Buying a house 2012

Verte11 · 07-03-2012 11:12pm #1

Hi there,
I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

killers1 · 07-03-2012 11:22pm

Hi Verte11,

Not buying in 2012 but happy to contribute here & answer any queries. Regarding your TRS, you don't need to wait until the 1st repayment has gone through to apply online, you can do so as soon as the mortgage cheque is issue by your bank. The items you need besides the obvious personal details are as follows;
PPS Number
Date of First Repayment (this is literally the month e.g. April 2012 & the first repayment will be due the month after you drawdown)
Are you a FTB or Not?
What percentage of the loan is being used for the purchase? (for FTB's it'll be 100%)
Everything else on it is fairly straightforward. If you got your mortgage from AIB you pick the AIB Finance & Leasing option in the dropdown box but check with the bank for the correct account number to enter as it will differ from the account number on your loan offer. I'd suggest applying asap after the mortgage issues as it takes 6-8 weeks for Revenue to process your application and inform your Bank how much they need to reduce your DD by.

dufferlover · 08-03-2012 11:08am

Verte11 wrote: »

Hi there,
I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.

marcus2000 · 08-03-2012 11:13am

Verte11 wrote: »

Hi there,
I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
....Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

Was buying in 2009....still buying in 2012. (Same House!!) Everything that could go wrong with a house purchase, has gone wrong. 3 years of saying " I'll be in within 4-6wks"....I dont even believe myself anymore when I say it.

I should be in within 4-6wks!!!

dufferlover · 08-03-2012 11:18am

marcus2000 wrote: »

Was buying in 2009....still buying in 2012. (Same House!!) Everything that could go wrong with a house purchase, has gone wrong. 3 years of saying " I'll be in within 4-6wks"....I dont even believe myself anymore when I say it.

I should be in within 4-6wks!!!

No way! What happened?

Jesus, maybe I should say we'll be in by the end of the month

marcus2000 · 08-03-2012 11:29am

dufferlover wrote: »

No way! What happened?

I'm not sure I'm allotted enough characters to type it all in here. It was a new build in a tiny development - as good as finished when I put a holding deposit on it about Feb 2009. It was a 'quick sale' - I'd be in in within a few weeks.
Given I'm still 'mid' purchase, I probably cant give too much away. But there were issues with getting homebond insurance initially,then revenue were involved, then financial problems....solicitor change.....(a market crash)...the banks got involved...mortgage expirey...change in jobs...sewerage connection... I think I'm missing about a year or two of issues in there, but its all a blur now....

Its a lovely house though!!

I should probably point out that the final price agreed was about 40% lower than the original price...silver cloud and all that!! But at this point, I just want in!!!

killers1 · 08-03-2012 12:32pm

marcus2000 wrote: »

dufferlover wrote: »

No way! What happened?

I'm not sure I'm allotted enough characters to type it all in here. It was a new build in a tiny development - as good as finished when I put a holding deposit on it about Feb 2009. It was a 'quick sale' - I'd be in in within a few weeks.
Given I'm still 'mid' purchase, I probably cant give too much away. But there were issues with getting homebond insurance initially,then revenue were involved, then financial problems....solicitor change.....(a market crash)...the banks got involved...mortgage expirey...change in jobs...sewerage connection... I think I'm missing about a year or two of issues in there, but its all a blur now....

Its a lovely house though!! I should probably point out that the final price agreed was about 40% lower than the original price...silver cloud and all that!! But at this point, I just want in!!!

Sounds like the sequel to 'The Money Pit'..... 2 weeks, 2 weeks...... Nightmare!

marcus2000 · 08-03-2012 3:40pm

killers1 wrote: »

Sounds like the sequel to 'The Money Pit'..... 2 weeks, 2 weeks...... Nightmare!

from what i remember , they live happily ever afterwards in their lovely new home.........right????

killers1 · 08-03-2012 5:46pm

marcus2000 wrote: »

from what i remember , they live happily ever afterwards in their lovely new home.........right????

I'm sure Marcus you will have a Hollywood ending too...:)

Learpholl · 08-03-2012 5:53pm

dufferlover wrote: »

I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.

I'm in the exact same situation as Dufferlover so count me in. Hope to be in by the end of the month also.

killers1 wrote: »

the first repayment will be due the month after you drawdown

Quick question for you on this killers, we've requested for the direct debit for our mortgage to come out on the 1st of the month. If we drawn down our mortgage on, say, the 20th of March, would our first payment be on the 1st of April only 11 days later or would it carry over and end up being on the 1st of May which would be about 41 days later? And when exactly would the cut-off point be?

