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

q85dw7osi4lebg

Samuel T. Cogley wrote: »

They have their restrictions 90% Loan to Value of the property and 3.5x your combined salaries. They're then looking at your income and outgoings. Childcare is a killer so on the honeymoon... :pac:

They're looking for no debt and as much, consistent saving as possible. Put money in a deposit account and never touch it. Any negatives in your current account are a big no-no so never go overdrawn.

Other than that if you're both in permanent jobs over a year, it's pretty straight forward.

The very best of luck!

Not saying it's the rule, but I was overdrawn and had no issues when I applied.

Samuel T. Cogley

Reese Lively Cabinet wrote: »

Not saying it's the rule, but I was overdrawn and had no issues when I applied.

Was it arranged? I'd say not such an issue there with me it was a black mark (according to the useless broker we were using at that point anyway).

listermint

Reese Lively Cabinet wrote: »

Not saying it's the rule, but I was overdrawn and had no issues when I applied.

It's frowned upon so try avoid it. Don't go overdrawn if it can be avoided .

Should be treated with utter emergency.

q85dw7osi4lebg

I agree it should be avoided at all costs! However don't let it put you off chatting with a bank / advisor, as it worked out for us.

toby2111

We applied through our broker about 9 days ago.I tend to dip into my overdraft a few times a month. He said if its an approved overdraft,its not a major issue. Obviously looks better if you're not in it at all but, as poster above said,dont let it scare you off.

Mitten31

Hoping to apply over the next few months - 2 quick things i'd love an opinion on -

1. We have grown overdrawn (have no overdraft facility) on our current account once to the tune of €7, a direct debit was mis times. Is this a huge issue? We save €2500 every month so no issue with that just a timing issue.

2. Credit cards - what is the rule here? We have one and use it for flights/online shopping, regulaily pay off but would sometime carry a balance from month to month?? Any guidance here?

listermint

toby2111 wrote: »

We applied through our broker about 9 days ago.I tend to dip into my overdraft a few times a month. He said if its an approved overdraft,its not a major issue. Obviously looks better if you're not in it at all but, as poster above said,dont let it scare you off.

He's going to say that to you.

But that means your are living beyond your means.you should certainly not be dipping into an over draft regularly at all.

Please take that advise on board if you want to really quality. Once in a blue moon is fine thats what it is there for.
But you are using it as a living expense. The banks will not let that slide

Samuel T. Cogley

Mitten31 wrote: »

Hoping to apply over the next few months - 2 quick things i'd love an opinion on -

1. We have grown overdrawn (have no overdraft facility) on our current account once to the tune of €7, a direct debit was mis times. Is this a huge issue? We save €2500 every month so no issue with that just a timing issue.

2. Credit cards - what is the rule here? We have one and use it for flights/online shopping, regulaily pay off but would sometime carry a balance from month to month?? Any guidance here?

It was in my case (Overdraft). We also frequently get requests at work for letters to say it was our fault in billing that it happened. Best thing is to keep €100 balance.

Once you might get away with it, morre than that they may ask you to come back after three months or whatever.

Parchment

Just a post to say we got our keys last wednesday - moved in and just getting bits done to the house but all in all happy to be here.

Its SO stressful from the outset (in my opinion) getting all the info together and then being "judged" by the banks. We were lucky as we had no problem getting approved - but everyones situation is different.

The worst part for me was dealing with Estate Agents - the whole industry needs to be more transparent. So many lies and just so unreliable.

Anyway after it all we got a house we like - still the sale was a pain too as the sellers were really unhelpful and despite being told to take everything from the house...they took all the good stuff and left the junk. Same with the garden.

We are settling in now and its nice to have a place to call our own. Good luck to everyone looking for a home ! (We were looking for 1.5 years)

Samuel T. Cogley

Massive congrats and good luck in your new home, may it be a happy one!

