Saving/Applying for a mortgage 2015/16/17/18/19

axcel

Creme fraiche wrote: »

Hi all,

newcomer to the thread, I’ve read back a couple of pages and feeling a bit low.

I’m 30, in a really good job paying €64K, 10% annual bonus (team target driven which I might miss) have €18K in savings and saving €1K a month, paying €350 in rent and paying €150 to help my girlfriend pay off her credit union loan (home improvement €5K) quicker. I also commit 6% of my salary to my pension.

She’s also 30, earns €1.5K (gross) but has her own house bought at the height of the boom, paid €285k for a terrace in not a great area. her mortgage is €700 (tracker) and have a lodger who pays €350 for a room. Other than the loan above she has no other irregular outgoings bar day-to-day expenses. At the moment she’s not saving

However I feel like we’re nowhere near being able to afford a deposit or even where to start. Do I try go the first time buyers route, or do we sell this house, get approx (20K profit if we can call it that), or try keep it and go it together.

I would really like to get a new build house close to our home (South Dublin/North Wicklow) area but houses seem to be way out of our range of €400K plus.

Anyone have any good advice? I’m planning to try and up my savings to €1500 after Christmas but then again I feel that’s still not enough.

I wouldn't be so disheartened, it seems like you are getting the head down now. And you are in a better position than many with the savings you have to date.

If you wanted to go first time buyers, there are properties out there in your range. Yes it's getting to be dog eat dog out there, and getting into bidding is a nightmare but the right house will work out for you. There's new build in Newtownmountkenndey coming to market in January, these will be snapped up then no doubt but if you are willing to look slightly further afield that it seems like you are at the minute there are houses out there. Also don't restrict yourself, altho you might think you prefer a new house, view everything. I was keen on new builds but then saw one and garden was tiny and totally overlooked which wasn't for me so I'd recommend getting out there.

It seems likely from your post your gf could get the mortgage plus possibly costs covered in renting out the whole house if she moved into new house in your name, and people would kill for those tracker mortgages now so tough decision to make to sell that up. But seems like that would have to be the case if you are looking at 350k. If she tried to keep that house I don't think you'd get the mortgage together if she's not saving at the moment and if it's in a bad area bank won't be looking favourably on it from a rental view tho someone else can probably advise on that. From your post doesn't seem like she's in negative equity so that's a positive if she needed to sell.

Main advice is get the head down like you are, save like mad, get out there viewing and don't panic. It might seem like you need to buy now now now but be sensible.

Jodotman

Planning on buying a property this time next year. Have 75% of the deposit saved for my budget

Someone said to me if I took out a loan now now for 5K from the bank and pay it back in a year it would help improve my chances.

I missed one payment on a credit union loan around three years ago for a car as basically just forgot but paid it two weeks later when I remembered. Don't think this affected my credit rating or anything like that.

listermint

Jodotman wrote: »

Planning on buying a property this time next year. Have 75% of the deposit saved for my budget

Someone said to me if I took out a loan now now for 5K from the bank and pay it back in a year it would help improve my chances.

I missed one payment on a credit union loan around three years ago for a car as basically just forgot but paid it two weeks later when I remembered. Don't think this affected my credit rating or anything like that.

Credit history and payments history proves you are reliable speak to a broker for professional advice.

axcel

Jodotman wrote: »

Planning on buying a property this time next year. Have 75% of the deposit saved for my budget

Someone said to me if I took out a loan now now for 5K from the bank and pay it back in a year it would help improve my chances.

I missed one payment on a credit union loan around three years ago for a car as basically just forgot but paid it two weeks later when I remembered. Don't think this affected my credit rating or anything like that.

Repayment history is good to show but I wouldn't go taking out a loan now just for this reason. People use to say if you've never had a loan you won't get a mortgage but depends on the scenario. My partner has never had a loan, credit card or overdraft but good earnings, savings and been paying rent for a number of years and got mortgage approval no issue.

The credit union would've sent you a notice saying you've been referred to ICB for missed payment if there was an issue, and there usually wouldn't be for one payment missed and then paid two weeks later. So you can show regular repayment history there without the need for the loan.

But as per listermint, professional advice is always best.

StupidLikeAFox

Jodotman wrote: »

Planning on buying a property this time next year. Have 75% of the deposit saved for my budget

If you can afford loan repayments you would be better off sticking the same amount into a savings account - it has the same effect (showing a repayment capacity) but you don't have to get yourself into debt

Have you saved the 75% yourself? Surely that would be enough to get the remaining 25% as a mortgage

lbyrne121

Hi I was wondering if anyone could help.. I have been renting my property out for 6 months now and I am going for a second mortgage, what proof will the banks require for rental income?  I have the money going into my bank account but one of the months they were on holiday so they dropped the money to me and I lodge it in a week after the date due but unfortunately I didn't put a reference as I was lodging it into my account at the bank.  any advice would be greatly appreciated.

