Mortgage question

shamrock55

hi all i would be a first time buyer and was wondering what would be best for me to do with regards to applying for a mortgage,should i walk into the bank and ask for 90% of the value of a particular house say around 200k or could i walk in with all my details and just ask them whats the most they would give me?
i would prefer the 2nd option if that can be done cos i wouldnt want to fall for a property only to be rejected the mortgage whereas if the bank said oh going by your info we can give you say between 150 and 160000 i could then search for a house in that price range and i know i could afford it thanks all:)

shamrock55

any advice?

Wile E. Coyote

You could make an appointment with the bank and see what they'd be willing to offer or go to a mortgage broker with your details. He'll then go through all the banks and see who has the best offer for you.

shamrock55

ok thanks so i dont have to have a property in mind i could just go to a bank or broker and see what amount they would be willing to give i thought i might have to give them the price of a particular property so they would then give me a percentage ie 90% of it no?

benjydagg

I cannot understand why anyone would want to buy rather than rent. A mortgage of around €180,000 will cost you €1,500/month PLUS life assurance of approx €60/ month. Then you have all the costs associated with having your own property, water, waste, insurance, heating, maintenance etc.
I hope to retire to a one bed apartment with no garden in later life. Rented of course, and spend most of my time on holidays in the sun. How simple life would be.
My advice therefore is to rent, and if you want an asset, buy land. Stamp duty has been reduced to 2%!!!!

shamrock55

thats your opinion i would just prefer to own my own house ive been paying rent long enough plus i would like to have something to pass onto my kids thanks for your input anyway

muttley-dps

Hi Shamrock,

I've recently been through the mortgage application property and was looking to move quickly. Alas hasn't happened like that.

In my case I had to make a full mortgage application, with proposed house I was buying - am sure though if you've an idea they might entertain a house worth a nominal sum - as part of the application. Prior to final mortgage approval though the bank will have property independently valued.

I did walk in with 3 months bank statements, 6 most recent payslips and P60s. They did however want evidence of all savings though (letters/statements/ for Credit unions, other institutions as well). Even with this they would not indicate on whether I was likely to be successful until it was approved by underwriters in the head office. This was with Ulster Bank.

Took less than 10 days from application being made within bank to hearing approval was granted depending on the independent valuation.

benjydagg

I have recently borrowed from Bank of Ireland. They would prefer to lend 80% of the value of the property, but will go higher in certain cases. I found it easier to get the money over 15 years. Using a broker is the best option for you to do the trawling of the banks. I can recommend a good broker in the west of Ireland if you need.
Best of luck.
I am leaving my kids an asset of forestry by the way.

benjydagg

benjydagg wrote: »

............. A mortgage of around €180,000 will cost you €1,500/month PLUS life assurance of approx €60/ month. .......................................
I hope to retire to a one bed apartment with no garden in later life. Rented of course, and spend most of my time on holidays in the sun. How simple life would be.
My advice therefore is to rent, and if you want an asset, buy land. Stamp duty has been reduced to 2%!!!!

Interesting, €180,000 is €1500/month, over what term?

Your plans are all well and good but most folk don't anticipate being able to rent when they are retired and also lead a comfy life.

U.P.O.

benjydagg wrote: »

I cannot understand why anyone would want to buy rather than rent. A mortgage of around €180,000 will cost you €1,500/month PLUS life assurance of approx €60/ month. Then you have all the costs associated with having your own property, water, waste, insurance, heating, maintenance etc.
I hope to retire to a one bed apartment with no garden in later life. Rented of course, and spend most of my time on holidays in the sun. How simple life would be.
My advice therefore is to rent, and if you want an asset, buy land. Stamp duty has been reduced to 2%!!!!

