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Guarantor on mortgage BOI?

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  • 15-08-2016 11:57am
    #1
    Snakeweasel
    Registered Users Posts: 573 ✭✭✭


    Have BOI done away with allowing guarantors on mortgages altogether? I have looked all over but cannot find any information either way online. I was recently rejected for a small mortgage which I applied for over the phone. I was shocked to be rejected as the adviser told me I should be fine as I have been in the same job for 4 years, make enough money, and have saved more than enough of a deposit. The reason I ended up being rejected is because I stupidly dipped in to my savings a few times when I didnt need to, (I needed to once when buying a car) and as such my savings have plateaued for the last 12 months.

    I asked if having a guarantor would make any difference, but was told that they don't allow this on mortgages since the crash. I was surprised to hear this as I applied for a mortgage in branch less than 2 years ago and was approved on the basis that I had a guarantor. So can anyone confirm this without me having to go in branch as I am very limited with annual leave and would have to book at least half a day off to go in branch to query this.


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    The new central bank rules basically make no mention of guarantors, so banks are very limited in bending the rules to get you over the line.

    That said, if your guarantor is a multi-millionaire and has good contacts in the bank you can make things work.

    Get your saving back on track for six months and you'll be good to go at that point.


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    #3
    One_Of_Shanks
    Closed Accounts Posts: 2,436 ✭✭✭One_Of_Shanks


    We asked in BOI about getting herself's Dad to go guarantor for us about a year ago for a mortgage and were told that "we don't really do this anymore".

    Looks like its virtually a thing of the past.


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    #4
    Snakeweasel
    Registered Users Posts: 573 ✭✭✭Snakeweasel


    seamus wrote: »
    The new central bank rules basically make no mention of guarantors, so banks are very limited in bending the rules to get you over the line.

    That said, if your guarantor is a multi-millionaire and has good contacts in the bank you can make things work.

    Get your saving back on track for six months and you'll be good to go at that point.

    I was told it was central bank rules the adviser was not very confident.

    My guarantor is a parent with a farm......

    Think you could be right about just getting the savings back on track. Sickened to miss out on a great property because of my own stupidity!


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    #5
    Snakeweasel
    Registered Users Posts: 573 ✭✭✭Snakeweasel


    One_Of_Shanks wrote: »
    We asked in BOI about getting herself's Dad to go guarantor for us about a year ago for a mortgage and were told that "we don't really do this anymore".

    Looks like its virtually a thing of the past.

    Was that in branch or over the phone? When I was in branch I was told "there are things we can do for you in branch that they can't do over the phone" either way it sounds as if its a thing of the past and I was just lucky last time!


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    #6
    One_Of_Shanks
    Closed Accounts Posts: 2,436 ✭✭✭One_Of_Shanks


    Snakeweasel wrote: »
    Was that in branch or over the phone? When I was in branch I was told "there are things we can do for you in branch that they can't do over the phone" either way it sounds as if its a thing of the past and I was just lucky last time!

    This was in branch.


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    #7
    Snakeweasel
    Registered Users Posts: 573 ✭✭✭Snakeweasel


    One_Of_Shanks wrote: »
    This was in branch.

    Well there goes my last shred of hope! :o


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    #8
    One_Of_Shanks
    Closed Accounts Posts: 2,436 ✭✭✭One_Of_Shanks


    Snakeweasel wrote: »
    Well there goes my last shred of hope! :o

    Sorry mate! Yeah it came as a surprise to us too at the time.

    Save like hell and keep the old credit-card stuff sensible and avoid any gambling, off-licences etc on the CC and try again down the line.

    Or contact a broker now maybe? They could find a way around it for you via another bank. I think BOI are awful to deal with anyway personally.


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    #9
    L1011
    Registered Users Posts: 68,903 ✭✭✭✭L1011


    One_Of_Shanks wrote: »

    Or contact a broker now maybe? They could find a way around it for you via another bank. I think BOI are awful to deal with anyway personally.

    With no increase in savings in 12 months, no bank is going to lend. No proof of ability to keep the cash to pay the mortgage basically - even if already renting.

    It should only take 6 months of consistent savings without touching it at all to make it viable again, though.


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    #10
    Tefral
    Registered Users Posts: 4,358 ✭✭✭Tefral


    L1011 wrote: »
    No proof of ability to keep the cash to pay the mortgage basically - even if already renting.

    Thats a weird one as AIB told me the fact i'm renting is proof of ability to pay.


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    #11
    mirrorwall14
    Closed Accounts Posts: 6,751 ✭✭✭mirrorwall14


    Tefral wrote: »
    Thats a weird one as AIB told me the fact i'm renting is proof of ability to pay.

    It is but not on its own in my experience with the banks


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    #12
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    mirrorwall14 wrote: »
    It is but not on its own in my experience with the banks

    Depends on how much your rent is in comparison to the mortgage repayments. If the mortgage is v.small then it might be, but if the 2 are equal, it won't be enough, as they'll stress test about +2%.


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    #13
    L1011
    Registered Users Posts: 68,903 ✭✭✭✭L1011


    Tefral wrote: »
    Thats a weird one as AIB told me the fact i'm renting is proof of ability to pay.

    If you're in the very unlikely situation of the rent being far higher than the mortgage, it may be enough. They need to see that you can pay the mortgage, plus the stress testing level, plus reasonable other costs of home ownership. This is going to require proof of savings.

    They're going to like to see proof of savings even if the rent is higher than the mortgage plus the other bits though.


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