Buying a house 2012

The Irish Riddler

I haven't had a loan for the previous 3 years. I was thinking that as my credit report only goes back 5 years that in 2 years time I will have a clean slate on the credit report and can apply to banks other than the banks I had the previous loans with.

Of course at that stage I will be self employed with a blank credit report which is seemingly nowhere near as attractive as a civil servant earning half as much who paid off the credit card on time every month for the last 3 years?

Any tricks to improve my position when I do apply. For example I can show a very good track record of saving over the previous 3 years and will have 2 more by the time I apply.

Would it be beneficial for me to apply for a small loan now for a 12-18 month period and have that appear on the credit report as being paid back in full and on time?

The Irish Riddler

Is it possible to obtain the criteria/scoring system used by Irish banks when evaluating someone for a mortgage or loan?

folan

Hi guys.

Just looking for some advise on types of questions to ask on a house im viewing later.

its a specific case, but its kinda odd imo.

the house went online about a month and a half ago, while I was on holidays. its in a great area and (depending on the inside but taking other houses in the area into account) at a good price.

However, when it was up last time, it was online for just over the week at which stage it went to sale agreed when i tried to view it. now its gone back online since last week and i was on the ball this time.

a bit of googling and Ive found the house was also on sale abouot 16 months ago and also went to sale agreed.

someting seems a bit iffy about this to me. im wondering if the seller is changing their mind or pushing for more money after sale agreed, or if its been sale agreed those times but the buyers werent able to raise the proper finance?

what should I be asking for this?

killers1

folan wrote: »

Hi guys.

Just looking for some advise on types of questions to ask on a house im viewing later.

its a specific case, but its kinda odd imo.

the house went online about a month and a half ago, while I was on holidays. its in a great area and (depending on the inside but taking other houses in the area into account) at a good price.

However, when it was up last time, it was online for just over the week at which stage it went to sale agreed when i tried to view it. now its gone back online since last week and i was on the ball this time.

a bit of googling and Ive found the house was also on sale abouot 16 months ago and also went to sale agreed.

someting seems a bit iffy about this to me. im wondering if the seller is changing their mind or pushing for more money after sale agreed, or if its been sale agreed those times but the buyers werent able to raise the proper finance?

what should I be asking for this?

Ask the EA why the sales kept falling through. It'll either be the purchaser couldn't get mortgage approval, there is a problem with the contracts/title or a structural survey issue... If it's the first one you may be lucky as the vendor has had 2 sales fall through already they may be willing to do a quick deal at a good price.

killers1

The Irish Riddler wrote: »

I haven't had a loan for the previous 3 years. I was thinking that as my credit report only goes back 5 years that in 2 years time I will have a clean slate on the credit report and can apply to banks other than the banks I had the previous loans with.

Of course at that stage I will be self employed with a blank credit report which is seemingly nowhere near as attractive as a civil servant earning half as much who paid off the credit card on time every month for the last 3 years?

Any tricks to improve my position when I do apply. For example I can show a very good track record of saving over the previous 3 years and will have 2 more by the time I apply.

Would it be beneficial for me to apply for a small loan now for a 12-18 month period and have that appear on the credit report as being paid back in full and on time?

The fact that you are self employed won't go against you so long as you can show a consistent income level for the past few years when you do apply. It doesn't matter that you haven't had a loan since. I would advise save as much as you can consistently every month for the nexxt year or two until you are ready to apply and at that stage I can't see you having any issues with approval. In relation to getting a copy of the credit scoring, it's usually applied to personal lending. Mortgage criteria is different as it is based on a clean history, income & ability to repay.

folan

killers1 wrote: »

Ask the EA why the sales kept falling through. It'll either be the purchaser couldn't get mortgage approval, there is a problem with the contracts/title or a structural survey issue... If it's the first one you may be lucky as the vendor has had 2 sales fall through already they may be willing to do a quick deal at a good price.

thanks, im hoping the same myself, and am pretty afraid of the other 2. I cant think of any other particular reasons a house would go back to market 3 times in one year.

killers1

folan wrote: »

thanks, im hoping the same myself, and am pretty afraid of the other 2. I cant think of any other particular reasons a house would go back to market 3 times in one year.

