BOS refused 100% for FTBs - won't give reason - any advice..?

L

Lynnie

Registered User
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Hi,

The Other Half has just had a call from BOS to say that our mortgage application for 100% has been refused and they won't give a reason, saying that it's their policy not to disclose that information...

... is there some way to get around this? I am completely freaked out and want to get to the bottom of this ASAP but I'd like to have an idea where I stand in relation to any entitlement to the info before I go back to them.
 
I don't know if they are obliged to diclose this information but I would have thought they would have told you out of common courtesy.

The criteria on 100% mortgages is stricter than on lower LTVs and there is little or no leeway. If they won't tell you their reasons for declining it may be because you didn't meet the following requirements:

6 months banking history - 6 months bank statements with NO referral fees/unpaid SOs/DDs etc. They want to see salary lodgements on a regular basis also.

3 years continuous employment history - exceptions may be made for graduates but they want to see evidence of qualifications acheived.

Also, generally people can borrow less with a 100% mortgage so maybe your earnings weren't high enough to service the loan amount you applied for.
 
Hiya Hel_n,

what really confuses me is that we seem to meet all the criteria.

We both supplied 6 months bank statements which show our wages being paid directly into our accounts [mine fortnightly, his monthly] by our employers. I in particular have been really careful about only withdrawing cash as needed or using Laser for purchases rather than taking out chunks of money after payday in an attampt to show repayment capacity building up. No unpaid DD fees etc.

We are recent graduates but we discussed this at length with BOS before putting in the application and were assured that that was fine as we are both now permanent in our jobs and are working in fields related to our degrees.

We applied for €219,000. My basic gross salary is €22,359, that's €1,948 net per month. I am on Step 1 of a salary scale which increases yearly with service, up to a maximum of c. €30,000. I have a guaranteed yearly bonus of €2,000. Himself's basic gross salary is €26,600, so €1,900 net per month. He is guaranteed a bonus of €9,000 yearly with a further performance-related bonus of €9,000 p.a.

On paper, I'd have thought we were more than eligible for €219,000... what do you think?

And as I've never had a loan and he's never missed a payment to a small car loan I'm v. anxious to know what happened!
 
I strongly suspect you applied for an interest only loan, These are being reviewed internally at present and the new much tighter criteria will be published shortly but maybe they will wait for someone else to break ranks first and follow them. 100% interest only mortgages will seem quaint and funny in about two years time.
 
We did apply for interest-only for the first couple of months 2Pack [well spotted!]... do you think that if we forego the interest-only option, that might influence the lender's decision?
 
If it was only a 3 month or 6 month interest only period then forego the interest only period and say you will repay from day one and see what they say to that .

Any less than €5k cash and they may consider you a bit illiquid so show cash and where it came from. Here is how.

GO to a BOS branch and do not deal with their call centre muppets on the phone , insist they explain EVERYTHING to you in the branch not afterwards or by letter . BOS in MY PERSONAL opinion have dire callcentre staff compared to the excellent AIB staff in Naas or to BoI in Tallaght ?? Have you about €10k cash as in cash for expenses and can you show you have it on a statement ???? . Thats furniture / solicitor etc . .If so make sure they see that and where it came from too. Visa bills , bring them.

Tell us how it goes but you need to be a bit confident and proactive .....if not pushy .... when the computer sez NO !! :p
 
I have €5k savings which is I have instant access to and another €5,500 in my SSIA - which I know isn't supposed to be pledged as security against a loan etc but it matures in July so I'd have it before the mortgage is actually drawndown. [Although I'm the first to admit that I don't know if that could really count.] Himself has an additional €5,000 in instant access savings.

AIB Naas is my own bank & I couldn't agree more about the staff in 24 Hour Banking but unfortunately our choice of lender was limited because we're looking for 100% and are less than 3 years in our jobs.

Muppets is right - just spoke to one of them and she said they could send me out a letter detailing why the application might have been refused - when I questioned her, she admitted that eh it would just be a generic letter with all possible reasons why any loan might not be granted... how very useful :mad:
 
€10k cash it is then , €15k even.

I think ye are fine ....assuming a bit of promotion that I take as a given ....... so its natty suit and branch manager time. If you pitch yourselves in there and show paperwork paperwork facts I'd say they will play ball.

One of you do the 'bewildered' act on them as in how did we misunderstand each other.

Be prepared to explain a car in the equation as it would render one illiquid .

