Buying a house 2012

L1011 · 18-08-2012 8:43pm

Anyone else finding vendors insisting that they "cannot" come under a figure that's very close to the asking price?

In both cases I've walked away to see if they come back to me (not hugely under the figure they're claiming is some imposed floor) but neither has. Even if its some form of bank sale, I can't see a bank being that desperate to hold out for a final few thousand?

doc holliday · 19-08-2012 12:22pm

Hi

I am in the middle of buying a house at the moment. Have deposit paid. The problem is with the mortgage. the underwriters have said that they have looked up the estate on google maps and according to the streetview pictures of the estate it is unfinished/building site. The mortgage advisor has replied informing them that google maps is dated about 4 years ago and since then the estate has been further developed and no longer resembles a building site. We are just awaiting the underwriters response.

The estate in question is Barnwell, hansfield, Dublin 15 and the lender is boi.
I was just wondering has anyone had similar problems buying a property recently?

Thanks,

Darren

Funnyonion79 · 19-08-2012 3:48pm

doc holliday wrote: »

Hi

I am in the middle of buying a house at the moment. Have deposit paid. The problem is with the mortgage. the underwriters have said that they have looked up the estate on google maps and according to the streetview pictures of the estate it is unfinished/building site. The mortgage advisor has replied informing them that google maps is dated about 4 years ago and since then the estate has been further developed and no longer resembles a building site. We are just awaiting the underwriters response.

The estate in question is Barnwell, hansfield, Dublin 15 and the lender is boi.
I was just wondering has anyone had similar problems buying a property recently?

Thanks,

Darren

BOI will send out their own valuer anyway (and you will have the privilege of paying his €130 fee) to confirm that the house exists and isn't a building site so I'd say it's ok.

What did the banks do before google maps? They couldn't base their decision solely on the accuracy or inaccuracy of google maps. I'd say you're fine.

doc holliday · 19-08-2012 7:24pm

Funnyonion79 wrote: »

doc holliday wrote: »

Hi

I am in the middle of buying a house at the moment. Have deposit paid. The problem is with the mortgage. the underwriters have said that they have looked up the estate on google maps and according to the streetview pictures of the estate it is unfinished/building site. The mortgage advisor has replied informing them that google maps is dated about 4 years ago and since then the estate has been further developed and no longer resembles a building site. We are just awaiting the underwriters response.

The estate in question is Barnwell, hansfield, Dublin 15 and the lender is boi.
I was just wondering has anyone had similar problems buying a property recently?

Thanks,

Darren

BOI will send out their own valuer anyway (and you will have the privilege of paying his €130 fee) to confirm that the house exists and isn't a building site so I'd say it's ok.

What did the banks do before google maps? They couldn't base their decision solely on the accuracy or inaccuracy of google maps. I'd say you're fine.

Thanks for the response funnyonion, yeah of course it seems ridiculous that they would base their decision on google maps, the worrying thing is that they said they are unwilling to lend on an unfinished estate so at the moment it is stalled. I should find out on Tuesday if they are satisfied with my explanation of google maps being outdated.
Fingers crossed

Tiesto · 20-08-2012 10:47am

Does anyone expect for the government to follow through with the scrapping of the mortgage interest relief scheme? Lets be real. They have quite a habit of not sticking to their words. And in an already stagnant market, surely if they scrap it, things would only become worse?
Secondly, if they were to scrap it, would it in some indirect way have an affect on the price of property? Afterall, people would be able to afford less of a mortage as a result..

folan · 20-08-2012 10:49am

hi guys

going to see a new prospect tonight. its a different beast to what weve been looking at so far.

however, we are a bit off put by what lands are actually available. im assuming that the EA will have full details on where the property ends, but then the EA has changed since we first asked, as the situation for the seller has changed. it seems the house is now owned by the bank, as the builder went bust.

anyway, an area which we thought was part of the plot and the original EA agreed with us on, has been fenced off (im assuming by a neighbour). Im hoping the EA will be able to explain whats happening there, but it would reduce the appeal of the house if the property size was much smaller than it is at the minute.

it looks like a quick sale is wanted here, which tbh would definatly suit us.

its been suggested that this will mean a cash buyer is going to be prefered, which i suppose is understandable, though were FTB's with our approval in place and are really ready to spring as quick as possible. so that will hopefully be in our favor.

