Which mortgage lenders are still lending?

[Brendan Burgess]

If someone wants to trade up and they sell their current home before buying another home, how sure can they be of getting a mortgage elsewhere?

The person I have in mind has an NIB mortgage and would be borrowing 60% LTV and 3 times salary. Can they shop around?

[NorfBank]

I would advise them to get a speculative approval in principle at least before they sell their own home. If declined they will get reasons why and they can then take action. If approved easily then they know they have a good chance of getting formal approval.

LTV and multiples of salary are still important but the overriding factor these days is repayment capacity. They would have to prove to the lender that they can afford the new mortgage repayments stress tested at say 6%. If their current repayments plus monthly savings are greater than the new stressed mortgage repayments then they should be ok all other factors being in place.

www.moneybackmortgages.ie

[JohnJay]

I recently sold a property (affordable housing, original mortgage from the council). I have since been offered mortages from ICS and AIB for 4.5 x salary, LTV about 88%. ICS came back very quickly but AIB dragged their heels a bit. My savings record was very good and I dont have any other debts.

I'm hoping to start the process of drawing down one of the in the next few days, I dont know how easy that procedure will be.

[Importer]

Drew down a cheque today for 3.2 times my salary.
The process is quite sticky and slow moving. Everything is looked at under a microscope. There seems to be zero trust between the different agencies involved in the process

Today my solicitor nearly lost it when after quite a few days of wrangling
with the building society to get the cheque, he was told again this morning that the "file must go for one last final review" before the cheque can be issued.

Anyhow the cheque presented itself at 15.00 this afternoon much to the relief of us all.

Its a very painful road. You need to be well organised and have a strong case. Lots of trip wire along the way.

[Brendan Burgess]

My friend who is in a secure job was offered 5 times their combined salaries by the guy in the Bank of Ireland branch. It seems very high to me. They don't want to borrow that much.

[NorfBank]

BOI still work on multiples of salary once everything else in order. 5 times is their max.
They don't have to borrow that much!

[Vega]

FTB so it might different but AIB offered me about 5.4 times my salary and I really don't want to borrow that much. BOI only offered 4.7 times, doesn't sound like a big difference but it was a lot less.

[michaelm]

Reading this thread has given me some optimism. I'm considering selling my house in the new year with a view to buying a bigger house in a different area. I'd be looking for around 5x salary.

[lionstour]

offered 315000 with combined income of 110000 and a rental house 215000 giving 1000 a month. EBS

[deedee80]

Gosh thats interesting Lionstour, it doesn't seem like you were offered very much, in comparison to others on here. Do you think that having the rental property went against you? Was your approval based on paying the mortgage on new property, and also on rental should you have a period of no tenants?

[lionstour]

Originally Posted by deedee80

Gosh thats interesting Lionstour, it doesn't seem like you were offered very much, in comparison to others on here. Do you think that having the rental property went against you? Was your approval based on paying the mortgage on new property, and also on rental should you have a period of no tenants?

Im not sure what it was based on really. Happy enough with that amount for where we are buying. Still have an overall mortgage outlay of 565000 potentially. Come to think of it the guy did say they would not take rental income into account at all. And that the 565000 is based on our salaries.