Buying a house 2012

killers1 · 03-06-2012 5:27pm

Roxee wrote: »

Mortgage approval came through today - yay! Offer in on house. And now we play the waiting game...... Wish me luck!

Best of luck!:)

killers1 · 03-06-2012 5:33pm

eurokev wrote: »

Hi everyone, Im in the process myself and am delighted to have stumbled across this thread.

My gf and I are first time buyers with secure jobs. We have a contact in the bank who took our forms yesterday and told us that she would be pretty certain that we will be approved for a mortgage, however Im not too sure.

Im on 26k she's on about 37k. Our savings are pretty awful though. We spent the last 3-5 years going on about 4 or 5 holidays a year and eating out every other weekend. I have about 10k in my current account she has 3k. I also have about 5k in the credit union. She has little funds because she bought a car recently and paid back the loan for this in about 2 months, but under her mothers name.There was some sort of complication with her wages so she had zero income for a while
We have never taken out any loans bar 1 for her of 1k in college.

What would people generally rate our approval chances of being?

We had not been planning on buying house anytime soon but a great one came up for 200k thats genuinely too good to turn down, hence the poor finances.

Also whats the story with costs? The money listed is everything we have. So we will need at least 16k for a deposit, 2k for a solictor and surveyor.

Do we have to pay stamp duty as first time buyers? I cannot find any certain answers online. What other costs will we incur in the process?

I genuinely dont think we can afford this right now.

Any opinions will be warmly recieved

Your salaries are more than sufficient to qualify to borrow at that level. What will decide whether your application is successful or not is how much you are paying in rent & savings on a monthly basis and whether this figure exceeds the stressed monthly repayment on the new loan. If it does you'll be fine.

In relation to costs you'll have minimum 8% deposit, legal fees (circa €1,500), Stamp duty 1%, valuation fee €130, survey (circa €300). So for a €200k house you will need to have (or access by way of family gift) to circa €20k to complete the transaction (before you buy a single item fo the property!) These are the only upfront outgoings. You will then have a monthly mortgage repayment, life cover & home insurance.....plus all the additional expenses associated with being a home owner..

I would be a bit worried though if you genuinely don't think you can afford this right now I'd advise you to knuckle down with your savings and hold off for a while. It's a big investment and you want to be sure that you can afford it before taking the plunge...

Snap1 · 04-06-2012 4:22pm

Thanks for the advice!

wildflower · 05-06-2012 7:41pm

hi, this is a great thread!
just wondering if anyone (killers1 ;-)) can tell what are my chances of getting mortgage.
I am in the process of gathering all my info for aib to put in my application next week but i just wanna have an idea if il get it or not.
i earn basic 37k with 10k extras per yr (although was on maternity and parebtal leave last 2 yrs so doesnt look as good on p60s)- have got letter from work confirming this. after tax 2300 per month.
i have 1 child and live with my fiance but he has had an isuue with some refferals this yr so cant apply with me- we were expecting to buy til next yr but got a great deal from a family member. so i will be applying without him. he has taken over creche fees so that wont factor into application.
i have 8k savings, just cleared credit cards, and will get cash from parents to cover the rest of deposit (4-5k i think)
the house costs 150k but is worth 250k, its 5 acres with 1 acre planning for 3000sq ft bungalow, all road frontage and the main house is ready to move into.
i have no referrals or any problems on my account but i do live on my credit card and have alot of cash advances and some overlimit fees, will this affect my application- didnt think this would be an issue but mortgage advisor in bank says it will count against me.
have been payiong rent and savings for past 6mths at 900 per month.
if im refused do i have any other options? my parents can give me more money or will go guarantor.
is there anything else i can do?

Verte11 · 05-06-2012 8:24pm

Waiting for closing date, hopefully this Friday. God I'm so scared.Is this normal? Too late to get cold feet now.Ha.

blueturnip · 05-06-2012 9:18pm

Verte11 wrote: »

Waiting for closing date, hopefully this Friday. God I'm so scared.Is this normal? Too late to get cold feet now.Ha.

