Taoiseach got 100% tracker mortgage, why was i refused tracker with 100% mortgage?

HarryPD

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Hi HarryPD, can you tell me if your partner was a doctor?
Well if it makes you feel any better....my partner is neither a doctor nor taoiseach nor rock star but at the time of the controversial 100% AIB tracker was and still is a lawyer.
 

so-crates

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1,775
Why LOL? Do you think everyone comes on here to tell lies or is it to be helpful to others?
No, but a table compiled from the collective reminiscence of a bunch of anonymous strangers is not a particularly valuable piece of evidence.
 

so-crates

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1,775
I believed the mortgage specialist when they told me that it wasn't possible to get a tracker with a 100% mortgage, unfortunately i believed that person and thought it was the same everywhere. i wanted the tracker because i thought it would be better to have your rate track ECB rather that leave to the banks to decide to alter the rate whenever they want.
Unfortunately i do not have it in writing that it was refused because of the 100% mortgage, that part was verbal.
My understanding was that if it was not 100% mortgage i would have been able to get a tracker mortgage.
When i found out that there were 100% tracker mortgage given out by banks, this is what made me ask the question.....why was i refused a 100% tracker mortgage when others were given the 100% tracker mortgage? Why was i treated differently to other customers?
Every customer is treated individually, from another angle that can be an advantage. By the sounds of it, you said you wanted a tracker on 100% and the person (independent broker? tied agent of AIB? employee of AIB?) to whom you were speaking said in their opinion you would not be accepted on the basis of your application at that time. This wasn't a refusal from the bank itself, it was never processed by the bank at all. Whilst you may disagree with that person's assessment, you have given no better reason than "well he got it so why can't I?". Different brokers/agents/whatevs will differ in their assessments and conclusions, that is human, did you use the same broker as Leo?

You were looking for a 100% mortgage, which means it is highly probable that you were already stretched to the hilt and may have had little or no savings (since you would otherwise have been able to use that to lower the percentage). Intrinsically from the banks perspective that would mean they are taking a big punt on your ability to repay and with a tracker, they would not have the luxury of pushing up the interest rate when they wanted to since their hands would be tied by the agreement to stick to x above ECB. So then it would come down to a judgement call on the likelihood of you being a naughty person and defaulting on your repayments. That's where the idea of certain professions getting an "easier" time and getting what they asked for. Income and future income, future increases etc are pretty well mapped out for some professions, and their job security is higher - from the banks perspective they are a much juicier target. The broker/agent/whatever just thought you wouldn't look juicy enough to the bank and was probably motivated also by a concern that rejected applications raise questions for future ones. Wherever possible, they would have wanted to get it through first time.
 

verywhys

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108
Every customer is treated individually, from another angle that can be an advantage. By the sounds of it, you said you wanted a tracker on 100% and the person (independent broker? tied agent of AIB? employee of AIB?) to whom you were speaking said in their opinion you would not be accepted on the basis of your application at that time. This wasn't a refusal from the bank itself, it was never processed by the bank at all. Whilst you may disagree with that person's assessment, you have given no better reason than "well he got it so why can't I?". Different brokers/agents/whatevs will differ in their assessments and conclusions, that is human, did you use the same broker as Leo?

You were looking for a 100% mortgage, which means it is highly probable that you were already stretched to the hilt and may have had little or no savings (since you would otherwise have been able to use that to lower the percentage). Intrinsically from the banks perspective that would mean they are taking a big punt on your ability to repay and with a tracker, they would not have the luxury of pushing up the interest rate when they wanted to since their hands would be tied by the agreement to stick to x above ECB. So then it would come down to a judgement call on the likelihood of you being a naughty person and defaulting on your repayments. That's where the idea of certain professions getting an "easier" time and getting what they asked for. Income and future income, future increases etc are pretty well mapped out for some professions, and their job security is higher - from the banks perspective they are a much juicier target. The broker/agent/whatever just thought you wouldn't look juicy enough to the bank and was probably motivated also by a concern that rejected applications raise questions for future ones. Wherever possible, they would have wanted to get it through first time.
Thanks for this information....i was dealing with an employee of AIB, the mortgage adviser/specialist within the branch. I asked for 100% tracker mortgage, they attempted to get the mortgage sanctioned but later informed me that it could not be sanctioned because it was a 100% mortgage.

I was looking for 100% mortgage like all those other people who got the 100% tracker mortgage so there is a high probability that they too "were stretched to the hilt and may have had little or no savings" so were the bank not taking a big punt on their ability to repay?

I guess you are saying what others have been saying on this forum.....your profession and not your ability to repay is what was the deciding factor on whether you could get the 100% tracker mortgage or not....
 

so-crates

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1,775
I guess you are saying what others have been saying on this forum.....your profession and not your ability to repay is what was the deciding factor on whether you could get the 100% tracker mortgage or not....
Your profession at the time would have been a factor in their estimation of your ability to repay.
 

verywhys

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108
Your profession at the time would have been a factor in their estimation of your ability to repay.
I think i know what you are saying......if you were a doctor, lawyer etc. you are a better customer to have than someone who is not.......they could take or leave someone like me but they wanted to have the better paid professions on their books....even though they are still willing to give me the 100% mortgage they see me as more of a risk......but then why advertise discounted tracker rates for first time buyers, if they only intend to give these rates to certain professions.....is this not false advertising or some sort of discrimination?
 

verywhys

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Where do the banks draw the line on this? What are the professions that get the special treatment? Is there a list?
 

Conan

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1,016
Really. This is just getting out of hand.
He got one so why can I? Is there a list of Trackers? What professions get “special treatment “?
No Bank is obliged to give you a mortgage. No Bank is obliged to offer the same terms to all applicants. You are not forced to accept an offer you don’t like.
Banks can determine the offer they make on a case by case basis. They can offer different terms to Doctors, Lawyers, Civil Servants, Teachers, Refuse Collectors etc etc.
I struggle to see why you seem to have a problem understanding this simple concept.
 

verywhys

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108
okay.....case by case basis.....i get it.....i'm over it (bridge;))

13 years ago i was a naive first time buyer who was attracted to a first time buyers package advertised by AIB that included a tracker option.....but because the bank deals in a case by case basis i could not avail of this advertised offer. I only wish the advertisement had been clear as to what was actually on offer. I think it was very misleading and i only wish i had the good sense at the time to go elsewhere.

Thank you to all for your contributions to this thread. It has been educational and informative and very much appreciated!!
 

so-crates

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1,775
I think i know what you are saying......if you were a doctor, lawyer etc. you are a better customer to have than someone who is not.......they could take or leave someone like me but they wanted to have the better paid professions on their books....even though they are still willing to give me the 100% mortgage they see me as more of a risk......but then why advertise discounted tracker rates for first time buyers, if they only intend to give these rates to certain professions.....is this not false advertising or some sort of discrimination?
It is not "discrimination" (in the sense that they wronged you). They are very unlikely to have only set out to "give these rates to certain professions" what everyone is saying is that on balance, the bank would include your profession in its assessment of you as a risk to them, some professions are viewed as a safer bet. Of course it is speculation to say that was the deciding factor, it may have been something else about your application that meant they rejected it.

When it comes to false advertising, it was available as advertised and you can be very sure that there was a catch all rider along the lines of "terms and conditions apply". The old maxim, Caveat Emptor - Buyer Beware, still applies. They may not be able to sell to you under false pretences but they are not obliged to sell to you and they are entitled to maximise their position same as you are entitled to maximise yours. As you said yourself, you were inexperienced, but that doesn't mean that they were criminal.
 
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