Update: Pyrite.

nuff said

folan · 20-08-2012 10:53am

Tiesto wrote: »

Does anyone expect for the government to follow through with the scrapping of the mortgage interest relief scheme? Lets be real. They have quite a habit of not sticking to their words. And in an already stagnant market, surely if they scrap it, things would only become worse?
Secondly, if they were to scrap it, would it in some indirect way have an affect on the price of property? Afterall, people would be able to afford less of a mortage as a result..

im assuming that it will, which is a pity. but i havent been adding that into my calculations of my repayment ability because increasing interest rates will probably offset it soon enough anyway, and sure god know what else will.

Im not sure whats going to happen. A part of me thinks there will be a scramble to buy between now and december, which could push prices up in some areas. at the same time, more people might try to sell now because there might be more buyers in the market at the minute.

either way, best bet is not to depend on it still being around next year. probably best to stand back, and only buy if really really sure, or else just continue to wait until next year.

killers1 · 20-08-2012 11:48am

folan wrote: »

hi guys

going to see a new prospect tonight. its a different beast to what weve been looking at so far.

however, we are a bit off put by what lands are actually available. im assuming that the EA will have full details on where the property ends, but then the EA has changed since we first asked, as the situation for the seller has changed. it seems the house is now owned by the bank, as the builder went bust.

anyway, an area which we thought was part of the plot and the original EA agreed with us on, has been fenced off (im assuming by a neighbour). Im hoping the EA will be able to explain whats happening there, but it would reduce the appeal of the house if the property size was much smaller than it is at the minute.

it looks like a quick sale is wanted here, which tbh would definatly suit us.

its been suggested that this will mean a cash buyer is going to be prefered, which i suppose is understandable, though were FTB's with our approval in place and are really ready to spring as quick as possible. so that will hopefully be in our favor.

As a FTB with approval in place you are no less attractive to the seller than a cash buyer.. Best of luck with the viewing!

killers1 · 20-08-2012 4:23pm

doc holliday wrote: »

Hi

I am in the middle of buying a house at the moment. Have deposit paid. The problem is with the mortgage. the underwriters have said that they have looked up the estate on google maps and according to the streetview pictures of the estate it is unfinished/building site. The mortgage advisor has replied informing them that google maps is dated about 4 years ago and since then the estate has been further developed and no longer resembles a building site. We are just awaiting the underwriters response.

The estate in question is Barnwell, hansfield, Dublin 15 and the lender is boi.
I was just wondering has anyone had similar problems buying a property recently?

Thanks,

Darren

The Bank's valuation report together with your structural survey will confirm that the property is completed and there are no works needed.

Ush1 · 22-08-2012 11:46am

Howdy folks,

Just agreed to buy a house for 185k in Tallaght. Mortgage approved for up to 180k.

The estate agent said I need to put in a deposit of 5k. So is this done through the solicitor? I have a solicitor recommended and then I need a surveyor yes?

Can someone recommend me a good surveyor in Tallaght? I would be interested in getting the plans of the house drawn up also.

quarryman · 22-08-2012 11:53am

Ush1 wrote: »

Howdy folks,

Just agreed to buy a house for 185k in Tallaght. Mortgage approved for up to 180k.

The estate agent said I need to put in a deposit of 5k. So is this done through the solicitor? I have a solicitor recommended and then I need a surveyor yes?

Can someone recommend me a good surveyor in Tallaght? I would be interested in getting the plans of the house drawn up also.

You might be approved for 180k, but the max the bank will give you on that property is 170k.

You need to give the deposit to the EA in the form of a bank draft. The solicitor does not need to get involved for that.

L1011 · 22-08-2012 12:04pm

quarryman wrote: »

You might be approved for 180k, but the max the bank will give you on that property is 170k.