Their call centre is bloody dire though. It reminds me of Chorus :(
 
I still don't get it.

Interest only for a short period on one's own home sends out the signal that you think things will be tight in the short term. With you sending out that signal, it doesn't matter what the account history tells them. They are now wondering what do you know that may not be evident in your accounts (job insecurity, new addition to the family, hidden dept etc.?)

In the context of your 15k savings, the amount you would have 'saved' in repayments in the short term with interest-only would probably have been quite small, so if going again with another lender, I would not mention the interest-only option.
 
nt00deep, I can kinda see where you're coming from, but the fact is that it is an option offered by them to FTBs, it's not like we had to send in a special request for it. It's a matter of ticking a box on the application form, and is actually the very first item on the front page of their First Time Buyer's bit on their website: "Choose our low-start option where you can make interest-only repayments for the first two years. When you've grown into your mortgage, you can increase your monthly repayments"

From this blurb, it seems to me like it's supposed to help people who've never had a mortgage before ease into the swing of large monthly repayments. And I don't see how would it make sense for them to offer such an option if their reaction when such an application comes in is "oooh, what could they be hiding"??
 
Lynnie said:
And I don't see how would it make sense for them to offer such an option if their reaction when such an application comes in is "oooh, what could they be hiding"??
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They may have revised their internal rules and may be dropping that option for 100% buyers but they will not tell you that for a myriad of reasons . Trust me.

Lets discuss wardrobe and the dress style required to induce confidence in the branch. A recon visit would indicate the sartorial style of the modern banker.

I feel that a judicious investment by both of you in the same 'chic' will produce the desired effect once you land in the branch . It will say 'I am a banker ' 'bankers dress well' ' I empathise with the bank' and other such subliminal messages that a call centre never ever gets :p
 
Banker chic, I like it dahling! :D

Latest update is that after two phonecalls to BOS suggesting we (a) forego the interest only period or (b) opt for 92% [during both calls it was strongly reiterated to us that there was no way they could specify why the application was declined], a team leader in the call centre deigned to ring Himself and told him that the reason they are refusing us a mortgage is that we are not in our jobs long enough.

Now I am well aware that part of the criteria for 100% is generally "must be in current employment for 3 years" - which is why we made a point of treble-checking with them during our initial enquiries that we would be considered for 100% as we haven't been in our jobs the requisite 3 years. And we were told explicitly that being recent graduates and in full-time permanent employment negated the requirement of being 3 years in the job and we would be eligible for 219k @ 100% subject to receipt of satisfactory documentation etc

What the ...?
 
Lynnie said:
Banker chic, I like it dahling! :D
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A natty black suity number but not ludicrously short a la the legal profession nowadays :p . Doubles up for a winter wedding too.

Latest update is that after two phonecalls to BOS suggesting we (a) forego the interest only period or (b) opt for 92% [during both calls it was strongly reiterated to us that there was no way they could specify why the application was declined], a team leader in the call centre deigned to ring Himself and told him that the reason they are refusing us a mortgage is that we are not in our jobs long enough.
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<sigh> I was right was I not ??? . Your opting for it sent out the wrong signal and now you need to send the right signal in some way.

You will get your 100% (or 98% if you suddenly find €4400) and that will keep them happy but no interest free period for you.
Now I am well aware that part of the criteria for 100% is generally "must be in current employment for 3 years" - which is why we made a point of treble-checking with them during our initial enquiries that we would be considered for 100% as we haven't been in our jobs the requisite 3 years.
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But this is what happens when call centres are involved. Welcome to the real world .
And we were told explicitly that being recent graduates and in full-time permanent employment negates the requirement of being 3 years in the job and we would be eligible for 219k @ 100% subject to receipt of satisfactory documentation etc
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Ah sure I KNOOOOOOOOW but you are being logical now .....so what . Anyway. The Bank needs to see you and to get the messages in that call centres cannot deal with. In addition to what I said you must sit close together but not ON each other.

You nod simulateously at the same comments from the banker and give an overwheming impression of togetherness in financial and all other matters. Bank person rings the call centre with favourable opinion of ye as a pair and all is sorted.

Forget about the phone in the meantime , it will be useless until after the visit.
 
NorfBank said:
Bank of Scotland 100% Criteria is 2 years permanent employment and not on probation.
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But the rep in the call centre actually checked out our specific situation with the underwriter.

Anywho, I think I am going to go to my local BOS branch and kick up a fuss.
 
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