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

boris1234

Bidding on a house atm. Was in touch with the EA today and told of the current bid. I put in an offer 2k more and the EA asked what my situation was, specifically asked what percentage we would be borrowing so I told him.

He then explained that the other bidder is borrowing 50% and he just outlined how this may be more favourable to the vendor. I thought fair enough but afterwards thought what does it matter. Both will be borrowing and likely take the same time to get the finance sorted with the bank.

Is it really a big advantage that the other bidder would only be borrowing 50%?

Michael D Not Higgins

boris1234 wrote: »

Bidding on a house atm. Was in touch with the EA today and told of the current bid. I put in an offer 2k more and the EA asked what my situation was, specifically asked what percentage we would be borrowing so I told him.

He then explained that the other bidder is borrowing 50% and he just outlined how this may be more favourable to the vendor. I thought fair enough but afterwards thought what does it matter. Both will be borrowing and likely take the same time to get the finance sorted with the bank.

Is it really a big advantage that the other bidder would only be borrowing 50%?

Maybe it's just indicative that they could afford more?

Rackstar

boris1234 wrote: »

Bidding on a house atm. Was in touch with the EA today and told of the current bid. I put in an offer 2k more and the EA asked what my situation was, specifically asked what percentage we would be borrowing so I told him.

He then explained that the other bidder is borrowing 50% and he just outlined how this may be more favourable to the vendor. I thought fair enough but afterwards thought what does it matter. Both will be borrowing and likely take the same time to get the finance sorted with the bank.

Is it really a big advantage that the other bidder would only be borrowing 50%?

That is the EA playing you, pure and simple. They were feeling you out to see how high you can go.

boris1234

Rackstar wrote: »

That is the EA playing you, pure and simple. They were feeling you out to see how high you can go.

Thanks. Well I won't be bidding much further than what it's at now as I don't feel it's worth much more. Good to know for future dealings with EA's.

Logical Nonsense

Mink we discussed it with planning authority. They said no hope of retention for the flat as it "lowers the tone of the area". Annexes are permitted but only if attached to main dwelling. I know we need to get specific advice from a mortgage advisor was just hopefully someone might have had a similar experience. It is so frustrating. Both houses either side of that particular house have also converted their garages in the 90s without any permission but as they dont intend to sell it doesn't bother them. People seemed to flaunt all the planning rules in this area back then so I can see why they are stricter now.

hooch-85

Can anyone recommend a mortgage broker in the Limerick area?

We are hoping to buy the house we are currently living in and our land lord is after getting a bit of a bad turn health wise, so would need to finalise it sooner rather than later, we were declined in December on the basis our current accounts weren't in the best position, we have since cleared overdrafts and small CC and were hoping we'd be in a better position next month to apply again but looking to get advice this time.

Col_30

Simona1986 wrote: »

We started looking at houses ourselves in December last year and got our mortgage approval in early January. Since then we've had:
- Over 150 property viewings,
- 350+ emails to banks, brokers and insurance companies,
- countless application forms,
- 9 bidding wars - 6 of them lost,
- 3 sale agreed houses,
- 3 valuations paid for,
- 3 surveys paid for,
- a structural engineers inspection,
and finally collected our keys on Friday afternoon. This was in Dublin 300k-400k range, ended up buying in Walkinstown. My advice to anyone would be to shop around with as many banks as you can, we had banks offer us more money after we told them another bank had offered a higher amount. Also, do not stop looking at houses if you go sale agreed - that's only half the battle. We were sale agreed in February, again in August and then finally again in November

Congrats on your new home!

Just curious, why did the 2 other sale agreeds fall through? Was it the vendor side or issues with your valuation/structural survey?

Alkers

Col_30 wrote: »

Congrats on your new home!

Just curious, why did the 2 other sale agreeds fall through? Was it the vendor side or issues with your valuation/structural survey?