You need to give the deposit to the EA in the form of a bank draft. The solicitor does not need to get involved for that.

While it does depend on the mortgage provider, I thought anything >90% was basically unobtainable?

Would mean the max they'd give would be ~166 on a 90%.

quarryman · 22-08-2012 12:10pm

MYOB wrote: »

While it does depend on the mortgage provider, I thought anything >90% was basically unobtainable?

Would mean the max they'd give would be ~166 on a 90%.

AIB give 92%, so the max is 170k.

folan · 24-08-2012 10:21am

anyone else hearing of houses going for their asking prices or even slightly above recently? phantom effect of the summer ending and the end of tax relief coming in?

leahyl · 24-08-2012 11:02am

folan wrote: »

anyone else hearing of houses going for their asking prices or even slightly above recently? phantom effect of the summer ending and the end of tax relief coming in?

Did an estate agent tell you that? I can't imagine any house going for the asking price or above the asking price!!! If somebody is paying above the asking price for a house they are very foolish IMO - esp with the way things are at the moment

Went to view a house last week and my mum and dad were with me and my mum (innocently) asked the agent if she had anymore properties on the market in my price range and the agent said "well, one just went sale agreed there yesterday" and my mum said "how much did that go for do you mind me asking" and she said "well the asking price was 175k and do you know it actually went for above the asking price in the end"!!!!

I just said "Really, that's AMAZING" and she waffled something about how the demand was there blah blah. Please, I know exactly what house she was talking about (a tiny townhouse) and it wasnt even worth 175k nevermind above it. She was trying to tell me there was a bidding war on it.

That's just my take on it anyway - it's nonsense!

folan · 24-08-2012 11:17am

yep, an estate agent. after we were outbid on the house. twice now its happened. once when we werent even close to the bid that got the house

sarkozy · 24-08-2012 12:15pm

leahyl wrote: »

Did an estate agent tell you that? I can't imagine any house going for the asking price or above the asking price!!! If somebody is paying above the asking price for a house they are very foolish IMO - esp with the way things are at the moment

Went to view a house last week and my mum and dad were with me and my mum (innocently) asked the agent if she had anymore properties on the market in my price range and the agent said "well, one just went sale agreed there yesterday" and my mum said "how much did that go for do you mind me asking" and she said "well the asking price was 175k and do you know it actually went for above the asking price in the end"!!!!

I just said "Really, that's AMAZING" and she waffled something about how the demand was there blah blah. Please, I know exactly what house she was talking about (a tiny townhouse) and it wasnt even worth 175k nevermind above it. She was trying to tell me there was a bidding war on it.

That's just my take on it anyway - it's nonsense!

While in theory, you're right, I suspect in some 'high demand' areas, some places are going above the asking price only when the EA has recommended putting the house on the market at a low price to drum up interest. These high demand areas, IMO, are Dublin metropolitan red brick neighbourhoods of the 3-bed townhouse variety or the inner suburbs such as Dundrum with 3-4 bedrooms and more garden - all going for in and around the €200-250k mark. So it's conceivable that this is happening in these kinds of houses, but not across the board in any sense. But, sure, I'm probably deluded, too. As a soon-to-be home-owner, I suppose I'm scared about this register coming out, but it'll be a really important step.

leahyl · 24-08-2012 12:32pm

sarkozy wrote: »

leahyl wrote: »

Did an estate agent tell you that? I can't imagine any house going for the asking price or above the asking price!!! If somebody is paying above the asking price for a house they are very foolish IMO - esp with the way things are at the moment

Went to view a house last week and my mum and dad were with me and my mum (innocently) asked the agent if she had anymore properties on the market in my price range and the agent said "well, one just went sale agreed there yesterday" and my mum said "how much did that go for do you mind me asking" and she said "well the asking price was 175k and do you know it actually went for above the asking price in the end"!!!!

