House Purchase

ob12 · 20-02-2015 7:27pm #1

Hi Guys, I'm a first time buyer and I have my eye on my dream house (not to sure if too many people would be interested in it as there is alot of work to be done to it and the house is not cheap). My problem is I wont get mortgage approval until June as that will be the evidence of my 6months continous savings but i tick every other box. Is there anyway of stalling the sale of the house should another buyer become interested, because im afraid they will bid on the house and get it? I've heard of people doing fake bidding but I think thats illegal? I dont want to let the auctioneers know how egar I am as they will try milk me for every penny I have. All advice would be greatly appreciated. Thanks a mil

MarkAnthony · 21-02-2015 11:46am

Leave it all alone until you get mortgage approval.

ob12 · 21-02-2015 11:58am

MarkAnthony wrote: »

Leave it all alone until you get mortgage approval.

Thanks a mil for the advice!!

MarkAnthony · 21-02-2015 11:59am

Seriously it will just wreck your head. I did it for 18 months, ended up finding a better house than any that had gone before once I had mortgage approval.

ob12 · 21-02-2015 12:04pm

MarkAnthony wrote: »

Seriously it will just wreck your head. I did it for 18 months, ended up finding a better house than any that had gone before once I had mortgage approval.

Ye I think your rite, I just need to be patient and whats ment to be will be! It will only be 5 months by next month so you never know it might still be there!

Deco99 · 21-02-2015 2:22pm

Sorry if this is off topic, but it fits the heading. Ive seen a place I want to bid for and have approval from bank. Just wondering if im getting best offer from bank. Is there a comparison website for mortgage providers /banks? I want to go 25 years not 35 and can easily afford as they are offering more than I will need. I just want to figure best rate for me. Is that renegotiable after approval? Also Fixed rate variable rate, I dont know whats better long term.

ob12 · 21-02-2015 2:54pm

Deco99 wrote: »

Sorry if this is off topic, but it fits the heading. Ive seen a place I want to bid for and have approval from bank. Just wondering if im getting best offer from bank. Is there a comparison website for mortgage providers /banks? I want to go 25 years not 35 and can easily afford as they are offering more than I will need. I just want to figure best rate for me. Is that renegotiable after approval? Also Fixed rate variable rate, I dont know whats better long term.

Hey,

The banks try push you for a 35 year cuz dey make more money in the long run. But if your particar bank wont allow this you can start with 35yrs den after your first year drop down to 25. I researched alot of the banks and ebs are currently giving the best rates...not to sure about a comparison site but u can defo go to a broker but they cost money!!! If it was me and you were to got with ebs I would begin with there 1 year fixed rate to start because dey are offering as very low rate and atleast you will know whats coming out of your bank each month for the first year and it will give you more time to decide if you want to chose fixed or variable on a more long term basis. Hope this helps

The_Morrigan · 21-02-2015 4:40pm

ob12 - we don't allow 'txt spk' on the forum, can you please use full words when you type a post.

Thanks

jimosterberg · 21-02-2015 5:50pm

Deco99 wrote: »

Sorry if this is off topic, but it fits the heading. Ive seen a place I want to bid for and have approval from bank. Just wondering if im getting best offer from bank. Is there a comparison website for mortgage providers /banks? I want to go 25 years not 35 and can easily afford as they are offering more than I will need. I just want to figure best rate for me. Is that renegotiable after approval? Also Fixed rate variable rate, I dont know whats better long term.

www.bonkers.ie

Balmed Out · 21-02-2015 6:36pm

Deco99 wrote: »

Sorry if this is off topic, but it fits the heading. Ive seen a place I want to bid for and have approval from bank. Just wondering if im getting best offer from bank. Is there a comparison website for mortgage providers /banks? I want to go 25 years not 35 and can easily afford as they are offering more than I will need. I just want to figure best rate for me. Is that renegotiable after approval? Also Fixed rate variable rate, I dont know whats better long term.