The first one fell through after the survey brought up numerous issues with an attic conversion, we tried to negotiate on price as we felt property was devalued massively compared to when we viewed it. Sellers didn't play ball and we pulled out of the sale. House wasn't relisted so assume it sold to the next underbidder.

The second one, about a month after going sale agreed, we still hadn't received contracts. Then heard that the sellers couldn't locate the property deeds. A few weeks later we were told that they had given up trying to locate them and had started to get them re-issued. This was to take 6 weeks. We remained sale agreed on this property until we pulled out of the sale when we signed the contracts on the house which we bought. The estate agent should have to check these things before placing the house on the market, the amount of wasted time and expense during what is already a stressful time.:mad:

Col_30

Simona1986 wrote: »

The first one fell through after the survey brought up numerous issues with an attic conversion, we tried to negotiate on price as we felt property was devalued massively compared to when we viewed it. Sellers didn't play ball and we pulled out of the sale. House wasn't relisted so assume it sold to the next underbidder.

The second one, about a month after going sale agreed, we still hadn't received contracts. Then heard that the sellers couldn't locate the property deeds. A few weeks later we were told that they had given up trying to locate them and had started to get them re-issued. This was to take 6 weeks. We remained sale agreed on this property until we pulled out of the sale when we signed the contracts on the house which we bought. The estate agent should have to check these things before placing the house on the market, the amount of wasted time and expense during what is already a stressful time.:mad:

Thanks for the info..

Fair play to you for persevering!

On the second case, it was probably the silly banks that lost that vendor's deeds.

Alkers

Col_30 wrote: »

Thanks for the info..

Fair play to you for persevering!

On the second case, it was probably the silly banks that lost that vendor's deeds.

I think it was but even still, we were sale agreed on that property for over 5 months before pulling out

Scraggs

Simona1986 wrote: »

We started looking at houses ourselves in December last year and got our mortgage approval in early January. Since then we've had:
- Over 150 property viewings,
- 350+ emails to banks, brokers and insurance companies,
- countless application forms,
- 9 bidding wars - 6 of them lost,
- 3 sale agreed houses,
- 3 valuations paid for,
- 3 surveys paid for,
- a structural engineers inspection,
and finally collected our keys on Friday afternoon. This was in Dublin 300k-400k range, ended up buying in Walkinstown. My advice to anyone would be to shop around with as many banks as you can, we had banks offer us more money after we told them another bank had offered a higher amount. Also, do not stop looking at houses if you go sale agreed - that's only half the battle. We were sale agreed in February, again in August and then finally again in November

Congratulations! Great to hear there's light at the end of the tunnel.

Bored Accountant

hooch-85 wrote: »

Can anyone recommend a mortgage broker in the Limerick area?

PM Sent

Logical Nonsense

Could you pm recommendation to me too please

purpleisafruit

I've seen a figure of 2600 + 250 per child mentioned a few times. Can someone clarify if that figure is after mortgage payment and where this comes from?

big syke

Depends on the banks but in general its €2,000 for a couple plus €250 per child.

Then the mortgage is added to this (after stress testing).

For example if you earn €3,200 net a month and have a wife and two kids it would work as follows:

€3,200 - €2,500 = €700

This €700 is the Net disposable Income max so after stress testing would service a mortgage of at a crap guess I don't know €130k?

So even though the 3.5 times salary rule would qualify the above for a higher amount the repayment capacity formulas limit this.

purpleisafruit

big syke wrote: »

Depends on the banks but in general its €2,000 for a couple plus €250 per child.

Then the mortgage is added to this (after stress testing).

For example if you earn €3,200 net a month and have a wife and two kids it would work as follows:

€3,200 - €2,500 = €700

This €700 is the Net disposable Income max so after stress testing would service a mortgage of at a crap guess I don't know €130k?

So even though the 3.5 times salary rule would qualify the above for a higher amount the repayment capacity formulas limit this.

