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Are any banks actually offering Loan to Income (LTI) exceptions at the moment?

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  • 17-04-2018 2:56pm
    #1
    Heathen
    Registered Users Posts: 1,459 ✭✭✭


    Hi all,

    I am shattered, at the end of last year KBC told me and my wife we would be fine for a LTI exception and now just as we are ready with every other part of going to buy a house (deposits/ approval etc...) they have said they are not giving any more exceptions and might not till the end of the year, we have also tried AIB,EBS, Haven, BOI and at this stage i am sick of filling out paperwork, printing my whole financial history and getting salary certs filled out only to be told they have just stopped offering exceptions... I am trying to find out whats banks actually are giving the loan to income exception right now cos we need to get our approval asap for a house before they are out of our price range all together...

    Any help would be appreciated

    H


Comments

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    #2
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    Try PTSB -they were e offering them much later then the other banks last year


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    #3
    Captain Flaps
    Registered Users Posts: 1,834 ✭✭✭Captain Flaps


    Hey, just secured an LTI exception with KBC ourselves, but we applied at the start of march. At that point AIB/Haven had used their allocation, Ulster Bank may still have some but they're 4x rather than the 4.5x KBC/AIB were offering. You may need to wait until the start of Q3 as they seem to pop up quarterly or half yearly in some cases.


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    #4
    salad_man
    Registered Users Posts: 43 ✭salad_man


    Our Mortgage application is pending currently with BOI . Similar to Heathen we have been told numerous times we would comfortably satisfy the LTI exemption criteria with many banks, but have also heard similar recent rumors to the exemptions allocation running out for banks. Hoping we can still get one or else it's majorly back to the drawing board!


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    #5
    Captain Flaps
    Registered Users Posts: 1,834 ✭✭✭Captain Flaps


    Best of luck to both of you. Our broker told us we'd be grand to wait until the end of April/early May to apply before we'd need to be concerned about exceptions, but my partner is a worrier and she wanted to get the ball rolling ASAP. I thought it was premature but I think I owe her a nice dinner now!


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    #6
    MCBrowne
    Registered Users Posts: 33 ✭MCBrowne


    Hi,

    Very new to the Mortage thing. Can someone explain what the criteria for an exception is? I'm sorry if that's a dumb question. Would they give an exception to a self build?


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    #7
    Jwacqui
    Registered Users Posts: 2,772 ✭✭✭Jwacqui


    We were told by AIB and BOI this week that no exceptions will be made for us. Central bank have cut down on them apparently


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    #8
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    MCBrowne wrote: »
    Hi,

    Very new to the Mortage thing. Can someone explain what the criteria for an exception is? I'm sorry if that's a dumb question. Would they give an exception to a self build?

    Each bank will have their own specific criteria, a bank will also assume you'll over spend on a self build so that'll be worked into the borrowing amount as well.
    With so many people fighting for an exemption your odds are not great, best talk to a bank, posters on Boards can only speculatd.


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    #9
    Glenbhoy
    Registered Users Posts: 1,853 ✭✭✭Glenbhoy


    salad_man wrote: »
    Our Mortgage application is pending currently with BOI . Similar to Heathen we have been told numerous times we would comfortably satisfy the LTI exemption criteria with many banks, but have also heard similar recent rumors to the exemptions allocation running out for banks. Hoping we can still get one or else it's majorly back to the drawing board!

    I have read that elsewhere too, what I don't understand is how this is the case. My understanding is that exceptions are allowed on a percentage of a bank's overall loan book in a given year, would that not mean year these will be issued in tandem with lending over a year or do they take a chance and award them all at the start of the year based on estimates of what their lending will be??


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    #10
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    Are you at risk of losing your deposit if they pull the rug from beneath you? You sign the contract to buy the house, but now you can't get the full amount of money needed to pay the balance.


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    #11
    Captain Flaps
    Registered Users Posts: 1,834 ✭✭✭Captain Flaps


    The deposit is just a deposit, it's returnable. You're not on the hook until contracts are signed and the bank has given you the official loan offer.


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    #12
    username?!
    Registered Users Posts: 521 ✭✭✭username?!


    Any update on exception availability in any of the banks?


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    #13
    Frisbee
    Registered Users Posts: 23,568 ✭✭✭✭Frisbee


    We are in the same boat, had the LTI signed off no bother at the end of 2017. Viewed a fair few houses but nothing we wanted to go for.

    Heard there was a shortage with them so checked back in with BOI and told it should be fine a few weeks ago. Put a Booking Deposit down on a new build at the weekend and now being told they are no longer offering LTI's which then rules us out of the house we just reserved. So even if they do release more in Q3 we will still be ruled out as I am sure Phase 2 will take it's usual €20k leap.


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    #14
    salad_man
    Registered Users Posts: 43 ✭salad_man


    Applied with BOI 3 weeks ago and and they are no longer approving LTI's until later in the year.
    Have now applied to KBC and EBS - seemed more optimistic on application, hopefully hear within the next week


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    #15
    Anne1982h
    Closed Accounts Posts: 77 ✭✭Anne1982h


    Captain Flaps wrote: »
    Hey, just secured an LTI exception with KBC ourselves, but we applied at the start of march. At that point AIB/Haven had used their allocation, Ulster Bank may still have some but they're 4x rather than the 4.5x KBC/AIB were offering. You may need to wait until the start of Q3 as they seem to pop up quarterly or half yearly in some cases.


    There seems to be a lot of confusion about the exceptions. *They can’t be used up* as they are a proportion of total value of lending. I saw that the Central Bank released something on this that showed exceptions were given out in every quarter of the 2017.


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    #16
    sarah88
    Registered Users Posts: 502 ✭✭✭sarah88


    Frisbee wrote: »
    We are in the same boat, had the LTI signed off no bother at the end of 2017. Viewed a fair few houses but nothing we wanted to go for.

    Heard there was a shortage with them so checked back in with BOI and told it should be fine a few weeks ago. Put a Booking Deposit down on a new build at the weekend and now being told they are no longer offering LTI's which then rules us out of the house we just reserved. So even if they do release more in Q3 we will still be ruled out as I am sure Phase 2 will take it's usual €20k leap.

    Hi, do you mind me asking If you had gotten approval in principle with BOI? Im a little worried myself. Ive gotten AIP with BOI back in Feb which includes an exception on LTI.

    I have to wait on planning permission before I can make a full application for a loan offer. Really worried that the exception on the AIP won't be upheld by the time i get planning permission sorted. Its a nightmare


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    #17
    Frisbee
    Registered Users Posts: 23,568 ✭✭✭✭Frisbee


    sarah88 wrote: »
    Hi, do you mind me asking If you had gotten approval in principle with BOI? Im a little worried myself. Ive gotten AIP with BOI back in Feb which includes an exception on LTI.

    I have to wait on planning permission before I can make a full application for a loan offer. Really worried that the exception on the AIP won't be upheld by the time i get planning permission sorted. Its a nightmare

    Yep we had AIP. Then when I went back on Monday to get the official Approval against the property we booked was told they are no longer offering LTI exceptions. My application is still in there but I am not holding my breath.

    Our AIP was for a higher value than we were actually looking for as well.


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