Buying a house 2012

killers1

dublin8681 wrote: »

Quick question ..... I am planning on buying a new build.... have been told obviously need the valuation done and the snag list would anyone recommend getting a structural survey done aswell or is it needed considering the other two are been done?

A good surveyor will do the structural survey & snag list combined in 1 report for you..

2Cents

Heya, fantastically informative thread you've got here. Myself and my boyfriend are in the process of applying for a mortgage and there are a few little hitches presenting themselves that I'd like to gain some clarity on.
Himself is on a decent wage of around €75,000 plus about €20,000 per year in shares. Permanent, full time and on the up.
I'm working for a public body €29000 a year, 6 month rolling contracts (due to the embargo) but with written assurance of being kept for the forseeable future.
Between us we have savings of €26000 plus a gift of €8000 from my parents who have drawn up a letter of gift. The decision to buy was quite recent so we are accumulating savings at a rate of €900 per month at the moment. We are also paying €450 each in rent and have been for 5 years.
When we started this process I wasn't putting myself in for consideration due to my less than desirable (from a bank POV) situation. Our broker encouraged me to ask for the written assurance mentioned above and my boss gave it to me straight away. Since then I've been gathering my docs and I'm just waiting on my bank statements to arrive by post and HR to sign my salary cert.
The property we want is asking around 335,000 and has been on the market 2 years. According to the EA another interested party bid 300,000 shortly after we came on the scene and was turned down after some consideration. Since then there has been no movement apparently. I've been advised that this is a little suspect and perhaps this was never offered. Is that a likely move for an EA to make?
Secondly our broker came back to us yesterday and said one institution ( I think they said it was ICS ) came back with an offer of 270,000. That is based on Himself's wage, they won't take me in to account, but I'd still be named as co-owner. They still have to apply to AIB and PTSB and they'll see what else we can get. I have a few Qs about this.
1. Is it worth me losing my FTB status for any future buys when my wage isn't even being considered. Would its not be better to just have it in his name and have a letter of trust drawn up?
2. Would my salary cert and bank statements be likely to sway then at all in my favour or is my employment situation just a no-go, Will any bank be likely to take my contribution in to account?
3. The amount seems low given my boyfriends wage and share portfolio, no?

Thanks, I'm very grateful for any advice I can get.

guinnessfan

Hi All,

Silly Question..but one I need help with!

Just looking at online Mortgage Protection quotes. Can anyone advise what the 'mortgage value' is? Is it the amount you borrow from bank with or without the interest you pay added on

Thank you!

quarryman

The amount you borrow.

guinnessfan

quarryman wrote: »

The amount you borrow.

Thank you!

DrBass

2Cents wrote: »

Heya, fantastically informative thread you've got here. Myself and my boyfriend are in the process of applying for a mortgage and there are a few little hitches presenting themselves that I'd like to gain some clarity on.
Himself is on a decent wage of around €75,000 plus about €20,000 per year in shares. Permanent, full time and on the up.
I'm working for a public body €29000 a year, 6 month rolling contracts (due to the embargo) but with written assurance of being kept for the forseeable future.
Between us we have savings of €26000 plus a gift of €8000 from my parents who have drawn up a letter of gift. The decision to buy was quite recent so we are accumulating savings at a rate of €900 per month at the moment. We are also paying €450 each in rent and have been for 5 years.
When we started this process I wasn't putting myself in for consideration due to my less than desirable (from a bank POV) situation. Our broker encouraged me to ask for the written assurance mentioned above and my boss gave it to me straight away. Since then I've been gathering my docs and I'm just waiting on my bank statements to arrive by post and HR to sign my salary cert.
The property we want is asking around 335,000 and has been on the market 2 years. According to the EA another interested party bid 300,000 shortly after we came on the scene and was turned down after some consideration. Since then there has been no movement apparently. I've been advised that this is a little suspect and perhaps this was never offered. Is that a likely move for an EA to make?
Secondly our broker came back to us yesterday and said one institution ( I think they said it was ICS ) came back with an offer of 270,000. That is based on Himself's wage, they won't take me in to account, but I'd still be named as co-owner. They still have to apply to AIB and PTSB and they'll see what else we can get. I have a few Qs about this.
1. Is it worth me losing my FTB status for any future buys when my wage isn't even being considered. Would its not be better to just have it in his name and have a letter of trust drawn up?
2. Would my salary cert and bank statements be likely to sway then at all in my favour or is my employment situation just a no-go, Will any bank be likely to take my contribution in to account?
3. The amount seems low given my boyfriends wage and share portfolio, no?