€180000 mortgage, borrowing the maximum amount works out from €659 - 938 a month depending on the term. (see AIB) Thats approx the same as rent, (700-800ish) but you can sell up in 10 years and get a big chunk of your "rent" back. (I know that didnt work out for most people who bought during the boom but that doesnt change the fact that it does work out like that for a lot of people)

Im 31 and bought a house when my friends rented. They are still renting, my mortgage is paid off now. I can live "rent free" for the next 40 years if i wish and then sell up and walk away with a chunk of change. My house is worth a lot more now than what i paid for it - almost double. The lads renting have 10 years of payments down now and nothing to show for it (if they had bought 10 years ago like me they wouldnt be in negative equity even now, so could sell up and walk away with a nice pot of money)

Just putting the other side out there. You hear all the horror stories from the last 5-6 years from people who bought, but for many buying a house was a great investment and worked out a lot better than those who rented. Just sayin'.....

Plus as a renter, im sure you still pay the water, waste and heat unless you have a very generous land-lord !

D3PO

U.P.O. wrote: »

Im 31 and bought a house when my friends rented. They are still renting, my mortgage is paid off now. I can live "rent free" for the next 40 years if i wish and then sell up and walk away with a chunk of change. My house is worth a lot more now than what i paid for it - almost double. The lads renting have 10 years of payments down now and nothing to show for it (if they had bought 10 years ago like me they wouldnt be in negative equity even now, so could sell up and walk away with a nice pot of money)
!

Im sorry but what a crock of sh*t. If you bought on 2002 your house isnt worth double what you paid for it.

Id have to question how credible any of your story is to be honest.

lainey316

With BoI and AIB you can apply using a sample house, pick a house in the area you like around the price bracket you want to pay and you can apply using that house.

However, if you just call either of them with some details on your income & savings they'll be able to tell you straight away in what region (max) they'd consider lending, you don't have to do a full application to get that info. Or you can make an appointment to discuss with an advisor, again without needing to do a full application - phone is easier, tho. That'll give you the info you need to start searching.

Or

3.5x your salary + your savings - 10k (fees, furniture, life assurance, emergency money) is about the max you'll get.

U.P.O.

D3PO wrote: »

Im sorry but what a crock of sh*t. If you bought on 2002 your house isnt worth double what you paid for it.

Id have to question how credible any of your story is to be honest.

Bought in '99 for 110k, selling now for 200k (were 370 at the height of the boom)

benjydagg

€180000 over 15 years at 5.24% variable costs €1512/month

U.P.O.

U.P.O. wrote: »

...................

Im 31 and bought a house when my friends rented. ....................... The lads renting have 10 years of payments down now and nothing to show for it (if they had bought 10 years ago like me they wouldnt be in negative equity even now, so could sell up and walk away with a nice pot of money)

Just putting the other side out there. You hear all the horror stories from the last 5-6 years from people who bought, but for many buying a house was a great investment and worked out a lot better than those who rented. Just sayin'.....

Plus as a renter, im sure you still pay the water, waste and heat unless you have a very generous land-lord !

U.P.O. wrote: »

Bought in '99 for 110k, selling now for 200k (were 370 at the height of the boom)

99 is at least 11 years ago

If you are 31 now and bought 10 years ago than that wasn't in 1999, your story does not add up, if you are 31 now you were either 18 or 19 in 1999.

D3PO

U.P.O. wrote: »

Bought in '99 for 110k, selling now for 200k (were 370 at the height of the boom)

1. you said you bought 10 years ago. 1999 is 13 years ago and you would have been 18 years old. No way do I believe a bank gave you a mortgage at 18 even with the lax lending that was beginninng around then.

you would unlikey have had 6 months permenant employment, unlikey had a deposit saved and even if you had both you would have unlikely have been earning anything close to enough to qualify for a mortgage based on the fact you would have been an unskilled employeed on a lower than average salary or an apprentice

2. asking and selling prices are totally different if they peaked at 360 they arent selling for 200. Houses in my area peaked at 460k and are asking 220 and selling for about 200k (Dublin, 3 bed semi d's)

before you come on here trolling you need to check that you have covered your tracks when making statements :rolleyes:

U.P.O.

RoverJames wrote: »

99 is at least 11 years ago

If you are 31 now and bought 10 years ago than that wasn't in 1999, your story does not add up, if you are 31 now you were either 18 or 19 in 1999.

Bought in 99 when i was 19 (with Irish Pounds) House prices had just started to rise fairly rapidly by then and my older brothers had bought in the 2 years previously and at the rate they were going up i was advised (and helped out) to buy.

