I recently applied for a top-up mortgage of €50k for the purposes of carrying out a variety of home improvements that i reckon I can get fairly good value on in the current climate. I've been paying the existing mortgage for 14 years without any problem or defualt on any occasion. I have a secure public sector job and my wife also has a reasonably high and steady income. We have a three-year car loan of €12k which has just 12 months left to go. The value of the mortgage, even with the top-up, would be less than 40% of the property's current value. We have never defaulted on or strayed from any loan arrangement either of us have ever had. In short, we're about as low-risk as any lending institution is going to get.
However, we can't believe the hoops the bank is putting us through to get the top-up loan. Notwithstanding our provision of all the required documenatation, we're still being asked to provide more. The reason offered is that any such requests are prompted by the (anonymous, third-party) who may want further reassurance. While I understand that a borrower's ability and willingness to pay needs to be established, the underwriters seem to operate on something of a nervous whim.
I've also been advised that any final letter of offer "is likely" to include a condition that funds will only be relased on provision of a receipt from a supplier that confirms that goods or services have been duly provide - in other words, the provider has to sweat it out until the lender has had the opprtine ity to mullover his invoice. i find this unacceptable for serveral reasons, not least the abilty to control the spending of funds that I'm obliged to repay.
The strong feeling I'm getting is that the bank just doesn't want to lend money. The money is for discretionary purchases so the effect is merely annoying rather than serious. But it occurs to me that if this is how they treat a relatively low-risk, what hope is there for anyone whose need for credit is more urgent or critical?
I'd appreciate anyone's experiences.
However, we can't believe the hoops the bank is putting us through to get the top-up loan. Notwithstanding our provision of all the required documenatation, we're still being asked to provide more. The reason offered is that any such requests are prompted by the (anonymous, third-party) who may want further reassurance. While I understand that a borrower's ability and willingness to pay needs to be established, the underwriters seem to operate on something of a nervous whim.
I've also been advised that any final letter of offer "is likely" to include a condition that funds will only be relased on provision of a receipt from a supplier that confirms that goods or services have been duly provide - in other words, the provider has to sweat it out until the lender has had the opprtine ity to mullover his invoice. i find this unacceptable for serveral reasons, not least the abilty to control the spending of funds that I'm obliged to repay.
The strong feeling I'm getting is that the bank just doesn't want to lend money. The money is for discretionary purchases so the effect is merely annoying rather than serious. But it occurs to me that if this is how they treat a relatively low-risk, what hope is there for anyone whose need for credit is more urgent or critical?
I'd appreciate anyone's experiences.