I realise this is most definitely a question for the bank but since you mentioned it, I thought I'd ask before I go back to them again.

killers1 · 08-03-2012 6:00pm

Learpholl wrote: »

I'm in the exact same situation as Dufferlover so count me in. Hope to be in by the end of the month also.

Quick question for you on this killers, we've requested for the direct debit for our mortgage to come out on the 1st of the month. If we drawn down our mortgage on, say, the 20th of March, would our first payment be on the 1st of April only 11 days later or would it carry over and end up being on the 1st of May which would be about 41 days later? And when exactly would the cut-off point be?

I realise this is most definitely a question for the bank but since you mentioned it, I thought I'd ask before I go back to them again.

If you drawdown on the 20th March the bank won't take a full repayment until the 1st May as the 1st April would be too soon. What you'll probably find will happen is that on the 1st May your repayment will be the full repayment (as per the gross repayment quoted on your loan offer as your TRS won't have kicked in by then) and also the additional 11 days interest between the 20th March - 1st April if this makes sense? Then on the 1st of June you'll probably have just the monthly repayment as per your loan offer and then on the 1st July your TRS should have kicked in (and backdated) and you'll have your net repayment which will be the amount going forward until your TRS reduces (presuming no change in interest rates)...

Learpholl · 08-03-2012 6:19pm

killers1 wrote: »

If you drawdown on the 20th March the bank won't take a full repayment until the 1st May as the 1st April would be too soon. What you'll probably find will happen is that on the 1st May your repayment will be the full repayment (as per the gross repayment quoted on your loan offer as your TRS won't have kicked in by then) and also the additional 11 days interest between the 20th March - 1st April if this makes sense? Then on the 1st of June you'll probably have just the monthly repayment as per your loan offer and then on the 1st July your TRS should have kicked in (and backdated) and you'll have your net repayment which will be the amount going forward until your TRS reduces (presuming no change in interest rates)...

Thanks a lot killers. Thats extremely helpful as always.

Do you know of a decent mortgage calculator online which will help me to work out how much 11 days worth of interest would be?

killers1 · 08-03-2012 6:22pm

Learpholl wrote: »

Thanks a lot killers. Thats extremely helpful as always.

Do you know of a decent mortgage calculator online which will help me to work out how much 11 days worth of interest would be?

If you want to PM me your loan amount, rate (are you AIB 3.24% variable?) & term I'll work it out for you...

killers1 · 08-03-2012 6:24pm

actually an easy way for you to work it out is multiply the amount you have borrowed X interest rate, divide by 365 (to get daily int figure) & multiply X 11.....

Learpholl · 08-03-2012 6:29pm

killers1 wrote: »

actually an easy way for you to work it out is multiply the amount you have borrowed X interest rate, divide by 365 (to get daily int figure) & multiply X 11.....

Thank you. I didn't think it would be as simple as that and had assumed the interest rate being applied would be a lot more complex.

killers1 · 08-03-2012 6:36pm

Learpholl wrote: »

Thank you. I didn't think it would be as simple as that and had assumed the interest rate being applied would be a lot more complex.

It is only as simple as that because you are at the start of the loan because interest is calculated daily on the balance outstanding but as you won't have made any repayments the amount outstanding on each of the 11 days is the full capital amount that you've borrowed. The term of the loan is always irrelevant on an interest only repayment because if you were always to just pay the interest the term would never end as the capital would never reduce... (maths lesson over for the day!) My sister asked me the exact same question yesterday....

Yeboah · 08-03-2012 7:39pm

myself and my patner basically wasted 9 months on a house that turned out to have problems with building regulations and planning permission. Advised to walk away..In last few weeks have found a better house in a better location. Sale agreed with contents incl, valuation tomorrow and hopefully full loan offer out within the next week or so all going well. Hopefully with no hiccups could be in there in April as vendor doesnt live there anymore

Not sure will i have to go through all the life assurance process again as already did it a few months ago when the deal on the other house was supposed to be done

blueturnip · 08-03-2012 10:00pm

Verte11 wrote: »

Hi there,
I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

I'm in! We are hoping to buy this year. Just in the process of getting all the paperwork together for the bank (there sure is a lot!). We have also seen a house we like and we we get mortgage in principle we will head back again to view. It's exciting yet nerve racking at the same time!

Verte11 · 08-03-2012 11:27pm

Cool. Glad there's a few people up for it. Killers you know so much about all this.

