Is it easier to get a loan to buy a house financed by the same lender?

[Brendan Burgess]

I was told this today and I was surprised.

If I want to buy a house with an AIB mortgage, they are more likely to approve me if I am buying a house which already has an AIB mortgage on it.

Theoretically, it would make sense for AIB to replace a mortgage in arrears with a new mortgage to someone who would have a lower LTV and a higher earnings. But could they make that a stipulation of the loan approval?

If someone is in arrears and is in negative equity, and they approach their bank saying that they have a buyer for their home, I don't think that the bank cares how the purchaser is financing the purchase.

Brendan

 

[nlgbbbblth]

It varies.

Bank A owed monies by struggling developer Mr X.

He manages to sell a house to Mr Y who applies to Bank A for a mortgage.

Assuming repayment capacity exists for Mr Y, then Bank A will give him the mortgage, thus allowing for a portion of Mr X's loan to be repaid from the sale proceeds.