Qualified for 100% mortgage but refused 10% deposit

N

ney001

Registered User
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Just wondering if anybody can offer some advice

We applied for a 100% mortgage with EBS - we qualified for € 350,000 - Apparently GE Money do the 10% deposits for EBS but when we applied for the loan with GE Money we were refused. The issue appears to be a small student loan that I had out about 6 years ago - It was a five year loan which I repaid in 2 years but I missed my last three payments on it and this is recorded with ICB. EBS didn't have a problem with this and still offered the mortgage, they seem to understand that the credit problem won't be recorded with ICB in a couple of months anyway.

My question is this? what can I do about the 10% deposit?, I have tried talking to GE Money about it but to no avail - I rang my own 'friendly' bank to see if they could arrange a bridging loan and had the head bitten off me by the loan manager there who told me I should have applied to them in the first place for a mortgage and that it 'really sticks in their throats' when people come looking to them for bridging loans for other financial institutions. I am panicking a bit now any advice?
 
ney001 said:
We applied for a 100% mortgage with EBS - we qualified for € 350,000 - Apparently GE Money do the 10% deposits for EBS but when we applied for the loan with GE Money we were refused. The issue appears to be a small student loan that I had out about 6 years ago - It was a five year loan which I repaid in 2 years but I missed my last three payments on it and this is recorded with ICB.
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Huh, how can you 'miss' a payment if you are 3 years ahead or so ...the way you put that ??? . Do explain .

This is your problem with ANY institution , on what date did you last miss a due payment to an institution and for how much and why ???

On what date did you clear it in full , when should it have been clear, can you prove both dates ??

Did you get your ICB Record to see what it sez ?
 
ney001 said:
I rang my own 'friendly' bank to see if they could arrange a bridging loan and had the head bitten off me by the loan manager there who told me I should have applied to them in the first place for a mortgage and that it 'really sticks in their throats' when people come looking to them for bridging loans for other financial institutions.
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You should close your account and move elsewhere if he actually reacted like that!

Have you shopped around more widely for a loan for the deposit? Would the Credit Union be an option for borrowing the deposit? Or could you borrow informally from friends/family (obviously paying it back once the 100% mortgage comes through)?
 
Can you apply to another bank for the loan? They probably won't be too keen on giving you a loan that you are going to pay off in a few months so maybe you shouldn't mention that it is for a deposit for a house. On the other hand I don't know what you can tell them its for - I'm sure they won't just hand you 35k.

You could ask the vendor if they will hold off on the 10% deposit. Explain that you are getting a 100% mortgage and see if they will accept a booking deposit of a few thousand until you close the sale.
 
Ask your solicitor to talk to the vendor's solicitor about accepting either a smaller deposit (do you have any savings?) or just the booking deposit you've already paid. Although 10% is the tradtional deposit it isn't mandatory and with the advent of 100% mortgages solicitors are becoming more relaxed about the full amount being paid.

Sarah

www.rea.ie
 
2Pack said:
Huh, how can you 'miss' a payment if you are 3 years ahead or so ...the way you put that ??? . Do explain .

This is your problem with ANY institution , on what date did you last miss a due payment to an institution and for how much and why ???

On what date did you clear it in full , when should it have been clear, can you prove both dates ??

Did you get your ICB Record to see what it sez ?
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I haven't got my printed record as yet although I have applied for it - basically I was informed by the EBS that I was refused 10% deposit because of missed payments on a loan approx 5 years ago - this loan was with my current bank whom I rang straight away and it was a girl at customer service who told me that it was three missed payments but the loan was a five year loan taken out 1999 and paid off 2001 or thereabouts and yes I still have the original loan agreement - she then told me I could use her name as a reference for GE Money and she would explain the exact situation to them - GE Money didn't follow up on this.

Re loan manager - actually it was a female manager and I couldn't believe how rude she was to me - I have been banking here for about 15 years - I am sticking with the bank until mortgage is sorted and then am moving - I was in tears after talking to this woman. If I have to I can borrow the 10% from good 'ol dad but I'm just wondering is there any other alternative.
 
