint account. The details of repayments for our Mortgage and Personal Loan are as follows

Mortgage €1040 per month (17 years remaining)

Personal Loan €310 per month (3 years remaining)

[/font][font=Verdana, sans-serif]We do have a Car Loan and a Credit Union loan also. We have never missed repayments on any of our loans.[/font]
[font=Verdana, sans-serif] [/font]

[font=Verdana, sans-serif]When we discussed the possibility of releasing some equity in the house with the BOI rep we were told that if we requested the equity release we were looking at a repayment of €1225 a month over the next 17 years. This would mean that we would be paying €125 a month less to BOI for the 2 loans. We submitted the application but it has been refused as apparantly we would not have enough funds to pay the new loan. It’s pretty puzzling as the repayments are less. The person i spoke to could not give me a proper explanation for this so I am wondering if the application can be looked at again.[/font]

Bank of Ireland: Nicola

gazzer wrote: »

[font=Verdana, sans-serif]Hi there. I’m looking for some advice and thought I would ask here. Myself and my partner have a mortgage with Bank of Ireland for the last 7 years. There is currently €155000 left on the mortgage (17 years). I have looked at asking prices in the locality for similar houses and they range from €230000 to €250000. So potentially there is equity there of €29000 that would still keep us just under the 80% loan to value ratio.[/font][font=Verdana, sans-serif]

We had approached BOI to release some equity in our house in order to do some home improvements and to also clear a BOI Personal Loan from our Joint account. The details of repayments for our Mortgage and Personal Loan are as follows

Mortgage €1040 per month (17 years remaining)

Personal Loan €310 per month (3 years remaining)

[/font][font=Verdana, sans-serif]We do have a Car Loan and a Credit Union loan also. We have never missed repayments on any of our loans.[/font]
[font=Verdana, sans-serif] [/font]

[font=Verdana, sans-serif]When we discussed the possibility of releasing some equity in the house with the BOI rep we were told that if we requested the equity release we were looking at a repayment of €1225 a month over the next 17 years. This would mean that we would be paying €125 a month less to BOI for the 2 loans. We submitted the application but it has been refused as apparantly we would not have enough funds to pay the new loan. It’s pretty puzzling as the repayments are less. The person i spoke to could not give me a proper explanation for this so I am wondering if the application can be looked at again.[/font]

Hi gazer, thanks for getting in touch.

There are a number of factors that are taken into consideration when you apply for a loan or mortgage. If you would like to discuss your application in more detail you can arrange to have a chat with a mortgage adviser in your local branch here.

Thanks
Nicola