Refused mortgage, what to do?

Rep

Dermot said:
Is this a single or joint application. Single
Type of Property. 2/3 bedroom house/apartment. 3 bed house
Value of Property 150k
Amount of Mortgage 80k
Period of/Age of Mortgage. 20 years but willing to change if necessary
Amount of savings and over how many years 7.5k over one year
Is there a lump sum from any other source?. Gift of 50k
Age of Applicants. 36
Employment situation. Public sector/Private sector/Self employed/Contract. Permanent contract [company name deleted] Private sector, IT industry.
How long are you in current position and are you permanent. 18 months permanent
Have you any children. No
Have you any court orders or Judgements. No
Have you any other loans and if so full details of amount/period/% rate and repayment amounts. None
Cr. Card situation. Full disclosure. Clear. Generally preloaded.
Any previous negative Cr. history by either applicant. No
Are you paying rent and can you show proof of same.ay ing rent to father as living at home. 500 PCM, and can be seen from withdrawals.
If you have been refused a mortgage please give exact reason of why and address why you think you should not have been. ICS said the rent should be by standing order. AiB said he should not need the gift and that he simply could not repay the loan. It all seems mad to me.......
Did you use a Mortgage broker?. Yes
Any other relevant information. Applying to PTSB, UB and BOI next week without the broker.
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Hope this helps to clarify things!
 
I have replied to dermot's thread to the best of my ability. An awful lot of questions here but I will try to answer the main ones. I am not trying to tell lies, just looking for advice.
I am not on the application as I would be a liability. I am living in a house with negative equity of about 20k. It was a cheapie when bought in the boom for 114k. It was bought with my aunt who now has cancer, and she was the one who took out the mortgage of which I never saw a penny. I signed up for it though, obviously, and feel free to shout at me for my stupidity!
I live in Galway, my fiancée in dublin. I am a fully qualified teacher with a first class honours mastered degree, so employable of jobs were available in rural Galway. Hopefully closer to Dublin I would have a better chance of finding employment.
My OH pays rent to his Dad. He saves on average 6to7k a year. A mortgage of this size 500 to 600 a month would not be a huge problem for him, even without trying. The house is in perfect condition, and I have most of the furniture we would need.
 
Legal

I did see a solicitor, and he agrees with you that I am mad to hand over 50k. But I trust this man and am happy with the arrangement.
 
Hi Catherine

Did you trust your Aunt as well? Why did you sign a joint mortgage with her?

In fact, the reason doesn't matter. You have a mortgage for which you are jointly responsible and you should prioritise the servicing of this mortgage.

Brendan
 
Catherine1 said:
I am not on the application as I would be a liability. I am living in a house with negative equity of about 20k. It was a cheapie when bought in the boom for 114k. It was bought with my aunt and she was the one who took out the mortgage of which I never saw a penny.

My OH pays rent to his Dad. He saves on average 6to7k a year.

A mortgage of this size 500 to 600 a month would not be a huge problem for him, even without trying.
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It's quite amazing how you left out these important details when looking for advice.

Catherine's house with aunt

The house you live in, who owns it? Who is paying the mortgage? Is it only your aunt on the mortgage? You mention your own financial circumstances are dire in the other thread. Yet you have 50K. You also mention that you cannot wait to hand back the keys? Can you clarify what you are trying to do?


OH's application

I presume the fact your OH is paying rent to his dad is part of the problem with the bank application. As in they don't believe he's paying rent at all. There are not many people who live at home and pay so much in rent?

He is on 37K, so 80K mortgage on that on it's own looks ok.

Also you mentioned elsewhere that your OH is due to get 80K from a property of his father - is this also true?

Is it correct that out of the 150K house purchase, 50K is from you (via your father) and 20 K is from your OH. Also he is only employed a year and a half, does the bank have an issue with that?

Gift of 50K - is it a good idea

What is your logic for advancing 50K to your OH ? I realise he's your fiance but you could lose the 50K. Is the bank not asking about the source of this money? Do they not think it is odd? Do you not think your solicitors advice not to do this should be listened to? Do you think your solicitor has very good reasons for advising you not to proceed?


Catherine for your own sake as you will be identified - please delete the references to the employer etc.
 
Thanks all

For deleting stuff etc, and all the advice. To clarify, my dad offered me 50k to get a new home and start a new life with my fiance. He will not put that 50k into the house I currently occupy as it would be throwing good money after bad. So using the 50k to clear the current mortgage is not even an option. My dad wants to see me settled and happy, not stuck here miserable, basically. The money is not in my account but will be transferred on signing of the contracts to the new house. I trust my man, my dad clearly trusts him also. I don't see how that would concern a bank though?
Yes, I trusted my aunt. It was not her fault she lost her job and got cancer. Woman doesn't even drink or smoke! The mortgage he is currently seeking would be possible, scraping all sides of the barrell, even if we were both unemployed. That is the whole point. I never want to be in this position again and want a home for life.
 
Catherine1 said:
He will not put that 50k into the house I currently occupy as it would be throwing good money after bad.

Yes, I trusted my aunt.
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It's quite ironic Catherine that you already took a risk on property with a relation, your aunt, and lost. And yet you together with your father think it's a good idea to get involved again, with property, with a non relation. And to do this you have an amazingly convoluted trail of money. And you're wondering why any of this is the banks business.

I do not understand your fathers logic at all.

Wouldn't be a bit surprised if you're back on here in a couple of years asking how do you get the 50K of your dad's out of a house that neither he or you own.
 
You don't need to own a property to live together. Why scrape the barrel to do so -your words. The solution is to rent in the short term.

You are going to have to deal with your current property problem. It unbelievable that you think you can just get married, move on and forget about it.
 
I think you and your partner need to grow up and stand on your own two feet and not be relying on fathers to bail you out..
 
Some of the above comments are a little unfair to the OP, in my opinion
The boyfriend "trust" issue is something we all needed to address, when we decided that our partner was someone that we were prepared to spend the rest of our life with. i.e. my wife moved into a house owned by me in our initial years together and contributed to the mrtgage without ever having a direct interest in the property.
The purchase and joint mortgage with the Aunt was a mistake in hindsight. Like most property transactions at that time, it would have presented an opportunity to get on the property ladder. It was unfortunate that the Aunt became sick and lost her job. I don't see it as being fair to regard this as an example of "too much trust"!
The current property has negative equity attaching and Catherine has no interest in living there. Even as a Banker, I see no obligation on Catherine to apply the 50K gift from her father in reduction of the negative equity. This gift is too help her start a new life in a new location!!
From a tax/other perspective it would be advisable to put a legal agreement in place in respect of the proposed 50K contribution to the new house purchase. This could easily be set up by a solicitor and would formalise the arrangement as a loan rather than a gift.
Finally BoI seem to be the most flexible mortgage lender at present. Your BF should give them a try. Worst case scenario is a refusal. Even then, it would not be the end of the world if he rented an independent property (not from his father) for a year or two and then re-considered the mortgage option.
 
I think you need to address your current property first. Is your Aunt still living there? Is it a joint mortgage with you?

If it's just in her name and she had to give up work through illness, does her mortgage insurance not cover repayments?
 
In principle

Got the mortgage in principle. Thanks for all input and comments. I am not going to go into any more personal details. I will probably have a million more questions before the house is actually bought!
 
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