Financing commitment at the current time

Hello everyone,
I’m curious to know at which bank you have received an approval in the last 4 weeks and where it is currently difficult.
The background is that we are currently having enormous difficulties. We have a monthly net income of €5500 plus child benefits for 4 children and already own property, which is expected to be sold for €420k. I am currently not working at all, am a qualified nurse, and could theoretically start several jobs tomorrow.
After the property sale, we will have equity of about €120k. We live quite minimally, have no car, go to the campsite at most, and need €1500 per month for living expenses for six people. The first rejection came from the house bank because they calculate horrendous flat rates for 6 people and "no car" doesn’t even come up with them. We have now ended up at Deutsche Bank through a financial advisor; they are so nervous at the moment that they will not give an approval without a purchase contract for the existing property – which is a catch-22 – because we can hardly sell our home before we are sure we can finance the new house… we submitted all the necessary documents in record time except for this purchase contract. It is really nerve-wracking. Is anyone else experiencing the same? Any tips? Both our real estate agent and the financial advisor believe that we wouldn’t have had this drama 8 weeks ago. Banks are probably shivering because of the ECB’s base rate increase planned for July.

Good evening,

I just skimmed it briefly.

So clearly, many banks will apply “living flat rates” of €2500 or more for a 6-person household, even if you manage with €1500.
Since you have saved €50k, that shows you manage with the income and still can set something aside! That is positive.

Deutsche Bank, like the entire group (DSL Bank etc.), will either require a completed sale of the existing property or at least a draft purchase contract (i.e., you must have a buyer interested in purchasing the property!) to avoid being stuck with the risk!

Current problem:
Income / liabilities: many banks are already out here because of this!

Loan-to-value ratio:
You plan to finance €700k with €800k costs (so just under 90%), but these are the costs; what the house will be worth to the bank in the end (after completion) is another matter. If it is significantly under €700k, that will become another knockout criterion (because income is already tight, the bank currently wants to take on less risk!).

What I can suggest here:
Send me the following information via email:
Existing house: address, year built, plot + living area size, possibly some details about basement, number of floors, etc.
Also that of the new build.

Then I would do a “quick valuation” for both, which should be understood as an approximate value, but maybe it can be assessed better that way.

And then I might be able to give an assessment of whether one should even venture into such a project.
Sure, if the wife works, there will be additional income, but on the other hand, expenses will likely rise (childcare, commuting costs, etc.).

I am curious.

PS. Currently, everything takes a bit longer with the banks, also with me; I try to catch up a bit (including weekends)...

Hello everyone,
I am curious to know at which bank you received an approval in the last 4 weeks and where it is currently difficult.
The background is that we are currently having major difficulties. We have a net monthly income of €5500 plus child benefit for 4 children and already own a home, which is expected to be sold for €420k. I am currently not working at all, I am a certified nurse and could theoretically start several jobs tomorrow.
After the property sale, we will have equity of about €120k. We live quite minimally, have no car, occasionally go to the campsite, and need €1500 monthly for living expenses for the six of us. The first rejection came from our house bank because they calculate horrendous flat rates for 6 people and "no car" is not even considered by them. Now we ended up at Deutsche Bank through a financial advisor, and they are so nervous right now that they will not give approval without a purchase contract for the existing property – which is a catch-22 because we can hardly sell our home before we are sure we can finance the new house… We submitted all the necessary documents in record time except for this purchase contract. It is really exhausting. Is anyone else in the same situation? Any tips? Both our real estate agent and the financial advisor think that we wouldn’t have had this drama 8 weeks ago. The banks are apparently trembling because of the ECB’s planned key interest rate hike in July.

Good evening,

I’ve just quickly “skimmed” it.

So clearly, many banks will set “living flat rates” of €2500 or more for a household of 6, even if you manage with €1500.
Since you have saved €50k, it shows you manage with the income plus still can save some! That is positive.

Deutsche Bank, like the entire group (DSL Bank etc.), will either require a completed sale of the existing property or at least a draft purchase contract (i.e., you must already have a buyer who wants to buy the property!) so as not to bear the risk.

Current problem:
Income/liabilities: With that, many banks are already out!

Loan-to-value:
You plan to finance €700k for €800k costs (so nearly 90%), but those are the costs; what the bank values the house at the end (after completion) is another matter. If it is somewhat below €700k, this will become an additional knockout criterion (because income is already tight, and the bank currently wants to take on less risk!).

What I can suggest here:
Send me the following details by email:
Existing house: address, year built, plot size + living space size, possibly some details such as whether it has a basement, how many floors, etc.
Please also provide this for the new building.

Then I would do a “quick valuation” for both, which should be understood as an approximate value, but maybe then it can be better assessed.