Thanks, I'm very grateful for any advice I can get.

Seems like you are very close to what you are looking for, BOI calculator works out a loan value @ 375k based on your partners gross wage. Maybe worth speaking with them directly.

Your employment is a no-go as you said, i'm afraid - they like you to be of permanent employment at the same location for at least a few years.

I think it would improve your chances of getting a mortgage if your name is on it as well.

Im pretty sure that shares will not have much weight in the application, same as bonuses and OT as they are not guaranteed - unless he cashes out the shares as hard cash.

You don't mention if ye have any outstanding debts as it would be advised to have them cleared.

By the way, it seems odd about the EA, but for eg, we viewed a house that was on the market (overpriced tho) for a few years, went to view it - loved it - no offers on it - EA called a few days later, said that somebody had put in an offer - went sale agreed a few weeks later - so I guess you can never really tell

killers1

2Cents wrote: »

Heya, fantastically informative thread you've got here. Myself and my boyfriend are in the process of applying for a mortgage and there are a few little hitches presenting themselves that I'd like to gain some clarity on.
Himself is on a decent wage of around €75,000 plus about €20,000 per year in shares. Permanent, full time and on the up.
I'm working for a public body €29000 a year, 6 month rolling contracts (due to the embargo) but with written assurance of being kept for the forseeable future.
Between us we have savings of €26000 plus a gift of €8000 from my parents who have drawn up a letter of gift. The decision to buy was quite recent so we are accumulating savings at a rate of €900 per month at the moment. We are also paying €450 each in rent and have been for 5 years.
When we started this process I wasn't putting myself in for consideration due to my less than desirable (from a bank POV) situation. Our broker encouraged me to ask for the written assurance mentioned above and my boss gave it to me straight away. Since then I've been gathering my docs and I'm just waiting on my bank statements to arrive by post and HR to sign my salary cert.
The property we want is asking around 335,000 and has been on the market 2 years. According to the EA another interested party bid 300,000 shortly after we came on the scene and was turned down after some consideration. Since then there has been no movement apparently. I've been advised that this is a little suspect and perhaps this was never offered. Is that a likely move for an EA to make?
Secondly our broker came back to us yesterday and said one institution ( I think they said it was ICS ) came back with an offer of 270,000. That is based on Himself's wage, they won't take me in to account, but I'd still be named as co-owner. They still have to apply to AIB and PTSB and they'll see what else we can get. I have a few Qs about this.
1. Is it worth me losing my FTB status for any future buys when my wage isn't even being considered. Would its not be better to just have it in his name and have a letter of trust drawn up?
2. Would my salary cert and bank statements be likely to sway then at all in my favour or is my employment situation just a no-go, Will any bank be likely to take my contribution in to account?
3. The amount seems low given my boyfriends wage and share portfolio, no?

Thanks, I'm very grateful for any advice I can get.

What ages are you both? Do you have any kids? Do you have any existing short term debt? Is our savings of €26k held in yours or your partners name or jointly? Who contributes to the savings on a monthly basis? If you both do how much each do you contribute? How long have you been saving €900pm. With the answers to the above I'll be in a better position to explain your situation...

2Cents

killers1 wrote: »

What ages are you both? Do you have any kids? Do you have any existing short term debt? Is our savings of €26k held in yours or your partners name or jointly? Who contributes to the savings on a monthly basis? If you both do how much each do you contribute? How long have you been saving €900pm. With the answers to the above I'll be in a better position to explain your situation...

Thanks so much for your answers guys.

The saving breaks down as 19k from boyfriend and 7k from me. The accounts are separate.
We have no loans, he has a credit card but keeps it totally paid off.
We've only been saving this amount for about 3 months he saves €500 a month and I save €100 per week so between 400 and 500 per month. I'm 27 and he's 29, no kids or dependents.

We're only wanting maybe 5 to 10k more but really can't go forward without that. At least not on this property and we're pretty set on this one.

killers1

2Cents wrote: »

Thanks so much for your answers guys.

