TheShow Registered User
#6,271

awec said:
What's the reason for the limit? The land doesn't provide enough security against the loan from the banks point of view?


More to do with not wanting a load of land with questionable value on the resi mortgage books. 8 or 10 acres on its own, while sizable, is a small land holding and is not worth much to anyone else, also could possibly be land locked by the house, rendering no access to the land at the back.

ELM327 Registered User
#6,272

TheShow said:
You wouldn't as you are not a farmer, but you also wouldn't get the remaining 8 acres on a residential mortgage. Could probably look at a variable rate Personal loan for the 8 acres with the land as security, but rates would be a lot more than a mortgage rates and over a shorter term which could make it too expensive to finance.

I was told by the bank that I would have to apply for a farm loan if I wanted to buy a house exceeding the 5 acre limit.
So you can take that "you wouldn't as you are not a farmer" and put it somewhere else, because that's what was told to me and I'm most certainly not a farmer. The opposite.

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TheShow Registered User
#6,273

ELM327 said:
I was told by the bank that I would have to apply for a farm loan if I wanted to buy a house exceeding the 5 acre limit.
So you can take that "you wouldn't as you are not a farmer" and put it somewhere else, because that's what was told to me and I'm most certainly not a farmer. The opposite.


they were just fobbing you off.

ELM327 Registered User
#6,274

TheShow said:
they were just fobbing you off.

That's funny, because I went with the same bank for a similarly priced property in the end.


You're just not making sense here.

Bawnmore Registered User
#6,275

Spoke to the bank and it might be a problem alright. Thanks for the heads up Cows Go µ. Bank manager has suggested that we let the valuation continue, and he's looking into what we can do.

Spoke to the auctioneer and he suggested we could possibly buy the house with 2 acres if it's going to be an issue but I'm not sure what's involved in that. We haven't much interest in the land or any use for it, so it's more so just something that was there and we hadn't put any thought into.

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TheShow Registered User
#6,276

ELM327 said:
That's funny, because I went with the same bank for a similarly priced property in the end.


You're just not making sense here.


did it have more than 5 acres attached?

The point I was making is that if you're not a farmer, how could you be expected to apply for a farm loan and produce accounts etc. thats not practical.
You cant put a consumer down a commercial loan route unless they intend to make an income from the land. You can finance the land by way of loan but if you are a consumer then it would be by way of a personal loan, governed by CCA.

z0oT Registered User
#6,277

Question for people here:

When you get to the stage of signing the contracts and paying the deposit how much do you typically pay? Is it the 10% if a First Time Buyer?

If you have a higher deposit saved up in excess of the 10%, when would you pay the remainder above that? Is that done at the draw down stage?

I presume whatever extra savings you have when you draw down can be added to the funds coming from the bank.

TheShow Registered User
#6,278

z0oT said:
Question for people here:

When you get to the stage of signing the contracts and paying the deposit how much do you typically pay? Is it the 10% if a First Time Buyer?

If you have a higher deposit saved up in excess of the 10%, when would you pay the remainder above that? Is that done at the draw down stage?

I presume whatever extra savings you have when you draw down can be added to the funds coming from the bank.


At signing contracts you are normally paying 10% of the purchase price, which will include any funds you paid as a booking deposit.

The rest will be required when the solicitor is sending funds to the vendor to complete the purchase.

The solicitor just asked us for all the funds required to close sale, pay fees and stamp duty. We sent her the whole lot and she sorted it all out.

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Toyotafanboi Moderator
#6,279

Toyotafanboi said:
Solicitor got back to us and said we are on track for keys this day next week!


Got they keys 2 weeks ago. Paid holding deposit to the EA on March 16th, felt like an eternity.

Havn't made too many posts on here but done a lot of reading so thanks to you all for some great advice along the way and good luck to everyone else still in the process.

Now just a full top to toe renovation to contend with, we'd like to be living in the house within 12 months so expect plenty of posts ahead , heating, plumbing, wiring, insulation, kitchens, bathrooms, garden etc etc.

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Glen_Quagmire Registered User
#6,280

There are houses I'm interested in being released in early September.

I'm am currently gathering the necessary documents to give to my broker to start looking for mortgage offers and also going through the HTB process.

Problem is I am not officially out of my 6 month probation on a new job (same industry and role) until mid September.

What options do I have to secure one of these houses when they are released early September or is it a lost cause?

myshirt Registered User
#6,281

Glen_Quagmire said:
There are houses I'm interested in being released in early September.

I'm am currently gathering the necessary documents to give to my broker to start looking for mortgage offers and also going through the HTB process.

Problem is I am not officially out of my 6 month probation on a new job (same industry and role) until mid September.

What options do I have to secure one of these houses when they are released early September or is it a lost cause?



Not a lost cause, but you will be cutting it tight. You can give the booking deposit. By the time they want the balance of the 10% you'll be out of probation. If you are not, then you get your booking deposit back.

Your issue is going to be will the estate agent take the booking deposit off you if the next guy in the Q doesn't have these problems, but I'd say your grand as long as you are not looking in Dublin 15.

Glen_Quagmire Registered User
#6,282

myshirt
Not a lost cause, but you will be cutting it tight. You can give the booking deposit. By the time they want the balance of the 10% you'll be out of probation. If you are not, then you get your booking deposit back.



myshirt
Your issue is going to be will the estate agent take the booking deposit off you if the next guy in the Q doesn't have these problems, but I'd say your grand as long as you are not looking in Dublin 15.



Do I not have to have a mortgage offer before giving the booking deposit?

Do the estate agents look for proof of mortgage approval when putting down the booking deposit?

Glen_Quagmire Registered User
#6,283

Another question, I work full time and my partner works part-time, her contract is currently 12 hours a week but typically does around 20 hours.

Will her 12 hour a week contract be an issue with the banks getting a mortgage?

drinkingwater Registered User
#6,284

Glen_Quagmire said:
Do I not have to have a mortgage offer before giving the booking deposit?

Do the estate agents look for proof of mortgage approval when putting down the booking deposit?


I believe you can get mortgage approval while on probation but won't be able to draw down the money until you made permanent.

They usually do look for some kind of approval, but an AIP might be sufficient

1 person has thanked this post
awec Moderator
#6,285

AIP is what they look for when giving the booking deposit, because AIP is all you can have at that stage of the process. The next step after AIP is official loan offer and that is given against a specific property.

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