mortgage approval - rejected.Why?

M

momomo

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I earn 34k a year, no loans
Parent earns 32k no loans and mortgage paid off.

Bank have refused mortgage on the grounds parents could not cover short fall:mad:

If i can get 180k on my own, why couldnt they be able to guarantee the 120k balance if their wage is only 2k less then mine?
 
Different lenders have different lending criteria. Have you shopped around?
 
Shop around - €32k is not a strong salary to cover a guarantee of €120k. Remember there is two people living off a €32k income.Try and put them on the mortgage as joint borrowers but not on the property title.
 
the figure of 32k is only one parent
the other parent earns double that but cant go on the mortgage for medical reasons
 
momomo said:
the figure of 32k is only one parent
the other parent earns double that but cant go on the mortgage for medical reasons
Click to expand...

It could be age related...I heard of an instance last week where a wealthy parent was turned down as a joint applicant purely on age grounds.
 
the parent is only 51, its so annoying as the mortgage advisor said there would be "in her 30 year experience in mortgages, there would be no problem"
 
momomo said:
the other parent earns double that but cant go on the mortgage for medical reasons
Click to expand...

This may be due to mortgage protection assurance which some lenders may waive.

All three of you could potentially go on the mortgage with you on sole title.

If the parent (with medical condition) is refused, would it be possible for him/her to be guarantor?

Your parents age will be taken into account as the no. of working years remaining may mean (subject to their finances) they won't be earning to cover the term of the mortgage.


Would suggest trying different lenders as criteria differs.
 
Try AIB. They allowed for my mum to go on mortgage and not on deeds. Combined earnings was approx 65K. My mum was of simiar age. Managed to get 248K this time last year. But interest rates have increased since then... this may be a factor.

My mum had to take out life assurance until 65 and they expect by then she will have been removed from the mortgage. (Hoping to sort this out this or next year)

Hope this helps.
 
could you provide a larger deposit,ie a loan from your parents, or credit union loan this would lower the loan to value,then buy the house and after say 3 years remortgage and pay back the loan
 
Thanks everybody for replies.
Ms X, with similar earning to myself and my parent, we had been told there would be no issue getting 300k. But if you were only able to get 248k, it doesnt make sense.

Barryl, Already have 40k for a deposit. If worse comes to worse I may have to try borrow more for a loan.

I need to hear back from the bank how much we could get approved for. Can they tell you this?

Is there any bank out there that will let me take the 180k i can get on my own and let my parent guarantee the balance of the 120k?
 
Try EBS. I'm told they are generally more "generous" than other lenders.
 
You need to get in touch with a broker that deals with all lenders,they will find the best option for you
 
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