Buying a house 2012

Contracts signed yesterday, closing by 19th July so hopefully all goes on track

will be interesting to see how long BOI take to issue/clear the cheque for mortgage, given we've been over and back for months to make sure all documents in order, and they've been dripfeeding clarification queries and requirements..

solicitor's experience has been that they issue cheques at start of each month, so we could be waiting a few weeks..

Theboinkmaster wrote: »

Savings are way too low, you need to increase them up to about €30k IMO

I was afraid of that! but our Bank Called, AIB, said the mortage dept came back and said we wouldnt get 200K but advised our bank rep to ask us did we want to try for 165K instead (still enough to cover the cost of house we are interested in at the mo)

Bank said this was not a defo approval, but would i be somewhat right in saying that the fact the mortgage dept suggested lower amount and did not give a definitive NO, that means there maybe a chance of the lower 165K?

debbiermcd wrote: »

Hi,

Need advice on a small mortgage. We've got 90% of the value of a house that we've agreed on a price for but need a loan for the balance - with imperfect credit ratings and we're also self-employed just over a year.

Loans/credit cards were renegotiated because of redundancy, this didn't appear to have been a problem when we first enquired.

We do have life policies that worst case we can offer as security and when we initially rang our mortgage broker he was certain he could get us the balance so we agreed on a price yesterday. Now today he doesn't seem so certain despite the fact that we'll be providing 90% of the value in cash.

Any advice?
D

It'll be near impossible to secure a mortgage based on length of employment & adverse credit history. Your best option (if available) is to borrow the funds from a family member to complete the purchase and make repayments to them...

needahousenow! wrote: »

I was afraid of that! but our Bank Called, AIB, said the mortage dept came back and said we wouldnt get 200K but advised our bank rep to ask us did we want to try for 165K instead (still enough to cover the cost of house we are interested in at the mo)

Bank said this was not a defo approval, but would i be somewhat right in saying that the fact the mortgage dept suggested lower amount and did not give a definitive NO, that means there maybe a chance of the lower 165K?

Reading between the lines you are showing a repayment capacity to borrow €165k but not €200k. If they decline the higher amount & indicate a figure they would be willing to lend they tend to stand over that decision so you should be ok for the €165k.

killers1 wrote: »

Reading between the lines you are showing a repayment capacity to borrow €165k but not €200k. If they decline the higher amount & indicate a figure they would be willing to lend they tend to stand over that decision so you should be ok for the €165k.

Thanks for your reply killers, i was thinking much the same myself, they have asked for the closing statment for a car loan my hubby had,finished up in October last- (id say its because he used his dads account to pay the direct debits for the car, as he has since his first car loan way back)
This may even get us a higher repayment capacity, right?

killers1 wrote: »

Yep, in theory it should do if you can prove the repayments came from your husbands salary each month

He used to take the lump some out and pay his dad mostly or even somtimes he would transfer it bank to bank . It was a 370€ a month cost that we no longer have since october, so hopefully they will take it into account.

We also have just cleared out credit card from around 4000 to 800 over the past few months so very soon there will be another 250/300 month of free'd up cash!!!

We have no other proof than lump sums being taken out every month- hopefully they can see this as proof!!!
(car finance was in hubbys name, not his dads, i should mention)

Thanks Killers1 - spoke to a broker today who is doing his best for us, hoping 90% cash & backup in form of policies that can be cashed in over next few years will help. Really irritating thing is that the repayments will only be approx €200 per month as opposed to current rent of €1150 and we've got retirement bonds/policies worth multiples of the shortfall due within next few years too!

Fingers crossed for a miracle.

Hi All,

We got mortgage approval from BOI back in April and put our booking deposit down on the house we want to buy at the end of May. That was five weeks ago and nothing has moved on. BOI have asked for more recent bank statements and payslips as the original ones we submitted are "too old" (they were from Sept 2011 - March 2012).

We have done this and now BOI are querying why my actual gross salary on my payslip doesn't equate to what's on my salary cert. My broker has explained that it's because I'm currently taking parental leave at one day per week - Killers1 do you know if this is likely to affect whether or not we will actually be able to draw down the mortgage now or not?

Husband earns €60k per year guaranteed, plus an additional €10k commission (not guaranteed).

I'm a public sector worker earning 37K but this comes down to €30k when you take off the parental leave (which is a set amount of 70 days, taken at my own discretion, with my employer's consent) i.e. so it's not forever and once it's finished, I'll be back on my regular €37k salary which will increase again in a few months time, when I get my next increment.

We have an existing tracker mortgage on a 3 bed two-storey apartment in North Dublin, 20 minutes from the city centre and pay about €950 every month (including TRS calculation). We plan to rent this out and had estimated to receive rental income of €1100 per month, however the bank have adjusted this to €1000 :rolleyes:

We have savings of €30k (€13,500 from consistent monthly credit union savings over the past number of years, €9k from a gift and €7500 saved in the bank in the last six months).
We have no other loans and our credit card is at zero (previous to this we pretty much paid it in full every month, or near enough).
We have all the usual bills every month, including childcare costs of €780 per month however this will no longer be the case when we move, as the grandparents will be minding our child.

The house we want is €230k so we're looking for a mortgage of €207k which was offered to us by BOI back in April. Should I be worried that they're requesting more statements and payslips and are querying my parental leave? Our broker has said it'll be tight....what do you think Killers1?

Thanks Killers1 - really appreciate all the advice you've given on this thread, answered a lot of questions for many of us

Funnyonion79 wrote: »

Hi All,

We got mortgage approval from BOI back in April and put our booking deposit down on the house we want to buy at the end of May. That was five weeks ago and nothing has moved on. BOI have asked for more recent bank statements and payslips as the original ones we submitted are "too old" (they were from Sept 2011 - March 2012).

