Switching requirements from BOI

J

jb81

Registered User
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On a 2 year fixed term EBS - 3.15%
Mortgage since 2009, no arrears. 35 year term.
Balance €167000 approx.
House value €215000 approx.

Rang BOI to see about switching to their 5 year fixed term of 3% and avail of the 2% cash back and further 1%.

Me - employed - €36,000 gross
Spouse - self-employed - new business, no profit yet.

Just called to see where we stand. My spouse earnings would not qualify us for a mortgage of €167000 from them until she is earning at least €29,000 ( on top of my wages ) per year for 2 years ( profit ).

Thought it was a bit much to be fair.

So I assume if we were applying for a mortgage first day with BOI now we would need to be earning €65,000 between us for a €167000, does this not sound very extreme?
JB
 
Have you any kids? Any other monthly loan repayments?

Edit - sorry - post crossed with Blackrock1 above.
 
Have 3 kids, and a small car loan from Credit Union, so I know that goes against us. I knew we weren't in a position to switch due to my wifes new business, but just wanted to see where we needed to be, and it was more to take advantage of the cash back offer than anything else.

I just thought it would rule out a lot of people trying to get a relatively low mortgage of €160,000 - €170,000 - or maybe I am being naive.

Anyway, protocol, you mention about switch to EBS fixed 3%?
I am already fixed with EBS at 3.15%, can I change now to 3% ? Is this possible?

Thanks
JB
 
Banks are looking to a future where interest rates won't be as unusually low as they are now. You have 26 years left on your mortgage. Even a few small increases in interest rate to 5% would bring your monthly repayment up to over €1,000 per month including insurances. You don't say how much you're currently paying every month to the Credit Union but that would go up if interest rates do. If you had two incomes totalling €65,000 your take-home pay would be around €4,500 per month. So if you were paying €1,000 per month on the mortgage and, say, €500 per month to the credit union there's one third of your take-home pay gone just to service loans and 2/3 left to feed and sustain five people. Looks like reasonable lending policy to me.
 
Six months ago a friend fixed for 3y with EBS at 3.15%.

I rang her this week when EBS cut their fixed rates again, all to 3.00%.

She's paying a breakout fee of 100-120 approx, to move to 3%. Six month payback.

Yes, it can be done.
 
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