When to look for mortgage.

splashthecash

Hey,

Is there anyone here who have applied for a mortgage recently and how did you get on? Is it as tough as people say it is cos I'm wondering if it is just to scare people off...

I think that money is there to be given to us if we will supply the necessary information. Its just that a few years ago, not as much information was required by the banks but they have to cover themselves now.

What banks are people successful\unsuccessful with?

Cheers all,

BryanF

splashthecash wrote: »

Hey,

Is there anyone here who have applied for a mortgage recently and how did you get on? Is it as tough as people say it is cos I'm wondering if it is just to scare people off...

I think that money is there to be given to us if we will supply the necessary information. Its just that a few years ago, not as much information was required by the banks but they have to cover themselves now.

What banks are people successful\unsuccessful with?

Cheers all,

A mate of mine got his keys on Friday, i understand its a more of an onerous process than its was a few years ago. but it is still happening for a lucky few

splashthecash

Great to see all the activity on this thread...I am envious of you all - some really nice pictures, can't wait to get stuck and get my hands dirty. I'm sure I'll find this thread very useful.

We have a site in mind and are starting to look at possible designs so its all ahead of us!

Can I ask with people who are at the planning stage or have recently started building how they approched the mortage stage. I assume everyone here did the following and in this order?

1. Found a site
2. Got Planning permission
3. Got mortage approval
4. Started building

Thanks for any help you can give - it is much appreciated!

BryanF

splashthecash wrote: »

Great to see all the activity on this thread...I am envious of you all - some really nice pictures, can't wait to get stuck and get my hands dirty. I'm sure I'll find this thread very useful.

We have a site in mind and are starting to look at possible designs so its all ahead of us!

Can I ask with people who are at the planning stage or have recently started building how they approched the mortage stage. I assume everyone here did the following and in this order?

1. Found a site
2. Got Planning permission
3. Got mortage approval
4. Started building

Thanks for any help you can give - it is much appreciated!

you may need to cost it (between point 2. and 3.)

splashthecash

BryanF wrote: »

you may need to cost it (between point 2. and 3.)

Yes, that is one of the requirements of the couple of banks we've seen so far. The main point in my comment was; are people only going to get mortgage approval after they've gone through the whole planning process?

It seems to be the norm these days (or maybe it always was the case, but as I say - I'm new to this )

wclarke20

Ive been trying to get mine since january. They just keep coming back with more and more paperwork and questions. They told us it will only be 80% but I'm sure they will have plenty more questions and paperwork for us before they give it to us

Everbody says its a great time for building which it is - but not so great a time for getting a mortgage

wclarke20

splashthecash wrote: »

Yes, that is one of the requirements of the couple of banks we've seen so far. The main point in my comment was; are people only going to get mortgage approval after they've gone through the whole planning process?

It seems to be the norm these days (or maybe it always was the case, but as I say - I'm new to this )

Before we went for planning we got the pre-approval. I know this isn't worth the paper it's wrote on but we thought it would be a good indicator of our elgibability.

Planning received and trying to get the mortgage drawn down since February. The max EBS will offer is 80% of build costs if you have a site gifted.
Be prepared for heartbreak and frustration with the banks.

8vSport

hi, we got ours from ulster bank. i found the lady that we were dealing with very good and helpful. we had been all set to get it from a different bank last year but after months of paperwork and telling us everything is on track, they decided that they could not offer us one! so that wasted months!
we got approved from ulster bank just before we started on our site, they were quick with the 1st payment so that was good as well.

careca11

my brother recently went in to apply for a mortgage PTSB,
the woman he was in conversation with told him and his wife and I QUOTE "Unless you work in the public sector , you have no chance of getting a mortgage"

those are the exact words she said to him

LoTwan

The EBS want the grant as part of the application so that puts it at the end of the application process. Be prepared for a lengthy process & of either of you is self employed you should be aware that 80% of SE mortgage applications are being declined.

muffler

Tidying the threads up a bit. The above posts have been moved from the "live self - builds" thread.

Poor Uncle Tom

muffler wrote: »

Tidying the threads up a bit. The above posts have been moved from the "live self - builds" thread.

I have just merged 2 mortgage threads (after muffler took some posts from the Live Self Builds thread) which are fairly similar.