Just check terms of any mortgage product. Most variable rate mortgages allow overpaying. If you get a 35 year mortgage you can overpay so that you pay it back in 25 at the same cost of taking a 25 year mortgage. If youre responsible enough to trust yourself to overpay then you have the security of being able to pay a lot less per month should you lose income etc.

Victor · 22-02-2015 1:15am

ob12 wrote: »

The banks try push you for a 35 year cuz dey make more money in the long run.

Not quite. What it does is allow larger borrowings for the same monthly repayment.

Deco99 · 22-02-2015 2:49am

Is there a thread explaining which is better fixed or variable? Let's say I think rates will remain low for 3/4 years but go up after?

MarkAnthony · 22-02-2015 12:59pm

Deco99 wrote: »

Is there a thread explaining which is better fixed or variable? Let's say I think rates will remain low for 3/4 years but go up after?

Simply work out the repayments going through the different scenarios.

A fixed rate will be higher from day one, you're gambling it rate will go higher at some point and then you make your savings. Really though the advantage is security of outgoings for 5 - 10 years.

Deco99 · 22-02-2015 9:52pm

MarkAnthony wrote: »

Simply work out the repayments going through the different scenarios.

A fixed rate will be higher from day one, you're gambling it rate will go higher at some point and then you make your savings. Really though the advantage is security of outgoings for 5 - 10 years.

So current market most people go variable given the low rates?

MarkAnthony · 23-02-2015 12:14am

Deco99 wrote: »

So current market most people go variable given the low rates?

It depends on you. I'm going variable to keep the costs down initially and because I'm taking a punt on further reductions, I'll probably convert to a fixed rate down the line. My income is likely to increase so again that's a consideration for me.

If I had a couple of kids and a relatively fixed income I'd probably go with a long term fixed rate so I knew what the story was.

Deco99 · 23-02-2015 1:12pm

What do ye make of this scenario?

Went to view a house, its about 15 mins from the main location i was looking but its a lovely old building thats actually ready to move into without any renovation. Its about 15% cheaper than standard 3 bed bungalows and semi ds in the commuter town i'm looking at, and these tend to require alot of furniture, whereas the place i've seen is all built in. From my searches i think it is great value, esp with the lawns and space, and wanted to pay the asking price to get it done and dusted. I've since been told to go 10% under that and see what happens. I'm not sure in case that opens the door for someone else to meet asking. is there a way to see how much houses in an area are going for? besides what up for sale already?

by the seaside · 23-02-2015 1:47pm

MarkAnthony wrote: »

A fixed rate will be higher from day one, you're gambling it rate will go higher at some point and then you make your savings. Really though the advantage is security of outgoings for 5 - 10 years.

I agree with the sentiment but it's a very odd way of looking at it.

Taking a fixed rate is not gambling.

Taking a variable rate is gambling.

You may lose out by taking a fixed rate, but only in the same way that I may lose out by not backing the favourite in the 3:30. Long fixed rates are very common in the US, I understand.

by the seaside · 23-02-2015 2:09pm

Deco99 wrote: »

What do ye make of this scenario?

Went to view a house, its about 15 mins from the main location i was looking but its a lovely old building thats actually ready to move into without any renovation. Its about 15% cheaper than standard 3 bed bungalows and semi ds in the commuter town i'm looking at, and these tend to require alot of furniture, whereas the place i've seen is all built in. From my searches i think it is great value, esp with the lawns and space, and wanted to pay the asking price to get it done and dusted. I've since been told to go 10% under that and see what happens. I'm not sure in case that opens the door for someone else to meet asking. is there a way to see how much houses in an area are going for? besides what up for sale already?

I'll leave others to advise on how to find sold prices.

In terms of bidding tactics, why not go in at 10% under. If they come back and say no, you can ask what they would accept and if they say asking price, you can always make that offer (or work out if they'll meet halfway).

When buying my current house, Mrs by the seaside wanted to offer 5% under asking but I convinced her to offer 10% under, which they accepted.

Am I allowed to gloat about it?

Deco99 · 23-02-2015 2:59pm

by the seaside wrote: »

I'll leave others to advise on how to find sold prices.