Ooo congrats! So exciting! What's the first thing you're going to do?

chrisp2281 · 06-06-2012 12:35pm

I was sale agreed on a property. The close Date was May 25th. The vendor pulled out on May 28th. They had signed the contracts but they had not been returned to my solicitor. Naive on my part but it cost me a lot of money in the end. Buyer beware as they say but it is a disgrace how little protection we have

Dan133269 · 06-06-2012 2:07pm

chrisp2281 wrote: »

I was sale agreed on a property. The close Date was May 25th. The vendor pulled out on May 28th. They had signed the contracts but they had not been returned to my solicitor. Naive on my part but it cost me a lot of money in the end. Buyer beware as they say but it is a disgrace how little protection we have

How do you know they signed them if you never got a copy?

Verte11 · 06-06-2012 4:14pm

blueturnip wrote: »

Ooo congrats! So exciting! What's the first thing you're going to do?

AH it is exciting. God I don't know what the first thing I'll do is. have so much to think about. Renting a van to move stuff and pick up a bed. Then I'll probably have some wine!

killers1 · 06-06-2012 5:39pm

Verte11 wrote: »

AH it is exciting. God I don't know what the first thing I'll do is. have so much to think about. Renting a van to move stuff and pick up a bed. Then I'll probably have some wine!

Best of luck on Friday Verte I hope all goes well with your closing!:)

killers1 · 06-06-2012 5:43pm

chrisp2281 wrote: »

I was sale agreed on a property. The close Date was May 25th. The vendor pulled out on May 28th. They had signed the contracts but they had not been returned to my solicitor. Naive on my part but it cost me a lot of money in the end. Buyer beware as they say but it is a disgrace how little protection we have

It's true, it's certainly a sellers transaction with little protection for the buyer. I've often wondered whether a solicitor could insert a clause when returning the signed contracts to ensure that if the vendor changed their mind they'd have to cover the cost of the survey & valuation etc... Sorry to hear that chrisp, it's a very uncommon occurrence to be honest (which I'm sure is of no consolation to you!). It just wasn't meant to be.. I'm sure you'll find an even better property in due course...

killers1 · 06-06-2012 5:52pm

wildflower wrote: »

hi, this is a great thread!
just wondering if anyone (killers1 ;-)) can tell what are my chances of getting mortgage.
I am in the process of gathering all my info for aib to put in my application next week but i just wanna have an idea if il get it or not.
i earn basic 37k with 10k extras per yr (although was on maternity and parebtal leave last 2 yrs so doesnt look as good on p60s)- have got letter from work confirming this. after tax 2300 per month.
i have 1 child and live with my fiance but he has had an isuue with some refferals this yr so cant apply with me- we were expecting to buy til next yr but got a great deal from a family member. so i will be applying without him. he has taken over creche fees so that wont factor into application.
i have 8k savings, just cleared credit cards, and will get cash from parents to cover the rest of deposit (4-5k i think)
the house costs 150k but is worth 250k, its 5 acres with 1 acre planning for 3000sq ft bungalow, all road frontage and the main house is ready to move into.
i have no referrals or any problems on my account but i do live on my credit card and have alot of cash advances and some overlimit fees, will this affect my application- didnt think this would be an issue but mortgage advisor in bank says it will count against me.
have been payiong rent and savings for past 6mths at 900 per month.
if im refused do i have any other options? my parents can give me more money or will go guarantor.
is there anything else i can do?

Hi wildflower,
Your salary of €37k is sufficient to borrow the amount you need providing you're the right side of 35! The fact that you have a dependent will cloud the application a bit and they'll want to know what the situation is with the father and why he's not involved in the mortgage and particularly if he's covering creche fees.. The fact that your previous P60's are showing lower amounts is completely irrelevant and won't go against you in any way. So long as your current payslips match your salary cert figures that part is fine. Without seeing your credit card statements etc it's very hard to give you an idea of how the underwriter is going to assess them. If you are saving €400pm yet have no money in your current account before payday and need to do a cash advance of €400 to live off until you get paid - are you really saving anything? It's an application with a lot of variables in relation to having a dependent, the conduct of the credit card account etc so difficult to rate your chances. If your partner is in full-time employment with a good credit history apart from some referral fees I'd be inclined to have him conduct his accounts in order for the next 6 months, stop taking cash advances on your visa card, save a consistent amount monthly and then you'll be in a much better position to apply. As I said hard to give you a definitive without seeing the documentation but I reckon you may have a bit of a battle on your hands to get it over the line...