I just said "Really, that's AMAZING" and she waffled something about how the demand was there blah blah. Please, I know exactly what house she was talking about (a tiny townhouse) and it wasnt even worth 175k nevermind above it. She was trying to tell me there was a bidding war on it.

That's just my take on it anyway - it's nonsense!

While in theory, you're right, I suspect in some 'high demand' areas, some places are going above the asking price only when the EA has recommended putting the house on the market at a low price to drum up interest. These high demand areas, IMO, are Dublin metropolitan red brick neighbourhoods of the 3-bed townhouse variety or the inner suburbs such as Dundrum with 3-4 bedrooms and more garden - all going for in and around the €200-250k mark. So it's conceivable that this is happening in these kinds of houses, but not across the board in any sense. But, sure, I'm probably deluded, too. As a soon-to-be home-owner, I suppose I'm scared about this register coming out, but it'll be a really important step.

This was in Cork! Prices in Cork are still insane in a lot of areas - was looking recently at house prices in Dublin and there's some great value for money there but in Cork sellers are still deluded in a lot of cases

sarkozy · 24-08-2012 12:51pm

leahyl wrote: »

This was in Cork! Prices in Cork are still insane in a lot of areas - was looking recently at house prices in Dublin and there's some great value for money there but in Cork sellers are still deluded in a lot of cases

Sellers probably stuck with crazy mortgages.

folan · 24-08-2012 1:01pm

can make that 3 houses. the bidding on this latest house had gotten to well over the asking price when i last checked. whoever is buying that house really believes in it.

leahyl · 24-08-2012 1:06pm

folan wrote: »

can make that 3 houses. the bidding on this latest house had gotten to well over the asking price when i last checked. whoever is buying that house really believes in it.

Just need to stick to your guns again and don't get drawn into a bidding war - you have to believe everytime that the EA is lying through their teeth! It'll pay off in thr end! :-) that's what I'm telling myself anyway cos there are a serious lack of houses in Cork City at a reasonable price and in good condition!

folan · 24-08-2012 1:58pm

leahyl wrote: »

Just need to stick to your guns again and don't get drawn into a bidding war - you have to believe everytime that the EA is lying through their teeth! It'll pay off in thr end! :-) that's what I'm telling myself anyway cos there are a serious lack of houses in Cork City at a reasonable price and in good condition!

tbh, i cant see why. Its 3 houses its cost us now, just in the belief that theres a better deal out there.

but at the end of the day, thats 3 houses i really liked gone for more than the asking. it definatly seems like its just this area, so im glad of that for everyone else, but its gotten to the stage where its not worth trying a lighter bid in our case

leahyl · 24-08-2012 2:21pm

folan wrote: »

leahyl wrote: »

Just need to stick to your guns again and don't get drawn into a bidding war - you have to believe everytime that the EA is lying through their teeth! It'll pay off in thr end! :-) that's what I'm telling myself anyway cos there are a serious lack of houses in Cork City at a reasonable price and in good condition!

tbh, i cant see why. Its 3 houses its cost us now, just in the belief that theres a better deal out there.

but at the end of the day, thats 3 houses i really liked gone for more than the asking. it definatly seems like its just this area, so im glad of that for everyone else, but its gotten to the stage where its not worth trying a lighter bid in our case

Well if you are going to pay above the asking price then the house ought to be really amazing but that's just my opinion :-) I'm having no luck myself cos house prices are so dear I'm not even bothering to go look at some.

Anyway, best of luck, hope you find a house that you love :-)

folan · 24-08-2012 2:24pm

leahyl wrote: »

Well if you are going to pay above the asking price then the house ought to be really amazing but that's just my opinion :-) I'm having no luck myself cos house prices are so dear I'm not even bothering to go look at some.

