Mortgage refusal - reasons why?

A

ALEXALLI

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Hi all,

Some of you may remember i posted a while ago asking for some advice about BOIS tracker mortgage..well we have just been declinded from BOSI for a mtg of 241000 over 25yrs..we have combined annual salary of €70k (i work part time) we have had a mtg for past 7 years (never missed 1 payment or even late payment) pay all my bills by direct debit, have never missed 1 payment on any loan, and have equity in our house of aprox 230k - WHY???? got a standard call from BOSI on friday saying they were not in a position to offer us this as we did not meet their lending terms and conditions?????????? Can anybody shed any light on this...we are in our house almost 7 years and yes we have remortgaged a few times over the years to get work done to our house/pay for wedding etc - would this be the reason???? I would appreciate some advice..thanks.
 
Re: Mortgage Refusal - Reasons Why??

When BOSI refused our application, having said they would accept it, I spent an hour or two on the phone with their call center staff and eventually bullied the team leader into telling me the reasons behind their decision.

If you're able for very trying conversations, try that.
 
hi stuartmc..can u tell me did you get approval somewhere else..im just worried that if we apply somewhere else its going to be the same answer.

Thanks,
 
Did you approach BOSI directly.
Try contacting a mortgage broker instead. It does not cost you anything. They generally have good contacts with the mortgage companies. You need to keep after them. Some give advise on this site
 
Did you want to switch your mortgage to bank of Scotland? What about your existing lender? I suppose, increasing your mortgage 'a couple of times' in almost 7 years may have had some bearing on the situation.

I'd get back in touch, as stuartmc suggests, because if memory serves, when applying for a mortgage you're asked if you've ever been refused by another institution.
 
ALEXALLI said:
hi stuartmc..can u tell me did you get approval somewhere else..im just worried that if we apply somewhere else its going to be the same answer.

Thanks,
Click to expand...
First Active sorted us out.

We were refused by BOSI because we were not in our jobs long enough.
 
hi well had a good chat this morning with dh and were not going to bother trying to switch we were mainly switching to reduce our monthly outgoings but after working it all out we can manage fine. thanks for all the advice on this site.
 
well i rang bosi this morning (out of curiosity) to see why? they said to get a copy of our icb report or maybe it was affordability reasons as these are the usual reasons also that we can appeal their decision...she said that she wasnt able to see the reasons on screen. so off to icb.ie for me.
 
You can have an ICB report done on yourself, costs about 6 euro. I doubt this is your problem though as your original post states that you've never been in financial difficulty. Still better to check I suppose as mistakes do happen!

To say they can't see why you were refused is not really good enough IMO. They can surely check who handled the loan application and refer you to him/her????
 
Surely there's no onus on a lender to inform prospective borrowers why they have been declined?
 
Under the Data Protection Act, don't we all have the right to know what's on file about us?? Not sure though.
 
Good point. A fee not exceeding €6.35 may be requested. See [broken link removed].
 
I thought the original reason given was clear enough

they were not in a position to offer us this as we did not meet their lending terms and conditions
Click to expand...

You haven't stated how much you still owe on your existing mortgage. Having X amount in equity is irrelevant. Banks take your ability to service the loan into account and nothing else. You're looking for an extra 241K. On a combined salary of 70K you shouldn't really be able to have more than about 300K of a mortgage, maybe a bit more but not much, especially when you consider recent interest rate hikes. You're probably eligable for 50K less of a mortgage today than you were a year ago!

Unless you've only 50K of a mortgage currently I don't see how you could expect to get an extra 241K. This is simply what happens when interest rates rise.
 
yes the total is 241k..we are going from 226500 to clear ebs mtg + (7500k to clear another loan) + (7k house improvements). This would be total amount of borrowings we would have. The 7500 loan is a loan we got for furniture etc and we wanted to clear that..we dont have any credit cards or car loans. I have printed out the application form from the icb so will post that of and see what turns up although i dont think there will be anything as we have always had a very good credit history.
 
Hi there ALEXALLI

Just out of curiosity, have you tried their (BoSI) on-line Switch & Save [broken link removed].

Just for the crack, I inputted some figures, which are probably all wrong.

I put in €50K + €20K for incomes 1 & 2, also current property value at €450k, and monthly credit commitments of €250.

The mortgage figure, max sum, came out as €234,677.

Your actual figures are most likely different, but the amount isn't too far from what you requested!!!

Just try it out with the figures you supplied to BoSI directly and see what result you get.

Also, Clubmans link is very interesting, as it would be another road to go down, if your ICB report is OK, as anticipated.
 
They will have to explain the reason for the decline. You could always try IIB or PTSB their lending criteria are pretty lenient.
 
I assume the main income here is c €50k and the mortgage LTV is therefore 4 x main and 2 x second income (crudely) and thats why they will not cough up.

good tracker deals are usually 3x main income , 1 x second income and < 60% LTV .....or €180k on €50k and €20k incomes.

but BoSI should not record a formal refusal on the ICB over this as it should never have been entertained at all but their website will let it thru all right :(.
 
hi,

Got out the P60S and this is what we have

€46000 for Husband
€20820 for me (I work Part time)

House value is 450k
EBS Mtg is €226500

We wanted to borrow €241k over 25 years. this will be our only loan. we have 2 children. I put in the figures in the bosi calculator and left out any other credit commitments (as we wont have any) and the max amt is coming up as 265230k.
 
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