Verte11 · 06-06-2012 5:52pm

blueturnip wrote: »

Ooo congrats! So exciting! What's the first thing you're going to do?

chrisp2281 wrote: »

I was sale agreed on a property. The close Date was May 25th. The vendor pulled out on May 28th. They had signed the contracts but they had not been returned to my solicitor. Naive on my part but it cost me a lot of money in the end. Buyer beware as they say but it is a disgrace how little protection we have

God that is awful. How terrible for you.

Verte11 · 06-06-2012 10:25pm

Sorry chrisp2281 didnt mean to quote two messages there, one being irrelevant to you. I am a bit of a novice when it comes to using the very basic tools on this forum and always seem to get it wrong.

RalphMc · 07-06-2012 10:56am

Another what are our chances question! Hoping to approach the banks in the next week or so. We are renting for the best part of 4 years now.1200 per month has always gone into the account each month to pay the rent. We have 12,000 deposit and 5,000 will be gifted.Hoping for 190,000-200,000 mortgage. No other loans, nothing on the credit card.
One dependent (gf is a self employed childminder, so we pay no childcare costs).By last years P60, I got 32000. Gf has been self employed since July 2010. Last year earned 14,600. She will be going on maternity leave in a couple of weeks, so we know that she will have taken in 13,000 by the end of the year. (7,000 to date earned this year, rest will be maternity benefit). We werent planning on going for a mortgage so soon but houses have came up that we would love. Our main problem is that gf money hasnt been going through a bank account, parents have always paid her cash, will this cause us problems? She has tax returns for 2010 and 2011 completed. (She is tax exempt as a childminder). Has she been self employed long enough for the banks to take her earnings into account or are we going to have to wait until this years tax return has been done? Also, she doesnt earn enough to require audited accounts, will these still be necessary to apply?

killers1 · 07-06-2012 5:29pm

RalphMc wrote: »

Another what are our chances question! Hoping to approach the banks in the next week or so. We are renting for the best part of 4 years now.1200 per month has always gone into the account each month to pay the rent. We have 12,000 deposit and 5,000 will be gifted.Hoping for 190,000-200,000 mortgage. No other loans, nothing on the credit card.
One dependent (gf is a self employed childminder, so we pay no childcare costs).By last years P60, I got 32000. Gf has been self employed since July 2010. Last year earned 14,600. She will be going on maternity leave in a couple of weeks, so we know that she will have taken in 13,000 by the end of the year. (7,000 to date earned this year, rest will be maternity benefit). We werent planning on going for a mortgage so soon but houses have came up that we would love. Our main problem is that gf money hasnt been going through a bank account, parents have always paid her cash, will this cause us problems? She has tax returns for 2010 and 2011 completed. (She is tax exempt as a childminder). Has she been self employed long enough for the banks to take her earnings into account or are we going to have to wait until this years tax return has been done? Also, she doesnt earn enough to require audited accounts, will these still be necessary to apply?

A couple of things here Ralph...

You say €1,200 goes into an account to pay the rent each month but how much is your rent? The €12k you have in savings has this been built up over a period of time and how much per month on average have the savings increased over the last 6 months? You say your P60 last yr was €32k, what is your basic salary? Banks won't take your GF's income into account whilst she's on maternity leave and won't take maternity payments as income. A family with 1 income and 2 dependents on a salary of €32k will come nowhere near qualifying for €200k. Whilst your GF's NOA's will help it will go against you that you can't show any of her income being lodged via bank accounts. You won't need to have Audited Accounts prepared for her and the banks generally take an average of 3 yrs NOA figures (once they can see the income being lodged). I'd suggest (if you're looking to borrow at that level) wait until your GF returns to work, get her to lodge all income via her bank a/c's, do correct returns to Revenue, continue to save as much as you can and revisit this in a year or so...If you'd done this 6 months ago it may have worked but with you GF's income about to cease you wouldn't even get over €100k...

Iamhere · 07-06-2012 6:59pm

Need some advice, killers1 would like you thoughts on our situation, sale price agreed on 13th April, valued soon afterwards and our loan offer letter was issued at the end of April from AIB with an expiry date of 2nd August, we are still waiting for the contract, the builders solicitor is very slow and on a number of occasions as left out information etc but i think we are nearly there now...

