When to look for mortgage.

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.