The saving breaks down as 19k from boyfriend and 7k from me. The accounts are separate.
We have no loans, he has a credit card but keeps it totally paid off.
We've only been saving this amount for about 3 months he saves €500 a month and I save €100 per week so between 400 and 500 per month. I'm 27 and he's 29, no kids or dependents.

We're only wanting maybe 5 to 10k more but really can't go forward without that. At least not on this property and we're pretty set on this one.

You are facing a common problem with joint applications where one party is employed on a contract basis. Irrespective of your income the bank (ICS) in this case won' t factor in any of your income. They are only taking your partners €75k into account (ignoring his shares) and when they put the figures into their calc they are coming up with a figure of €270k. This is because they are factoring in that his income needs to be able to repay the stressed mortgage repayment and secondly support your living expenses as they take a worst case scenario view on contract employees and are assuming your contract will be terminated. If he was to apply on his own with them his salary would be more than sufficient to qualify for in excess of €375k BUT there is a second issue in this scenario. If the bank assess the application based on your partner solely they cannot factor any contribution you make to savings or rental payments as evidence that he has the capacity to service a mortgage of the amount you are looking for. If you are looking for €300k and the stressed repayments are circa €1,700 this is what he needs to be able to show he can afford by way of HIS rent payments and contributions to his savings a/c on a monthly basis. AIB's calculator is a little more generous and if you process and application in joint names, even allowing no income for you, they may be willing to lend up to €335k. Again this is just the first part of the calculation and the most important part is the 'proving affordability'. As I said the stressed repayments amount to circa €1700pm. You are saving & paying rent totalling approx €1,800 which proves you can afford €1,700. The problem you have is that you are only doing this for 3 months whereas they will be looking to see this over a six month period at the very least... Did either of you have any personal loans that were repaid in the past 6 months? If so, that old repayment could be used towards proving affordability. I would suggest holding off on your AIB application till Oct, lodge as much as possible to your savings accounts in each of the next 2 months (this will bring up the average amount lodged to savings over a 6 month period) and you will have a very good chance of getting the amount you need if presented correctly.

left_behind

Long time follower of this thread and it has been great. Looking for some advice. Myself and my fiancé have been looking into buying a house but have never really gotten serious especially since shes not permanent but it turns out she will be made permanent at the end of the month.

Her father has found a property close enough to where we wanted unfinished 4 bedroom for 40,000. He is a builder and reckons he can finish it for 100,000. We have 95,000 between savings and a gift. What options do we have for mortgage. Or any advice from anyone who did anything similar.

sunlight1

Hi
My boyfriend ( 35 ) and myself ( 29 ) put an offer on a house that we loved and close to work and family. We both in full time work in same company and he is earning 35,000 a year and i am on 25,000 a year. Workes out about 3,600 net a month. Both have no loans and i just had last payment on car loan last December. I have 1 credit card with limit of 1,000. We pay rent of 440 a month cash as we get payed cash every week and save 400 a week in credit union. Do we have a chance of getting a mortgage of 110,000 ?? . House is valued at 140,000 . have savings of 11,000 and gift of 10,000 from parents makes 21,000. I Dont want to get my hopes up if we cant get it.

L1011

sunlight1 wrote: »

Hi
My boyfriend ( 35 ) and myself ( 29 ) put an offer on a house that we loved and close to work and family. We both in full time work in same company and he is earning 35,000 a year and i am on 25,000 a year. Workes out about 3,600 net a month. Both have no loans and i just had last payment on car loan last December. I have 1 credit card with limit of 1,000. We pay rent of 440 a month cash as we get payed cash every week and save 400 a week in credit union. Do we have a chance of getting a mortgage of 110,000 ?? . House is valued at 140,000 . have savings of 11,000 and gift of 10,000 from parents makes 21,000. I Dont want to get my hopes up if we cant get it.

Probably. A 110k mortgage will be about 700/month repayment and you're already paying rent + savings that amount to more than that. You could possibly even get it on your boyfriends salary alone going on the kind of multiples that seem to be being offered.

Is your offer enough below 140 to let you get it on 110+21? Remember you'll need to pay stamp duty (1%) and legal fees (probably 1500 or so all in) as well.