Anyway, best of luck, hope you find a house that you love :-)

thanks. me too. im just so bloody frustrated

irbx · 24-08-2012 3:36pm

hi guys was looking at a house in castletroy.
it's a superwarm home. there is a crack in the front going from the roof to first floor. ( i will be getting a engineers report done) just need advise do. i do this before making a offer? or make a offer subject to crack been cosmetic and then get engineer's report done?

sarkozy · 24-08-2012 5:46pm

I guess you can do either. You're taking the risk. I'd say, if you do really like the house (and there aren't many like it that you're interested in), then it may be worth employing a professional to investigate the crack. It may be a minor issue, but all the stronger a negotiating position to know what it would cost to repair. If you bid without knowing, you risk showing your cards too early and find it harder to negotiate downwards in order to account for the cost of repair.

Plus, you can use it as an excuse to squeeze even more out of the vendors.

efb · 24-08-2012 5:58pm

Sale agreed. Deposit paid but still no contract aargh!!! Mortgage insurance everything sorted

heltipp · 24-08-2012 7:28pm

efb wrote: »

Sale agreed. Deposit paid but still no contract aargh!!! Mortgage insurance everything sorted

be paitent . its a long process. we paid our deposit last october and its only this week we are drawing down mortage. we got contracts finally signed in July and everything is gone back to bank for drawdown since early in week but no sign of money yet..... its so fustrating but i am praying that this time next week I will have the keys to my house. But from experience you need to be paitent but also follow up on everything and stay on top of your solicitor at all times. Mine was great but it still helps to keep ringing once a week or so to see if there is any progress.

efb · 24-08-2012 7:34pm

Oh my sol and the bank are great- its the estate agent and the other side that are v laissez-faire

quarryman · 24-08-2012 9:52pm

sarkozy wrote: »

These high demand areas, IMO, are Dublin metropolitan red brick neighbourhoods of the 3-bed townhouse variety or the inner suburbs such as Dundrum with 3-4 bedrooms and more garden - all going for in and around the €200-250k mark. So it's conceivable that this is happening in these kinds of houses, but not across the board in any sense.

€200-250k for a 4 bed house in Dundrum? What are you smoking?

folan wrote: »

can make that 3 houses. the bidding on this latest house had gotten to well over the asking price when i last checked. whoever is buying that house really believes in it.

Can you provide links to these houses? Properties will go for over asking... if the asking is a lot lower than similar houses in the area.

Asking prices mean nothing anything, it's what people are offering that determines it's "value".

sunbeam12 · 25-08-2012 12:49am

Hi guys,
First time posting but a long time follower of this thread, its been addictive reading for the last few months. Just wondering if anyone has any advice on the following: Have been luckily approved by both aib and boi but would like to know which bank offers the best variable mortgage interest rates. Any advice appreciated.

Ush1 · 25-08-2012 1:12am

I have been told of a few houses in Tallaght that have gone for over asking.

I just put a deposit on a house with the EA but the same EA just put up a house that i`d be interested in, can I pull out of the original and check out the other one without losing the deposit?

Felexicon · 25-08-2012 9:49am

Ush1 wrote: »

I have been told of a few houses in Tallaght that have gone for over asking.

I just put a deposit on a house with the EA but the same EA just put up a house that i`d be interested in, can I pull out of the original and check out the other one without losing the deposit?

Yes. It's only a booking deposit with the EA to show you're serious. It's fully refundable

I Dropped My Yop · 27-08-2012 5:47am

I'm a FTB looking to purchase a house before the end of the year and Ive a few questions to ask.
I've just started reading this thread but it'll take me a while to catch up so apologies if i repeat any questions!

My partner and I have decided to buy a house so we went to a BoI mortgage advisor to discuss our options, where to start etc.
Originally we were planning to move back to our parents' in Jan 2013, out of our current rented accomodation so we could save our arses off for a whole year to save up the deposit for a house.
We have been renting for 2 years and for the past 10 mths weve been saving a lot every month as well, all done through BoI.
We're both in stable jobs so we seemed to tick all the right boxes with regard to approval... we just needed to save.

Since we spoke to the advisor last week I have been told by my parents that they will help me out with the deposit, so essentially I would have it right away. Originally we had anticipated buying from the beginning 2014, but as we have the deposit now we have no need to wait.
While obviously I would love to have my own house ASAP, I dont want to rush into it. Saying that I'm worried about missing out on the interest relief if I dont buy before the end of 2012. On the flip side, if I do wait, will prices come down more?

