Mortgage refusal - reasons why?

I put €50k (main) and €20k into the switch n save calculator on their webpage last night for a €250k mortgage on a €480k house (under 60% LTV) and it 'accepted' me but thats not to say it would pass their back office .

It should not even pass the website in MY opinion if they have no intention of going thru with in in their back office. Its not fiar to waste peoples time and get their hopes up when they have no intention of delivering.

I am not saying you cannot get a mortgage but the juicier rates (less than 1% over base) would be available on mortgages which are at a lower income multiple , NIB would look at 3x and 1x incomes meaning they would only lend you €170k at the juicy tracker rate .

Thats my hunch on what happened to you anyway.
 
thanks 2pack. yeah i do agree that they shouldnt show one thing on their website and not show what their terms and conditions are (just so the ordinary joe soap like me wouldnt waste my time) anyway i rang them back today to find out if it was because we wanted to borrow so much..the lady said she would speak to the underwriter and get back to me!!! (not holding my breath) im just curious as to why we were refused...one thing with me - i dont let something go when its bugging me this much, i may try somebody else but i think we can manage fine now!
 
I could not find the T&Cs on that website either. Do tell us what happened please , out of interest.
 
My guess is that you were refused due to the fact that you have 2 dependents.
Banks will require about 300E per month per dependent child in Net Disposable Income.
After tax you both bring in about 4500m based on last years P60. Say the bank allows 40% of this to cover mortgage repayments i.e 1800m. Take away 600E per month for the children and you are left with 1200E to cover the mortgage.
Using a variable rate of 4% the mortgage repayments on 241k over 25year will be €1271 per month or €71 outside lending criteria. Hence the decline.
Seeing as you are so close you would think they would push it through but they need to be prudent lenders so if it's outside criteria then they can decline. As suggested if needs be try other lenders.
 
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