Refused mortgage approval at last min - what now?

ClubMan said:
My mistake - I misread your post and edited mine subsequently.

I'm surprised. My brother in law is in the EA game and recently bemoaned to me the fact that most people haggle them down to 0.5% these days.

Why is she charging €1K twice?
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1k for the sale of this house , 1k for the purchase of the other.
 
I wasn't suggesting for a moment that you borrow from the CU. I was suggesting using your CU savings (along with your SSIA) to reduce your mortgage requirements.
 
Solicitors treat the sale of one house and the purchase of another as two separate transactions. It's fair enough because they are indeed separate. Your estate agents fees are very high and perhaps you should have negotiated a little better, but no point in crying over spilt milk. Did you physically go in to the bank and ask why you had been refused? You're not looking for a lot extra but perhaps they're sticking to the 3.8 X salary rule in your case. I would go in on Monday and look for my statements etc. back and then go to the mortgage broker. Make sure they deal with all the lending agencies, as not all of them do! You've a decent income and no loans, a good track record, and therefore, I don't envisage you having a problem securing a mortgage. Perhaps you could ask the vendor to hold off until you have loan approval in writing.
 
I guess what im really asking is because this bank have refused me this mortgage does it seriously effect my chances of getting a mortgage with anyone? Would anyone ever be refused a mortgage with one bank, but another be willing to offer it to them?

I have an appointment with a broker tomorrow.
 
Bambo said:
I guess what im really asking is because this bank have refused me this mortgage does it seriously effect my chances of getting a mortgage with anyone? Would anyone ever be refused a mortgage with one bank, but another be willing to offer it to them?

I have an appointment with a broker tomorrow.
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No - is the answer to your question! Being refused a mortgage or any other kind of loan from a financial institution does not affect your credit rating. It is not an undischarged debt.
 
Marie said:
No - is the answer to your question! Being refused a mortgage or any other kind of loan from a financial institution does not affect your credit rating. It is not an undischarged debt.
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Is this definate, considering the application did go to final stages, i.e. credit search, bank statements, the lot. They did ask for additional bank statements and so Im hoping they simply felt the amount was just pushing it a bit....and that a broker will be able to sort us out with another bank.
 
Hi there,

A few things.

1. If you have been declined by your own bank the only thing that will be appearing on the credit bureau, will be a record that the bank ran a credit check on you. In fact it may be a case that they declined your appication before the credit check was even carried out if it was clear that you did not fit their criteria.

2. It is going to take you at least a week and most likely two to get loan offers, as your solicitor will not (should not) allow you to sign contracts on the purchase of your new property until these offers are in place.

3. The fact that the purchase of your new property is dependant on the sale of your old property and in this instance the only way that new loan offers will be issued is in a "closed bridging" situation (contracts on the sale of your own property being signed before issuing loan offers for the purchase of the new one). Also with closed bridging it is almost impossible to get same from a bank other than the one that holds the current mortgage and security over the property (i.e. your current home).

4. Not all banks require bank statements when making an application for a mortgage. We deal with at least one (not a sub prime lender) that will accept application on homeloans without the need for bank statements.

5. If you qualified under standard criteria for €270K, with your existing bank I would be amazed if there was not a bank out there that would not give you the €285K (assuming that there is not a bad credit history).
 
If you have e-banking with your bank....you could print off a history for your meeting with the mortage people as your statements are with someone else at the moment.
 
The first thing you need to find out is WHY your existing lender declined your application. Banks are in the business of lending money and don't decline cases without good cause, especially existing clients. They don't have to tell the precise reason but they should be able to give you an indication.

Sarah

www.rea.ie
 
Also an important point to note is that banks criteria differ from bank to bank. So if they are declining you on the basis that you do not fit their criteria, this does not mean that another bank will not be happy to lend you the money.
 
Sarah W said:
The first thing you need to find out is WHY your existing lender declined your application. Banks are in the business of lending money and don't decline cases without good cause, especially existing clients. They don't have to tell the precise reason but they should be able to give you an indication.

Sarah

www.rea.ie
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I was actually going to recommend you contact Rea, I have a friend who went to Rea and saved a bundle on solictor fees.
 
1K for the legal work entailed in the sale of the OP's property and another 1K for the work involved in the purchase of the OPs new property.
 
Mark Purcell said:
Hi there,

Also with closed bridging it is almost impossible to get same from a bank other than the one that holds the current mortgage and security over the property (i.e. your current home).
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Mark...are you saying I will find it difficult to get a mortgage for a new house unless i stay with the bank who I have the current mortgage with? If so, im in trouble, because it was my current bank that have turned me down.
 
Have you been sorted out with a mortgage yet?
Do you have a major issue with solicitor fees?
 
Hi Bambo,

Yes in order you to have a situation whereby you are given loan offers for the purchase of the new property while the old property is not yet sold, is referred to as "closed bridging". In this situation the bank will insist on contracts on tha sale of your own property being signed before issuing loan offers fr the purchase of the new property.

In our experience the only banks that offer this are the banks that hold the origional mortgage.

Your bank should have let you know about this and I would not be surprised if this was the reason that the decline came back, as a bank would not normally loose a customer over a €15K difference (i.e. diff between €270K and €285K).

Hope this helps.
 
Mark Purcell said:
Hi Bambo,

Yes in order you to have a situation whereby you are given loan offers for the purchase of the new property while the old property is not yet sold, is referred to as "closed bridging". In this situation the bank will insist on contracts on tha sale of your own property being signed before issuing loan offers fr the purchase of the new property.

In our experience the only banks that offer this are the banks that hold the origional mortgage.

Your bank should have let you know about this and I would not be surprised if this was the reason that the decline came back, as a bank would not normally loose a customer over a €15K difference (i.e. diff between €270K and €285K).

Hope this helps.
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The contracts for the sale of our own house were only due to be signed today, i will know tomorrow if they were.
I visited a broker today, but he mentioned nothing of this - I did tell him I was declined by that particular bank but he didnt make a big deal of it. He thinks the figure is certainly do-able, so hopefully I;ll know by the end of the week...
 
Hi,

I think that he figure is do able as well as banks criteria differ. While you might not qualify for the full amount with your own bank that does not mean that you will not qualify under another banks criteria (advantages of using a broker).

I always was of the opnion that prople should deal directly with the banks (as I am a sceptical Accountant) but after dealing with a number of transactions myself on a personal level found that the most time consuming part was contacting the all the instutions to find the right product, brokers (one of which I am now) have this info to hand (provided that they are independent - you should find out what agencies they have before commiting to them).

I am surprised that they did not mention the issue of having your own house sold first. I would suggest giving them a call or droping them a mail asking them to clarfiy this specific point.
 
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