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

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    #482
    turniphead
    Registered Users Posts: 279 ✭✭turniphead


    audi12 wrote: »
    430 for probably a three bed semi chained to that for life on what planet does that make sense just to live in dublin ??

    Such an unhelpful speculative comment when you know nothing about the poster's circumstance.

    We all know Dublin is ridiculously expensive in comparison to other parts of the country but for some people their only option is to buy in Dublin.


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    #483
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 51,687 Mod ✭✭✭✭Stheno


    Sleepy wrote: »
    Went sale agreed this afternoon! :)
    Congratulations!


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    #484
    Inspector Coptoor
    Registered Users Posts: 6,818 ✭✭✭Inspector Coptoor


    audi12 wrote: »
    Id live up a mountain rather than be chained in to a depressing mortgage like that.

    And that's your prerogative.

    We can well afford the mortgage repayments & they are only slightly higher than a lot of rents on 2 bed apts in Dublin.

    My job is in Dublin, as is my wife's & she HAS to live close to her place of work as she does call so your mountain is not an option for us.


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    #485
    Tyson Lannister
    Registered Users Posts: 329 ✭✭Tyson Lannister


    We bought a small house a few years ago and are paying the mortgage since.

    Hoping to sell in a few years time and should have 60k ish left over. We are hoping to buy a bigger house for room for the kids.
    Question is, we will have the deposit for a new mortgage but will the bank take our paying the mortgage over the years the same as proof of saving a deposit?


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    #486
    Q&A
    Registered Users Posts: 554 ✭✭✭Q&A


    Tyson Lannister wrote: »
    We bought a small house a few years ago and are paying the mortgage since.

    Hoping to sell in a few years time and should have 60k ish left over. We are hoping to buy a bigger house for room for the kids.
    Question is, we will have the deposit for a new mortgage but will the bank take our paying the mortgage over the years the same as proof of saving a deposit?

    The bank will see mortgage repayments as proof of ability to repay. It won't count directly towards your deposit requirements. Put simply it to be real money that goes towards the deposit not some notional amount as some politicians have been calling for.

    As a second and subsequent purchaser you are required to provide a deposit of at least 20% of the purchase price. With a deposit of €60k this would suggest an upper price limit of €300k.

    Of course you may be able to get an exception to the deposit requirement but that is at the banks discretion and they have a limit amount they can give out. I think this is where your experience of mortgage repayments may count towards you.


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    #487
    SB_Part2
    Closed Accounts Posts: 1,951 ✭✭✭SB_Part2


    The house I wanted to buy just doubled in price. Not sure what land the guy who was valuing it is living on.


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    #488
    Black_Knight
    Moderators Posts: 12,363 ✭✭✭✭Black_Knight


    SB_Part2 wrote: »
    The house I wanted to buy just doubled in price. Not sure what land the guy who was valuing it is living on.

    Its only an asking price, and only worth that you value it at.


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    #489
    Peterx
    Registered Users Posts: 2,116 ✭✭✭Peterx


    audi12 wrote: »
    430 for probably a three bed semi chained to that for life on what planet does that make sense just to live in dublin ??

    That comes down to philosophy really. It seems you are fixated on the day one purchase cost of a home. I would be more interested in living close to where I need to be every day for the next 20 years.

    I think if you crunch the numbers over the 20/25 years of a mortgage you might find you save money buying close to where you need to be every day.

    Buying a cheaper house (or bigger house for the same money) in a commuter town or up a mountain chains you to commuting unless you are either financially independent or can work from home.

    You save once, buying the house, and then you pay every single day after that in time and money and health and fitness.

    I think this is extremely relevant to the whole idea of saving for a mortgage in 2016 or any other time. It's not a one day purchase. It's probably the biggest financial decision of your life which will have huge ramifications to your lifestyle.


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    #490
    SB_Part2
    Closed Accounts Posts: 1,951 ✭✭✭SB_Part2


    Black_Knight wrote: »
    Its only an asking price, and only worth that you value it at.

    True. I wasn't sure whether to bother offering what I was originally going to offer or not but there's no harm in trying.


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    #491
    Bradz213
    Registered Users Posts: 235 ✭✭Bradz213


    Peterx wrote: »
    That comes down to philosophy really. It seems you are fixated on the day one purchase cost of a home. I would be more interested in living close to where I need to be every day for the next 20 years.

    I think if you crunch the numbers over the 20/25 years of a mortgage you might find you save money buying close to where you need to be every day.

    Buying a cheaper house (or bigger house for the same money) in a commuter town or up a mountain chains you to commuting unless you are either financially independent or can work from home.

    You save once, buying the house, and then you pay every single day after that in time and money and health and fitness.