In terms of bidding tactics, why not go in at 10% under. If they come back and say no, you can ask what they would accept and if they say asking price, you can always make that offer (or work out if they'll meet halfway).

When buying my current house, Mrs by the seaside wanted to offer 5% under asking but I convinced her to offer 10% under, which they accepted.

Am I allowed to gloat about it?

Rang up and went 5% under, to be honest I think its good value at asking, but the kicker is herself loves it and at asking price we'd take it, as its the kind of place thats got alot of charm and dont want to miss out.

by the seaside · 23-02-2015 4:30pm

Deco99 wrote: »

Rang up and went 5% under, to be honest I think its good value at asking, but the kicker is herself loves it and at asking price we'd take it, as its the kind of place thats got alot of charm and dont want to miss out.

As long as they don't know this, you may be OK. Let them know, and you're lost. Good luck.

Deco99 · 23-02-2015 5:20pm

by the seaside wrote: »

As long as they don't know this, you may be OK. Let them know, and you're lost. Good luck.

Oh God not a chance i'd say, She went around banging things shouting "shoddy workmanship ted" when we viewed it.

Also gave the agent the spiel that we were were at the limit with the new mortgage rules so even if we wanted to go more we couldnt get more.

NotCominBack · 23-02-2015 7:08pm

Also worth noting here that if you chose fixed rate then you cannot pay off mortgage early, or there will be penalties, someone can correct me if I am wrong

The Spider · 23-02-2015 7:09pm

Deco99 wrote: »

Rang up and went 5% under, to be honest I think its good value at asking, but the kicker is herself loves it and at asking price we'd take it, as its the kind of place thats got alot of charm and dont want to miss out.

I'd say you'll be okish if it's a commuter town, increases are spreading out, but there's still room to negotiate on the buyer side, again depends in the commuter town.

by the seaside · 23-02-2015 8:10pm

The Spider wrote: »

I'd say you'll be okish if it's a commuter town, increases are spreading out, but there's still room to negotiate on the buyer side, again depends in the commuter town.

Really, it depends whether it's overpiced or not.

blindside88 · 23-02-2015 8:13pm

Deco99 wrote: »

Is there a thread explaining which is better fixed or variable? Let's say I think rates will remain low for 3/4 years but go up after?

Over the full term of your mortgage a fixed rate will work out more expensive that a variable rate (taking historical evidence into account)

The Spider · 23-02-2015 8:23pm

by the seaside wrote: »

Really, it depends whether it's overpiced or not.

Like I say depends on the commuter town, if its Naas or Bray, forget it, if it's a commuter town within county Dublin also unlikely, further out and they may take the drop.

Deco99 · 23-02-2015 8:58pm

The Spider wrote: »

Like I say depends on the commuter town, if its Naas or Bray, forget it, if it's a commuter town within county Dublin also unlikely, further out and they may take the drop.

Not dublin based. To be honest I felt it was very underpriced first off by 20% almost. On viewing its a bit further but still as nice as it looked. So wanted to take it. Not much like for sale so hard to gauge a price but the town ten mins away it would be easy 80 grand dearer. Its not massively expensive so in the end they came back and split the difference. Makes me think I could have got it cheaper but still have a solid asset.

Deco99 · 23-02-2015 8:59pm

By asset I mean some houses are ten a penney and hard to shift. Good cottages will always have a taker.

Deco99 · 24-02-2015 1:09pm

Spotted an ad for house i'm looking at, initially went up last year for sale and asking price dropped by 18% in November, there is also an ad on the DAFT map view for the house which is now deleted at less than current asking price, can i see when it was deleted?

by the seaside · 24-02-2015 2:53pm

The Spider wrote: »

Like I say depends on the commuter town, if its Naas or Bray, forget it, if it's a commuter town within county Dublin also unlikely, further out and they may take the drop.

No, it still depends whether it's overpriced or not. Otherwise a seller in Dublin could put their asking price up by 25% and achieve full asking price.

Although I guess you're saying that most asking prices in Dublin are not overpriced and those that are have delusional sellers who will not dop?

House Purchase

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