Verte11 · 08-03-2012 11:35pm

dufferlover wrote: »

I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.

Cool-congrats. So whats the order things happen in? I still have to get life assurance+house insurance sorted. Then what happens? Don't have a clue

Verte11 · 08-03-2012 11:37pm

Yeboah wrote: »

myself and my patner basically wasted 9 months on a house that turned out to have problems with building regulations and planning permission. Advised to walk away..In last few weeks have found a better house in a better location. Sale agreed with contents incl, valuation tomorrow and hopefully full loan offer out within the next week or so all going well. Hopefully with no hiccups could be in there in April as vendor doesnt live there anymore

Not sure will i have to go through all the life assurance process again as already did it a few months ago when the deal on the other house was supposed to be done

Yeah I'm wondering that too. I completed one to have it on stand by. Not sure how long it lasts for -anyone know?

Verte11 · 08-03-2012 11:38pm

marcus2000 wrote: »

Was buying in 2009....still buying in 2012. (Same House!!) Everything that could go wrong with a house purchase, has gone wrong. 3 years of saying " I'll be in within 4-6wks"....I dont even believe myself anymore when I say it.

I should be in within 4-6wks!!!

That's mad. At least you'll really appreciate it when you finally get there!

killers1 · 09-03-2012 12:22am

Verte11 wrote: »

Cool. Glad there's a few people up for it. Killers you know so much about all this.

Thanks! I'd want to, it's what I do for a living! I'm happy to point people in the right direction and help in any way I can. I appreciate buying a house particularly as a FTB can be a daunting experience so if I can make it easier in any way I'm happy to help!

killers1 · 09-03-2012 12:24am

Verte11 wrote: »

dufferlover wrote: »

I'm in! Just in the process of closing. We've signed contracts, paid the deposit etc and now just waiting on the vendor's to agree a moving date. Hoping to be in by the end of the month. We're FTB too.

Cool-congrats. So whats the order things happen in? I still have to get life assurance+house insurance sorted. Then what happens? Don't have a clue

If it'll help I'll try to write a comprehensive overview of all the steps involved from the mortgage to getting your keys and what needs to be done... I'll get something up on this tomorrow...

killers1 · 09-03-2012 12:28am

Verte11 wrote: »

Yeboah wrote: »

myself and my patner basically wasted 9 months on a house that turned out to have problems with building regulations and planning permission. Advised to walk away..In last few weeks have found a better house in a better location. Sale agreed with contents incl, valuation tomorrow and hopefully full loan offer out within the next week or so all going well. Hopefully with no hiccups could be in there in April as vendor doesnt live there anymore

Not sure will i have to go through all the life assurance process again as already did it a few months ago when the deal on the other house was supposed to be done

Yeah I'm wondering that too. I completed one to have it on stand by. Not sure how long it lasts for -anyone know?

In relation to your life cover, if you previously had a proposal form completed and accepted it's usually valid for 3 months. After this time the insurance co can ask you to sign a declaration of health to confirm that your health hasn't changed in the time since you completed the original proposal forms. If you were accepted before and there has been no change to our health you'll have no problem getting cover. It will be slightly more expensive if either of your birthdays have passed since then.

marcus2000 · 09-03-2012 10:35am

Verte11 wrote: »

That's mad. At least you'll really appreciate it when you finally get there!

at this point when seems like if but sure we'll see.

Man007 · 09-03-2012 11:27am

We've also went sale agrees and are hoping to be in by mid April.

Should I start organising life assurance now I'm surprised aib haven't contacted us as I believe they offer a discount to ftb anyone know if their rates are competitive.

I got a good quote off 123.ie all seemed straight forward but then got a call from mortgage advisor who basically made it out like it was the hardest thing in the world to get cover and could be waiting months to get approved but not to worry he'll look after it sounds like load of crap.

One week later and h still hasn't got back to me with a quote.

altoids · 09-03-2012 11:49am

yep, we're also hoping to buy this year. not a first time buyer though. killers, i'll be in contact soon!!!

killers1 · 09-03-2012 12:02pm

Verte11 wrote: »

Cool-congrats. So whats the order things happen in? I still have to get life assurance+house insurance sorted. Then what happens? Don't have a clue

Just to give all the FTB's an idea of the process involved, when things need to be done and in what order etc...

AIP - The bank give you an approval in principle and you are free to start bidding on properties. Once you have an offer accepted you pay your booking deposit to the estate agent and give them your solicitors details so the vendors solicitor can arrange for the contracts to be sent to your solicitor.