We have done this and now BOI are querying why my actual gross salary on my payslip doesn't equate to what's on my salary cert. My broker has explained that it's because I'm currently taking parental leave at one day per week - Killers1 do you know if this is likely to affect whether or not we will actually be able to draw down the mortgage now or not?

Husband earns €60k per year guaranteed, plus an additional €10k commission (not guaranteed).

I'm a public sector worker earning 37K but this comes down to €30k when you take off the parental leave (which is a set amount of 70 days, taken at my own discretion, with my employer's consent) i.e. so it's not forever and once it's finished, I'll be back on my regular €37k salary which will increase again in a few months time, when I get my next increment.

We have an existing tracker mortgage on a 3 bed two-storey apartment in North Dublin, 20 minutes from the city centre and pay about €950 every month (including TRS calculation). We plan to rent this out and had estimated to receive rental income of €1100 per month, however the bank have adjusted this to €1000 :rolleyes:

We have savings of €30k (€13,500 from consistent monthly credit union savings over the past number of years, €9k from a gift and €7500 saved in the bank in the last six months).
We have no other loans and our credit card is at zero (previous to this we pretty much paid it in full every month, or near enough).
We have all the usual bills every month, including childcare costs of €780 per month however this will no longer be the case when we move, as the grandparents will be minding our child.

The house we want is €230k so we're looking for a mortgage of €207k which was offered to us by BOI back in April. Should I be worried that they're requesting more statements and payslips and are querying my parental leave? Our broker has said it'll be tight....what do you think Killers1?

Based on all that I'd say you'll be OK

Thanks to you as well TheBoinkMaster. I hope you're right!!

Hi All,

We have been given Approval in Principle from the bank. We have access to a gift of 4000 euro to help with solicitor and stamp duty from my parents. The bank requires a signed letter from parents stating they will be gifting us this money for use for mortgage. However my dad has made the point that I may be liable for tax as this is a "gift".

Does anyone know if this is the case? I am not sure why they use this term, is it another way of saying short term loan?

clarife wrote: »

Hi All - amazing thread, Killers1 you are my new hero!

Myself & BF are looking to buy by year end(trying to get in before interest relief finishes).
I earn 33k, 2150 net/month, my bf is only on roughly 24k but 90% of the time comes out with 2400net/month min + company car & petrol & phone (he's in sales).

We save 700/month each & by end of sept will have roughly 15.5k in our joint savings a/c. He also has about 6k sitting in his current a/c.

I currently pay 550/month to the credit union and this loan will be finished the end of August. I only pay 200/month rent and there is usually nothing in my CA come payday. I had an overdraft up untill a couple of months ago that I always used completely but have cancelled that since.

Between college fees, laser eye surgery & travelling (we've done 4 hols a year since 08) I've consistently had credit union loans for years. I used to pay about 1k a month & then top up a loan whenever I needed to as it suited me better than leaving cash (that I'd spend!) in my CA at the time but realising now that doesn't look great money management wise.

We are looking to only spend roughly 150k on a house & had thought we needed 12% deposit so were aiming for 18k deposit. Just wondering if my loan history & lack of disposable income will stand against us or will the fact that they were always paid on time have any positive?

I have everything set up to leave my CA straight after payday by DD, and live on the rest. Even calculating payments of a 132k loan @ 6% would leave me with twice as much spare cash than I have now! I have been making a conscious effort not to spend on my laser as much and am hoping to have cash sitting in my account from july - end of Sept when we go for approval in principal.

Any input would be great

Hi Clarife,
Your incomes are sufficient to borrow that amount and your loan repayments will help prove an ability to repay the mortgage. Just ensure all your accounts are operated in order, there are no 'referral fees' or 'unpaid fees', that your loan repayments continue to be made on time, that your rent is paid by Standing Order and that you continue to save a consistent amount on a monthly basis between now and when you apply and you have a very strong chance of gaining approval.

folan wrote: »

Do you have to show the ability to pay this to the bank? and what happens if, say, I find the money for this down the back of the sofa and i use it for this, instead of taking a short term loan or gift from a parent? will this be questioned too heavily?

Hi Folan

I had a similar thing recently. I was offered a "gift" from family member which would ultimately have to be paid back, but not for several years, and in my own time and my own way.

I was honest with bank and said that if I was offered this money from family as a long term loan was this ok to declare as a gift, and they said yes. Basically, I guess they way they see it is it's the family member's risk to take.

And this was for an amount more than 4k.

So I would say, without being underhanded at all, just get your Dad to write the letter saying it's a gift, confirming that it doesn't have to be repaid, and confirming that the money would be available prior to the full mortgage being drawn down.

Then work it out yourself between you and your Dad on a personal level. My mortgage was approved wtih this info on the table. This was within the last month

It's your choice what you do, of course. Just letting you know my experience. Oh, and it was AIB...

heltipp wrote: »

Anyone have any knowledge with a leasehold property. The house i am trying to buy is leasehold now the sellers have gone to the council and have acquired a deed of transfer which makes it a freehold i think which is great for me. But this needs to.be lodged to the labd registry before i can sign contracts and move on and this hasnt happened yet and i am in a panic over it. They seem to think the council should do it and the council arent really forthcoming. Any guidance or knowledge of how it works would be great

Sounds like the vendor needed to get permission to sell the house (ex-council house?). This is fairly common and there shouldn't be an issue, just might take a bit of time to have the paperwork in order waiting for the council to give the vendors solicitor the go ahead.