Getting a mortgage, money leftover for fees, etc.

Lucy B

Hi, we are hoping to get a mortgage next year, and am wondering if the bank would frown upon only having the deposit for mortgage saved? By the time came for mortgage to be drawn down which I presume in a straight forward sale wouldn't be that long, we would have another bit saved for solicitor etc.

Or do you have to enter into application with that money already saved for?

Thanks.

colm_c

The bank will generally take into account a few k for solicitor and fees, also remember that you also need 1% for stamp duty, so usually a minimum of 12% is a good rule of thumb.

They won't frown on it, just might ask about the solicitor and other fees, but if you're saving regularly and they can see in 2 months you'll have it, then you'll be grand.

Also be good to have a few quid to buy a couch/bed!

kjbsrah1

I think some credit unions offer a first time buyers loan for exactly that - solicitors fees (average €1500), stamp duty (1% of purchase price) and for buying furniture and stuff that you don't already have i cannot recommend www.adverts.ie enough. I had never heard of that site until i bought a house last year and have been able to sell stuff i had 'hoarded' and found did not fit into the new house as well as buy stuff (beds and lamps mainly) that are excellent quality and a fraction of what they are new.....

Wish they would bring back the mortgage relief - although if your mortage is with BOI they say they will pay your stamp duty.... (so even if you have approval elsewhere it might be worth looking with them too). Mine is with BOI but i missed this deal Good luck..

Lucy B

Thanks for replies. We have been renting for years so at least we have 90% of our furniture sorted.

We have been saving regularly since last march. And have good current accounts. Just what makes it awkward is that my husband is self employed. And I am at home with our 2 kids. I am not going to have any nails left by the end of all this. We are hoping to buy the house we are renting. The landlord is really pushing us to apply for mortgage sooner rather than later. The ideal time frame would be end of July as we have already been to a mortgage broker, but they want it sooner now. So hoping maybe we can try April instead. We love this house and our children are happy in the local school, and the thought of actually packing and moving fills me with dread! We have so much stuff!!!!

Fingers crossed it all works out!

Rob Thomas

Unless you think the landlord would be able to get another buyer quickly, don't be rushed until you are ready to go ahead with the application. Your broker will know when you fit the requirements for the Banks you are applying to and you should wait until they are sure you have the best chance of being approved.

If you are declined for a mortgage by one institution another Bank will look less positively at your application at a later date and pick through it looking for negatives.They will say that they won't, but they will.

Good luck.

Lucy B

Well that's what they are implying. They are developers, and are trying to sell the last few houses in the estate. Think there are 6 left altogether, we are in rural cork, so don't know how fast they will sell but they want it on the market ASAP, no thanks for us being good tenants the last few years or the fact that they know we really want to buy the house. It's just all so stressful. The only alternative is to give up the house and be removed from this stressful situation and rent elsewhere before the mortgage, but there are no rental properties here and our kids are in school!!!!!

Is there anyway we can pursuade them to wait? Any ideas?