Loan Offer - You then give the bank the details of the property you have bought & your solicitors details and decide on rate & term of your mortgage. The bank's valuer inspects the property to ensure the house is acceptable security for the bank and that it's worth the amount you have agreed to pay for it. Once the bank receive the valuation report and rate, term etc they'll issue a loan offer to your solicitor which will allow you to sign contracts in due course.

Structural Survey - Once your offer is accepted you arrange to have a structural survey completed. This will be (should be!) an in-depth inspection of the property by a suitably qualified individual who will then issue you with a comprehensive report highlighting any defects with the property and whether there are any serious issues with the property that need attending to or may affect your decision as to whether or not you will continue with your purchase. ALWAYS GET A STRUCTURAL SURVEY DONE!!

Life Cover - You should tend to this before you sign contracts to ensure you are able to get cover. In the event that you/either of you were declined cover on medical grounds then you would need to tell the bank that life cover isn't available and it will be their decision whether they are still happy to give you the loan or not. Don't sign contracts without having life cover accepted as you would lose your deposit if you can't get cover and bank withdraw mortgage offer. You'd be surprised the number of solicitors that allow people to sign contract without having first met this condition. You need to have life cover for the amount and term of the mortgage. There are numerous types of life cover policies so you need to make sure the one you opt for suits your needs and you are not over-sold or conversely taking the bear minimum while acceptable to the bank may not offer sufficient protection particularly if you have a family...

Home Insurance - In the case of a house, the amount you need to insure the property for is dictated by the Valuer and there is a section on the valuation report called 'Reinstatement Sum'. This is the amount you insure the property for (not the purchase price). The reinstatement sum is the total cost to clear the site, engage an Architect and have the property rebuilt to it's current state in the event that it burnt down. The name of the bank you are borrowing from are the interested party who must be named on your policy. This just means that if your house burns down the cheque goes to the bank as opposed to you. The level of contents cover you opt for is up to you and dependent on the value of your oil painting collection, crown jewels etc.. In the event of an apartment there is a Block Policy that the management company will have in place so you would only need to take out a contents policy for your own belongings but this does not form part of the mortgage conditions and the bank do not need to see that you have this in place. The vendors solicitor is responsible for sending a copy of the Block Policy to your solicitor to have your name & the name of your lender added to it.

DD Mandate - You need to sign a Direct Debit Mandate for the bank you are borrowing from just detailing the account you want the monthly repayment to come from.

Contracts - Once your solicitor has received the contracts and the loan offer from the bank they will get you in to sign the loan documentation and the contracts. Any queries your solicitor has on the contracts will be communicated to the vendors solicitor and your solicitor will need to be satisfied with replies before they will allow you to complete the purchase. A closing date is then agreed.

The conditions on a loan offer are generally the same for everyone (unless there are specific conditions to your application. There are 2 parts the legal & the non-legal. The non-legal items are the life cover, home insurance, DD mandate & ID & Address verification that you/your broker needs to send to the bank prior to closing. The legal items that your solicitor will look after are the signed loan offer acceptance, Letter of Undertaking & Solicitor Cheque Request. Only when all these items have been received by your bank and checked off will your lender be in a position to issue funds to your solicitor to allow you to get your keys on the closing date.

I know the above list isn't exhaustive but it will cover 99% of applications.. I hope this throws some light on the process and if anyone has any queries let me know....

killers1 · 09-03-2012 12:04pm

altoids wrote: »

yep, we're also hoping to buy this year. not a first time buyer though. killers, i'll be in contact soon!!!

No problem at all, I'll be here!!

muttley-dps · 09-03-2012 12:35pm

Good thread.

Am in the middle of purchasing (FTB too). We're into 2 week extension on mortgage offer (elapsed due to issues with management company queries, Xmas, solicitor holidays etc) and bank have told us we must close by next Friday as if we have to apply again our affordability index has dropped and we wouldn't qualify for the same amount again. All going to plan sort of at the moment.

Except that our solicitor wants written proof we have loan extension. By the time this will be issued to them then our 2 weeks could have elapsed! I don't see why they need written proof when on the loan pack there is no mention of an expiry date plus the bank have verified extension is in place. I don't understand why they don't just return the loan pack given we've signed it rather than sitting on their hands. There could be a heated conversation with solicitor this evening if I get no satisfaction on them sending in the pack.