The house itself is not complete yet and the contract will have a close date of 3 months from the date signed, our situation has changed since approval in the sense that we now have a dependant and my wife is on maternity leave (we told the bank from day one that my wife was pregnant). I am worried that we will end up where we sign the contact, the loan offer expires and then AIB decide not to extend the offer period. Am i right to be worried??

leahyl · 07-06-2012 7:17pm

Hi all, just to let ye know (well Killers1 really!) that I got mortgage approval in post today!! I have the letter of offer with a sample address (not the actual house that I'm buying, haven't found 'the one' yet:D).

Just wondering though - they have sent me a salary cert again even though I already gave them one - do I need to get this filled out again by my employer or is it just standard that they send these out with the offer letters?

So much documentation - don't know where to start! Need to get my dad onto it pronto:D

Hope to go view a few houses over the next few weeks.:)

Thanks again for your help Killers1 - was approved for exactly the amount you told me I would be approved for first day!!

killers1 · 07-06-2012 11:11pm

Iamhere wrote: »

Need some advice, killers1 would like you thoughts on our situation, sale price agreed on 13th April, valued soon afterwards and our loan offer letter was issued at the end of April from AIB with an expiry date of 2nd August, we are still waiting for the contract, the builders solicitor is very slow and on a number of occasions as left out information etc but i think we are nearly there now...

The house itself is not complete yet and the contract will have a close date of 3 months from the date signed, our situation has changed since approval in the sense that we now have a dependant and my wife is on maternity leave (we told the bank from day one that my wife was pregnant). I am worried that we will end up where we sign the contact, the loan offer expires and then AIB decide not to extend the offer period. Am i right to be worried??

Hi Iamhere,
A couple of things on your situation..
1. If your loan offer expires on the 2nd August then your loan offer would have expired around the 2nd June if the loan acceptance wasn't signed & returned to AIB. Just checking did you sign this with your solicitor and have it returned? If not, do it asap and it might be accepted.
2. In relation to the contracts - If you loan approval will have expired when the property is completed then you need your solicitor to insert a clause in the contract to specify that it is subject to mortgage approval being in place when the house is ready. This will still allow you to sign contracts and pay contract deposit when your solicitor eventually receives them.
3. I would imagine, the fact that you told AIB that your wife was pregnant at the time the application was made they probably assessed it based on your sole income (even though you would have supplied all your wifes relevant documentation? This is the major part of your query/worry. If your salary is sufficient to borrow the amount required in your own right and your net disposable income per month after the payment of all borrowings exceeds the banks guidelines for a couple with 1 dependent than you will have no difficulty in reapplying and obtaining approval even though your wife is on maternity leave. This can be done close to completion of the property. Is your wife being paid by her employer whilst on maternity leave? Again, knowing the way the banks assess these things (always taking a worst case scenario view) I would be very surprised if they factored in her income to the equation. I would be able to work out for you how you are fixed if you needed to reapply based on your own income and the fact that you now have a dependent. If you want me to run these figures for you prior to you talking to the bank send me a PM with some details.
I would understand your worry if you hadn't told the bank that your wife was going on maternity leave and then when you had to reapply you wouldn't be able to provide payslips etc for her then you would have a problem. The fact that you told them upfront would lead me to believe that was factored into their decision and there were satisfied you had capacity to service the loan based on your income alone. I would also say that the fact you made them aware of the situation would put you in a strong position if you had to argue a case to get the application over the line....As I said let me know if you want me to run some figures for you before you go back to them.

killers1 · 07-06-2012 11:18pm

leahyl wrote: »

Hi all, just to let ye know (well Killers1 really!) that I got mortgage approval in post today!! I have the letter of offer with a sample address (not the actual house that I'm buying, haven't found 'the one' yet:D).

Just wondering though - they have sent me a salary cert again even though I already gave them one - do I need to get this filled out again by my employer or is it just standard that they send these out with the offer letters?

So much documentation - don't know where to start! Need to get my dad onto it pronto:D

Hope to go view a few houses over the next few weeks.:)

Thanks again for your help Killers1 - was approved for exactly the amount you told me I would be approved for first day!!