How likely is it for us to be approved (from what little info I've given) and how long does it normally take?

How long does the process typically take from applying for the mortgage to getting the keys?

If the mortgage application is accepted, my understanding is that we will be issued a MIP up to a certain value. We then can make an offer on any house up to that value, is that correct?

What do I need to have done to not miss the deadline for interest relief? Do I need to have applied for the mortgage; had offer accepted; gotten keys etc before Jan 2013?

Whats the consensus on variable vs fixed rate?

Is there much point in shopping around for mortgages?

Any help would be appreciated!

heltipp · 28-08-2012 8:48am

We sent in all documents last tuesday to bank for drawdown but nothing back yet. Only thing they asked for was a letter confirming that we were ok with the change in interest rate, which we sent in. I keep asking my guy in the branch (Ulster bank) but he doesnt seem to have a clue, just says he will check the computer. Surely there is someone he can ring to check. I know it can take to up to a week but surely he can find out that everything is ok and get an idea when the money will be issued???

any help anyone??

quarryman · 28-08-2012 9:34am

I Dropped My Yop wrote: »

How likely is it for us to be approved (from what little info I've given) and how long does it normally take?

Approval took about a week for us with AIB.

How long does the process typically take from applying for the mortgage to getting the keys?

Well after you get the approval you still need to shop around for a house right? But once you have agreed a price with the vendor allow another 6 weeks until you get the keys.

If the mortgage application is accepted, my understanding is that we will be issued a MIP up to a certain value. We then can make an offer on any house up to that value, is that correct?

Yep, plus whatever you have as deposit.

What do I need to have done to not miss the deadline for interest relief? Do I need to have applied for the mortgage; had offer accepted; gotten keys etc before Jan 2013?

I was told you need to make your first repayment before the 31st of December.

Is there much point in shopping around for mortgages?

of course!! Even a .1% difference in the interest could mean a 6k difference over the life of the loan (on a 300k mortgage).

DavyD_83 · 28-08-2012 3:41pm

heltipp wrote: »

We sent in all documents last tuesday to bank for drawdown but nothing back yet. Only thing they asked for was a letter confirming that we were ok with the change in interest rate, which we sent in. I keep asking my guy in the branch (Ulster bank) but he doesnt seem to have a clue, just says he will check the computer. Surely there is someone he can ring to check. I know it can take to up to a week but surely he can find out that everything is ok and get an idea when the money will be issued???

any help anyone??

Even though our application ran smoothly from that point, our UB guy also said that his only way of tracking our request was on the system.
The Mortgage Completion department are the ones you need to talk to.

heltipp · 28-08-2012 3:54pm

thanks a mil. just a bit fustrating at this point that no one can give me an answer. Just to even know its on the way or that everything is in order.

I will try the completions department tomorrow, just have to find a number for them now!!

thanks again

DavyD_83 · 28-08-2012 3:59pm

I did have a number for them, but don't seem to be able to find it now. If I do i'll PM it on.
My branch guy gave it to me while he was on holidays to check on approval status. When I rang they told me he shouldn't be giving the number out, but then gave me some info anyway

heltipp · 28-08-2012 4:02pm

wow that would be a great help, cause i did ring the number on top of the letter of offer last week but they didnt seem to have any information.
its unreal that you can't find out whats happening with it though.
My solicitor said she also tried ringing but they were trying to put her through to england so she gave up but said she is hoping that she would have a cheque by tomorrow or thursday at the latest but i would rather know for def.

killers1 · 28-08-2012 9:46pm

heltipp wrote: »

wow that would be a great help, cause i did ring the number on top of the letter of offer last week but they didnt seem to have any information.
its unreal that you can't find out whats happening with it though.
My solicitor said she also tried ringing but they were trying to put her through to england so she gave up but said she is hoping that she would have a cheque by tomorrow or thursday at the latest but i would rather know for def.