    I think this is extremely relevant to the whole idea of saving for a mortgage in 2016 or any other time. It's not a one day purchase. It's probably the biggest financial decision of your life which will have huge ramifications to your lifestyle.

    Completely agree with you. I'm in a situation where I'm priced out of desirable (to me) areas of Dublin. I'm renting and moved a year and a half ago to a commuter town but love it there now so looking to buy around that area.


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    #492
    Walter H Price
    Registered Users Posts: 1,839 ✭✭✭Walter H Price


    Thinking of giving up for this year , just over €25,000 saved but were both looking at changing jobs in the next few months . House prices are still a killer in Dublin, figure the extra €15,500 will save till Christmas should set us up nicely for a move this time next year.


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    #493
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    good idea


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    #494
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Our application was declined last week becauce of a small car loan 3k. a mortgage of 135k savings just over 18k I was shocked. Our gross is just under 45k. We've Appealed the decision and are waiting now. Bank advisor wanted to put in a condition that we'd clear the loan before we draw down any mortgage in the appeal. Anyone know how long they take to appeal? We wanted to clear the loan immediately after he told us but the bank manager said not to. Why?


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    #495
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    Did you not ask the bank manager why he said not to clear the car loan? How long would it take to clear the loan at the current rate of payments.

    Credit Card Debt and Car Loans are notoriously bad things to have on your mortgage application.


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    #496
    Bradz213
    Registered Users Posts: 235 ✭✭Bradz213


    I would have thought the 3k loan would have just allowed you to borrow 3k less than your maximum.


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    #497
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    SarahMollie wrote: »
    Did you not ask the bank manager why he said not to clear the car loan? How long would it take to clear the loan at the current rate of payments.

    Credit Card Debt and Car Loans are notoriously bad things to have on your mortgage application.

    If banks are refusing people because of car loans etc I do find it a way over the top.

    Firstly if you have car loan/finance and you are easily repaying it and still saving/demonstrating your capacity to easily repay the mortgage I don't see why its an issue, of course it should be taken into account but if after this you can still easily repay I don't see why it should result in refusals.

    The thing is the minute you get your mortgage you can get loans to your hearts content which sort of makes such strictness before hand a bit silly.

    I've seen a perfect example first hand with a friend of mine. Bought a house last year and he was hardly settled in the house when he bought a brand new car (on finance) and nothing to stop him.


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    #498
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    Oh yeah true, there is nothing to stop you taking out loans to your hearts content once you've got your mortgage. And I'm not saying the banks are right, but when I was applying, I knew that I would be much better off not having any loans at that point in time.


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    #499
    angeldelight
    Registered Users Posts: 5,175 ✭✭✭angeldelight


    We could really do with a new car but are holding out until we get the house - firstly so we can keep saving more towards our deposit but also so it doesn't affect our mortgage potential. In saying that we have 3k credit card debt and still got more than 3.5x income approved


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    #500
    Tasden
    Closed Accounts Posts: 4,166 ✭✭✭Tasden


    Excuse my ignorance but am i right in thinking that the car loan would only affect your mortgage if you are still in the process of paying it back when putting in your application? Like it won't have a negative impact if you took out a car loan and paid it back with no issues and then the month it was paid off in full you then apply for mortgage? Assuming everything else is in order and ok.


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    #501
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    Tasden wrote: »
    Excuse my ignorance but am i right in thinking that the car loan would only affect your mortgage if you are still in the process of paying it back when putting in your application? Like it won't have a negative impact if you took out a car loan and paid it back with no issues and then the month it was paid off in full you then apply for mortgage? Assuming everything else is in order and ok.

    Yes, thats my understanding (although I've never had one). I don't think past loans are a bad thing once they're fully paid off and there were no issues with the repayments that could impact your credit score.


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    #502
    Tasden
    Closed Accounts Posts: 4,166 ✭✭✭Tasden


    SarahMollie wrote: »
    Yes, thats my understanding (although I've never had one). I don't think past loans are a bad thing once they're fully paid off and there were no issues with the repayments that could impact your credit score.

    I hope this is the case!


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    #503
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    Santy2015 wrote: »
    Our application was declined last week becauce of a small car loan 3k. a mortgage of 135k savings just over 18k I was shocked. Our gross is just under 45k. We've Appealed the decision and are waiting now. Bank advisor wanted to put in a condition that we'd clear the loan before we draw down any mortgage in the appeal. Anyone know how long they take to appeal? We wanted to clear the loan immediately after he told us but the bank manager said not to. Why?


    why dont you just try some other banks? They generally wont change a decision unless something has changed in the application


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    #504
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Thanks for all the replies. The bank manager said not to clear it and keep saving our 300 a week and if the appeal is successful and if we are close to closing on a house that we'd have the savings put aside to clear the loan and would've paid off extra in the mean time too. Herself has 1700 against the loan so the outlay would be small only 1300 if things go well. I just find their explanations a bit dramatic. I've stress tested ourselves and even with a jump in interest rates we'd be fine. Plus the loan.


