Central Bank Rules - mortgage top-ups

N

Nordkapp

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Just putting it out there, we cannot get a mortgage top-up as the Bank are indicating our disposable income is too low.

Despite paying off 2 credit union loans where monthly repayments were €570 they say we are still €200 short on disposable income. We never ever had this issue before.
I am loan approved with the Credit Union but the rate is 7.7%
I am loan approved soley for €20,000 over 5 years at 6.3%

but our our mortgage provider will not allow a top-up €30,000 loan at 4.5%. They say if we come off our tracker (motgage outstanding just 47K) and role onto another loan they can accommodate us!

We have 2 investment properties and supplement the mortgages on them by 1200 a month as an outgoing.

Both working with 1 dependent, net salary and rent income is €7,200 / month

mortgages =€3250
1 car loan =€330 /month

any pointers?
 
What's your salary, without rent?
What's you Mortgage repayment just on the PPR?
What are age you both?

I doubt this has anything to do with CBI rules!
 
RedOnion said:
What's your salary, without rent? Net salaries = €5900
What's you Mortgage repayment just on the PPR? =€400 (included in the 3250 figure above)
What are age you both? 50 and 52

I doubt this has anything to do with CBI rules!
Click to expand...

Cheers Red Onion, would like to be enlightened as it was inferred "the new rules"

I would caveat and say that we had a top up of circa 40k in 2008 and paid it off early in ciirca 2012
 
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I don't see an issue from CBI point of view - just the banks own underwriting that they are blaming on CPC / CBI. BTL mortgages are exempt from the Loan to income rules.

Those investment properties are weighing heavily on you though.

My brain is fried, and I'm struggling to do the basic maths at the moment.

To give you a rough idea, you need to have about 2500 per month disposable income, after Mortgage payment and other fixed commitments. They add 2% to interest rate to calculate repayments used.
Many banks will only allow 75% of the rental income to be counted (but the full expense).

I'm guessing you've about 9 years left on PPR? My assumption is by saying if you come off tracker, they can extend the term out to 14 years so monthly repayment is reduced. If you go down this route, you need to get a better rate than 4.5%.

Have you tried to get a 20k top-up to see what they say?

How good is your tracker rate?
 
Cheers Red Onion, the 2500 in disposable may be the issue with them. There is 11 yr left, ECB +0.95%. Yes, I would want better than 4.5%. I am wondering if I could switch but there again........will CBI rules scupper that?
 
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