Hi leahyl,
That's great news! Well done! They wouldn't usually send out a salary cert with an approval in principle but may have done so if you didn't provide one of their standard ones at the time you made the application? or if the one you supplied was now out of date? I presume it's BOI you're talking about? There should be some conditions listed on the approval and if the salary cert is mentioned you'll need to have a new one completed if not you can probably ignore it. Once there's been no change to your income/employment it'll make no difference. Best of luck with your viewings, hope you find the perfect home! I'm delighted I was able to give you accurate figures without ever seeing a scrap of your documentation! Best of luck!!:) P.S. - It may be getting near the time to stand on your own 2 feet and give your Dad a break!!:D

brian81 · 08-06-2012 12:04am

hi, just looking for some advice if possible.
I went to AIB a year and a half ago looking into getting a mortage. They told me what I needed to do in order to get approval, prove I can repay mortgage, needed 8% deposit, solicitors fees and so on. I went and got everything together, saved 700 euro a month, built up the deposit with enough to cover stamp duty and solicitor.
Went back and they said 'oh yes you definitely qualify for a mortgage' so I went ahead with the application. The amount I need for the property is €9200, property is €100,000, I have €13000 in savings, no loans and a credit card with a €800 limit which is maxed out...just had one final holiday to New York before I get stuck with a mortgage! Anyway application is sent off, I'm all happy with myself, was told to wait 2 to 3 weeks for reply, 2 days later I got a letter saying I was refused.
Rang up and they said I rely on my credit card too much. I cleared it off in 3 weeks , go to apply again and they said because I got a credit union loan in 1997 it showed I cant manage my money properly, I paid the loan back 1 year early and never missed a payment. I am a single man, 30 years old and I earn €30500 per annum, the repayments on the mortgage was €350 per month, should I just give up with AIB and go to another bank? They are offering the best deal for mortgages and I have been with them for 13 years...I don't want to just walk away but what else can I do??

Roxee · 08-06-2012 1:21am

Argh, exactly what I feared. In the time it took my mortgage approval to come through, another buyer got involved and now we're slogging it out while the seller grabs popcorn and watches......

At least I think we're slogging it out....in that I assume this other bidder is real.

Yes, I'm completely at the mercy of the EA and their filthy tactics. Fact is, I want the house. And the main thing is the bids haven't yet reached what the house is worth, I think (ie based on what houses in this estate - smaller houses without the extension this house has - have sold for in recent months.

I'm willing to keep increasing offer because even at asking price, this house is a bargain. Fact. But I'm obviously keen to get tactics right regardless. After all, this other bidder could just as easily be real.

This is all a new emotion - frustration and excitement and anxiety rolled into one big ball. Eek.

killers1 · 08-06-2012 12:33pm

brian81 wrote: »

hi, just looking for some advice if possible.
I went to AIB a year and a half ago looking into getting a mortage. They told me what I needed to do in order to get approval, prove I can repay mortgage, needed 8% deposit, solicitors fees and so on. I went and got everything together, saved 700 euro a month, built up the deposit with enough to cover stamp duty and solicitor.
Went back and they said 'oh yes you definitely qualify for a mortgage' so I went ahead with the application. The amount I need for the property is €9200, property is €100,000, I have €13000 in savings, no loans and a credit card with a €800 limit which is maxed out...just had one final holiday to New York before I get stuck with a mortgage! Anyway application is sent off, I'm all happy with myself, was told to wait 2 to 3 weeks for reply, 2 days later I got a letter saying I was refused.
Rang up and they said I rely on my credit card too much. I cleared it off in 3 weeks , go to apply again and they said because I got a credit union loan in 1997 it showed I cant manage my money properly, I paid the loan back 1 year early and never missed a payment. I am a single man, 30 years old and I earn €30500 per annum, the repayments on the mortgage was €350 per month, should I just give up with AIB and go to another bank? They are offering the best deal for mortgages and I have been with them for 13 years...I don't want to just walk away but what else can I do??

