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

Purple Sheep

badbeatcentral wrote: »

Sorry if this isn't the right thread, but does anyone have experience in claiming the DIRT refund for first time buyers? I had submitted a refund request on ROS but was bounced back and I'm having trouble getting a proper response from revenue as to why. I bought my property before the 31 December 2017 deadline so expected no issues. Has anyone else encountered trouble getting this refund?

Did you get the keys before Dec 31st? I got the refund earlier this year, no problems and it was pretty fast. Only thing I can think of is perhaps the documents to show how much DIRT you paid/are owed back were missing something? I included the interest statements from Rabo for each year and I think I also had a text file showing how I calculated the amount I believed I was due (with the pro-rated years, etc). Could your calculations have been off? If it all looks good I'd send them a enquiry with the docs, to see if they can help you figure it out.

cruizer101

Creamy Goodness wrote: »

no it means you after all your bills and mortgage amount (the stress tested amount) is paid, you need 1400 or more to live off. you don't have to keep your account over 1400 at all times.

I think your a little wrong there, or at least bills just needs bit of clarification.
My understanding and what AIB and KBC told us was, It means after you pay your mortgage (stress tested to a higher rate, for AIB I think was 5%) and any other financial commitments (other loans or finance, possibly if paying maintenance, may be some others) you must have 1400. That 1400 is to cover your standard living expenses electricity, phone, food etc. So the expenses/bills they are talking about doesn't include all your bills as you can't exactly predict those, but they consider 1400 enough to live off (just to add if there are children this changes, I'mnot sure the figures).

awec

Yea it's only your debt related outgoings they care about. Mortgage, loans and credit cards.

TheShow

awec wrote: »

Yea it's only your debt related outgoings they care about. Mortgage, loans and credit cards.

And childcare costs, if any.

chrismon

cruizer101 wrote: »

I think your a little wrong there, or at least bills just needs bit of clarification.
My understanding and what AIB and KBC told us was, It means after you pay your mortgage (stress tested to a higher rate, for AIB I think was 5%) and any other financial commitments (other loans or finance, possibly if paying maintenance, may be some others) you must have 1400. That 1400 is to cover your standard living expenses electricity, phone, food etc. So the expenses/bills they are talking about doesn't include all your bills as you can't exactly predict those, but they consider 1400 enough to live off (just to add if there are children this changes, I'mnot sure the figures).

So to clarify, after mortgage savings (at high rate), loans (finished next month thankfully), bills such as phone, you should have 1400 a month/ 350 a week to live off?

myshirt

chrismon wrote: »

So to clarify, after mortgage savings (at high rate), loans (finished next month thankfully), bills such as phone, you should have 1400 a month/ 350 a week to live off?

Yes.

For example:
Income = 2,400
Mortgage (stressed) = 1,000
Left over = 1,400

Grand.

So that means this person can borrow about 180k to 200k. If the central bank rules do not prevent the bank from giving them that amount (i.e they have about 50-55k income), then the bank will offer that amount providing everything else is ok.

For a couple it's about 2,300 + 250 per child. Say you had 2 kids, that's 2,800 you need after a stress tested mortgage. A stress tested mortgage on a 320k 3 bed is 1,600, so basically you need about 4.5k family income per month. That's not an amount that is off the wall, but it's not a small chunk of change either.

TheShow

take note that the rules around net disposable income are banks own policy and not Central bank Rules.

Meself

Folks.. quick question. Say there is a 4 yr age gap between myself and partner. Who's age do they use to determine the length of mortgage available say up to age 65

Thanks

Bargain_Hound

bored_newbie wrote: »

We have gone sale agreed on a house, and have approval in principle from AIB.
I'm regretting not getting the same from BOI, as I would like to fix the mortgage and the cashback offer would make it worthwhile. I've compared all the rates(a bit late, you might say) and the BOI one would be the best for us.
I called into BOI and they say if I give them the required forms and statements, it will take less than two weeks to get their offer.

What are people's opinions on this - would going down the BOI route just delay things or do I have lots of time to get the mortgage side sorted? I presume it's hard to say, because we don't know how long it will take the owners to get the deeds etc in place. Obviously it would be quicker to just go with AIB but as its my first time involved in a house sale, I'm not sure when exactly you need the mortgage side sorted.

Go for it. I was in a similar position with the pressure of the sale right on top of me with already existing mortgage approval from PTSB. I applied last minute with BOI directly in branch and was approved within 48-hours. Saved myself thousands in interest.

Mickiemcfist

Meself wrote: »

Folks.. quick question. Say there is a 4 yr age gap between myself and partner. Who's age do they use to determine the length of mortgage available say up to age 65

Thanks

The oldest of the two AFAIK

TheShow

Meself wrote: »

Folks.. quick question. Say there is a 4 yr age gap between myself and partner. Who's age do they use to determine the length of mortgage available say up to age 65

Thanks

oldest person.

chrismon

Meself wrote: »

Folks.. quick question. Say there is a 4 yr age gap between myself and partner. Who's age do they use to determine the length of mortgage available say up to age 65

Thanks

Goes on the oldest persons next birthday.
So if your 49 you can get a 15 year mortgage.

