mortage approval with 75 % caveat

E

e_drizzel

Registered User
Messages
28
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.
 
e_drizzel said:
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.
Click to expand...

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?
 
ryaner said:
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?
Click to expand...

correct, 34. the amount they were willing to lend has gone down 9.1 % in the last few months despite no change in my circumstances and the minimum deposit has gone up to 25 %.
 
Sadly for you it's actually a far more sustainable and sensible approach than the events that led us to where we are now.
 
dereko1969 said:
Sadly for you it's actually a far more sustainable and sensible approach than the events that led us to where we are now.
Click to expand...

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.
 
e_drizzel said:
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.
Click to expand...

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.
 
Jim2007 said:
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.
Click to expand...

Well i don't think that has a bearing on the figure for 75 % here. Whether I look for 100 K or 200 K they want a 25 % deposit.
 
You must log in or register to reply here.
Back
Top