A recent article in the Sunday Business Post newspaper casts doubt on advertising claims made by Bank of Ireland that they
"say yes to 100 mortgages daily".
The paper quotes Michael Dowling of the Independent Mortgage Advisers' Federation as
saying "The reality is that [the banks are] very much cherry-picking customers they want and if they have any excuse not to lend to
someone, they will not lend."
In response to an enquiry from the Irish Times newspaper, the Bank Of Ireland claimed that information relating to the number
of mortgages drawn down over the period spanning February to September was "competitively sensitive" and would only confirm
that, of its 1 billion euro First Time Buyers fund, almost 750 million euro in mortgages had been drawn down.
Dividing this amount by the average home loan for first time buyers (200,00 euro) gives a figure of 3750 mortgages, which in turn equates
to 14 mortgages provided per day. The Sunday Business Post estimates that, assuming that first time buyers make up over 35%
of the overall mortgage market, this gives a figure of 40 mortgages per day, as opposed to the 100 per day claimed by the
Bank of Ireland.
The banks are now examining new mortgage applications very carefully, looking for proof that the aspiring home owner has a
record of regular saving equal to the mortgage payments they will be liable for if their mortgage is approved. Banks are also
on the lookout for "stress items", examples of which include overdraft referral fees, delayed loan repayments and large
credit card repayments.
This report is based on a recent Sunday Business Post newspaper article.
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