Will also qualify for Tax relief but as I'm a cross border worker (work in Derry, live in Donegal) am sure i'm going to have to jump through hoops of tax returns for last 5 years i've been doing this work to prove income. There is a reciprocal tax treaty in place with the UK where I pay my dues to HMRC and don't actually owe anything in the republic but the onus is on me to still fill in tax returns seemingly because I'm resident in the state. So if I want TRS then imagine this is the pain to go through next.

killers1 · 09-03-2012 1:04pm

muttley-dps wrote: »

Good thread.

Am in the middle of purchasing (FTB too). We're into 2 week extension on mortgage offer (elapsed due to issues with management company queries, Xmas, solicitor holidays etc) and bank have told us we must close by next Friday as if we have to apply again our affordability index has dropped and we wouldn't qualify for the same amount again. All going to plan sort of at the moment.

Except that our solicitor wants written proof we have loan extension. By the time this will be issued to them then our 2 weeks could have elapsed! I don't see why they need written proof when on the loan pack there is no mention of an expiry date plus the bank have verified extension is in place. I don't understand why they don't just return the loan pack given we've signed it rather than sitting on their hands. There could be a heated conversation with solicitor this evening if I get no satisfaction on them sending in the pack.

Will also qualify for Tax relief but as I'm a cross border worker (work in Derry, live in Donegal) am sure i'm going to have to jump through hoops of tax returns for last 5 years i've been doing this work to prove income. There is a reciprocal tax treaty in place with the UK where I pay my dues to HMRC and don't actually owe anything in the republic but the onus is on me to still fill in tax returns seemingly because I'm resident in the state. So if I want TRS then imagine this is the pain to go through next.

Have you signed contracts for the purchase? If you're loan offer has expired (but you're in the middle of extension period) tell your solicitor to ring the banks completions dept who will be able to confirm that they can still draw down funds up to next Friday, which should satisfy them. Obviously you have an extension if the funds arrive!. If everything is in place from your side and the solicitor is just waiting on the vendors side to get everything organised for closing but binding contracts are in place then just tell your solicitor to drawdown the money before next Friday and hold onto it until other side are ready to close (presuming contracts have been signed by both parties).

In relation to your TRS application do you have an Irish PPS number? If so, then I would suggest just applying online once your mortgage has issued. TRS is a relief on your mortgage interest and has nothing to do with your employment details. Having a PPSN & and paying interest on a mortgage in Rep of Ireland is the pre-requisite...

muttley-dps · 09-03-2012 1:11pm

Cheers Killers!

We did sign contracts on Wednesday evening and I agree that we should be pursuing getting the funds as a matter of priority and doing exactly as you suggest.

I didn't realise that about the Tax relief. Anything to do with that taxman where you are requesting monies in my experience has been complex. Paying them money is the easiest thing in the world though! I do have an irish PPS though so will be applying once all things are sorted and we've closed.

killers1 · 09-03-2012 1:18pm

muttley-dps wrote: »

Cheers Killers!

We did sign contracts on Wednesday evening and I agree that we should be pursuing getting the funds as a matter of priority and doing exactly as you suggest.

I didn't realise that about the Tax relief. Anything to do with that taxman where you are requesting monies in my experience has been complex. Paying them money is the easiest thing in the world though! I do have an irish PPS though so will be applying once all things are sorted and we've closed.

I can see where your solicitor is coming from in so far as if you have just signed contracts they are reluctant to return them to the vendors solicitor as you are then binded by them and your solicitor is worried that if they then go to request the funds from your bank to be told the offer has expired and you no longer qualify....Did you deal with the bank directly or with a broker? I'd suggest contacting whoever you dealt with and ask them to fax your solicitor confirmation that the offer has been extended. Your solicitor would really need to be returning everything to the bank today/monday at the latest in order for it to be checked off and works it's way through the queues for funds to issue by next Friday. You are taking a calculated risk in so far as if you only signed contracts on Wed the vendor probably hasn't signed them yet. Worst case scenario you instruct your solicitor to draw down the funds now and if the purchase doesn't happen then return the money to the bank and you'll need to cover the interest for the length of time it was with your solicitor. On the other side of the coin there was no point in your solicitor allowing you to sign contracts if they couldn't be organised enough to drawdown by Friday as they know that should you need to reapply you won't get the finance you need. Put the pressure on!!

With the TRS, just apply online and see what happens... I think it'll be fine though.

blueturnip · 09-03-2012 8:08pm

killers1 wrote: »

AIP - The bank give you an approval in principle and you are free to start bidding on properties. Once you have an offer accepted you pay your booking deposit to the estate agent and give them your solicitors details so the vendors solicitor can arrange for the contracts to be sent to your solicitor.
....

