Refused mortgage because bank thinks we will rent it out

Crashy_Time

Thrugelmir said:

megaman_200x said:

Thanks for all the comments folks, I was looking to see if the bank might have been breaking any rules which from the response on here I gather they are not. House is 145 miles from Dublin, we will try a broker and may have to consider her moving back to her family home for a while. 

Lenders operate at the macro level. There'll have broad policies to cover such eventualities. Simply not possible to underwrite at the micro level. As humans being what they are, can be very economical with the truth. 

Not so long ago the banks would have been throwing their money at student HMO`s, strange how times change.....

ddonq1412

Im not sure what is going on, I live 6 miles from the boarder in northern ireland i had inquired about a property in republic of ireland. that is less than a 2 miles from my work in northern ireland. 2 banks in my local area declined me due to  property was in euro and we got paid in sterling we were stumping up abut 30% for the deposit at time due to exchange rates. But 10 years ago banks were handing out mortgages for irish addresses like peanuts.

Crashy_Time

ddonq1412 said:

Im not sure what is going on, I live 6 miles from the boarder in northern ireland i had inquired about a property in republic of ireland. that is less than a 2 miles from my work in northern ireland. 2 banks in my local area declined me due to  property was in euro and we got paid in sterling we were stumping up abut 30% for the deposit at time due to exchange rates. But 10 years ago banks were handing out mortgages for irish addresses like peanuts.

And look how that ended up? 
https://eirigi.org/latestnews/2020/2/7/has-a-2020-property-crash-already-begun

Crashy_Time

Totally strange, the banks surely know no one is piling into BTL now?

AW618

Crashy_Time said:

Totally strange, the banks surely know no one is piling into BTL now?

No, what's strange is you selling up to rent 20 years ago and stil trying to pretend you did the right thing.  Utterly delusional. 
Here's a suggestion for you.  Stop posting until the crash actually arrives.  After all, it will only be a few weeks, won't it, according to you.  It's only been a few weeks away for 20 years, but let's not worry about that.  

Thrugelmir

Crashy_Time said:

Thrugelmir said:

megaman_200x said:

Thanks for all the comments folks, I was looking to see if the bank might have been breaking any rules which from the response on here I gather they are not. House is 145 miles from Dublin, we will try a broker and may have to consider her moving back to her family home for a while. 

Lenders operate at the macro level. There'll have broad policies to cover such eventualities. Simply not possible to underwrite at the micro level. As humans being what they are, can be very economical with the truth. 

Not so long ago the banks would have been throwing their money at student HMO`s, strange how times change.....

This is residential mortgage application. 

Thrugelmir

Crashy_Time said:

Totally strange, the banks surely know no one is piling into BTL now?

Residential rates are cheaper. BTL mortgages come with hefty product fees a lot of the time. 

megaman_200x

The bank didn't mention anything about the distance between current address and the house in question. They just said it was because of the area and type of house (HMO)

dimbo61

Not sure about the death of BTL and student HMO BTL yet as I know someone who has purchased a few in the last 12 months.
With a good business plan, support from the banks and good rental yields plus scope to add value by undertaking major refurbishment and extensions the rental market might survive.

Crashy_Time

Thrugelmir said:

Crashy_Time said:

Thrugelmir said:

megaman_200x said:

Thanks for all the comments folks, I was looking to see if the bank might have been breaking any rules which from the response on here I gather they are not. House is 145 miles from Dublin, we will try a broker and may have to consider her moving back to her family home for a while. 

Lenders operate at the macro level. There'll have broad policies to cover such eventualities. Simply not possible to underwrite at the micro level. As humans being what they are, can be very economical with the truth. 

Not so long ago the banks would have been throwing their money at student HMO`s, strange how times change.....

This is residential mortgage application. 

Yes, that was explained in the first post, I was being sarcastic.