The only other reason would be an indecisive seller who can't make up their mind whether they want to move or not!!!

heltipp

hi all new to this and just looking for some opinions and advice. myself and my partner are ftb and just waiting on a answer from bank about our mortgage application. i am in a heap worrying about it. here is our situation:
i am a public servant earning 32000 a year. my partner earns 48000 with 8000 car allowance and 4000 bonus. we both have credit union loans paying off 400 a month each. i have credit card with 700 balance. we are payinh 750 a month rent and saving 800 a month with 12000 saved. house id 90000 and we are looking for 25000 for renovations. bank have been.very postive so far and we have passed stress test and affordability etc. only prob is after doing a icb check i pop up. its on it since 2007 so nearly five years it was for a 500 euro credit card that payments were missed while i was in oz. paid in full since and cancelled. told bank all this and explanstion was put in with application. Do ye think this will be a prob?

killers1

heltipp wrote: »

hi all new to this and just looking for some opinions and advice. myself and my partner are ftb and just waiting on a answer from bank about our mortgage application. i am in a heap worrying about it. here is our situation:
i am a public servant earning 32000 a year. my partner earns 48000 with 8000 car allowance and 4000 bonus. we both have credit union loans paying off 400 a month each. i have credit card with 700 balance. we are payinh 750 a month rent and saving 800 a month with 12000 saved. house id 90000 and we are looking for 25000 for renovations. bank have been.very postive so far and we have passed stress test and affordability etc. only prob is after doing a icb check i pop up. its on it since 2007 so nearly five years it was for a 500 euro credit card that payments were missed while i was in oz. paid in full since and cancelled. told bank all this and explanstion was put in with application. Do ye think this will be a prob?

I think you'll be ok, you've given them a reasonable explanation, it was in 2007 and you have more than a proven repayment capacity & income level for the mortgage amount. You'll be fine.

heltipp

killers1 wrote: »

heltipp wrote: »

hi all new to this and just looking for some opinions and advice. myself and my partner are ftb and just waiting on a answer from bank about our mortgage application. i am in a heap worrying about it. here is our situation:
i am a public servant earning 32000 a year. my partner earns 48000 with 8000 car allowance and 4000 bonus. we both have credit union loans paying off 400 a month each. i have credit card with 700 balance. we are payinh 750 a month rent and saving 800 a month with 12000 saved. house id 90000 and we are looking for 25000 for renovations. bank have been.very postive so far and we have passed stress test and affordability etc. only prob is after doing a icb check i pop up. its on it since 2007 so nearly five years it was for a 500 euro credit card that payments were missed while i was in oz. paid in full since and cancelled. told bank all this and explanstion was put in with application. Do ye think this will be a prob?

I think you'll be ok, you've given them a reasonable explanation, it was in 2007 and you have more than a proven repayment capacity & income level for the mortgage amount. You'll be fine.

Thank you even for someone to say this helps. I cant sleep thinking about it. We should have an answer by tommorrow hense my being so uptight. Its with ulster bank anyone have dealings with them

heltipp

heltipp wrote: »

killers1 wrote: »

heltipp wrote: »

hi all new to this and just looking for some opinions and advice. myself and my partner are ftb and just waiting on a answer from bank about our mortgage application. i am in a heap worrying about it. here is our situation:
i am a public servant earning 32000 a year. my partner earns 48000 with 8000 car allowance and 4000 bonus. we both have credit union loans paying off 400 a month each. i have credit card with 700 balance. we are payinh 750 a month rent and saving 800 a month with 12000 saved. house id 90000 and we are looking for 25000 for renovations. bank have been.very postive so far and we have passed stress test and affordability etc. only prob is after doing a icb check i pop up. its on it since 2007 so nearly five years it was for a 500 euro credit card that payments were missed while i was in oz. paid in full since and cancelled. told bank all this and explanstion was put in with application. Do ye think this will be a prob?

I think you'll be ok, you've given them a reasonable explanation, it was in 2007 and you have more than a proven repayment capacity & income level for the mortgage amount. You'll be fine.

Thank you even for someone to say this helps. I cant sleep thinking about it. We should have an answer by tommorrow hense my being so uptight. Its with ulster bank anyone have dealings with them

I am pleased to say we got word today that our mortgage was approved.

The valuation is next...whats after that?

Felexicon

heltipp wrote: »

I am pleased to say we got word today that our mortgage was approved.

The valuation is next...whats after that?

Congratulations!!!!!!!!!!!
Not sure whats next as I haven't got that far yet

ted1

you need to sort out your life assurance. do this befroe you sign your contract.

fitzachery

Hi all, This is my first post so I'm hoping it's in the correct forum;

I'm looking for some advice/guidence on selling my house and buying another. I have decided to sell my house first as I don't want the stress of trying to do both at the same time. My question is; I have 40,000 left to pay on my current home and am hoping to buy a smaller house that needs work for between 120,000 and 150,000. I am guessing I will need the other 50.000 to renovate the new smaller house. If I sell my house for 200,000 do I have to clear the mortgage on my own house and apply for another mortgage for the renovation (which I'm not sure I'll get because the banks are not lending) I bought this house a number of years ago so I'm not familiar with the ins and outs of selling and buying or mortgages. All tips and advice appreciated;

Thanks in advance.