Hi Killers, I have a quick question if you don't mind! How much is the booking deposit that you need to give? Is this the 10% of the house value? e.g. if I am looking at a house for 200,000 and I have a deposit of 20,000, is this what is paid as the booking deposit?

How is this normally paid to the estate agent?

Thanks!

Man007 · 09-03-2012 9:37pm

blueturnip wrote: »

Hi Killers, I have a quick question if you don't mind! How much is the booking deposit that you need to give? Is this the 10% of the house value? e.g. if I am looking at a house for 200,000 and I have a deposit of 20,000, is this what is paid as the booking deposit?

How is this normally paid to the estate agent?

Thanks!

Our booking deposit was €10k and I think it's a set amount no matter the value of the house it is to secure the booking and is fully refundable until contracts are signed.

It is paid via cheque made out to the agent and not the vendor

NIMAN · 09-03-2012 10:12pm

@ Muttley

I don't think tax returns are necessary for you.

I also live in Donegal since 2000 and work in NI, and have never had to do a tax return.

DMG1983 · 09-03-2012 10:20pm

Verte11 wrote: »

Hi there,
I thought I'd set up a thread so that anyone who is buying a house this year or has done so recently enough could share information.
I'll start it off with a question. Once my mortgage goes through I'll be applying for interest relief as I'm a first time buyer. Has anyone gone through the process of doing this online? You can't apply until after your first mortgage payment has gone through. Just wondering what info they need and if there's anything I could get sorted now in advance.
Even if you can't answer my question just let me know if you're interested in joining this little group of 2012 buyers.

Hey great idea for a thread!! I was on the phone to the bank today to get the ball rolling with my mortgage application I am very excited:D
As I am at the very start of the process it's great (and scary!!) to have some idea of what's ahead of me...
Do people think a fixed term mortgage is the best option to go for??
How much are people paying for solicitors fees? I have heard that some have fixed rates and others charge whatever they want, I want a rough idea so I can budget for it!!
Killers your a star for sharing all your knowledge it is greatly appreciated;)

killers1 · 09-03-2012 10:21pm

blueturnip wrote: »

Hi Killers, I have a quick question if you don't mind! How much is the booking deposit that you need to give? Is this the 10% of the house value? e.g. if I am looking at a house for 200,000 and I have a deposit of 20,000, is this what is paid as the booking deposit?

How is this normally paid to the estate agent?

Thanks!

hi blueturnip,

The booking deposit is not dependent on the purchase price and is not a set amount. Generally it can be anywhere between 3k to 10k. The booking deposit is fully refundable and is paid by cheque/bank draft made payable to the estate agent. The estate agent will tell you how much of a booking deposit it required. By paying the booking deposit the estate agent marks the property as Sale Agreed on their website and doesn't show the property to any other prospective buyers. On signing of your contracts you generally pay the balance of 10% of the purchase price. So for example you are buying a house for €200,000. You pay the estate agent a €6k booking deposit. When you go to sign your contracts you need to have paid 10% so that would be €20k less the €6k (paid to EA) so you would get a bank draft for €14k payable to the Vendors solicitor (your solicitor will tell you who that is). The only exception to a 10% deposit being paid in total on signing the contracts is where you are borrowing 92% of the purchase price. In this case your solicitor will contact the Vendors solicitor to see if they will accept a deposit of 8% in total (including booking deposit paid) on signing the contracts as opposed to 10% seeing as the mortgage is making up the balance i.e 92%. 99 times out of 100 the vendors solicitor will be happy to agree to this.... hope this clarifies!

killers1 · 09-03-2012 10:33pm

DMG1983 wrote: »

Hey great idea for a thread!! I was on the phone to the bank today to get the ball rolling with my mortgage application I am very excited:D
As I am at the very start of the process it's great (and scary!!) to have some idea of what's ahead of me...
Do people think a fixed term mortgage is the best option to go for??
How much are people paying for solicitors fees? I have heard that some have fixed rates and others charge whatever they want, I want a rough idea so I can budget for it!!
Killers your a star for sharing all your knowledge it is greatly appreciated;)

