Tw Denied Mortgage

[Jeddah Jo]

A TW I have known for more than 5 years just got rejected for a mortgage by Bangkok Bank. The property she is trying to buy costs 600,000 THB, she has a deposit of 120,000 and is trying to borrow about 480,000. She has a monthly salary of about 15,000.

The reason the bank declined the mortgage is she works as a cashier in a big Phuket nightspot, the bank says this type of work has no longevity/continuity and is inappropriate for a mortgage.

Believe me she is only trying to buy a house for her family to live in, and I think the bank has been rather unfair on her. I don't want anything to do with the house, I have no emotional involvement with the girl, I would just like to know if there anything I can do to help without becoming too embroiled in her financial affairs?

Alternatively has anyone got any ideas for any other tactics she can try to get a mortgage.

TIA.

JJ.

[Moonfruit]

Why would you get involved with a friends affairs?

You wouldnt do it back home, so why do it here?

There isnt anything you can do anyway, short of give her a chunk of change for a much higher deposit. Then you will take on the risk instead of the bank.

[JimmyTheMook]

Unfortunately she needs to bribe the bank manager to have the loan approved.

[Jeddah Jo]

Why would you get involved with a friends affairs?

You wouldnt do it back home, so why do it here?

There isnt anything you can do anyway, short of give her a chunk of change for a much higher deposit. Then you will take on the risk instead of the bank.

I have read people talking about being a guarantee, but I am not 100% sure of what is involved.

If I just need to show a bank account with a lump of cash in it then no problem. If I have to sign mortgage documents then BIG problem.

I am surprised you say you would be unwilling to help a friend. This woman has always been very good to me in the past and helped me in my own business. Why shouldn't I return the favour?

JJ.

[Heng]

Branch managers have virtually no say in whether a loan gets approved or not. Loans are all approved at headquarters by committee in Bangkok (all banks) nowadays.

[Farma]

Tell her to try other banks. I believe there’s a government bank that offers cheap loans.

[Jeddah Jo]

Heng, that's what she said.

She said her dad had an "in" with the local branch manager, but the mortgage got rejected at head office.

Edited July 24, 2008 by Jeddah Jo

[Farma]

She may have a better chance with that government bank. I can’t remember the name but was told it’s been set up to provide cheap housing loans.

[Gumballl]

1) Suggest to her that she buy a smaller, less expensive property, or 2) suggest to her that she saves more money so that she has a larger deposit at the bank, or 3) suggest that she takes the money she already has and deposit it in another bank; maybe the other bank would be more favourable with respect to getting a loan.

Edited July 24, 2008 by Gumballl

[Jeddah Jo]

Thanks for useful replies anyway.

I think the mortgage repayment worked out at about 5,800 a month. So on her salary she could easily afford it.

20% deposit should be enough. Maybe the recent credit crisis is causing banks to be a bit stricter.

[sbk]

trollish posts have been deleted. If you don't have anything else to offer please don't bother to post. Further such posts will result in moderator action.

[JSixpack]

• This isn't your business. Best express polite sympathy and butt out.
  
• It could be scam on her part to get money from you.
  
• You don't have any reason whatsoever for thinking the bank has been unfair to her. In fact, the bank has been fair.
  
• She will be aware of other banks besides Bangkok Bank.
  
• She can build a house upcountry for her family and pay cash for it.
  
• She can rent a house for her family and make alternative investments.
  

[Big Guy]

Try the goverment bank they give housing loans at more favorable rates than the commercial banks

[Jimjim]

That's just life. Don't even worry about it. The bank is under no obligation to provide her a loan. Forget about it completely.

[GuestHouse]

Be careful - Every time I've come across a Thai telling a foreigner about some financial woe or other, the 'telling' swiftly and deftly turns into an 'asking'.

[Jeddah Jo]

Thanks for replies. You will just have to believe me that I have no intention of getting financially involved in this situation and I have lived here enough years to know the scams that go on.

I just find it depressing that Thai banks are so unwilling to help their citizens which is why a lot turn to loan sharks which just enforces the circle of poverty.

As people have said. Not my problem, but still sad...

JJ

[issanpaul]

Be careful - Every time I've come across a Thai telling a foreigner about some financial woe or other, the 'telling' swiftly and deftly turns into an 'asking'.

[farang555]

banks not hereto fight poverty

banks make money by lending to those who dont need it!

Edited July 25, 2008 by farang555

[wasabi]

I agree with the bank and I would not get involved. Not sad, realistic. She needs to get a better job and save more money if she wants to buy a house. Nothing wrong with renting though, I do it.

[Naam]

A TW I have known for more than 5 years just got rejected for a mortgage by Bangkok Bank.

who or what is a "TW"

[Chaimai]

I also think the bank is right.

You cannot argue against the view that income from a Phuket nightspot lacks longevity.

The salary looks high for a 'cashier', a mortgage is a long-term commitment and I don't see too many 50 year old cashiers.

has she saved the deposit of 120,000 Bt ? and are these sitting in HER bank account.

[NotNew2You]

The reason the bank declined the mortgage is she works as a cashier in a big Phuket nightspot, the bank says this type of work has no longevity/continuity and is inappropriate for a mortgage.

Seems like a reasonable basis for rejecting a loan. Jobs in tourist nitespots can be a little unstable. Also, in other posts, you say that the monthly loan payments would consume almost 40% of her salary. Usual standard is 20-25% of monthly income should go towards housing (either rent or mortgage). So again, the bank is being reasonable.

If more US banks had done this...only lend money to people who could actually pay it back, there wouldn't be the devasting sub-prime mortgage crisis they are currently experiencing.

Maybe you could advise her to look at cheaper houses.

Edited July 25, 2008 by NotNew2You

[Jeddah Jo]

Nothing wrong with renting though, I do it.

Yeah me too

After all, plenty of cheap places to rent right? Going to knock this on the head now.

I suggested she contact the Taanakan aakan song-kror which is the Thai Housing Bank. If they can't help, then she just needs to work a few more years, save some more money and get a bigger deposit.

Cheers anyway,

JJ.