Refused as joint mortgage, reapply as sole

unoplayer88

New Member
Messages
5
Hi everyone,

My partner and I have just been refused a joint mortgage with KBC based on his earnings being inconstant (he is freelance and contracts are less promising due to Covid). I have owned a property for eight years which I recently sold and made a small profit on. We have been refused a KBC mortgage based on his freelance contracts over the next few months being cancelled. He would be putting in 25000 in savings into the property, and I myself have 90000 to put in. We are looking for a small enough mortgage and now that we have been refused we are thinking of applying for a smaller sole mortgage. What are the disadvantages of this and am I now allowed to apply straight away for a sole mortgage, despite the joint mortgage being refused?

Thanks!
 

Brendan Burgess

Founder
Messages
40,245
You should provide all the information in this thread to get the most useful advice.

 

cmalone

Frequent Poster
Messages
409
Sorry understood you wanted a small mortgage. Apologies...

mortgage via credit union can be up to 350k according to what I see...

High interest rates ? With respect - you haven’t a mortgage approval yet .., You can bargain when you get a few offers and can reduce the LTV and your repayment capacity.
 

unoplayer88

New Member
Messages
5
Joint Application, but now hoping to reapply as sole. Looking to buy a two bed house to the value of about 300,000. Our original mortgage offer was for 202,000 for 34 years. Both have a number of years of savings and eight years of one of us owning an apartment. I am employed by the state and my partner is self employed. I have been in my permanent position for five years. We have no children and paid off all debt. We have no negative credit history and our savings are clearly laid out.

The bank have refused the mortgage due to partners contracts being cancelled and rescheduled due to covid so his income over the next few months has taken a big hit but between us we are fine and I am still being paid. Used a mortgage broker for advice but did not use one right through the process. We could apply to another bank but we have moved all our accounts to KBC and opened joint accounts there so now I think I am going to apply solely, but am just worried of the side effects of this or how common it would be after being refused a joint mortgage
 

RedOnion

Frequent Poster
Messages
4,285
High interest rates ? With respect
With respect, Credit Unions are not even close to being competitive on interest rates. They were consistent with the banks when they first launched, but with rates as low as 2.2% available with banks, they haven't kept up and they're now way off the mark.
 

cmalone

Frequent Poster
Messages
409
I’m not promoting credit unions. Just saying the option they offer. Expect they are still better than ‘sub prime lenders’ people signed up with previously ..,
 

RedOnion

Frequent Poster
Messages
4,285
Our local credit unions don't do mortgages unfortunately
Don't worry about the credit union. There are 6 banks actively lending, and 2 non-bank lenders. They all have better interest rates than any of the community based credit unions.

You've been turned down by 1 bank.

Having joint bank account might be an issue with a sole application.

I'd suggest making a sole application, either with KBC or another bank. You'll find out quickly enough whether or not it's a runner.

Failing that you'll just have to wait until things pick up again for your partner. The market is effectively paused and the moment as there are thousands of people in a similar situation, and banks won't ease their underwriting criteria until they understand the long term impacts better.

Without knowing details of you age, salary, other commitments, etc, it's not possible to give an indication of which bank might be best to approach.
 

unoplayer88

New Member
Messages
5
What are the implications for a partner? I am aware I cannot add him to the deeds while having a mortgage but can anything be drawn up by a solicitor? We can get the mortgage needed with just my income and our savings but I feel somewhat uncomfortable being the sole one with a mortgage on what should be our property together
 
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