Parchment

Meant to actually say thanks to all who helped and gave advice over the past while in this forum! That was why i actually decided to post here and then i forgot to say it!

neonsofa

Parchment wrote: »

Meant to actually say thanks to all who helped and gave advice over the past while in this forum! That was why i actually decided to post here and then i forgot to say it!

Congratulations!

Veledan22

Hi all,

Apologies if this has been covered earlier in the thread.

I am saving for a deposit at the moment and I was wondering if anyone had experience with there being any flexibility around the 3.5 times salary rule if you have bigger deposit (30-40%)?

Thanks

Alkers

Veledan22 wrote:

I am saving for a deposit at the moment and I was wondering if anyone had experience with there being any flexibility around the 3.5 times salary rule if you have bigger deposit (30-40%)?

Yes, there is the possibility of an exception, depending on your repayment capacity.

matrim

How do you apply for the DIRT rebate after buying? I've applied and gave them my interest statements with the amount saved and DIRT paid on my account but was asked for information. When I asked what they wanted (Twice) they haven't responded

Parchment

matrim wrote: »

How do you apply for the DIRT rebate after buying? I've applied and gave them my interest statements with the amount saved and DIRT paid on my account but was asked for information. When I asked what they wanted (Twice) they haven't responded

interested to know more about this too - it was on my list of things to look into now that we have closed.

listermint

matrim wrote: »

How do you apply for the DIRT rebate after buying? I've applied and gave them my interest statements with the amount saved and DIRT paid on my account but was asked for information. When I asked what they wanted (Twice) they haven't responded

Hmmm interesting

http://www.revenue.ie/en/tax/dirt/first-time-buyer-relief.html

Never heard of this, so if you are a first time buyer and paid DIRT on your savings you can claim it back if this is your first home and it doesnt matter if its second hand or brand new?

http://www.moneyguideireland.com/dirt-refunds-for-first-time-buyers-budget-2015.html

How can I claim back my money?
While the Government has a very efficient method of deducting Dirt from your savings, doing so at source so you never even get your hands on it, the same cannot be said of claiming a refund. While not a complicated process, there are a couple of steps you must follow.
The Revenue has tied the refund to its Local Property Tax (LPT) system, which means that home owners must ensure that their new home is LPT compliant.
When you complete the purchase of your property, you may be given relevant LPT information, or you can subsequently contact the Revenue for this. To access the LPT website (http://iti.ms/1jfKerF), you’ll need your PPS number/tax reference number, property ID and your LPT PIN.
Once in the LPT system, you click the “Claim DIRT F.T.B. Refund” button. This will display a claim form where you enter the required information and submit your claim.
According to the Revenue, the following information is needed to make a claim:
- Amount of Dirt to be refunded
- Purchase price or completion value for a self-build
- Purchase date/completion date
- Email address
- Bank account details to which the refund is to be paid
- Evidence of Dirt deducted (ie bank statements)
You will need to attach the supporting documents to your claim.
The Revenue says it expects that claims will be processed, and DIRT refunded, once all relevant information has been received within about five working days. Getting your money back: How much Dirt will I get? Mary, a first-time buyer, buys a house on her own on October 31st 2014 for €200,000. Relief is confined to Dirt paid on savings up to a maximum of 20 per cent of the purchase price which is €40,000 (€200,000 at 20 per cent).
In the 48 months prior to the purchase date, Mary saved €30,000, earning interest of €455 prior to Dirt being deducted. She paid €155 Dirt on the interest. As the savings are under the maximum of 20 per cent of the purchase price Mary is entitled a full refund of Dirt, in this case €155.
Source: Revenue Commissioners

http://www.irishtimes.com/business/personal-finance/government-dirt-incentive-for-first-time-buyers-not-a-great-help-1.2190905

matrim

listermint wrote: »

Hmmm interesting

http://www.revenue.ie/en/tax/dirt/first-time-buyer-relief.html

Never heard of this, so if you are a first time buyer and paid DIRT on your savings you can claim it back if this is your first home and it doesnt matter if its second hand or brand new?