Sorry, should have said "approx 10 years ago". 11 years, who cares.....

So you bought for IR£110K and are now selling for €200K.

Anyway, you say you were "helped out", ie Mummy or Daddy bought the house for you.

D3PO

RoverJames wrote: »

So you bought for IR£110K and are now selling for €200K.

Anyway, you say you were "helped out", ie Mummy or Daddy bought the house for you.

I dont believe anything hes said. He actually has shown how financial inept he is by comparing 200k as almost double 110 irish punts

earth to UFO 110K Irish Punts is almost 140k euro €139,700 to be precise.

he also showed how inept he is when he said these houses are selling for 200k. if they peaked at 350k odd they arent selling fro 200k might be asking it but not selling for it.

D3PO

D3PO wrote: »

I dont believe anything hes said. He actually has shown how financial inept he is by comparing 200k as almost double 110 irish punts..............

The bit where he compares other folk to 19 year olds who get "helped out" to buy houses I think shows him to be more than financially inept

U.P.O. wrote: »

...............The lads renting have 10 years of payments down now and nothing to show for it (if they had bought 10 years ago like me they wouldnt be in negative equity even now, so could sell up and walk away with a nice pot of money)................

U.P.O.

RoverJames wrote: »

So you bought for IR£110K and are now selling for €200K.

Anyway, you say you were "helped out", ie Mummy or Daddy bought the house for you.

No, €110 - never said 110 punts anywhere. Was comparing all prices in that post in the same currency - euros. ( it was £87 i think). Helped out as in a needed a co-signer. Paid it all myself with earnings and rent.

House sold in same estate few weeks ago for €195 and would be smaller than mine.

Pointless arguing. Short of me posting statments or whatever on here or posting personal information or documents theres nothing i can do.

Thats the story. Take if for what ye want. No skin off my nose !

benjydagg

Shamrock,
As you can see property can raise blood pressure. Best of luck with the mortgage and future purchase. Borrow as much as you can afford over as long as possible.
I borrowed from KBC for our house 7 years ago and find them very good.

U.P.O.

U.P.O. wrote: »

............. Paid it all myself with earnings and rent.

..........

Nice chunk might be due to the revenue so from the profit as it was rented out

benjydagg

RoverJames wrote: »

U.P.O. wrote: »

............. Paid it all myself with earnings and rent.

..........

Nice chunk might be due to the revenue so from the profit as it was rented out

The rent a room scheme was in operation in that era so ( I stand to be corrected) €7000 per year could be taken as tax free rent.

benjydagg

benjydagg wrote: »

The rent a room scheme was in operation in that era so ( I stand to be corrected) €7000 per year could be taken as tax free rent.

That's why I said might

shamrock55

benjydagg wrote: »

Shamrock,
As you can see property can raise blood pressure. Best of luck with the mortgage and future purchase. Borrow as much as you can afford over as long as possible.
I borrowed from KBC for our house 7 years ago and find them very good.

it sure can:D i think i might just walk in and see what i can squeeze out of my own bank first anyway who are KBC btw??

Mister Dread

UPO, I take your point that you are just giving a flip side but you need to be very careful about giving advice based on your experiences. I believe your story myself, the numbers add up and its an exceptional case. You bought at the cusp of one of the biggest property bubbles in the world. You experienced a decade of huge wage inflation and low interest rates. All of these things you had no control of so don't pretend you were some kind of savvy youth. You were basically pushed into it by your parents and they no doubt helped you out. Had you been born 5 years later you would have done the exact same thing and you'd be sitting here financially ruined thanks to your parents pressure.

Buying a house at your age was a stupid idea. Since I've turned 19 I've lived in different parts of the country, going college, different jobs. Spent some time living abroad, the sort of thing any young person who is building a career does. By buying at your age you are completely rooted to a single location and whatever job/educational opportunties are in your vincinity. Crazy stuff.

desertcircus

U.P.O. wrote: »

No, €110 - never said 110 punts anywhere. Was comparing all prices in that post in the same currency - euros. ( it was £87 i think). Helped out as in a needed a co-signer. Paid it all myself with earnings and rent.