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    #505
    aka accounts 2010
    Registered Users Posts: 1,065 ✭✭✭aka accounts 2010


    Santy2015 wrote: »
    Our application was declined last week becauce of a small car loan 3k. a mortgage of 135k savings just over 18k I was shocked. Our gross is just under 45k. We've Appealed the decision and are waiting now. Bank advisor wanted to put in a condition that we'd clear the loan before we draw down any mortgage in the appeal. Anyone know how long they take to appeal? We wanted to clear the loan immediately after he told us but the bank manager said not to. Why?

    Around 3 months before we applied for our mortgage last year, I sat down with the branch managers/mortgage advisors in PTSB and BOI to discuss our upcoming application.

    We had a 20% deposit saved and all the legal & professional fees put aside.

    We had €3.5K of total car loans with the local CU. I proposed to the bank managers that we clear the CU loans with a one off payment, which would be taken out of the legal & professional fees we had put aside and then use the 3 months before the application to build back up the fund.

    From a borrowers and lenders perspective, it makes perfect sense. If the loan is cleared, it frees up extra cash each month which will result in a better result on the "Stress Test".


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    #506
    Jentle Grenade
    Closed Accounts Posts: 415 ✭✭Jentle Grenade


    We had to clear the balance of my OH's GEM loan (€6k outstanding) and our credit cards (one €800 and one €1200) before reapplying. I'm surprised the mortgage adviser didn't tell you to clear them, or at least advise you to do so. All of the bank mortgage advisers advised us to clear them before we applied the first time but we went ahead and applied anyway to test the waters. This time around we were approved in five days. Tbh if I was in your position I'd just clear the loan.


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    #507
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Jentle Grenade wrote: »
    We had to clear the balance of my OH's GEM loan (€6k outstanding) and our credit cards (one €800 and one €1200) before reapplying. I'm surprised the mortgage adviser didn't tell you to clear them, or at least advise you to do so. All of the bank mortgage advisers advised us to clear them before we applied the first time but we went ahead and applied anyway to test the waters. This time around we were approved in five days. Tbh if I was in your position I'd just clear the loan.
    Ye had a bit more then us when it came to loans. We taught 173 a month on a car loan would be okay and so did he. I've a credit card but pay that off every month 100% so I never have to pay extra on it.


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    #508
    Utah
    Closed Accounts Posts: 426 ✭✭Utah


    Hi Guys,

    Just looking to see if this would be possible.

    We've been saving steadily for a deposit for the past 2 years.
    We recently found out we're expecting a baby in November.
    The apartment we're in would be way to small to fit in a baby with all the stuff so we're going to try and fast track buying a house. We have enough to get a decent sized mortgage and our savings and credit would be clean and consistent.

    If we got mortgage approval within the next 2 months, do you think it would be possible to buy a house and be moved in by November? I've heard a lot of people waiting a long time to get keys etc

    Thanks


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    #509
    Inspector Coptoor
    Registered Users Posts: 6,818 ✭✭✭Inspector Coptoor


    Utah wrote: »
    Hi Guys,

    Just looking to see if this would be possible.

    We've been saving steadily for a deposit for the past 2 years.
    We recently found out we're expecting a baby in November.
    The apartment we're in would be way to small to fit in a baby with all the stuff so we're going to try and fast track buying a house. We have enough to get a decent sized mortgage and our savings and credit would be clean and consistent.

    If we got mortgage approval within the next 2 months, do you think it would be possible to buy a house and be moved in by November? I've heard a lot of people waiting a long time to get keys etc

    Thanks

    It's certainly possible.
    We went sale agreed Dec 23rd and got keys March 1st but I've been told that's a quick turn around


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    #510
    Utah
    Closed Accounts Posts: 426 ✭✭Utah


    Inspector Coptoor wrote: »
    It's certainly possible.
    We went sale agreed Dec 23rd and got keys March 1st but I've been told that's a quick turn around

    Good to hear. Congrats.

    I suppose every purchase is going to be different and depends on numerous factors.

    We could get a larger apartment for a year, it would take the pressure off, but we've a really good deal on our current one and 2 bedroom apartments around us (South County Dublin) are around 600/700 extra a month on what we're paying at the moment. I don't know if can justify that.
    The other option is to move in with the folks for a bit - don't fancy that.

    I'll just have to see what we can do I reckon!


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    #511
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    yes if you get lucky and find a house thats not in a chain, as you are also not trying to sell a property it could move quick enough


This discussion has been closed.
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