No problem at all. A couple of things for you to think about re fixed V variable rates. Do not think that you (or I) pick a fixed or variable rate because we are economic geniuses and we know what is going to happen to rates over the coming years. By opting for a fixed rate you are buying peace of mind - that's all. Fixed rates are generally more expensive than variable rates because you pay a premium for the peace of mind that goes with them. If knowing exactly what your repayment will be for X number of years is important to you & you are comfortable with the repayments than fixed may be the way to go. If on the other hand you can afford some flexibility in your repayments i.e if it goes up by €50.00, €100, €150 etc would that really be an issue to your finances and could you live with those changes. Remember you start paying the higher fixed rate from day 1 whereas the variable is something that may or may not change during the period. There is no right or wrong answer as to which one you should opt for but the mindset needs to be that you are buying peace of mind and are willing to pay a higher rate than the current variable repayment for this peace of mind. Because there is no right or wrong answer I can't tell you what to do but I can tell you that I personally will never fix my mortgage repayment and don't mind the odd fluctuation. I don't think the premium you pay for current fixed rates is value for money as the gap between the variable & fixed rates is too large - but again that's just my personal opinion (not a professional one!). The simple question for you is 'how important is it that your repayment doesn't change at all for a set length of time and are you happy to pay for that privilege?' The debate as to whether you should have gone fixed or variable is only answerable at the end of the fixed term when you can compare what has happened to the variable rates during that time. Only then can you know if you 'won!'

killers1 · 09-03-2012 10:36pm

meant to say you shouldn't be paying more than €1,600 (all in) for a good solicitor.... When comparing quotes from solicitors the thing to look out for is their 'Professional Fee' as the outlays will be the same irrespective of the solicitor you use. Always get a breakdown of any quotes you get so that you can accurately compare them. Remember though cheapest isn't always the best and always use a solicitor that has been recommended to you or someone you know has used them before. Some people think all a solicitor does is sign a few forms (and there is a certain amount of truth to this) but a bad solicitor could result in big problems further down the road..

NIMAN · 09-03-2012 10:37pm

I also think a few hundred for a structural survey (if its a 2nd hand house) is worth it too.

blueturnip · 09-03-2012 10:38pm

Thanks Killers and Man007, that certainly clarifies the issue for me! I'm sure I will have more questions as the process moves along!

killers1 · 09-03-2012 10:44pm

NIMAN wrote: »

I also think a few hundred for a structural survey (if its a 2nd hand house) is worth it too.

ALWAYS GET A SURVEY DONE! irrespective or new or second hand or homebond or any other sort of guarantee... There can be problems further down the road on a new build if the developer goes bust and fails to keep up the homebond indemnity... You are spending a couple of hundred grand... a €300 survey is not going to break the bank...

Citygirl1 · 09-03-2012 11:02pm

killers1 wrote: »

hi blueturnip,

The booking deposit is not dependent on the purchase price and is not a set amount. Generally it can be anywhere between 3k to 10k. The booking deposit is fully refundable and is paid by cheque/bank draft made payable to the estate agent. The estate agent will tell you how much of a booking deposit it required. By paying the booking deposit the estate agent marks the property as Sale Agreed on their website and doesn't show the property to any other prospective buyers. On signing of your contracts you generally pay the balance of 10% of the purchase price. So for example you are buying a house for €200,000. You pay the estate agent a €6k booking deposit. When you go to sign your contracts you need to have paid 10% so that would be €20k less the €6k (paid to EA) so you would get a bank draft for €14k payable to the Vendors solicitor (your solicitor will tell you who that is). The only exception to a 10% deposit being paid in total on signing the contracts is where you are borrowing 92% of the purchase price. In this case your solicitor will contact the Vendors solicitor to see if they will accept a deposit of 8% in total (including booking deposit paid) on signing the contracts as opposed to 10% seeing as the mortgage is making up the balance i.e 92%. 99 times out of 100 the vendors solicitor will be happy to agree to this.... hope this clarifies!

Hi - just to clarify one point there. From what I've seen (from my own property purchase, and a relative going through the process), some estate agents don't seem to mark the property sale agreed until the sale has actually gone through, ie. contracts signed, which may be around 3 months after they receive the booking deposit.

I guess they do this to keep the interest up, in case the sale falls through, or to try and generate business for their other properties. However, it can lead to suspicion that they are still showing the property.

I've also had experience of the estate agent taking a further bid, after I had paid my booking deposit, which apparently is legal. :mad: So, be very wary....

killers1 · 09-03-2012 11:06pm

Citygirl1 wrote: »

Hi - just to clarify one point there. From what I've seen (from my own property purchase, and a relative going through the process), some estate agents don't seem to mark the property sale agreed until the sale has actually gone through, ie. contracts signed, which may be around 3 months after they receive the booking deposit.

I guess they do this to keep the interest up, in case the sale falls through, or to try and generate business for their other properties. However, it can lead to suspicion that they are still showing the property.

