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

Bananaleaf

toby2111 wrote: »

Have they made it slightly harder for second time buyers to buy? Maybe I've read it wrong but seems it'll now be harder to get an exemption. Hoping to get LTV exemption early next year but am worried that it'll be even harder now to get one...

It appeared to be that way to me, but then again I'm new to all this myself

MrStuffins

Yes, they have halved the proportion of the banks's overall lending that they are allowed to give exemptions to.

From speaking to a broker, it's much easier to get an exemption at the beginning of the year than it is at the end of the year, because a lot of the institutions front-load their exemptions and have to cut back later

ELM327

Once they don't change it to make it easier to borrow, the house prices should plateau at some point as salaries are not going to increase for the majority of the buyers 12% YoY.

benjamin d

ELM327 wrote: »

Once they don't change it to make it easier to borrow, the house prices should plateau at some point as salaries are not going to increase for the majority of the buyers 12% YoY.

I think the fact that the majority of sales (~60%) are for cash makes that irrelevant. Average earners are already mostly priced out so normal rules about salaries don't really apply at the moment. We'll need to exhaust the pool of cash buyers before there's a plateau I think.

cruizer101

The one change is that previously 20% of lending could be above the 3.5 limit, whereas now 20% of FTB (first time buyers) and only 10% of SSB (second and subsequent buyers) can be above 3.5.

So it will be possibly harder for SSB to go above the limit. It may actually be easier for FTB as that previous 20% had to be shared among both.
So lets say a bank got 1,000 applications, (500 SSB 500 FTB). Of that 20% i.e. 200, could go above limit, that could have been 200 FTB or 200 SSB, or anywhere in between.
Lets say it was 50 FTB and 150 SSB, now under the new rules only 50 SSB would be allowed where as you could have 100 FTB, so potentially it would be easier for the FTB.

Now this all depends on the actual ratios of FTB to SSB applications and on how the bank previously split that 20% limit among those. Without those numbers you can't really predict the change, but potentially it may be harder for SSB and easier for FTB to go above the 3.5 limit.

Edit to add:
From a quick scan of https://www.centralbank.ie/docs/default-source/financial-system/financial-stability/macroprudential-policy/household-credit-market-report-h1-2017.pdf?sfvrsn=4.pdf
it seems FTB are ~50% of new loans and SSB (movers) are ~30%ish (20% is re mortgage and others), also from the charts on page 11 FTB seem to have more over the limit than SSBs, that being the case, I think the new rules will have little effect.

toby2111

cruizer101 wrote: »

The one change is that previously 20% of lending could be above the 3.5 limit, whereas now 20% of FTB (first time buyers) and only 10% of SSB (second and subsequent buyers) can be above 3.5.

Is there any change to LTV lending to SSB's? Or more exactly, LTV exemptions to SSB's. We're hoping to apply for an exemption to get 90% mortgage early next year and we're within the LTI limits,but we're SSB.

cruizer101

No change to the LTV limits, they are 5% of FTB allowed over the 90% limit and 20% of SSB allowed over the 80% limit

Interested Observer

There are some decent rates out there at the moment for FTBs even on 90% LTV, but say 5-10 years down the road if the ECB have raised their baseline interest rate I assume we can expect mortgage interest rates across the board here to rise as well?

aloooof

Interested Observer wrote: »

There are some decent rates out there at the moment for FTBs even on 90% LTV, but say 5-10 years down the road if the ECB have raised their baseline interest rate I assume we can expect mortgage interest rates across the board here to rise as well?

From my limited understanding, it does seem to be the case that interest rates are expected to go up. And on that note, I actually have a semi-related question, wondering if anyone has done it or has any insight.

Is it possible to Fix a portion of our mortgage and remain variable on the other? Say a 50:50 ratio or the like?

Interested Observer

aloooof wrote: »

From my limited understanding, it does seem to be the case that interest rates are expected to go up. And on that note, I actually have a semi-related question, wondering if anyone has done it or has any insight.

Is it possible to Fix a portion of our mortgage and remain variable on the other? Say a 50:50 ratio or the like?

I would also have to add the caveat than I'm not an expert but I had a very long phone call with a mortgage specialist from BOI the other night and she did put that forward as one of the options, yes.

Other banks, I guess you'd have to ask but if one does it you'd be surprised if the others didn't.

whatever76

****rant****** Can EA please update Myhome/Daft when a proprty has gone sale agree/Sold - 5 calls made today to enquire to be told no longer on market .. grrrr !!! Does my head in . Surely its annoyance on them having to deal with enquires ! **** end rant *****

Katie1_14

Enquired about this before with EA and they told me they don't like to put 'sale agreed' up online until survey has been completed. No idea how true that is.

stargazer 68

Katie1_14 wrote: »

Enquired about this before with EA and they told me they don't like to put 'sale agreed' up online until survey has been completed. No idea how true that is.

Probably true but at least put some indication that it's under offer or something.

mkdon

Where ithe regulation of eas?

