Forget about a loan if you have credit problem
Published 02/03/2010 | 05:00
IN general there are only three lenders offering mortgages to first-time buyers -- AIB, Bank of Ireland and EBS.
All three will lend up to 92pc of the value of the home being bought.
Other lenders, such as Haven and KBC Homeloans, demand deposits of between 15pc and 20pc of the value.
Frank Conway of Irish Mortgage Corporation said: "Lenders are certainly very cautious on who they lend to. They are likely to remain so.
''Anyone who shows any sign they will be unable to continue earning at the level they may have been, or their income may be on shaky ground, will be a big problem for the lender.
"Credit problems are a major no-no. Any sign of trouble and the mortgage application gets a big fat rejection stamp."
Both AIB and Bank of Ireland insist they are lending to new buyers.
AIB denied it is applying minimum income threshold to potential first-timers.
"Each application is taken on a case-by-case basis, with the capacity to repay being the key determinant," an AIB spokesman said.
"There are no stipulations in our lending policies concerning minimum net income amounts, other than a guideline in our terms and conditions that monthly repayments typically should not exceed 35pc of net income."
Bank of Ireland's director of consumer banking Brendan Nevin said that last year it lent over €2bn in new mortgages and is approving an average of 100 applicants each day.
However, not all of these mortgage approvals translate into mortgage draw downs.