You have 2 options, 1 move on to a different bank now or 2 wait it out 6 months, increase your savings to a higher level & then re-apply to AIB. To be honest it was a bit naive applying for a mortgage with a maxed out credit card.. AIB traditionally wouldn't have got involved in that segment of the market and by bringing up a credit union loan from 15 yrs ago it's fairly obvious they were just looking for any reason not to lend to you...

killers1 · 08-06-2012 12:34pm

Roxee wrote: »

Argh, exactly what I feared. In the time it took my mortgage approval to come through, another buyer got involved and now we're slogging it out while the seller grabs popcorn and watches......

At least I think we're slogging it out....in that I assume this other bidder is real.

Yes, I'm completely at the mercy of the EA and their filthy tactics. Fact is, I want the house. And the main thing is the bids haven't yet reached what the house is worth, I think (ie based on what houses in this estate - smaller houses without the extension this house has - have sold for in recent months.

I'm willing to keep increasing offer because even at asking price, this house is a bargain. Fact. But I'm obviously keen to get tactics right regardless. After all, this other bidder could just as easily be real.

This is all a new emotion - frustration and excitement and anxiety rolled into one big ball. Eek.

Ah, the joys of negotiating on a property... Best of luck!

beertons · 08-06-2012 2:42pm

If it was me, i would reduce the limit on the credit card, and try again. Give BOI a go, they're in the market for first time buyers, aib don't seem bothered to me to loan. I bank with aib, mortgage with boi.

brian81 · 08-06-2012 4:33pm

killers1 wrote: »

You have 2 options, 1 move on to a different bank now or 2 wait it out 6 months, increase your savings to a higher level & then re-apply to AIB. To be honest it was a bit naive applying for a mortgage with a maxed out credit card.. AIB traditionally wouldn't have got involved in that segment of the market and by bringing up a credit union loan from 15 yrs ago it's fairly obvious they were just looking for any reason not to lend to you...

I have gone to and spoken to another bank, they said I would get a mortgage no problem and that AIB just didn't want to lend me the money so they were throwing any excuse at me, I just felt that AIB are advertising this great first time buyer offer, but they don't seem to be giving any out. I didn't want to just walk away, I am annoyed that the bank I have been with for 13 years slammed the door in my face the first time I actually asked for anything, and by me going to another bank is letting them get away with it.
Anyway, I'm going with the B.O.I now I just want to get a mortgage so I suppose it doesn't matter where I go.
Thanks for the advice.

killers1 · 08-06-2012 4:58pm

brian81 wrote: »

I have gone to and spoken to another bank, they said I would get a mortgage no problem and that AIB just didn't want to lend me the money so they were throwing any excuse at me, I just felt that AIB are advertising this great first time buyer offer, but they don't seem to be giving any out. I didn't want to just walk away, I am annoyed that the bank I have been with for 13 years slammed the door in my face the first time I actually asked for anything, and by me going to another bank is letting them get away with it.
Anyway, I'm going with the B.O.I now I just want to get a mortgage so I suppose it doesn't matter where I go.
Thanks for the advice.

Unfortunately the days of having a 'relationship' with a bank are no longer relevant are long gone.. Branch staff no longer have authority to sanction facilities and decisions will always be made by people you'll never get to meet. I'm not surprised at all that you were approved elsewhere, the figures stack up. As AIB have the cheapest variable rate at the moment they can pick and choose the loans they take on. Just because BOI have a more expensive rate today doesn't necessarily mean it will always be the case. Best of luck!

uli84 · 08-06-2012 6:25pm

Applied for a mortgage with AIB over 3 weeks ago, got a call on Tue but couldnt answer, tryin to reach whomever left me the msg for last 4 days but it keeps goin to the voicemail and no call back despite my beggin

not impressed. Do they normally call to inform of acceptance/rejection or should I assume they want to clarify sth?

badgerbroc11 · 09-06-2012 7:40am

brian81 wrote: »

go to apply again and they said because I got a credit union loan in 1997 it showed I cant manage my money properly, I paid the loan back 1 year early and never missed a payment.

If the cu loan was a five year loan and you cleared it one year early it finished in 2001. For the bank to use this info against you is a breach of the icb rules and also a data protection breach

brian81 · 09-06-2012 11:30am

badgerbroc11 wrote: »

If the cu loan was a five year loan and you cleared it one year early it finished in 2001. For the bank to use this info against you is a breach of the icb rules and also a data protection breach

Really? I would have never even thought about that, thanks for pointing it out I will have to look into that!

Buying a house 2012

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