House sold in same estate few weeks ago for €195 and would be smaller than mine.

Pointless arguing. Short of me posting statments or whatever on here or posting personal information or documents theres nothing i can do.

Thats the story. Take if for what ye want. No skin off my nose !

And it doesn't occur to you that you might not be representative of most people in paying what must have been at least fifteen thousand quid a year from the age of nineteen? If your story is true, it's spectacularly unrepresentative and a seriously bad example of how things are likely to work out, given that you appear to have bought right at the start of an eight-year bubble of low interest rates and sky-high rents. Anybody buying now is facing the near-guarantee of negative equity unless they're bringing in the region of 20% deposits, a collapsing housing market, virtually zero buyers if they need to sell up, and banks unwilling to lend in most cases. And as if none of that was enough, there's currently a banner across the top of Daft.ie declaring that asking prices fell sharply in the final three months of 2011.

Someone looking at buying now is not in the same situation as someone in 1999, and it's incredibly disingenuous to act as if they are.

bytheglass

lainey316 wrote: »

3.5x your salary + your savings - 10k (fees, furniture, life assurance, emergency money) is about the max you'll get.

Wow! Great calculation! This is exactly what AIB gave me when my application was finalised Dec 2010 (after initially offering 20k more 2 months earlier) be wary that what the bank 'say' theyll give you might be an over estimate by the time paperwork needs to be signed.
+1 for a mortgage broker, I couldn't manage the process without one

benjydagg

shamrock55 wrote: »

benjydagg wrote: »

Shamrock,
As you can see property can raise blood pressure. Best of luck with the mortgage and future purchase. Borrow as much as you can afford over as long as possible.
I borrowed from KBC for our house 7 years ago and find them very good.

it sure can:D i think i might just walk in and see what i can squeeze out of my own bank first anyway who are KBC btw??

KBC homeloans are a bank that only lend for house purchases. You may need to go through a broker, but go onto their site and have a look. With my mortgage for example I am overpaying it. But if I run into difficulties at some stage, I can draw back out the overpayment with no penalty.
Try explaining that to those Irish dinosaur banks. I have never met any KBC staff in person, all dealing is by email and phone. A Belgian bank.

benjydagg

shamrock55 wrote: »

benjydagg wrote: »

Shamrock,
As you can see property can raise blood pressure. Best of luck with the mortgage and future purchase. Borrow as much as you can afford over as long as possible.
I borrowed from KBC for our house 7 years ago and find them very good.

it sure can:D i think i might just walk in and see what i can squeeze out of my own bank first anyway who are KBC btw??

This might get you started..General Information/Terms and Conditions
KBC Bank Ireland plc is regulated by the Central Bank of Ireland
Lending criteria Terms and Conditions apply. Security and insurance are required. The maximum mortgage is 80% of the property value. As a general rule, loan amounts are subject to monthly repayments of up to a maximum of 50% of disposable income and will vary according to individual circumstances. A typical variable mortgage rate of €100,000 over 20 years costs €619 per month (APR (Annual Percentage Rate) 4.34%) excluding insurance. The cost of your monthly repayments may increase. A 1% rise will increase this repayment to €674 (APR (Annual Percentage Rate) 5.38%) excluding insurance. This is an increase of €55 per month. Rates quoted above are effective from 1st December 2011. Please contact KBC Bank Ireland to receive more information on charges which may apply to early repayment of fixed loans. For accurate real-time information and rates, please contact KBC directly for specific tailored information to meet your particular requirements. All information, prices and rates quoted in this Guide are for guidance only and do not form any part of a legal contract, agreement or understanding.

benjydagg

€180000 over 15 years.

Mortgage Type Base Rate APR Monthly Repayment
2 Year Fixed (Home Purchase Only) 4.75% 4.45% €1,400.10
3 Year Fixed (Home Purchase Only) 5.10% 4.61% €1,432.82
2 Year Discounted Variable <80% (Home Purchase) 3.75% 4.22% €1,309.00
Standard Variable 4.25% 4.34% €1,354.10
2 Year Fixed (Remortgage) 4.95% 4.49% €1,418.74
3 Year Fixed (Remortgage) 5.45% 4.73% €1,465.98