Thanks

Greyian

StupidLikeAFox wrote: »

If you can afford loan repayments you would be better off sticking the same amount into a savings account - it has the same effect (showing a repayment capacity) but you don't have to get yourself into debt

Have you saved the 75% yourself? Surely that would be enough to get the remaining 25% as a mortgage

I'm assuming he/she means they've saved 75% of the required deposit (e.g. need a €20,000 deposit, currently have €15,000 saved)

68 lost souls

So BOI want a letter from the revenue commisioner to state that we are going to be getting 5% of the purchase price under the new scheme. I don't imagine this is a letter we can actually get?

They also seme utterly useless in terms of they have lost paper work on us, now want us to provide it again, want us to show funds for x when the reason we don't have it in our accounts is because we have already paid X times 2 as a deposit.

Any one else had issues like this with BOI?

Pedro32561

68 lost souls wrote: »

So BOI want a letter from the revenue commisioner to state that we are going to be getting 5% of the purchase price under the new scheme. I don't imagine this is a letter we can actually get?

They also seme utterly useless in terms of they have lost paper work on us, now want us to provide it again, want us to show funds for x when the reason we don't have it in our accounts is because we have already paid X times 2 as a deposit.

Any one else had issues like this with BOI?

You'll be able to get that letter when the scheme opens on 3rd January 2017. I understand that it will work by making an application online and then Revenue will issue a letter outlining eligibility, which can be provided to the bank.

68 lost souls

I find it strange because the other banks that gave us full approval didn't look for this.

q85dw7osi4lebg

Am I correct in thinking that if for example you have AIP from BOI which lasts for 6 months, and 3 months into this you go for full approval, the full approval will last a further 6 months?

Earleybird

Reese Lively Cabinet wrote: »

Am I correct in thinking that if for example you have AIP from BOI which lasts for 6 months, and 3 months into this you go for full approval, the full approval will last a further 6 months?

If by "full approval" you mean a Loan Offer then yes you are correct, you will have 6 months from the date of the Loan Offer letter.

q85dw7osi4lebg

Earleybird wrote: »

If by "full approval" you mean a Loan Offer then yes you are correct, you will have 6 months from the date of the Loan Offer letter.

Great, thanks.

little bess

Can anyone give me an idea of the deposit and contract process when buying a new build?

For example, we are looking at a development at the moment and the house won't be ready until after next summer. So at what time would we be expected to sign contracts and pay the full non-refundable deposit?

We haven't got full mortgage approval yet so I would be concerned that when we get it that the approval would run out by that time the house is built. I wouldn't want to sign contracts without a long run of the approval left in case of delays etc.

68 lost souls

little bess wrote: »

Can anyone give me an idea of the deposit and contract process when buying a new build?

For example, we are looking at a development at the moment and the house won't be ready until after next summer. So at what time would we be expected to sign contracts and pay the full non-refundable deposit?

We haven't got full mortgage approval yet so I would be concerned that when we get it that the approval would run out by that time the house is built. I wouldn't want to sign contracts without a long run of the approval left in case of delays etc.

We signed booking deposit in September, houses aren't due to be finished until April so read that as May or June. Signed the contracts back at the start of November. Will more than likely have to get approvla extended or re apply before we have to move in. Also getting full approval from several banks at the moment should any issue arise here.

pobber1

We drew down our mortgage funds today. What are people's experience of the time between money being sent to your solicitor and then getting the keys?

lfc200

pobber1 wrote: »

We drew down our mortgage funds today. What are people's experience of the time between money being sent to your solicitor and then getting the keys?

We drew down last Thursday and got keys this evening

Zzippy

lfc200 wrote: »

We drew down last Thursday and got keys this evening

Congrats!

Was there a hold up or did your solicitor just draw down early? We drew down yesterday and closing on Friday... worried now in case that was too late!

lfc200

Zzippy wrote: »

Congrats!

Was there a hold up or did your solicitor just draw down early? We drew down yesterday and closing on Friday... worried now in case that was too late!

Was a receiver sale which just seemed to drag it out all along and there ended up being a number of things on the finalsearches which took extra time to get sorted!

pobber1

lfc200 wrote: »

Was a receiver sale which just seemed to drag it out all along and there ended up being a number of things on the finalsearches which took extra time to get sorted!