Creamy Goodness

Quick question; I got approved for the Help to Buy Scheme as the EA said it would help my deposit etc. I got approved today but there's an expiry of roughly three months. The development I'm looking at doesn't come to market until February, can I just re-apply after it expires and get it updated?

Graham

mkdon wrote: »

Where ithe regulation of eas?

Go and be enlightened:

http://psr.ie/website/npsra/npsraweb.nsf/page/whatwedo-en

zl1whqvjs75cdy

Creamy Goodness wrote: »

Quick question; I got approved for the Help to Buy Scheme as the EA said it would help my deposit etc. I got approved today but there's an expiry of roughly three months. The development I'm looking at doesn't come to market until February, can I just re-apply after it expires and get it updated?

Think it expires at the end if the current tax year so you'll have to re apply in January

shamrock55

When you sell your house what percentage do you pay in tax and fees etc?

Interested Observer

shamrock55 wrote: »

When you sell your house what percentage do you pay in tax and fees etc?

Estate agent fees obviously
Solicitor fees
If the house was anything other than your primary residence at any stage you have to pay capital gains if applicable

There could be others

Bananaleaf

Still waiting to sign contracts. Have been with the solicitor two weeks now and we still haven't been called in to sign. A family member has encouraged us to try do so before the end of the year as tax relief on mortgage interest is gone by then.

I was surprised someone else hadn't mentioned this to us before, so I looked it up and from my reading of the article, it actually stopped being awarded in 2012 and anyone who bought after that wasn't getting it anyway. Those getting it up to the end of Dec 17 were people who had bought prior to 2012.

Have I read up on that right?
http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html

Purple Sheep

Bananaleaf wrote: »

Still waiting to sign contracts. Have been with the solicitor two weeks now and we still haven't been called in to sign. A family member has encouraged us to try do so before the end of the year as tax relief on mortgage interest is gone by then.

I was surprised someone else hadn't mentioned this to us before, so I looked it up and from my reading of the article, it actually stopped being awarded in 2012 and anyone who bought after that wasn't getting it anyway. Those getting it up to the end of Dec 17 were people who had bought prior to 2012.

Have I read up on that right?
http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html

That would be my reading as well. If you're a FTB, I think you might still qualify for the DIRT refund before the end of the year though: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/first-time-buyers-relief/index.aspx

Cuddlesworth

Bananaleaf wrote: »

Still waiting to sign contracts. Have been with the solicitor two weeks now and we still haven't been called in to sign. A family member has encouraged us to try do so before the end of the year as tax relief on mortgage interest is gone by then.

I was surprised someone else hadn't mentioned this to us before, so I looked it up and from my reading of the article, it actually stopped being awarded in 2012 and anyone who bought after that wasn't getting it anyway. Those getting it up to the end of Dec 17 were people who had bought prior to 2012.

Have I read up on that right?
http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html

Yeah, that is long gone.

You usually don't sign right away, your solicitor is there to go through the contracts and make sure all the documentation is correct.

mkdon

Cuddlesworth wrote: »

Bananaleaf wrote: »

Still waiting to sign contracts. Have been with the solicitor two weeks now and we still haven't been called in to sign. A family member has encouraged us to try do so before the end of the year as tax relief on mortgage interest is gone by then.

I was surprised someone else hadn't mentioned this to us before, so I looked it up and from my reading of the article, it actually stopped being awarded in 2012 and anyone who bought after that wasn't getting it anyway. Those getting it up to the end of Dec 17 were people who had bought prior to 2012.

Have I read up on that right?
http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html

Yeah, that is long gone.

You usually don't sign right away, your solicitor is there to go through the contracts and make sure all the documentation is correct.

Might be a Stupid question but say for a single person on 50k per annum what is max mortgage would could acquire? 175k?

LirW

mkdon wrote: »

Might be a Stupid question but say for a single person on 50k per annum what is max mortgage would could acquire? 175k?

Given you have no dependants that's the max you could borrow, yes.

Bananaleaf

Signed our contracts today One step closer to getting those keys in our hands.

mloc123

We are in the final and increasingly infuriating stage of selling/buying. Still waiting for signed contracts back on the sale of ours, despite the buyers solicitor saying they have been sent.. a number of times :rolleyes:

Looks like it'll be January now before we are moving.

Interested Observer

Handed in the application form today. First step I guess.

Bananaleaf

Interested Observer wrote: »

Handed in the application form today. First step I guess.

The hardest step in a way. It all kind of gathers its on momentum from here on

Good luck!

Interested Observer

Bananaleaf wrote: »

The hardest step in a way. It all kind of gathers its on momentum from here on

Good luck!

Cheers thanks. Have been going to viewings and the likes but by this time next month could be in a position to actually bid. Exciting times...

Also it's surreal sitting in a bank talking about hundreds of thousands of euro, it's so far beyond the day-to-day experience.

LirW

It's a strange one alright. Usually like 1000 Euro would be a lot of money but it all loses its meaning when it's about house.