Hi Folks,
I got a mortgage approval letter this week from AIB. It stated they would give me upto €X with the caveat that it could be no more than 75 % of the value of the house. We were hoping to get a 79.9 % mortgage (staying within the 50 - 80 % LTV band).
Is this caveat normal practice? They are essentially demanding a 25 % deposit.
That would be the standard or an investment mortgage,presume that is what you are looking at?
All the main banks dropped the amounts they are willing to lend over the last month. Reports of the multiples going as low as 3.5. There has been rumours of the required deposit size also increasing. I'm going to guess you are 30+ right?
Sadly for you it's actually a far more sustainable and sensible approach than the events that led us to where we are now.
yes that's fine but at no point until i received the approval letter did they mention they would require 25 % deposit. i was aiming for the LTV 50 - 80 rate so a deposit of at least 20 % in any case. i thought 25 % was a bit excessive though and was wondering if this is fairly standard now.
The other factor that comes into play is your salary, as they will not go beyond a certain multiple of your salary regardless of the property valuation.
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