I would ask your landlord for some proof of the rent payments as the bank won't see cash going out on your statements (well, they will but they won't know what for!), and you'll also need a letter stating the gift isn't repayable/reclaimable etc I imagine.

killers1

sunlight1 wrote: »

Hi
My boyfriend ( 35 ) and myself ( 29 ) put an offer on a house that we loved and close to work and family. We both in full time work in same company and he is earning 35,000 a year and i am on 25,000 a year. Workes out about 3,600 net a month. Both have no loans and i just had last payment on car loan last December. I have 1 credit card with limit of 1,000. We pay rent of 440 a month cash as we get payed cash every week and save 400 a week in credit union. Do we have a chance of getting a mortgage of 110,000 ?? . House is valued at 140,000 . have savings of 11,000 and gift of 10,000 from parents makes 21,000. I Dont want to get my hopes up if we cant get it.

Sounds very straightforward to be honest. Ask your landlord for a rent book or receipts for rent you have paid and you should have no problem. Salaries are more than sufficient and you can prove affordability via savings & rent (if you can get some documentary evidence)

killers1

left_behind wrote: »

Long time follower of this thread and it has been great. Looking for some advice. Myself and my fiancé have been looking into buying a house but have never really gotten serious especially since shes not permanent but it turns out she will be made permanent at the end of the month.

Her father has found a property close enough to where we wanted unfinished 4 bedroom for 40,000. He is a builder and reckons he can finish it for 100,000. We have 95,000 between savings and a gift. What options do we have for mortgage. Or any advice from anyone who did anything similar.

Sounds like a no-brainer so long as you are paying enough into savings or rent each month to prove you can afford the stressed mortgage repayments. Your best bet is to have plans/costings done up to complete the house to submit to the lenders with your application.

sunlight1

MYOB wrote: »

Probably. A 110k mortgage will be about 700/month repayment and you're already paying rent + savings that amount to more than that. You could possibly even get it on your boyfriends salary alone going on the kind of multiples that seem to be being offered.

Is your offer enough below 140 to let you get it on 110+21? Remember you'll need to pay stamp duty (1%) and legal fees (probably 1500 or so all in) as well.

I would ask your landlord for some proof of the rent payments as the bank won't see cash going out on your statements (well, they will but they won't know what for!), and you'll also need a letter stating the gift isn't repayable/reclaimable etc I imagine.

Have letter from parents that the 10,000 is a gift not a loan and letter from landlord that payments are cash monthly and never missed.

The 110,000 + the 8% cause looking at Aib which is 92 % mortgage which is around 8,800 so have loads of savings i think. Total for house agreed is 118,800 .
But are banks lending to the people like us who work hard and get paid cash and not through the bank. ? ?

killers1

sunlight1 wrote: »

Have letter from parents that the 10,000 is a gift not a loan and letter from landlord that payments are cash monthly and never missed.

The 110,000 + the 8% cause looking at Aib which is 92 % mortgage which is around 8,800 so have loads of savings i think. Total for house agreed is 118,800 .
But are banks lending to the people like us who work hard and get paid cash and not through the bank. ? ?

Being paid in cash is not a problem IF you have payslips and P60's to back up the figures and prove you are paying tax. All you'd need is a letter from your employer in addition to the payslips, salary certs & P60's to confirm the method of payment is by cash.

sunlight1

killers1 wrote: »

Being paid in cash is not a problem IF you have payslips and P60's to back up the figures and prove you are paying tax. All you'd need is a letter from your employer in addition to the payslips, salary certs & P60's to confirm the method of payment is by cash.

Thats perfect we have all that.
Thank you. We were not planning on buying a house till next year but this house just up the road were we rent and work is a lovely place and dont want to miss it .

2Cents

Thanks for your answer Killers1. Helps to have the issues clarified a bit. Have a meeting with Broker tmrw, hopefully more some better news on the horizon

Felexicon

Contracts have been signed by the vendors.
Closing date this day 2 weeks!!!!!!!!!

efb

Just waiting for the vendors to release docs... Tick tock...

Linoge

Hi all,

Can anyone recommend a good mortgage broker in Dublin city centre/ D2/4 area? Is it still worthwhile using a broker?