Thanks, currently between rent and savings we're putting aside €2100 pm. Have c. €2k left per month after that. Have 1 child.
Looking to borrow about 175k, around 800-850 a month according to calculators.
What kind of interest rate should I look at for stress test?
Just trying to get all my ducks in a row before we go talk to banks properly

big syke

purpleisafruit wrote: »

Thanks, currently between rent and savings we're putting aside €2100 pm. Have c. €2k left per month after that. Have 1 child.
Looking to borrow about 175k, around 800-850 a month according to calculators.
What kind of interest rate should I look at for stress test?
Just trying to get all my ducks in a row before we go talk to banks properly

Depends on the banks and I'm sure people who know more than me may correct me but bank could stress to 6-8%.

Maths look good to me for both you rrepayment capacity and the 3.5 times salary.

purpleisafruit

big syke wrote: »

Depends on the banks and I'm sure people who know more than me may correct me but bank could stress to 6-8%.

Maths look good to me for both you rrepayment capacity and the 3.5 times salary.

Yeah, only one income is our main concern but think we have no issues with repayment capacity. I've run the figures on an 8% stress test and it's still comfortable for us.

Mink

purpleisafruit wrote: »

Thanks, currently between rent and savings we're putting aside €2100 pm. Have c. €2k left per month after that. Have 1 child.
Looking to borrow about 175k, around 800-850 a month according to calculators.
What kind of interest rate should I look at for stress test?
Just trying to get all my ducks in a row before we go talk to banks properly

Our figures for borrowing were similar. Mortgage was going to be about 800 per month and advisor in aib added on the stress test and it was about 1300 so as long as we were renting, and more importantly saving, upward of that per month then they were satisfied.

Went for variable rate of 3.5 through aib but could well be better rates out there now, especially if you've a decent deposit and can manage to put down a 20% deposit

purpleisafruit

Mink wrote: »

Our figures for borrowing were similar. Mortgage was going to be about 800 per month and advisor in aib added on the stress test and it was about 1300 so as long as we were renting, and more importantly saving, upward of that per month then they were satisfied.

Went for variable rate of 3.5 through aib but could well be better rates out there now, especially if you've a decent deposit and can manage to put down a 20% deposit

20% would be a massive stretch for us at the moment, especially when we have to put aside some cash for furniture too!
Well not a huge stretch from a financial point of view but would mean another 12 months of renting and dead money!

Mink

Got the keys yesterday, should move in towards end of month but got a start on cleaning new place.

Thanks to all that contribute here, have picked up lots of great advice. It's nearly a year to the day that we started tidying up our accounts and getting prepped for mortgage approval/viewings.

So I guess this next year will be painting, carpets, furniture, diy!

neonsofa

Mink wrote: »

Got the keys yesterday, should move in towards end of month but got a start on cleaning new place.

Thanks to all that contribute here, have picked up lots of great advice. It's nearly a year to the day that we started tidying up our accounts and getting prepped for mortgage approval/viewings.

So I guess this next year will be painting, carpets, furniture, diy!

Congrats, well done!

okeydokeys22

Slightly frustrated poster here. I'm 28 years old, living at home. I've managed to save 40,000 the past 3 years I've been working. Salary approx 30000 and my OH earns 23000. He has 12000 in savings. The max we've been approved for is 175000. I understand the 3.5 salary rule and understand completely why it has been implemented. But surely id be granted a slight exemption if I was showing I've been saving 1500 per month by myself. Only looking for 210000 approx, not looking for millions. Stuck at home now for another year at least to save more meanwhile house prices rising all the time. Tempted to just rent now as I'm tired putting my life on hold re engagement and babies.

listermint

okeydokeys22 wrote: »

Slightly frustrated poster here. I'm 28 years old, living at home. I've managed to save 40,000 the past 3 years I've been working. Salary approx 30000 and my OH earns 23000. He has 12000 in savings. The max we've been approved for is 175000. I understand the 3.5 salary rule and understand completely why it has been implemented. But surely id be granted a slight exemption if I was showing I've been saving 1500 per month by myself. Only looking for 210000 approx, not looking for millions. Stuck at home now for another year at least to save more meanwhile house prices rising all the time. Tempted to just rent now as I'm tired putting my life on hold re engagement and babies.

