6 kids , earning €50k , refused mortgage

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Familyguysix

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Hi, new poster so be gentle!
Where to start?
Married professional aged 39, sole earner, wife is full time house wife as we have 6 kids.
Gross salary approx 50k but also in of reciept of working family benefit. So approx Nett take home of 900 pw
Living in the same house 15 years (3 bed semi where we have converted sitting room to a downstairs bedroom) needless to say we have outgrown this house.
10 years left to pay off mortgage, house is approx valued 25k less than we paid for it but current value is more than we owe bank.
This week contacted lender (boi) about moving mortgage to a bigger property which i can easily afford to which i was told over the phone I don't qualify for due to number of dependants. I don't have any other loans other than my existing mortgage.
Can I appeal this ? If so how.
 
Visit a mortgage broker who will progress your application with multiple lenders, assuming your job is secure and you are not looking for mad money then you should get it.
 
Hi, thanks for replying.
I should have mentioned that I live in a small town in the West of Ireland and the mortgage sought would be between 95 to 105k
House prices in my area were decimated during the recession and only now starting to increase as demand is picking up, I've already spoke to an estate agent who said he would have no problem selling my current house.
 
Salary 50k and some equity in your current home should result in you getting that mortgage, your bank accounts should show capacity to repay.

€150k buys a good house in the West, good luck,
 
Try UB. They were the most kid friendly when I got my last mortgage (in 2012).
 
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Leo said:
Just be aware that no estate agent will ever tell you the opposite. To get a sense of the market, look for similar properties already on sale, see how many people go to view them and how quickly they go sale agreed.
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Thanks Leo
 
Personally I’d get rid of four of the kids on the mortgage application if this is the only reason for refusal.
 
Thanks for all the input.
When I took out the original mortgage nearly 16 years ago It was all in my name as my wife was staying at home with the two kids we had at that time. That's why im confused as to why having 6 kids is an issue, I explained over the phone that my only debt was the mortgage and once again the mortgage would be solely in my name as wife is full time stay at home mum
 
Roughly you need 2k for the parents and 250 per month for each child to pass affordability criteria. So you'd need up to 3,500 after mortgage payments to meet criteria. Some banks will go less, but stress the repayments at a higher rate. Your income is only a little over this.

Although the mortgage market has changed a lot since 2011, UB might still be best option. As far as I know they are the only bank that will consider children's allowance as income for affordability calculation.

However, bear in mind that the reason you are receiving working family allowance is because the state has deemed your income too low to support your family. The banks use similar criteria.

Familyguysix said:
mortgage would be solely in my name as
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It is difficult, if not impossible, for a married couple to get a mortgage for family home in the name of only one party. The spouse not named has more rights to the property than the bank, so they won't allow it.

Bronte said:
Personally I’d get rid of four of the kids on the mortgage application if this is the only reason for refusal.
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Recommending that the OP commit a criminal offence (deception fraud) is hardly the way forward here?
 
UB is your best bet - they will include your CB as income - however if you are in receipt of WFP it means (to the bank) that you are unable to sustain your family in your own right and that will seriously impede you.. it is a red flag to most lenders unfortunately.. The central bank have set the rules in relation to mortgages - 2 key areas are 1. affordability - you can show this through existing mortgage repayments etc. - the 2nd area is Net Disposable income and with 6 children this for you under the Central Bank rules is impacted. Are your 6 children all under the age of 18 and dependents?
Also you will have to apply for the mortgage jointly with your wife as you are married.
 
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Angelic123 said:
UB is your best bet - they will include your CB as income - however if you are in receipt of WFP it means you are unable to sustain your family in your own right
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I don't think this is at all fair.

The OP is just claiming a benefit that he is legitimately entitled to. Lots of people do that.
 
NoRegretsCoyote said:
I don't think this is at all fair.

The OP is just claiming a benefit that he is legitimately entitled to. Lots of people do that.
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it wasn't said to cause offence - this is what the banks told me - I know from experience! I have no issue with him claiming it at all so please don't take what I said out of context.
 
Familyguysix said:
Hi, new poster so be gentle!
Where to start?
Married professional aged 39, sole earner, wife is full time house wife as we have 6 kids.
Gross salary approx 50k but also in of reciept of working family benefit. So approx Nett take home of 900 pw
Living in the same house 15 years (3 bed semi where we have converted sitting room to a downstairs bedroom) needless to say we have outgrown this house.
10 years left to pay off mortgage, house is approx valued 25k less than we paid for it but current value is more than we owe bank.
This week contacted lender (boi) about moving mortgage to a bigger property which i can easily afford to which i was told over the phone I don't qualify for due to number of dependants. I don't have any other loans other than my existing mortgage.
Can I appeal this ? If so how.
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I'm shocked by this, you earn €50k per year and you're entitled to an extra hand out from the State just because you decided to have six kids!
 
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