AIB won’t take husbands overtime into account for calculating mortgage amount

Jean84

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Hi there looking for some advice in relation to our mortgage app. We currently have 2 mortgages with AIB. One is a rental property and one our PPR. The rental property has a tracker mortgage and PPR has variable rate mortgage. We are selling up to move closer to family and work for a better quality of life and will have the 20% deposit from equity from the sale of both properties. AIB had agreed to us porting the tracker to a new PPR which we were thrilled with so put our app in with them. Our issue is that AIB have rang today and said they won’t take my husbands overtime into account at all as he is only in the job less than 2 years (he is a Garda) they also will only take 50% of his allowance into account (this is a guaranteed part of his salary). This has significantly reduced the amount we expected to borrow. We really want to port the tracker as will be long term savings on our repayments but wondering now if we have to cut our losses and apply to another bank who will look at the OT and allowances more kindly.if so I’m looking for recommendations on who would he the best to apply too? Any advice appreciated!
 
Hi Jean,

What's your tracker rate?
What will total LTV be on new property?
What percentage of total mortgage will be tracker rate after you move?
 
Hi RedOnion

Tracker original margin is 1% so they are adding on an additional 1% if we move it. The new rate will be 2.1% with current ecb rates I think. We can move approx €219k to the new tracker rate (over a term of 24 years) and the remainder of the loan will be over 30 years at variable or fixed rate. We had hoped to borrow approx 285-290 and hope to have approx 90k for deposits from proceeds of sale of the properties. Obviousy exact figures might vary depending on the sale etc... but above is an average of the valuations.
Thanks
 
Jean,
Is the 285 figure the total of your new mortgage, or in addition to the 219 tracker?

I.e. will your total mortgage that you owe be 285k or 504k?
 
Go back to AIB and appeal to underwriters to look again. Similar position (but not AIB) and in the end they allowed 100% of guaranteed allowances and 25% of overtime. We had to battle with them and in fairness the guy we had dealing with the mortgage was excellent and kept going back to the underwriters appealing our situation. But at the same time I would go to the likes of kbc to have a backup plan and to show aib the flexibility of other banks
 
Thanks for the input luckstar. We will definitely do that. The lady we are dealing with is also really nice and I can tell she is doing her best but seems to have a strict criteria to stick too. We were just told verbally on the phone today so will wait until the paperwork comes out and will go back to them on the figures.
 
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