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

ADO

Been offered AIP of 240,000 with peppermoney.ie

Although the area we are looking at we would need an extra 30,000.

Has anyone ever used this company before?

pilly

Jake2 wrote: »

Yes I know they need evidence but I was just wondering do they tend to ask for more than 6 months. The 6 months shows about 9000 worth of savings evidence so do they need to see the further 20000 within that bank account.

No I do not have a loan in Credit Union but some of that money would have been inheritance gift over 2 years ago.

Would your credit union statements then not show the build up of the deposit?

Sarn

I wonder how far back they can request statements? I've been building a deposit for years, with several of the banks not existing anymore.

Samuel T. Cogley

Effectively as long as they like. You may eventually end up with an underwriter having to make a call, but I'd imagine there would be exhaustive efforts made first.

Sarn

Luckily I have over a decades worth of statements. It would just be a massive hassle dredging them up.

stefanovich

Seems like the banks are getting generous with mortgages. Open viewings and queues of people and bidding wars. Things are heating up again.

BBMcQ

stefanovich wrote: »

Seems like the banks are getting generous with mortgages. Open viewings and queues of people and bidding wars. Things are heating up again.

I somewhat disagree with this. There is pent up demand from people having to save for 2 years for 10-20% deposit. Then you have the supply issue. Banks have to stick with 3.5 - 4.5 times the income. Bubbles are built on credit. Credit isn't inappropriately loose in Ireland at the moment.

stefanovich

BBMcQ wrote: »

I somewhat disagree with this. There is pent up demand from people having to save for 2 years for 10-20% deposit. Then you have the supply issue. Banks have to stick with 3.5 - 4.5 times the income. Bubbles are built on credit. Credit isn't inappropriately loose in Ireland at the moment.

Your perspective is reassuring. In the last 6 months, demand certainly is increasing and houses are selling for well above asking. Trying not to get caught up in it but when there are queues of people at an open viewing it's worrisome.

Bored Accountant

stefanovich wrote: »

Your perspective is reassuring. In the last 6 months, demand certainly is increasing and houses are selling for well above asking. Trying not to get caught up in it but when there are queues of people at an open viewing it's worrisome.

Or people are lowering their expectations and paying more for smaller houses because the supply at the size of house they want doesn't exist.

Villa05

BBMcQ wrote:

I somewhat disagree with this. There is pent up demand from people having to save for 2 years for 10-20% deposit. Then you have the supply issue. Banks have to stick with 3.5 - 4.5 times the income. Bubbles are built on credit. Credit isn't inappropriately loose in Ireland at the moment.

Bubbles have multiple causes one of the main ones is restricting supply which has been ongoing for many years now

whiskeyman

http://www.independent.ie/business/personal-finance/property-mortgages/significant-blow-for-mortgage-holders-low-tracker-rates-to-rise-35478118.html

I wonder will this make many go onto Fixed over the coming months?
Many discussions on here seemed to think that interest rates were going nowhere over the coming years.
Still a joke that Irish banks are charging the highest variable rates in the EU

youcancallmeal

BBMcQ wrote: »

I somewhat disagree with this. There is pent up demand from people having to save for 2 years for 10-20% deposit. Then you have the supply issue. Banks have to stick with 3.5 - 4.5 times the income. Bubbles are built on credit. Credit isn't inappropriately loose in Ireland at the moment.

Agreed there is actually a few reasons there is so much demand and talk about house prices increasing at the moment. Off top of my head:

- HTB scheme introduction.
- Only 10% deposit needed now for first time buyers.
- Many new estates coming on sale at the same time even if not ready in order to take advantage of the above.
- Pent up demand from people saving the last few years and getting sick of living back with parents (Myself included!)


Having said that though, this is just me speculating but I think a lot more 2nd hand properties are going up for sale as the owners feel we are reaching another peak and now is time to sell.

guile4582

i've decided to wait at least 3 years...things are way too mad at the moment for me to be able to even think clearly

Romantic Rose

guile4582 wrote: »

i've decided to wait at least 3 years...things are way too mad at the moment for me to be able to even think clearly

Ditto. We're thinking save like hell for the next 3 years and try to buy then with a small loan rather than a lengthy mortgage. Have a good deposit already though.