It is a bit of a nightmare with the 10% balance business, 100% mortgages are becoming more and more common. Solicitors should really put the vendors straight about it at the start to save this confusion at the near end.
We thought the bank would give it to us as a part payment of the mortgage, but they said the full amount would come instead a few days later. It did to be fair, no delay at all, However our vendor said he was pulling out unless we had 20k at least by the next day. Scare tactics I know, but I borrowed it from Friends/Family in form of a cheque, what else can you do? If you have Friends or family that might lend it to you for the couple of weeks, swallow the pride and ask, you'd be surprised how helpful people can be.
 
We have booking deposit paid, there are apparently going to be some delays from the vendors side in getting the contracts sorted so there might be a chance that they will forget the deposit because of delays? - to be honest I didn't know that you could ask them this? - Do you think the solicitor will have a problem asking this or is it normal. Thanks for the advice, I feel a bit better now and like I said if needs be I can get it off Dad, he's a gem but I just don't want to hassle him, he's done more than enough already.

Anyway thanks
 
The solicitor is acting or your behalf so I'd definetly ask him to ask. Worth a shot, especially with them delaying things on their side. Good Luck.
 
Talk to your solicitor - it shouldn't be that big a deal, especially as you are ready to go and they are holding you up. The last time I moved I paid the grand sum of £1000 in total!!

Sarah

www.rea.ie
 
ney001 said:
approx 5 years ago - this loan was with my current bank whom I rang straight away and it was a girl at customer service who told me that it was three missed payments but the loan was a five year loan taken out 1999 and paid off 2001 or thereabouts and yes I still have the original loan agreement
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in precisely 5 years that must drop off yoru record d, if the last MISS was logged as June 2001 then any application for a loan from July 2006 will not find it on your record , your record will be clean.
Re loan manager - actually it was a female manager and I couldn't believe how rude she was to me, I have been banking here for about 15 years - I am sticking with the bank until mortgage is sorted and then am moving - I was in tears after talking to this woman.
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Shes probably a saleswoman who did not make her quota this month and not a manager as such. Her boss will be rude to her etc. Write to a regional manager and explain why you will leave their bank .
If I have to I can borrow the 10% from good 'ol dad but I'm just wondering is there any other alternative.
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Dad will not check your record but everyone else will bar credit unions that are NOT on this list here below.

[broken link removed]

You must be nearly clear now....surely
 
Even if your ICB is clear I'm sure GE Money will have some record of your previous application for the loan and reason for declining so i wouldn't count on this. I think your best bet is to ask your solicitor to arrange with the vendor to hold off on the 10% deposit. If this fails you may just have to ask your dad...
 
Hel_n said:
Even if your ICB is clear I'm sure GE Money will have some record of your previous application for the loan and reason for declining so i wouldn't count on this.
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True, GE will have an internal GE record of the refusal but they may process it again and pass it if the record shows nothing.
 
I cant believe EBS still arent doing the 10% themselves. I had the same problem some months ago, they couldnt/wouldnt advance the 10% and sent me to GE Money to get it.

GE Money wanted a full loan application: payslips, salary statements, bank account statements, application forms/30 minute phone calls etc. even though all the above was with the broker and had been used to get the loan offer from EBS. Talk about a pain in the This post will be deleted if not edited to remove bad language. The broker was to have GE call me, no call. I ended up chasing them for 3 days. Then the staff member I was dealing with phoned in sick every second day for a week.

Eventually I rang the broker, then EBS themselves to confirm whether or not I was tied to GE Money for the 10%, and whether going elsewhere would affect my application. Both said absolutely not.

So I went to my own bank, where I was pre-approved for a personal loan. I applied over the phone in the morning and had the funds in my account in the afternoon. I told them what it was for openly, they had no problem at all. I also told them how annoying the whole affair was. They helpfully pointed out that doing it the way I was means that I wasnt tied to the EBS at all, and that I could shop around further on completion. I dont have to tell you which way I am leaning.