http://www.moneyguideireland.com/dirt-refunds-for-first-time-buyers-budget-2015.html




http://www.irishtimes.com/business/personal-finance/government-dirt-incentive-for-first-time-buyers-not-a-great-help-1.2190905

I've done most of that and they are asking for more information but won't tell me what. Maybe I need to give them the full bank statements instead of just statements of interest. Although I don't see how it makes a difference once I can show that the DIRT has been paid

listermint

matrim wrote: »

I've done most of that and they are asking for more information but won't tell me what. Maybe I need to give them the full bank statements instead of just statements of interest. Although I don't see how it makes a difference once I can show that the DIRT has been paid

Perhaps, they have not got a clue themselves...... Might be a plan so that you might just eventually f'off ?

:eek:

Parchment

listermint wrote: »

Perhaps, they have not got a clue themselves...... Might be a plan so that you might just eventually f'off ?

:eek:

I would think that could be very possible!

whiskeyman

Veledan22 wrote: »

Hi all,

Apologies if this has been covered earlier in the thread.

I am saving for a deposit at the moment and I was wondering if anyone had experience with there being any flexibility around the 3.5 times salary rule if you have bigger deposit (30-40%)?

Thanks

Exceptions allow for up to 4 times salary.
Your deposit, and other factors, may play a part into getting the exception approved.
Talk to the bank / broker about the lending rule exceptions.

Blingy

Veledan22 wrote: »

Hi all,

Apologies if this has been covered earlier in the thread.

I am saving for a deposit at the moment and I was wondering if anyone had experience with there being any flexibility around the 3.5 times salary rule if you have bigger deposit (30-40%)?

Thanks

Yes some banks are approving exceptions but it comes down to a number of things not just a healthy deposit. Just go in and have a chat with a mortgage adviser in the branch and you should get some good advice.

Dr.Rieux

whiskeyman wrote: »

Exceptions allow for up to 4 times salary.
Your deposit, and other factors, may play a part into getting the exception approved.
Talk to the bank / broker about the lending rule exceptions.

We got an exemption of 4.5 times our salary, limited by our deposit which was on the CB rules (10% of first 220K and 20% thereafter). Though they took kindly to our careers, with us being a software developer and a newly qualified accountant, so even since drawing down in August our money has gone up by 15K

Bored Accountant

Dr.Rieux wrote: »

Though they took kindly to our careers, with us being a software developer and a newly qualified accountant, so even since drawing down in August our money has gone up by 15K

Any jobs going?

Dr.Rieux

Bored Accountant wrote: »

Any jobs going?

Pay rises from a low-ish base so not as good as it sounds, but it certainly helped with the mortgage application knowing we'd scope to go up quickly

1991 pmaC epacS

The poster above who borrows 4.5 times salary, do you mind me asking what LTV your mortgage was? I have heard most successful exemptions from the rule are in the <80% LTV category.

Dr.Rieux

Just shy of 85% LTV.

hooch-85

Blingy wrote: »

Yes some banks are approving exceptions but it comes down to a number of things not just a healthy deposit. Just go in and have a chat with a mortgage adviser in the branch and you should get some good advice.

I'm a qualified chartered accountant with five years post qual experience and my GF is a recently qualified QFA and the banks are still making us jump through hoops for a reasonably small mortgage..

The sooner we get approval the better as we both want to look for better paying jobs.

thecommander

hooch-85 wrote: »

I'm a qualified chartered accountant with five years post qual experience and my GF is a recently qualified QFA and the banks are still making us jump through hoops for a reasonably small mortgage..

What are the hoops? Anything outside of the usual?

hooch-85

thecommander wrote: »

What are the hoops? Anything outside of the usual?

Well I suppose not too unusual but my girlfriend is on a 24 month contract so her income wasnt taken into account.