BBMcQ

Villa05 wrote: »

Bubbles have multiple causes one of the main ones is restricting supply which has been ongoing for many years now

Might seem counter-intuitive but credit has always been the main reason for a bubble. It lets people stretch behind their means and dries up a lot faster than people's sentiment. In economic study there has rarely if ever been a bubble where lending was strictly controlled as it is in Ireland right now.

BBMcQ

guile4582 wrote: »

i've decided to wait at least 3 years...things are way too mad at the moment for me to be able to even think clearly

It's really a personal thing based on your own needs. Prices and lending availability have had a messed up cycle since 2008. In 2010 you could get a dirt cheap house but you'd have an expensive mortgage rate. In 2007 you were buying at the height of the boom but could get a 1% tracker.

guile4582

in 3 years i will be 37...not ideal but i would be putting myself under way too much pressure now to get a nice place or wasting my hard earned savings on a place that I can afford but I wont be happy in

pilly

guile4582 wrote: »

in 3 years i will be 37...not ideal but i would be putting myself under way too much pressure now to get a nice place or wasting my hard earned savings on a place that I can afford but I wont be happy in

Sensible approach.

fjon

So after many months of paperwork and emails with EBS we finally got AIP three weeks ago. And two weeks ago found out that my wife is being made redundant :mad:
This is so frustrating - we need to start from scratch again, and can't do that for at least 6 months.
I'm guessing there is nothing that can be done before we can apply again? Is the current AIP useless even if wife gets a new job tomorrow?

All_in_Flynn

fjon wrote: »

So after many months of paperwork and emails with EBS we finally got AIP three weeks ago. And two weeks ago found out that my wife is being made redundant :mad:
This is so frustrating - we need to start from scratch again, and can't do that for at least 6 months.
I'm guessing there is nothing that can be done before we can apply again? Is the current AIP useless even if wife gets a new job tomorrow?

Have you told the bank already that your wife is being made redundant? If not then you could till move to full approval without them knowing anything if you found a house you want soon?

fjon

All_in_Flynn wrote: »

Have you told the bank already that your wife is being made redundant? If not then you could till move to full approval without them knowing anything if you found a house you want soon?

No, we haven't said anything yet. I don't know what's involved in going for full approval - won't they need updated payslips, or letters confirming employment status? The initial paperwork we submitted was in November.

sozbox

fjon wrote: »

So after many months of paperwork and emails with EBS we finally got AIP three weeks ago. And two weeks ago found out that my wife is being made redundant :mad:
This is so frustrating - we need to start from scratch again, and can't do that for at least 6 months.
I'm guessing there is nothing that can be done before we can apply again? Is the current AIP useless even if wife gets a new job tomorrow?

don't say a word unless you have to.

For Full approval I had to present up to date bank statements, payslips and a new salary cert as it was 6 months since my AIP.

Also with EBS.

Can you get the full approval before they go looking for more stuff?

fjon

sozbox wrote: »

Can you get the full approval before they go looking for more stuff?

I presume we need to find a house before we can get this? She finishes at the end of Feb, so if they look for more paperwork that makes it very tricky.
Additionally one of the conditions of the AIP specifically calls out that we are both in permanent employment.

trobbin

BBMcQ wrote: »

I somewhat disagree with this. There is pent up demand from people having to save for 2 years for 10-20% deposit. Then you have the supply issue. Banks have to stick with 3.5 - 4.5 times the income. Bubbles are built on credit. Credit isn't inappropriately loose in Ireland at the moment.

Credit would very quickly be categorised as "inappropriately loose" if interest rates go up. Many of the mortgages being drawn down are a sign already of people overstretching their finances. Even though people are getting loans, usually of 4.5 their combined salary, the financial strain is much greater. Take all other bills into consideration and add an illness, a car issue, a job loss or a new child? A rate increase will cripple many families, whose monthly mortgage repayments are already too high.

I think the housing market has overheated.