Have you both considered moving jobs to move the dial somewhat?

Tbh you are 28 the average family now starts around 32.so don't let that be a deciding factor or your hard savings will be wasted also you will have a dependant and will cut the banks offer

okeydokeys22

listermint wrote: »

Have you both considered moving jobs to move the dial somewhat?

Tbh you are 28 the average family now starts around 32.so don't let that be a deciding factor or your hard savings will be wasted also you will have a dependant and will cut the banks offer

I've moved jobs recently to the public sector mainly for job security and the permanent contract. No prospect of changing jobs or higher salary in foreseeable future. I just feel so ready to get engaged and really start living and just feel so held back. We really work so hard (like most people I know) and it's just frustrating.

I guess if we can hang on another year, allowing us to push and really save hopefully 20,000 more between us. Then we'd have over 70,000 saved with a mortgage of 175,000 would get us a modest home in Dublin (ideally) of 250,000.

I count our blessings really that we can live at home and save while paying modest rent to our respective parents. High five to anyone who pays 1500 monthly and manages to scrape up a deposit.

listermint

okeydokeys22 wrote: »

I've moved jobs recently to the public sector mainly for job security and the permanent contract. No prospect of changing jobs or higher salary in foreseeable future. I just feel so ready to get engaged and really start living and just feel so held back. We really work so hard (like most people I know) and it's just frustrating.

I guess if we can hang on another year, allowing us to push and really save hopefully 20,000 more between us. Then we'd have over 70,000 saved with a mortgage of 175,000 would get us a modest home in Dublin (ideally) of 250,000.

I count our blessings really that we can live at home and save while paying modest rent to our respective parents. High five to anyone who pays 1500 monthly and manages to scrape up a deposit.

Yes it's frustrating. But you are way ahead of many others way ahead.

There is nothing preventing you getting engaged btw. But I'd stave off the kids because it will impact any mortgage size and with your fixed salary that's not an outcome you want.

okeydokeys22

listermint wrote: »

Yes it's frustrating. But you are way ahead of many others way ahead.

There is nothing preventing you getting engaged btw. But I'd stave off the kids because it will impact any mortgage size and with your fixed salary that's not an outcome you want.

Thanks for reply. Yes I appreciate I'm in a lucky enough position to have no big financial commitments right now that would hamper saving. I know we will get there eventually, just taking longer than expected. It will all be worth it in the end I'm hoping.

listermint

okeydokeys22 wrote: »

Thanks for reply. Yes I appreciate I'm in a lucky enough position to have no big financial commitments right now that would hamper saving. I know we will get there eventually, just taking longer than expected. It will all be worth it in the end I'm hoping.

It certainly will and you will look back and appreciate your own efforts for sure.

Alkers

okeydokeys22 wrote:

Slightly frustrated poster here. I'm 28 years old, living at home. I've managed to save 40,000 the past 3 years I've been working. Salary approx 30000 and my OH earns 23000. He has 12000 in savings. The max we've been approved for is 175000. I understand the 3.5 salary rule and understand completely why it has been implemented. But surely id be granted a slight exemption if I was showing I've been saving 1500 per month by myself. Only looking for 210000 approx, not looking for millions. Stuck at home now for another year at least to save more meanwhile house prices rising all the time. Tempted to just rent now as I'm tired putting my life on hold re engagement and babies.

Apply to all of the banks, making it clear you are looking for the exemption.

listermint

Simona1986 wrote: »

Apply to all of the banks, making it clear you are looking for the exemption.

Without skirting around it there is scant all stock if any at all that's modest and 250k in Dublin I think the extras year would better option