Complex & stressful mortgage problem. Help...

Hi all
I've been keeping an eye on the site to see of there has already been a similar post to this - haven't seen one, so here goes. I'd be really relieved if anyone has any suggestions...

I own a property worth approx €240k
I owe €74 on the mortgage - EBS
Husband and I recently got planning permission to build our family home (just recently married) on a site gifted to him by his parents worth €80k. He has also been handed over the farm by his parents and substantial milk quota.
Off we went to his parents bank to apply for mortgage (200k max required, but will probably only need about €140k) - refused on three grounds - he didn't have any farming accounts as he had just been handed over the land, and I was on an annual contract. If his parents had agreed to hand over their own accounts at that time, he might have been able to apply in his own right. I was between jobs for three months last year and was unable to repay a credit card payment of €300 on time and was registered with the ICB (this is sorted out now.) I also fell into some small mortgage arrears with EBS due to lack of job.
Then we went to my EBS branch to make the mortgage application - husband produced accounts - explained ICB situation, mortgage arrears and they didn't think there'd be a problem.....
Got a phone call from the manager of the branch today - refused... I am so gutted as our financial situation is in fact quite strong now. I am on a very decent salary and farming accounts are quite good. I also intend selling my house. We have some savings, no loans of any description, nor any credit cards.
Would an independent financial advisor be worth a visit? Is there ANY bank that will lend us the money?
Please help

Thanks
Ruth

On the basis of what you've said here, I doubt that you would need the services of a financial 'advisor' as such, and — given the loan amount sought and your relatively strong financial position — am rather surprised at the response from EBS, whatever about the other (unnamed) bank. Some lenders are just more cautious/conservative than others — not in itself a bad thing, I hasten to add!

Why not approach an independent mortgage broker ( of REA is a long-standing contributor around here, and highly thought of) and see what they can offer? It would save you traipsing around all the lenders, and might well save you some money on the mortgage itself.

Alternatively, NIB are worth a 'phone call or a visit (they're the only major lender that don't deal with brokers, only directly through their branch network — and are offering attractive 'switching' incentives...

Would agree. Cannot believe the response you got.
You will get mortgage based onthe figures provided i feel.
Once you get mortgage I would move all business from EBS.
Only sell your own house if you need to.
Do not underestimate value of farm value.

Hi

The EBS are the worst to deal with if the situation is out side their comfort zone. At the end of the day its their loss.
Go to a broker and they will sort it out.

Hello,

Yes try a broker see what they can do if your still having problems let us know...........

Thanks to you all for taking the time to respond..... as things stand now; EBS rejected our application and BOI prior to that. We have been to see a broker (IFG) who is hopeful, and in the meantime husband has lodged an application of his own to UB. EBS will accept an application from us in about 6 months; not so long to wait... stress levels stabilised for now

Thanks again
Ruth

Did you try shopping around with as many lenders as possible before engaging a broker? Do you know how many lenders [broken link removed] deal with?

The EBS and the Bank of Ireland have been in this business a long time and they are not fools. You have an arrears history, did you ignore correspondence from your bank etc. How come there were no farm accounts available initially? How good are they?
On the positive side you have land/house valued at about €320k, you owe €74k and need further €140k or €214k in total or 66% loan. Something is not right here. Perhaps your income and the farms income are not sufficient to cover the borrowings? Have you considered selling your own property and renting while you build your new house with the proceeds?