Anybody buying a house at the moment is desperate. Either suffering extortion from rent prices (which are being fuelled by a government of landlords). Others are being greedy, "thinking if they don't buy now, prices will continue to rise, and I'll loose out" that's a worrying sign, that's boom talk.

People should catch a hold of themselves, and wake up. Life is for living. Many trying to buy ATM are paying way too high and making commitments for the next 30 years that will give them a home, but a terrible quality of life. I actually know people who eat poor cheap food, just to afford a better home!

FED has already started increasing rates in America and houses have seen a stop in growt prices. This will happen everywhere, rates will go up. Brexit will happen, and real Irish jobs will be lost also.

Worrying signs last few years. House prices increases up by 100/150% in many bad areas in Dublin, property tax goes unmentioned lately (this will always rise in the future) An obvious manipulation of the market by the banks and government to force a supply issue in order to make their figures look better.
Now you've got government incentives, HTB scheme screams, boom. Once that type of stuff starts happening it's time to walk away, things going on sale in tesco?!

As for the new housing estates, imagine buying your brand new home, and the family next door gets their brand new home as a social house. I'm not trying to put people down, but you can't afford to take a sick day off work because of your huge mortgage will your neighbours are having a few beers and a barbecue. That's what's gonna happen loads of people, with the new 20% social housing development plan.

Anyway, I think you guys will guess I think the market has gone crazy again. I also will have zero sympathy for anyone who overpays in this market.

athtrasna

trobbin wrote: »

.

Please do not try to derail this long standing helpful thread with off topic posts.

Mod

syndrome777

I need some help from people who have been trying to buy a property recently. If I ask EA on whether there is an offer on a property, would they tell me if it was less then advertised? and do they tell the amount offered?

stefanovich

syndrome777 wrote: »

I need some help from people who have been trying to buy a property recently. If I ask EA on whether there is an offer on a property, would they tell me if it was less then advertised? and do they tell the amount offered?

They lie usually. Don't trust a word they say. They want to get the price as high as possible to maximise their profit.

Don't bother asking, just make an offer by email and see what they say. If you want to bid under the asking then do.

syndrome777

stefanovich wrote: »

They lie usually. Don't trust a word they say. They want to get the price as high as possible to maximise their profit.

Don't bother asking, just make an offer by email and see what they say. If you want to bid under the asking then do.

thanks

I was afraid of this. Very nerve wrecking playing all this games.

Prices are going crazy, same apartments in same building that were way under 250K (and sold below or around 250 es per price register) are now advertised for 275K and prob expecting to get more :S

trobbin

syndrome777 wrote: »

thanks

I was afraid of this. Very nerve wrecking playing all this games.

Prices are going crazy, same apartments in same building that were way under 250K (and sold below or around 250 es per price register) are now advertised for 275K and prob expecting to get more :S

They're not games. Once you draw down your mortgage, it's very real. Estate agents have a bad reputation, but in fairness, home owners push them for larger returns when selling, and when buying think they're being ripped off.

Remember you don't need to enter the market if you're unsure, usually go with your gut instinct. Question, how do you feel paying an extra 40/60k for an apartment, that people one or two years ago could get so much cheaper?

Just do your maths. Make sure you factor in possible rate hikes. Will your wages rise if your repayments rise. Don't force yourself into anything.

syndrome777

trobbin wrote: »

They're not games. Once you draw down your mortgage, it's very real. Estate agents have a bad reputation, but in fairness, home owners push them for larger returns when selling, and when buying think they're being ripped off.

Remember you don't need to enter the market if you're unsure, usually go with your gut instinct. Question, how do you feel paying an extra 40/60k for an apartment, that people one or two years ago could get so much cheaper?

Just do your maths. Make sure you factor in possible rate hikes. Will your wages rise if your repayments rise. Don't force yourself into anything.

trust me I though about all of what you are saying loads. the truth is my mort rep will be the same as my rent is now (and we are in a smaller apt then we want to buy). Both of our salary do grow year on year, a little bit but they do.

I know it's not poplar in Ireland to buy an apts, but I always lived in one and i Know that the value may not grow but I don't want to save or wait anymore.
I do not want to overpay ether. So I would only go for what I think I am comfortable paying.

thank you for the advice anyway