Your solicitor contacting the cheque issue dept directly is the best way to find out when funds are due to issue.... The branch staff will probably only be able to tell you after the loan has been issued and the mortgage is 'live'... Nearly there now!!

kingQuez · 29-08-2012 9:42pm

It's taken a few evenings to get through all the posts on this thread, it's a really great resource; especially with the extra knowledge chipped in by Killers.

I'm looking at buying soon myself as a single FTB; have most of my finances in order to start looking for AIP and have been to view a few properties. Before I go to chat to a mortgage advisor I'd love to have a better handle on how mortgages actually work. I've talked to various people who have mortgages and I find it worrying how little they can explain about how they work and how to compare them. This might be the wrong thread to ask on, but I figure plenty of contributors here will have been looking into this too so might have some useful links/pointers?

The types of things I'm interested in knowing are things like this: Are there caps on the rate a variable rate mortage can increase to (it seems a stressed mortage repayment is estimated at 6%, but what stops it going higher than that)? How often does/can the rate change? How is the interest actually calculated on the loan (how frequently is it applied, what is it computed on, is the mortage amortized etc.)? Basically how do you figure out what the mortage is going to cost by the time it's repaid

I imagine the answers to these questions possibly define the various mortgage products, but I haven't seen any of them detailed on the various lending sites I've looked at. If anyone has a link to mortgages for dummies I'd really appreciate it!

killers1 · 29-08-2012 9:57pm

kingQuez wrote: »

It's taken a few evenings to get through all the posts on this thread, it's a really great resource; especially with the extra knowledge chipped in by Killers.

I'm looking at buying soon myself as a single FTB; have most of my finances in order to start looking for AIP and have been to view a few properties. Before I go to chat to a mortgage advisor I'd love to have a better handle on how mortgages actually work. I've talked to various people who have mortgages and I find it worrying how little they can explain about how they work and how to compare them. This might be the wrong thread to ask on, but I figure plenty of contributors here will have been looking into this too so might have some useful links/pointers?

The types of things I'm interested in knowing are things like this: Are there caps on the rate a variable rate mortage can increase to (it seems a stressed mortage repayment is estimated at 6%, but what stops it going higher than that)? How often does/can the rate change? How is the interest actually calculated on the loan (how frequently is it applied, what is it computed on, is the mortage amortized etc.)? Basically how do you figure out what the mortage is going to cost by the time it's repaid I imagine the answers to these questions possibly define the various mortgage products, but I haven't seen any of them detailed on the various lending sites I've looked at. If anyone has a link to mortgages for dummies I'd really appreciate it!

Just a quick response to some of your questions....

There's no cap on the variable rate unless its specifically a 'Capped rate product' which don't tend to exist anymore. The stress testing at circa 6% is a figure the bank use to satisfy themselves that the mortgage is affordable. A variable rate can change at the lenders discretion and there may be a couple of rate changes in a year or there may not be any changes for a couple of years, really depends on the banks pricing policy and cost of funds. Interest is calculated on a daily basis on the balance outstanding and debited monthly (usually) to the mortgage. To find out the cost of credit multiply the monthly repayment by the number of months you are borrowing over I.e for 25 yrs = 300 mths and then subtract the amount borrowed and you're left with the cost of credit. I don't have a link for 'mortgages for dummies' but feel free to send me a pm with any other queries...

heltipp · 30-08-2012 12:33pm

Oh my god still no sign of our money. Cant get hold of guy in branch and my solicitor cant get through on her end. I am fit to scream....if i could get just some kind of idea as to where its at

irbx · 31-08-2012 10:16am

hi guys

Can anyone recommend a engineer in Limerick area to check the structure of house?

can pm me

frebel · 01-09-2012 10:33am

folan wrote: »

tbh, i cant see why. Its 3 houses its cost us now, just in the belief that theres a better deal out there.

but at the end of the day, thats 3 houses i really liked gone for more than the asking. it definatly seems like its just this area, so im glad of that for everyone else, but its gotten to the stage where its not worth trying a lighter bid in our case

Not so sure about this "Trust no agent approach" ...