Bigcheeze

fitzachery wrote: »

Hi all, This is my first post so I'm hoping it's in the correct forum;

I'm looking for some advice/guidence on selling my house and buying another. I have decided to sell my house first as I don't want the stress of trying to do both at the same time. My question is; I have 40,000 left to pay on my current home and am hoping to buy a smaller house that needs work for between 120,000 and 150,000. I am guessing I will need the other 50.000 to renovate the new smaller house. If I sell my house for 200,000 do I have to clear the mortgage on my own house and apply for another mortgage for the renovation (which I'm not sure I'll get because the banks are not lending) I bought this house a number of years ago so I'm not familiar with the ins and outs of selling and buying or mortgages. All tips and advice appreciated;

Thanks in advance.

Yes in order to sell your house the existing mortgage must be cleared.

The banks are lending, but they're more selective about it. "The banks aren't lending" is generally something trotted out by people in the pub.

A 50k mortgage on a 150k house is nothing really. As long as you have a job and clean credit history, you'll get it.

Katieee

Can the deposit for your mortgage be a loan from your Credit Union? Both my OH and myself have good jobs, but we are only starting out and this offer is too good to pass up

fitzachery

Bigcheeze wrote: »

Yes in order to sell your house the existing mortgage must be cleared.

The banks are lending, but they're more selective about it. "The banks aren't lending" is generally something trotted out by people in the pub.

A 50k mortgage on a 150k house is nothing really. As long as you have a job and clean credit history, you'll get it.

Thanks Bigcheeze,

Yes, that's what I thought, I'm just starting out on this journey so I'd like to gather all the information I can. I'm in "secure" employment (semi State) and have never missed a mortgage payment in 18yrs so hopefully that will all count for something.

I am presuming of course that a mortgage has the lowest level of interest applied so would be the best option for me.


Thanks again;

killers1

heltipp wrote: »

heltipp wrote: »

killers1 wrote: »

heltipp wrote: »

hi all new to this and just looking for some opinions and advice. myself and my partner are ftb and just waiting on a answer from bank about our mortgage application. i am in a heap worrying about it. here is our situation:
i am a public servant earning 32000 a year. my partner earns 48000 with 8000 car allowance and 4000 bonus. we both have credit union loans paying off 400 a month each. i have credit card with 700 balance. we are payinh 750 a month rent and saving 800 a month with 12000 saved. house id 90000 and we are looking for 25000 for renovations. bank have been.very postive so far and we have passed stress test and affordability etc. only prob is after doing a icb check i pop up. its on it since 2007 so nearly five years it was for a 500 euro credit card that payments were missed while i was in oz. paid in full since and cancelled. told bank all this and explanstion was put in with application. Do ye think this will be a prob?

I think you'll be ok, you've given them a reasonable explanation, it was in 2007 and you have more than a proven repayment capacity & income level for the mortgage amount. You'll be fine.

Thank you even for someone to say this helps. I cant sleep thinking about it. We should have an answer by tommorrow hense my being so uptight. Its with ulster bank anyone have dealings with them

I am pleased to say we got word today that our mortgage was approved.

The valuation is next...whats after that?

Well done, glad they saw sense!

Valuation
Get your life cover underwritten & accepted.
Once your solicitor receives contracts and they are in order have the survey carried out. Once accepted for life cover and survey in order, sign contracts, pay contract deposit. Sort out home ins, sign DD mandate for your lender. Solicitor sends legal docs to bank and closing date is agreed. Funds exchanged for vacant possession of the property & keys. Move in. Live happily ever after......:)

killers1

Katieee wrote: »

Can the deposit for your mortgage be a loan from your Credit Union? Both my OH and myself have good jobs, but we are only starting out and this offer is too good to pass up

Depends whether you have any savings of your own to put towards the purchase. if you've little or no savings, have you proven you can afford the mortgage repayments +2%.? Banks probably won't want to see you borrowing from the CU for the deposit but may be willing to lend to you if deposit is by way of family gift... It'll depend on what you can prove you can afford by way of your existing rent/savings/loans not continuing after drawdown

killers1

Bigcheeze wrote: »

fitzachery wrote: »

Hi all, This is my first post so I'm hoping it's in the correct forum;

I'm looking for some advice/guidence on selling my house and buying another. I have decided to sell my house first as I don't want the stress of trying to do both at the same time. My question is; I have 40,000 left to pay on my current home and am hoping to buy a smaller house that needs work for between 120,000 and 150,000. I am guessing I will need the other 50.000 to renovate the new smaller house. If I sell my house for 200,000 do I have to clear the mortgage on my own house and apply for another mortgage for the renovation (which I'm not sure I'll get because the banks are not lending) I bought this house a number of years ago so I'm not familiar with the ins and outs of selling and buying or mortgages. All tips and advice appreciated;

Thanks in advance.