We're buying a new build so I'm hoping there won't be any major delays.

kwat

Mink wrote: »

MentalMario wrote: »

The loan wouldn't be to show repayment capacity. I definitely show that capacity already. There's a house after coming onto the market in the last few weeks that I like, a few months before I thought I'd be bidding.  

It would be to bring my deposit up to €X +solictors fees so I can bid on a house I want right now, rather than wait a couple of months before I have it saved myself.

I'll put it to you this way, we had a loan when first applying for a mortgage and the amount we were offered was 15% less than what it would be without the loan. This was the same through a broker and direct.

The bank looks at loans/ childcare costs and any other obligation as potentially taking priority over the mortgage so they will lower the amount they can lend you.

If you can get a "gift" from someone so as to get over the hurdle and then have private arrangement to repay it as already suggested above.

I think Mario's point is that as he only wants to borrow 2X salary, even with the deduction the bank may make on amount he can borrow as a result of the bank loan, it still may be sufficient for the house he wants to bid on.

hooch-85

How long on average have people been waiting to get AIP after sending in all application documents? I've read 10 days, is that 10 business days as in 2 weeks. We sent in all our stuff last Tuesday to EBS & AIB, i'm starting to get a bit anxious already, maybe its a bad time of year for applications so close to Christmas?

househunter08

Not sure about AIB, but we applied through EBS mid November and it took 6/7 working days from the day it went to the underwriters. EBS rang us to clarify something just before they submitted the application to underwriters and it was on the 7th working day from that call that we got the approval.

hooch-85

Ok thanks for that. We are only on day 6 yet. I might give yhe branch a call tomorrow if I don't hear from them

Zzippy

pobber1 wrote: »

We drew down our mortgage funds today. What are people's experience of the time between money being sent to your solicitor and then getting the keys?

Our solicitor drew down on Tuesday afternoon and we are closing today all going well. Was meant to be tomorrow but sellers and both solicitors are happy to close today. Presuming searches don't find anything outstanding we'll have the keys this evening

Mink

hooch-85 wrote: »

How long on average have people been waiting to get AIP after sending in all application documents? I've read 10 days, is that 10 business days as in 2 weeks. We sent in all our stuff last Tuesday to EBS & AIB, i'm starting to get a bit anxious already, maybe its a bad time of year for applications so close to Christmas?

AIB told us 10 working days (2 weeks) and it was probably the 10 days when we heard.

Mink

Just got a letter from property agent saying our rent is going up by 300 euro in April. Presuming our sale goes through, I think we are one of the lucky ones to dodge the bullet which is the rent cap fiasco

And... OH got news today that 1000 jobs getting let go from his department in Jan/Feb. Wow, great timing lads, just ruin everyone's Christmas why don't ya. OH has missed every other "culling" but I really don't know if can avoid this one. We're on the home stretch so please keep fingers crossed that we get over the finish line with jobs intact.

boris1234

hooch-85 wrote: »

How long on average have people been waiting to get AIP after sending in all application documents? I've read 10 days, is that 10 business days as in 2 weeks. We sent in all our stuff last Tuesday to EBS & AIB, i'm starting to get a bit anxious already, maybe its a bad time of year for applications so close to Christmas?

It was 10 days/2 weeks for us. Took a few days before our branch submitted all the stuff to the underwriters and from when it was submitted we heard within a week.

Give them a call just to see when it was submitted to the underwriters.

Monife

Mink wrote: »

Just got a letter from property agent saying our rent is going up by 300 euro in April. Presuming our sale goes through, I think we are one of the lucky ones to dodge the bullet which is the rent cap fiasco

And... OH got news today that 1000 jobs getting let go from his department in Jan/Feb. Wow, great timing lads, just ruin everyone's Christmas why don't ya. OH has missed every other "culling" but I really don't know if can avoid this one. We're on the home stretch so please keep fingers crossed that we get over the finish line with jobs intact.

If that rent cap legislation goes through before Christmas, they wouldn't be allowed increase it by that much in April, they would have to do it now (and only if they haven't increased it in the last 2 years).

zedhead

hooch-85 wrote: »

How long on average have people been waiting to get AIP after sending in all application documents? I've read 10 days, is that 10 business days as in 2 weeks. We sent in all our stuff last Tuesday to EBS & AIB, i'm starting to get a bit anxious already, maybe its a bad time of year for applications so close to Christmas?

We were applying around the August Bank Holiday time and were told by our broker to expect it to take a little longer than the usual 10 days because of the time of year - bank holiday and people taking time off for holidays etc. It was 10-15 days for us depending on the bank. It maybe the same being so close to Christmas.