Got into a bidding war over a house that would have come furnished and would have been the most literally turnkey property I have seen with everything I could have wanted - amazing light, room, flow from room to room etc

bidding led us from an initial offer of guide price - 25k to guide price + 18k. Thought had crossed my mind on more that one occasion that the EA was codding me but I had been very reserved in any dealings with him.

My last offer was 10k over my budget (but would have saved considerably on furniture and fittings as all the things I would like to add over the years were in situ already - wiring, ethernet, speakers etc)

I really loved the property but didn't want to be in a situation where I would have to take on tenants in the future..

Neither,did I want to walk away from a dream property thinking I could have offered/ done more

Now, I have no regrets as I went as far as I wanted to go

Think you need to find that balance between what you're comfortable paying for the next 30 years and getting the type of property that you want to spend the rest of your life in (whether you actually will or not)

Is it better to buy a house under budget that will never feel like home?

frebel · 01-09-2012 10:37am

leahyl wrote: »

Just need to stick to your guns again and don't get drawn into a bidding war - you have to believe everytime that the EA is lying through their teeth! It'll pay off in thr end! :-) that's what I'm telling myself anyway cos there are a serious lack of houses in Cork City at a reasonable price and in good condition!

but at the end of the day, thats 3 houses i really liked gone for more than the asking. it definatly seems like its just this area, so im glad of that for everyone else, but its gotten to the stage where its not worth trying a lighter bid in our case[/QUOTE]

Not so sure about this "Trust no agent approach" ...

Got into a bidding war over a house that would have come furnished and would have been the most literally turnkey property I have seen with everything I could have wanted - amazing light, space, flow from room to room etc

bidding led us from an initial offer of guide price - 25k to guide price + 18k. Thought had crossed my mind on more that one occasion that the EA was codding me but I had been very reserved in any face to face dealings with him as were all the offers (+2k,+3k, +5k)

My last offer was 10k over my budget (but would have saved considerably on furniture and fittings as all the things I would like to add over the years were in situ already - wiring, ethernet, ceiling speakers etc)

I really loved the property but didn't want to be in a situation where I would have to take on tenants in the future..

Neither,did I want to walk away from a dream property thinking I could have offered/ done more

Now, I have no regrets as I went as far as I wanted to go

Think you need to find that balance between what you're comfortable paying for the next 30 years and getting the type of property that you want to spend the rest of your life in (whether you actually will or not)

Is it better to buy a house under budget that will never feel like home?

Mr. Loverman · 01-09-2012 10:52am

frebel wrote: »

Is it better to buy a house under budget that will never feel like home?

Of course not. There are literally thousands and thousands of properties to choose from.

Anyone making a rash, emotional decision in today's market is being silly.

I still believe we have many years of falling house prices ahead of us, so no one should be in a rush.

frebel · 01-09-2012 11:00am

Mr. Loverman wrote: »

Of course not. There are literally thousands and thousands of properties to choose from.

Anyone making a rash, emotional decision in today's market is being silly.

I still believe we have many years of falling house prices ahead of us, so no one should be in a rush.

There are 1000s but many of those in places where a lot of people just don't want to live... relief is going next year... rents are increasing... poor value in renting in cork right now...

Can places like this http://www.myhome.ie/residential/brochure/22-south-channel-court-26-28-south-terrace-cork/349519
drop anymore?...

Realise 2 bed apartments can be poor value - but even so, its going to be very tempting for someone - think it's dropped from 295k

EA told me he had sold 25 properties already this year which was roughly the same at 2006

leahyl · 01-09-2012 7:54pm

You're def right about there being loads of houses where a lot of people just don't want to live. I was born and raised in Cork City so I'm not moving out to Watergrasshill just cos there are good value houses there. I want to be near town but it's very hard to find a 3 bed semi in a good area in good condition for a reasonable price in today's market (in Cork I mean)

I'm starting to get worried now cos I'm looking at daft everyday and barely anything new is coming on the market :-(

Buying a house 2012

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