Loan Amount Refused - Broker Next?

Discussion in 'Mortgages and buying and selling homes' started by Connie, Mar 7, 2017.

  1. Connie

    Connie New Member

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    Hello.
    I recently applied direct to EBS for a mortgage. I was refused the full amount although it is very unclear why I was refused. I chose EBS based on rate, cashback and the fact that we are existing customers. I think I need to speak to a broker. Is it possible to receive a recommendation on this forum or by private message? And secondly, is it true that cash back offers are not available via a broker?
    Thanks,
    Connie
     
  2. CPM_81

    CPM_81 New Member

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    Did they not supply a reason for the refusal at all? I think they have to.

    I would try and address the issue that caused them to refuse you before progressing further.

    Did you check your ICB report to make sure there are no negative marks against your record?

    What is your situation? It may be something to do with how you manage your current accounts.

    Or maybe they don't think you can afford the loan sought.
     
  3. Gerry Canning

    Gerry Canning Frequent Poster

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    2,514
    Connie,

    If you give AAM more detail on what you applied for you will probably get the answer.

    1. No Lender has to give a reason for refusal , nor indeed should they have to, its their decision .
    that said it may well be your (full) amount does not come within their lending criteria , eg they might only lend 80% of cost ,or might only prefer bungalows etc.
    2. Might be no harm to query why not full amount ,and see is there a way around it. It would be helpful if EBS gave clear guidelines as it would save you (wondering)
    3. you chose EBS on rate & cashback , I presume these (sweeteners) save you money , but they also normally carry tighter underwriting criteria, eg you not getting 100% of your request.
    4. You were not {refused} , just havn,t yet got the deal you require ! . So keep looking and apply elsewhere if need be.
    ( I don't know the story with brokers)
     
  4. Connie

    Connie New Member

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    Thanks very much. The present situation is that the lovely branch manager is appealing the decision with the under-writers. He was confident that it was a strong application and appears surprised. The difference in the amount applied for and amount offered is €75,000, threatening the viability of the move.

    Our LVR was fine (70/30); our ICB record is pristine; our affordability is fine; our repayment capacity for stress tested mortgage is fine; our track record with the same institution is perfect (and +10 years). My partner is self employed, I am full time, permanent PAYE in a stable sector. However, his income represents only 16% of our total income.

    To achieve all that we hoped to borrow we would have been seeking an exception on the LTI, i.e. a multiple of 4. I thought we had a strong case for this, given the following:
    - Combined income far in excess of what I believe is the norm for allowing exemptions
    - Single exemption required, i.e. not looking for a LVR exemption too
    - Strong credit rating/ payment record with same institution
    - Early in the year so exemptions not used up
    - Reasonable amount, i.e. not a major exemption amount, nor too small to make it not worth their while to devote an exemption
    - In addition, there was clear evidence of additional income but in a format that they could not accept as baseline income. Fair enough.
    - The same institution met me 6 months ago, told us what we could borrow and sent us away to show a six month capacity to repay/saving history

    Perhaps none of the above is relevant for underwriters. And I could understand if they simply said they wouldn't move past the 3.5 income multiplier. But my major gripe is that what they have offered is under 3.5. I assumed that we would be offered at least 3.5 x our basic income.
     
  5. Gerry Canning

    Gerry Canning Frequent Poster

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    2,514
    It may be that Underwriters have (used) up the latitude given by Central bank on the multiples .
    Its great that its being appealed .

    If kicked back , try other lenders (I know that's a nuisance)
    Wish you luck !
     
  6. Connie

    Connie New Member

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    Thanks Gerry.
     
  7. ce2016

    ce2016 Registered User

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    36
    Anyone know if this is true? Surely a bank can't withdraw their cash back offer if a broker helps a customer get a mortgage??
     
  8. Chris2014

    Chris2014 Frequent Poster

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    Easy way around it would be for the banks that do cashback not to deal with brokers.
     
  9. ce2016

    ce2016 Registered User

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    36
    The reason I ask is that we're dealing with a broker and the only bank that will lend to us is Perm TSB. They offer 2% cashback so I just presumed we could avail of this...
     
  10. Suebee

    Suebee Registered User

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    I could be wrong but as the broker gets a commission I don't think they offer the cash back deals to broker mortgages.
     
  11. ce2016

    ce2016 Registered User

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    I rang Perm TSB mortgage department earlier. Girl said I could avail of cashback if using a broker.
     
  12. Connie

    Connie New Member

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    Thanks for all the replies. Appeal was successful.
     
  13. Chris2014

    Chris2014 Frequent Poster

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    Interesting.

    Could you tell us a bit more about the process?

    I've never heard of someone appealing successfully or otherwise.

    Did you have to list why you think they are wrong or just say you wanted them to take another look?
     
  14. Connie

    Connie New Member

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    8
    Actually, the branch manager with whom I engaged appealed the decision of the bank's underwriters and had it overturned, so I had nothing to do with the process.

    Perhaps I should not have categorised it as an appeal.

    The impression I got from the manager was that the underwriter had made an error.
     
  15. Chris2014

    Chris2014 Frequent Poster

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    100
    Thanks for replying.

    I wonder how often they make mistakes.

    Also its a wonder they dont go through some kind of QA system before the decision gets back to you. Forgetting to carry a one shouldn't happen that easily.