See, I can do magic, me......:D

caseyjones1

We have just drawn down our second stage payment ona new mortgage with aib, it was a lengthy process but glad to finally be almost finished, we had already owned our site and previous history of planning permission when we began, but it all had to be started fresh for this build.

fm

we got a mortage last nov but let it lapse so reapplied again in feb this year and they made it much harder to get(kept looking for more paperwork saying policy had changed,sometimes over a weekend).got approved again finally only they reduced it by 25% saying "regulator won't allow us to give you more" and we have to pay the 25% of the build first.we own the site which made no difference,they were really difficult to deal with,from blaming other staff members to answering questions we had with answers that made no sense.

mmc2010

it really is depressing. We have planning permission nearly two years now and we're finding it difficult to get a mortgage. Husband is self employed and had a difficult 08 & 09 but is turning it around again now. I am private sector with salary of 58k but think we'll be facing heartache again the next time we apply. Not to mention the daily question 'whats the story now with the house'.... sorry, just having a moan!!!:o

Frank Black

Hi guys very interested in this thread.
We've just gone through a lengthy planning permission process (over 2yrs) and have just been granted permission, though there are a couple of conditions that we need to discuss with local authority next week.

We haven't yet discussed mortage with the bank. We have a home in Dublin which we are hoping to sell and a resonably small outstanding mortage. With the proceeds of the sale and our savings we were hoping we'd only have to borrow 50-70K from bank.
I was just wondering - one of the previous posters mentioned that you would need a full costing of the build prior to approaching the bank - does this need to be carried out by a professional QS?
Also, I'm presuming that our own house would need to be sold before the bank will lend on the new build?
Cheers

wclarke20

black francis wrote: »

Hi guys very interested in this thread.
We've just gone through a lengthy planning permission process (over 2yrs) and have just been granted permission, though there are a couple of conditions that we need to discuss with local authority next week.

We haven't yet discussed mortage with the bank. We have a home in Dublin which we are hoping to sell and a resonably small outstanding mortage. With the proceeds of the sale and our savings we were hoping we'd only have to borrow 50-70K from bank.
I was just wondering - one of the previous posters mentioned that you would need a full costing of the build prior to approaching the bank - does this need to be carried out by a professional QS?
Also, I'm presuming that our own house would need to be sold before the bank will lend on the new build?
Cheers

I did the costing myself from getting quotes off builders. Gave the best one to the architect who clarified it was correct and reasonable and submitted it to the bank on architects headed paper.

fm

black francis wrote: »

Hi guys very interested in this thread.
We've just gone through a lengthy planning permission process (over 2yrs) and have just been granted permission, though there are a couple of conditions that we need to discuss with local authority next week.

We haven't yet discussed mortage with the bank. We have a home in Dublin which we are hoping to sell and a resonably small outstanding mortage. With the proceeds of the sale and our savings we were hoping we'd only have to borrow 50-70K from bank.
I was just wondering - one of the previous posters mentioned that you would need a full costing of the build prior to approaching the bank - does this need to be carried out by a professional QS?
Also, I'm presuming that our own house would need to be sold before the bank will lend on the new build?
Cheers

we were pre approved for a mortage and then did the costing,you can do the costing youeself but it has to be signed by an engineer or architect

jay gatsby

fm wrote: »

we were pre approved for a mortage and then did the costing,you can do the costing youeself but it has to be signed by an engineer or architect

Hi guys, i hope I'm not hijacking this thread but if so mods please feel free to move.

Basically my situation is this - my Dad has an old house where he lives alone after seperation some years ago. It is still very habitable but really needs a lot of work to get it up to spec and he cant afford to do the work.

We are discussing him transferring it to my name, me and my girlfriend would then move in and do the work and make it our primary place of residence.

Mortgage questions are:
Can we get a joint mortgage if house is in my name only?
Will the bank give a large loan for renovation only?
Is there a viable way to borrow without handing over deeds to the bank? as there has never been a loan on the property and its in the family name for 200 years.

2 full time permanent jobs 35,000 gross each.

Any help would be massively appreciated.

martinn123

jay gatsby wrote: »

Hi guys, i hope I'm not hijacking this thread but if so mods please feel free to move.

Basically my situation is this - my Dad has an old house where he lives alone after seperation some years ago. It is still very habitable but really needs a lot of work to get it up to spec and he cant afford to do the work.

We are discussing him transferring it to my name, me and my girlfriend would then move in and do the work and make it our primary place of residence.

Mortgage questions are:
Can we get a joint mortgage if house is in my name only?

No, joint mortgage, joint ownership.

Will the bank give a large loan for renovation only?

Yes, they will look for current valuation and costings on renovations.

Is there a viable way to borrow without handing over deeds to the bank? as there has never been a loan on the property and its in the family name for 200 years.