Thank you

mel.b

Linoge wrote: »

Hi all,

Can anyone recommend a good mortgage broker in Dublin city centre/ D2/4 area? Is it still worthwhile using a broker?

Thank you

While i haven't used Killers1 (yet!) from this thread he has been incredibly helpful in the correspondance i have had with him

Felexicon

Linoge wrote: »

Hi all,

Can anyone recommend a good mortgage broker in Dublin city centre/ D2/4 area? Is it still worthwhile using a broker?

Thank you

Yes, yes and yes. Our broker has been a life saver.
As above, Killers definitely knows his stuff as you can clearly see from the thread.
I used a company called Chrome Capital and our broker is a real gent. They're based in city centre. Pm me if you want an email address to contact them

Funnyonion79

Quick question Killers - we moved in (finally) over the weekend and got a letter already from ICS (BOI) saying that our variable interest rate will be 4.5% however our loan offer said the rate would be 4.05%. I know there was a rate increase but surely our original loan offer rate stands once we drawdown the mortgage within 3 months from the date of issue (which we have)...?

What do you think? A mistake? Or are they chancing their arm? Or can they change the rate? Thanks!!

Funnyonion79

Funnyonion79 wrote: »

Quick question Killers - we moved in (finally) over the weekend and got a letter already from ICS (BOI) saying that our variable interest rate will be 4.5% however our loan offer said the rate would be 4.05%. I know there was a rate increase but surely our original loan offer rate stands once we drawdown the mortgage within 3 months from the date of issue (which we have)...?

What do you think? A mistake? Or are they chancing their arm? Or can they change the rate? Thanks!!

Sorry ignore me - of course they can do this!!! I'm on a variable rate!!! Duh!

Moving has affected my brain lol

twentysomething

Hi,
I have a couple of questions!
Myself and my husband are looking to buy in the near future.
I work in the public sector earning 27,000 he is in the private sector earning 54,000.
We pay rent of 850 and save 1000 every month. I have a loan with about 2 years left on it, paying 260 a month and we both have credit cards etc. No dependants yet!
We recently got married and used savings for this, so it will be next year before we have our deposit ready, but oh has savings we could use if necessary.
My main question really is, due to my husbands age (he is 42) what would we be likely to be approved for in terms of amount/length of mortgage and would we be better off going trough a broker and if so, what would this entail?

killers1

Funnyonion79 wrote: »

Sorry ignore me - of course they can do this!!! I'm on a variable rate!!! Duh!

Moving has affected my brain lol

I was beginning to worry about you there for a second....! I hope the move is going well!

killers1

twentysomething wrote: »

Hi,
I have a couple of questions!
Myself and my husband are looking to buy in the near future.
I work in the public sector earning 27,000 he is in the private sector earning 54,000.
We pay rent of 850 and save 1000 every month. I have a loan with about 2 years left on it, paying 260 a month and we both have credit cards etc. No dependants yet!
We recently got married and used savings for this, so it will be next year before we have our deposit ready, but oh has savings we could use if necessary.
My main question really is, due to my husbands age (he is 42) what would we be likely to be approved for in terms of amount/length of mortgage and would we be better off going trough a broker and if so, what would this entail?

You'd get a 23 or 28 yr term depending on the lender. Your incomes would qualify you to borrow circa €380k but based on savings/rent & loan repayment (if you could clear o/s amount) you're showing an ability to service a mortgage of circa €310k. Using a broker entails gathering up the relevant documentation and meeting up with the broker who will explain the whole process to you.

sparrowcar

Tipping along nicely now...

Sale agreed 2 weeks ago. Solicitor in place.
Approval from both BOI and AIB, going with AIB at 92% for financial reasons only. Bank valuation done and papers sent back to bank.

Going to see the house this week again to take pics/videos of fixtures & fittings and just to tease ourselves

Exciting times

ParkRunner

I have been looking for a house for quite some time now on the main websites. Over the last few months I have noticed that the total number of houses for sale has been falling month by month.
Could this be an indication that the market is on the way back up?

While the market is only really limping along and not many new houses are being built, I would have expected the number of houses for sale to be steady enough as those with second properties try to shift them to avoid the property charges coming in. Yet still the number of houses available to buy seems to be on a steady decline. In theory this should see prices going back up.