I've also had experience of the estate agent taking a further bid, after I had paid my booking deposit, which apparently is legal. :mad: So, be very wary....

Citygirl1 you are right in what you say... I would only add that once your offer is accepted and you pay your booking deposit keep hounding the estate agent until you can see on their website that the property is sale agreed & threaten to withdraw your offer if it is not amended .... As for whether they can still take a higher offer further down the road - of course they can, nothing is binding until both the buyer and the vendor have exchanged contracts. Once it's advertised as 'Sale Agreed' you've taken a step in the right direction...

nemo32 · 09-03-2012 11:17pm

I'm in!!!! I put my booking deposit down on the 14th of Feb but no sign of the contracts yet. Any idea how long this normally takes?
Letter of offer has been sent to solicitor, so do I just need to sit and wait now?

killers1 · 09-03-2012 11:43pm

nemo32 wrote: »

I'm in!!!! I put my booking deposit down on the 14th of Feb but no sign of the contracts yet. Any idea how long this normally takes?
Letter of offer has been sent to solicitor, so do I just need to sit and wait now?

The length of time it will take for the contracts to arrive with your solicitor will depend on how organised the seller was. Some people put their property on the market and only when they accept an offer will they contact their solicitor to say I've sold my house and I need you to organise the contracts. At that stage their solicitor writes to them to sign an authority for the solicitor to request the Title Deeds from the owners lender. This can take some time and even more so if the bank can't find them or they are held off-site or with another solicitor from a previous transaction... Where the seller is organised and has already engaged their solicitor to get the deeds and have contracts ready to go once an offer is accepted they generally arrive within a week or two... Sorry but there's no definitive answer here.. Main thing is you have your loan offer with the solicitor. All you can worry about is your end and let your solicitor continue to chase up the vendors solicitor for the contracts...If you read back a few posts on this thread I gave an outline of the things you need to have in place for your mortgage to issue so these are the items you should be dealing with now. With regard to the contracts all you can do is sit and wait...

nemo32 · 09-03-2012 11:54pm

killers1 wrote: »

The length of time it will take for the contracts to arrive with your solicitor will depend on how organised the seller was. Some people put their property on the market and only when they accept an offer will they contact their solicitor to say I've sold my house and I need you to organise the contracts. At that stage their solicitor writes to them to sign an authority for the solicitor to request the Title Deeds from the owners lender. This can take some time and even more so if the bank can't find them or they are held off-site or with another solicitor from a previous transaction... Where the seller is organised and has already engaged their solicitor to get the deeds and have contracts ready to go once an offer is accepted they generally arrive within a week or two... Sorry but there's no definitive answer here.. Main thing is you have your loan offer with the solicitor. All you can worry about is your end and let your solicitor continue to chase up the vendors solicitor for the contracts...If you read back a few posts on this thread I gave an outline of the things you need to have in place for your mortgage to issue so these are the items you should be dealing with now. With regard to the contracts all you can do is sit and wait...

Tks Killers1
The seller was a bank in actual fact so I thought they would be a little more organised but maybe not. Yes I have been looking into life and home insurance in the meantime so all ready for that now I think. Need to get the gas/electricty turned back on so that I can get the survey done but solicitor said to wait for the contracts before I do that so it's a waiting game for now. Not that I am too pushed.. gives me more time to save and plan

killers1 · 10-03-2012 12:01am

nemo32 wrote: »

Tks Killers1
The seller was a bank in actual fact so I thought they would be a little more organised but maybe not. Yes I have been looking into life and home insurance in the meantime so all ready for that now I think. Need to get the gas/electricty turned back on so that I can get the survey done but solicitor said to wait for the contracts before I do that so it's a waiting game for now. Not that I am too pushed.. gives me more time to save and plan

You'd think that because it's a bank sale they would be a little more organised with the title deeds etc but on the other hand it can be slowed down by receivers, paperwork, legal charges with other lenders, the list is endless... Sounds like you are well prepared and have everything in hand so don't worry about the things you have no control over. Your solicitor can check at any stage with the vendors solicitor to see what's holding up the contracts being sent out and get an idea of when they might be received... best of luck!

liliq · 11-03-2012 2:37am

We just bought out house last year so have gone through the whole process fairly recently.

It can be so slow and drawn out- I'd advise anyone to start shopping around for life assurance straight away once you apply for a mortgage! We got some good initial quites but when it came down to it not so great prices due to my partner having diabetes. Seems to be a blanket loading for certain medical conditions.

We also payed our booking deposit through our solicitor to the estate agent, more out of over caution than anything else.

Buying a house 2012

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