Yes in order to sell your house the existing mortgage must be cleared.

The banks are lending, but they're more selective about it. "The banks aren't lending" is generally something trotted out by people in the pub.

A 50k mortgage on a 150k house is nothing really. As long as you have a job and clean credit history, you'll get it.

+1 to this, you'll be fine. You've been paying a similar mortgage amount for 18 yrs with an unblemished record... So long as your not in your 60's and earn less than 10k per annum you'll be fine!

killers1

[quote} Its with ulster bank anyone have dealings with them[/Quote]

You'd be mad to take this Mortgage with Ulster Bank. They have some of the most expensive rates on the Market. Your application is very straightforward and all banks will approve you for the amount you need. Save yourself a lot of money and shop around...

Mr. Loverman

Katieee wrote: »

Can the deposit for your mortgage be a loan from your Credit Union?

Nearly impossible at the moment. The banks want to see you have a history of saving and living within your means.

Katieee wrote: »

Both my OH and myself have good jobs, but we are only starting out and this offer is too good to pass up

It's starting again... :mad:

desertcircus

Katieee wrote: »

Can the deposit for your mortgage be a loan from your Credit Union? Both my OH and myself have good jobs, but we are only starting out and this offer is too good to pass up

I don't want to sound negative, but there's no avoiding it: it's not too good to pass up. Nothing short of a four-bed house in Killiney with an A-rated BER and a complete renovation just finished going on sale for 200k is too good to pass up. Why on earth would it be a good idea to borrow 100% of the cost of something that's expected to lose at least 10% of its value in the next year?

beertons

If you've to borrow the deposit, you are putting too much pressure on yourself. How much of a deposit do you need to borrow? 40k?

sillyruby

Currently sale agreed on a house, had structural survey done and any work that needed to be done has been done. Problem is we have just had the valuation done and its a good bit lower than the sale agreed price we are now really worried. Has anyone any advice?

killers1

sillyruby wrote: »

Currently sale agreed on a house, had structural survey done and any work that needed to be done has been done. Problem is we have just had the valuation done and its a good bit lower than the sale agreed price we are now really worried. Has anyone any advice?

Instead of being worried you should be happy the Valuer has saved you from overpaying for the property! Contact the estate agent and ask them to send a copy of the banks valuation report to the vendors. Ask the EA/owner to contact the Valuer directly to discuss the valuation report. The Valuer will be able to explain his rationale behind the figure. The seller then has a choice to either reduce the sale price to match the valuation or if they refuse to, then you should walk away.

sillyruby

thanks killers really duno if they will lower it as we already have gone sale agreed approx. 40k under the asking price we would be asking for that again off it

the groutch

Katieee wrote: »

Can the deposit for your mortgage be a loan from your Credit Union? Both my OH and myself have good jobs, but we are only starting out and this offer is too good to pass up

unlikely, as the repayments will be seen as another outgoing, and will reduce the amount the bank is prepared to loan you

heltipp

killers1 wrote: »

[quote} Its with ulster bank anyone have dealings with them

You'd be mad to take this Mortgage with Ulster Bank. They have some of the most expensive rates on the Market. Your application is very straightforward and all banks will approve you for the amount you need. Save yourself a lot of money and shop around...[/Quote]


Oh god was worried you would say that. Not sure i can go through process again. If i was too is it ok to ask ulster bank for all our documents back? Also which bank would you recommend?

Felexicon

heltipp wrote: »

You'd be mad to take this Mortgage with Ulster Bank. They have some of the most expensive rates on the Market. Your application is very straightforward and all banks will approve you for the amount you need. Save yourself a lot of money and shop around...

Oh god was worried you would say that. Not sure i can go through process again. If i was too is it ok to ask ulster bank for all our documents back? Also which bank would you recommend?[/QUOTE]
We went through a broker and he advised that AIB have the best rates at the moment. It took about 2 weeks for the approval to go through. H e did recommend not going with Ulster bank