Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage Exceptions - Bank or Central Bank

Options
  • 25-09-2017 9:42pm
    #1
    flashforward
    Registered Users Posts: 314 ✭✭


    How are exceptions controlled by the central bank?
    Do they give out X number of exceptions to each bank at the start of the year?

    I was speaking to a banker today and he said all the exceptions are used up but there's rumours of more coming in the next month or so.

    Any way to validate this? Is it common?

    I need to renew my AIP so want to decide to hold out or not.


Comments

  • Options
    #2
    G1raff3
    Registered Users Posts: 44 ✭G1raff3


    As far as I know, there was a set number given to the banks at the start of the year. A financial advisor told us that only 2 banks still had any left to give, UB and AIB but this is open to correction.
    We weren't eligible for the exception as we were told we needed to be looking for 30% extra on top of the 3.5 times salary.
    Can't comment on any additional exceptions being granted..


  • Options
    #3
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    The exceptions are controlled by the individual banks and reported to the central bank on a quarterly basis (or maybe half year basis). The exceptions must come out to a certain percentage of the value of the loan book.

    What happens practically is that the banks know how much of a loan book they'll have each reporting period and only give out exceptions to the required percentage of that and not give out anymore until the next period. So what happens is the bank terms everyone to hold off for the next period and they dump most of the exceptions early in that period.

    So for quarterly periods, the next period starts in October.


Advertisement