New arrival, Need €100k mortgage

C

collis

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'Askingabout...' for a friend...she arrived here a few weeks ago from EU member Hungary but did her homework and has had an offer of €195k verbally accepted for a house in Co.Waterford. She has €100k (parents in Budapest) and is working in Waterford city for a multinational company. Salary €35k p.a.
The job is a one year contract but 'likely' to become permanent.
The snag? Ulster Bank have refused her a mortgage on the grounds that she has not been here for 6 months. They accept her ability too repay etc but claim that central office are adamant on the 6 month rule.
Seems odd to me (Irishman receiving offers of cheap money in the post every week) that a 50% LTV mortgage for a fairly measly 100 grand is so hard to get? She considers rent money dead money and is determined to buy this house...sorry for banging on, time is tight and any thoughts or advice greatly appreciated.Thanks!
 
Its not an uncommon thing really. Even for an Irish person if you dont have 6 months payslips its quite difficult to get a mortgage. My best advice would be for her to contact a broker who can check with a number of different mortage providers. Possibly go with one of the lenders that offer higher rates and change once the 6 months have passed.
 
Probably a thick question but anyway - can she get the mortgage in her native country?
 
Thanks for the replies, she has shown working and banking history and this allowed her to open an account with Ulster Bank.
I have offered to guarantee the loan ( enough equity in my own place , etc) but this hasn't budged them. I'm with Ulster bank myself and to be honest not very happy with their service overall. Think I'll switch (but will they care?)! Is mortgage lending tightening up I wonder?

Good point about the broker, and I guess paying a little over the odds on €100k for a while is not the end of the world. Thanks again.
 
mo3art said:
Probably a thick question but anyway - can she get the mortgage in her native country?
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Great question , because I asked too! Banking in Hungary not as mature as here, a loan on a 'foreign' property is probably out of the question especially as she has emigrated and is earning here now.
Was wondering if maybe one of the new banking entrants such as Halifax are a better bet?
 
A bank might accept 6 or 12 months mortgage repayments lodged with them in a savings account for the first year. She could fund this with her parent's money, and borrow a slightly higher amount to compensate.
 
Be careful about the guarantee you propose to give as once given, it is very difficult to extricate yourself from it.
 
Banks won't allow non family members to become guarantors.

She should be able to get a loan with a different lender easily enough though at 50% LTV

Go through an independent broker
 
Tell her to try going through a broker...I had been away from Ireland for nine years...returned, got 100% mortgage as was able to prove that I had been in ongoing employment abroad (Australian tax docs, bank information etc). I was in a contract position in Ireland (6 mth contract) when this was approved. I used REA - Jon Wood. Found him exceptionally helpful.
 
Six months is not a huge as - most institutions will look for three years P60's for non nationals even if they are from an EU state - Her case is strong i.e. she is putting a lot into the deal herself - see if they will agree to her opening an Ulster Bank U First current account with a lean of 6 - 12 months payments lodged into it. She must agree not to touch these funds for the 6 - 12 month period. I am confident that this will get the case over the line.
 
OK - a bit of an update:

Went to local AIB this morning and the mortgage advisor was very helpful. She agreed that the 50% LTV was positive , and was reasonably optimistic . She did point out however that all loans were primarily approved or otherwise on the persons ability to pay and that a 12 month work contract would not help this.Personally, I dont know too many people with more than 12 months job security! Offered to deposit 6 to 12 months payments as a 'comfort' sum but this wasn't really a runner for the AIB.
Another hurdle seems to be that all mortgage loan approvals are centralised these days,and I guess this does away with the judgement of the local manager etc which is a pity.
Talking to the Ulster again in the morning and will float the deposit in lieu of 6 months history to them. Would be nice to talk to a decision maker though.
Can anyone recommend a good independent broker in the Waterford area?

(By the way,AIB offered a First Time Buyers rate of .6 above ECB for the life of the loan, plus theres a Eur 2000 sweetener which seems unbeatable to me.)
 
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Can anyone recommend a good independent broker in the Waterford area?
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Patricia Foskin 051 885358. Over twenty years banking and mortgage experience. We work together on some projects.
 
I am just been granted loan approval for 110,000 .I have remortgaged my main residence.My research led me to N.I.B. and Halifax.I opted for N.I.B.The amount of red tape one has to go through is unbelievable.P60's,pay cheques,bank statements,household bills.Our combined salary is 93,0000 + euro,we have no mortgage on our main residence,no car loans. I am convinced the only reason they demand all this evidence is for them to gather enough info on you so that they can flog you life insurance and every other insurance under the sun.Remember the commission on these policies is huge.They even want you to open current accounts with them.
My advice would be to shop around try N.I.B.,Halifax.Remember the number of mortgage applications should have declined sharply recently with all the debate about stamp duty,they should be delighted to offer you a loan .They need your business as much as you need their loan.The 6 month rule could be overcome [?] by showing them you can pay first 6 months of mortgage in advance.Ask them whats the best they can offer you and tell them you are trying all the other institutions.
 
Hallelujah -First Active confirmed mortgage approval today, based on the 50% LTV factor apparently. Rejected by Uster bank, AIB, Halifax, PTSB.
Thanks to all who responded, is AAM cool or wha'?
 
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