Afraid not, a mortgage is a charge on the deeds of the home.

donalg1

Why not go to a bank and ask them about mortgages, they should be able to organise a meeting with you and inform you of your borrowing capacity i.e. the max they will lend you. Plus they will know from the first few mins of talking to you if you have a chance of getting a mortgage. You just need P60's, payslips, bank account statements x 12 months, savings statments, and statements of any other loans, a good credit rating and you will need to be in full time employment.

Its not a huge task going to talk to someone in a bank about a mortgage, the paperwork is relatively straight forward and they do most of it anyway you just need the statements etc...

jay gatsby

Its not a huge task going to talk to someone in a bank about a mortgage, the paperwork is relatively straight forward and they do most of it anyway you just need the statements etc...[/QUOTE]


thanks for the advice lads, We will do more investigating and inquiring with the bank once we decide to really push ahead with this. I just wanted to ask for a heads up as the situation isn't as straightforward as a normal new home purchase and I don't know anyone else who has done similar.

Thanks anyway, its a point in the right direction.

donalg1

If i were you i wouldnt even think about looking for planning permission until i knew i could get a mortgage, no point in wasting all that money on something you could never build, it could cost a packet between the application and the drawings just to be told by a bank that they wont give you a mortgage

NewBuildA

Hi, we got our mortgage for a self build and we did the first drawdown in Feb 2009. We put in the foundations and tried to save as much as we could. We were originally looking for €350,000 but we are only looking for €150,000 now due to saving and reduced cost of building. We went to the bank to get the next drawdown last week and they said that we will probably need to re apply again due to time frame of 1st drawdown to now. We are paying back the 1st drawdown so we can’t see the reason why they are making us apply again. They said it due to the financial regulator. Anybody experiences this??? We are now afraid that they won’t give us the rest of the mortgage. Any information would be helpful. Can they do this to us as we have legally signed for this mortgage , did one drawdown and repaying it every month.

steifanc

i asked my bank the same question , at the time the banks were all over the place, i was just after getting a mortgage and afraid that they wouldn't come across , or if i took too long in the build that they wouldn't give me the rest after the first draw down .
basically what the bank told me is that once i signed the contract that the bank was legally bound to that contract.the same way i had to pay for it . . so unless you broke your contract your fine , ring your solicitor and don't let the bank bully you ..

Bruthal

NewBuildA wrote: »

Hi, we got our mortgage for a self build and we did the first drawdown in Feb 2009. We put in the foundations and tried to save as much as we could. We were originally looking for €350,000 but we are only looking for €150,000 now due to saving and reduced cost of building. We went to the bank to get the next drawdown last week and they said that we will probably need to re apply again due to time frame of 1st drawdown to now. We are paying back the 1st drawdown so we can’t see the reason why they are making us apply again. They said it due to the financial regulator. Anybody experiences this??? We are now afraid that they won’t give us the rest of the mortgage. Any information would be helpful. Can they do this to us as we have legally signed for this mortgage , did one drawdown and repaying it every month.

Did you get a tracker mortgage at the time of applying? It sounds like they want to change the conditions of the mortgage to suit their position , which a re-application would do. So as said above, stick with it and dont just aggree to a re-application. The are contracted into completing the transaction most likely.

The bank wont want to not give you the rest of the loan, as who would want to repay a mortgage on a foundation for 20 or 30 years.

muffler

Last 3 posts moved to an existing "mortgage query" thread.

Whiskeyhotel12

Just secured my mortgage for my house build from AIB , its my own bank. I had a site and planning in place before I applied but even with that it was a 5 month process with a lot of visits and phone calls to the bank involved and a LOT of paperwork. I'm self employed and a retained fireman aswell so I guess I have that precious government job to help me along the way. As far as I can tell I think the value of my site made a difference aswell as I ended up borrowing 75% of the build cost. I really wasn't expecting to get the mortgage, everybody was telling me I was wasting my time, maybe I got lucky but anybody I dealt with in the bank said that they were definately lending money but were a lot more strict about the whole process.

I'd say give it a go anyway, at least you'll find out one way or the other, that was my thinking going into the process

mmc2010

congrats Whiskeyhotel12, am jealous! Five months is a long time. Were they hesitating or was it that they just wanted more information etc? I'm desperately trying to pay off a loan before we apply again. Did you have 'perfect' criteria when you applied or did they make any allowances?

martinn123

mmc2010 wrote: »

I'm desperately trying to pay off a loan before we apply again. Did you have 'perfect' criteria when you applied or did they make any allowances?