EBS are shooting themselves in the foot with this policy, they need to get it sorted.
 
Talk to your lawyer to negotiate with the Vendor's lawyer , I am confident a solution will be found , most vendors would waive the 10% in return for 100% payment if there are no delays in signing contracts at both ends

wish you luck

GG
 
I totally agree with you about EBS, they really need to get this issue sorted - surely if they are giving me 100% loan then there is no risk from the point of view of GE Money anyway - I'm getting a bit tired of the whole thing - I still have a bit of time to get something sorted - so I'll wait and see what my credit report says. You are very lucky with regards to your bank - the girl I spoke to was completely disgusted with me for even asking - her solution was to apply to them for a mortgage even though they only do 92% mortgages - I explained that I didn't have the 8% and she then told me to ask my parents for it!!! - I now can't wait to leave even though it'll be a bit messy as I have about 7 standing orders leaving my account every month, credit card etc but I'm definitely going to leave them.
 
GolwayGuy said:
Talk to your lawyer to negotiate with the Vendor's lawyer , I am confident a solution will be found , most vendors would waive the 10% in return for 100% payment if there are no delays in signing contracts at both ends

wish you luck

GG
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I was thinking about this all day and had decided to ask my solicitor to ask them when the time is right but then this evening I spoke with the vendors and they have asked me to pay for something which i don't believe I should have to pay for - I now think that because I won't be paying this (or at least not until I get some advice in another thread) they will play hard ball with me!
this is hard going!
 
ney001 said:
Talk to your lawyer to negotiate with the Vendor's lawyer , I am confident a solution will be found , most vendors would waive the 10% in return for 100% payment if there are no delays in signing contracts at both ends
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In my case I bought off plans, so there was no chance of the vendor (the developer) waiving the 10%.Getting the 10% in before building is the whole point of them selling off the plans in the first place.
 
Dave_Post said:
I cant believe EBS still arent doing the 10% themselves. I had the same problem some months ago, they couldnt/wouldnt advance the 10% and sent me to GE Money to get it.

GE Money wanted a full loan application: payslips, salary statements, bank account statements, application forms/30 minute phone calls etc. even though all the above was with the broker and had been used to get the loan offer from EBS. Talk about a pain in the This post will be deleted if not edited to remove bad language. The broker was to have GE call me, no call. I ended up chasing them for 3 days. Then the staff member I was dealing with phoned in sick every second day for a week.

Eventually I rang the broker, then EBS themselves to confirm whether or not I was tied to GE Money for the 10%, and whether going elsewhere would affect my application. Both said absolutely not.

So I went to my own bank, where I was pre-approved for a personal loan. I applied over the phone in the morning and had the funds in my account in the afternoon. I told them what it was for openly, they had no problem at all. I also told them how annoying the whole affair was. They helpfully pointed out that doing it the way I was means that I wasnt tied to the EBS at all, and that I could shop around further on completion. I dont have to tell you which way I am leaning.

EBS are shooting themselves in the foot with this policy, they need to get it sorted.
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What bank was this Dave if you dont mind me asking? Having a similar problem with EBS at the moment and am loath to go through GE Money from all that i have heard about them. Rang AIB this morning and was told they only do minimum 12 month term loans. Asked me to contact my branch, contacted my branch and they told me they dont provide bridging loans anymore. Needless to say ill be leaving AIB once my SSIA comes in.
 
ney001 said:
I rang my own 'friendly' bank to see if they could arrange a bridging loan and had the head bitten off me by the loan manager there who told me I should have applied to them in the first place for a mortgage and that it 'really sticks in their throats' when people come looking to them for bridging loans for other financial institutions.
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The loan manager's attitude is unacceptable given that you later said that your bank would only lend 92% of the purchase price.

However if the bank were willing to lend 100% then it is understandable that they would not want to bridge another institutions loan.
 
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