Hi mmc2010, thats a bit cryptic, not sure what you mean by ''perfect''criteria.......... hope this helps........The Banks are seriously under-capitalised at present, but they do need to lend some money to generate profit....So applicants with any ''glitches'' on credit history have little chance of success.Banks are only looking for the cream, i.e good loan to value ration when project completed, good record of savings, project well costed etc...Basically they try to cover a situation that if something unforseen happens to the borrower, they will recover loan from sale of house...Delays will be thrown up, as the Banks struggle to match funds available, with loan drawdowns.....remember the banks are being funded by European Central Bank, on a fortnightly basis....Best of luck,

Whiskeyhotel12

I definately didn't see myself as an ideal candidate when I applied, I had a small loan aswell with enough savings to pay it off but that left me with small enough savings. When I got approved in principal I had to clear off the loan before I got my final full mortgage from the bank. I really think my site value helped me big time, it came in at €65,000 and I looked to borrow €180k. I know you can't do anything about the value of your own site, the Valuer will only certify it for it's actual value, no matter how you try and sweet talk him! I found AIB good in general, the staff in my local branch really tried to push it through and seemed to do all they could to make my application look as strong as possible. I applied on my own so if you have two people involved with two sets of wages then you can be pretty confident in my opinion. It will be a slow process though, so be prepared to ring the bank every few days to keep the pressure on!

mmc2010

thanks martin123, I'll wait another few months til my darn loan is gone and will try again! would love to hear about other experiences too. There does seem to be more mortgages being approved these days at least...

markbraz

Just got mine approved pending valuation, which I dont think will be too much of a problem since I got the property at a price about 27% of the 2009 price.

AIB approved the loan in 2 weeks- I had no existing loans and have an income of 45,000 p.a. House cost is 135,000 and repairs of 30,000. I was told they give 92% loans for the property and 75% for repairs etc but they changed their mind on this at the last minute and lumped the two together and reduced the average to 80 something percent meaning I needed a higher deposit. Didnt make much difference in my circumstances but worth considering if you are close with the deposit money.

Slow process but the bank were helpful once you keep getting the paperwork they are looking for, just a matter of perseverance.

K3v

Does anyone know what the situation is with the mortgage interest relief? I heard that it will finish at the end of this year.

splashthecash

Whiskeyhotel12 wrote: »

I definately didn't see myself as an ideal candidate when I applied, I had a small loan aswell with enough savings to pay it off but that left me with small enough savings. When I got approved in principal I had to clear off the loan before I got my final full mortgage from the bank. I really think my site value helped me big time, it came in at €65,000 and I looked to borrow €180k. I know you can't do anything about the value of your own site, the Valuer will only certify it for it's actual value, no matter how you try and sweet talk him! I found AIB good in general, the staff in my local branch really tried to push it through and seemed to do all they could to make my application look as strong as possible. I applied on my own so if you have two people involved with two sets of wages then you can be pretty confident in my opinion. It will be a slow process though, so be prepared to ring the bank every few days to keep the pressure on!

Hey - can you expand on what you mean regarding the boldened text above? I'm a little confused...

My situation is: I am looking at a site at the moment and once the planning consultant has a look and agrees that I would be able to get the house I want on it, I will go back to the owner and start negotiating about the price. Then we'll agree on price, do the whole solicitor thing (pending planning permission and mortgage approval). My confusion is what you said about a valuer? Am i right in thinking that the bank get a valuer to check the site and confirms that the price I agreed with the owner is the right price?? If he says its worth less than what I have agreed with the owner, that'll open a big can of worms...

Surely land price is subjective - a half acre is worth as much as someone will pay for it.

martinn123

splashthecash wrote: »

Hey - can you expand on what you mean regarding the boldened text above? I'm a little confused...

My situation is: I am looking at a site at the moment and once the planning consultant has a look and agrees that I would be able to get the house I want on it, I will go back to the owner and start negotiating about the price. Then we'll agree on price, do the whole solicitor thing (pending planning permission and mortgage approval). My confusion is what you said about a valuer? Am i right in thinking that the bank get a valuer to check the site and confirms that the price I agreed with the owner is the right price?? If he says its worth less than what I have agreed with the owner, that'll open a big can of worms...

Surely land price is subjective - a half acre is worth as much as someone will pay for it.

It's a matter of an opinion, obviously. The Bank will appoint a valuer, usually a local, Auctioneer, or someone from their approved panel, to give an opinion on the value.

If in their opinion you have overpaid, then the Loan offer will be a proportion of the valuation, not the agreed price.
1/2 acre is worth what someone will pay, provided the Banks valuer agrees.

mmc2010

Does anyone know what the situation is with the mortgage interest relief? I heard that it will finish at the end of this year.

The mortgage interest relief is being reduced to 15% on any new mortgages next year. Have a look at the citizens information website, its explained in detail there.