TheShow

chrismon wrote: »

Goes on the oldest persons next birthday.
So if your 49 you can get a 15 year mortgage.

you'll get 16 based on that.

purpleisafruit

TheShow wrote: »

you'll get 16 based on that.

Bank of Ireland go up to age 70

Mantis Toboggan

chrismon wrote: »

Goes on the oldest persons next birthday.
So if your 49 you can get a 15 year mortgage.

Or a 21 year mortgage if you go with BOI.

chrismon

I thought the max was 65? Good to know!

TheShow

Tyson Fury wrote: »

Or a 21 year mortgage if you go with BOI.

If you have a pension, some banks will allow up to age 70.
The norm is 65 though.

awec

chrismon wrote: »

So to clarify, after mortgage savings (at high rate), loans (finished next month thankfully), bills such as phone, you should have 1400 a month/ 350 a week to live off?

No, they don't take bills in to account. Ignore your phone bill etc.

Income minus Mortgage minus loans minus credit cards minus cost per child has to leave you with more than 1400 euro.

Liam McPoyle

chrismon wrote: »

I thought the max was 65? Good to know!

Retirement age is now at 67 so I think it can run til then.

Creamy Goodness

cruizer101 wrote: »

I think your a little wrong there, or at least bills just needs bit of clarification.
My understanding and what AIB and KBC told us was, It means after you pay your mortgage (stress tested to a higher rate, for AIB I think was 5%) and any other financial commitments (other loans or finance, possibly if paying maintenance, may be some others) you must have 1400. That 1400 is to cover your standard living expenses electricity, phone, food etc. So the expenses/bills they are talking about doesn't include all your bills as you can't exactly predict those, but they consider 1400 enough to live off (just to add if there are children this changes, I'mnot sure the figures).

Yup sorry was a long night last night with a cancelled flight thrown in I meant bills as credit card/child care costs/car loans etc. Regularly monthly run of he mill bills not included

J_Dunn

Hey guys,

Sorry for jumping in here, I was just hoping someone could help me figure out a timeline with how long mortgage appeals decisions can take.

I was refused last month due to ndi per month needing a further €151 (aib). I have just cleared my car loan and now have a further €280 a month. My advisor can't see me until Wednesday but she said everything was looking good in every way to her. Could have been more of a stress test when it went to the underwriters?

Does anyone know roughly how long it can take?

Thanks in advance

Glen_Quagmire

Do both applicants need to show savings when applying for the mortgage?

I have good record with savings for the last few years but my partner has no savings to show. All our outgoings for rent, gas/elec bills etc are from my account also.

Will this be an issue when applying?

awec

Glen_Quagmire wrote: »

Do both applicants need to show savings when applying for the mortgage?

I have good record with savings for the last few years but my partner has no savings to show. All our outgoings for rent, gas/elec bills etc are from my account also.

Will this be an issue when applying?

Nope.

GingerLily

Glen_Quagmire wrote: »

Do both applicants need to show savings when applying for the mortgage?

I have good record with savings for the last few years but my partner has no savings to show. All our outgoings for rent, gas/elec bills etc are from my account also.

Will this be an issue when applying?

It might - some banks look at the credit worthiness of each applicant, as well as the affordability of both of you for the loan. Are you looking to buy now?

Glen_Quagmire

GingerLily wrote:

It might - some banks look at the credit worthiness of each applicant, as well as the affordability of both of you for the loan. Are you looking to buy now?

We will be looking to buy in the next 3 months I hope.

Keeping a close eye on the market and certain locations

Interested Observer

awec wrote: »

Nope.

It might be if savings + rent don't cover the prospective mortgage.

Bills other than rent don't matter.

GingerLily

Glen_Quagmire wrote: »

We will be looking to buy in the next 3 months I hope.

Keeping a close eye on the market and certain locations

They might as well start saving now, are they just on a lower income so they haven't been able to save or do they spend excessively?

Glen_Quagmire

GingerLily wrote:

They might as well start saving now, are they just on a lower income so they haven't been able to save or do they spend excessively?

She is on a low income because only works between 12-20 hours a week so its hard to put anything away. I am on a good salary so I am doing all the savings for both of us plus paying rent, bills etc.

We have plenty in the way of disposable income also after all rent, bills and savings are looked after. I also have no loans or credit cards or anything dogey coming out of my account like gambling or anything. Think she might have a loan that's she's still paying back

shamrock55

We currently saving 1000 per month for last 7 mths and will continue to do so,plus paying a mortgage of 700pm for last 10 yes so that's 1700 pm I am showing I can afford,we'd only be looking for a mortgage of 1000pm but if we go by stress test of 2300 + 250 for each child(2) to be left over each month after mortgage has been paid then I'm short about 300 pm,which would the bank most likely look at as proof we could afford our mortgage

allym

shamrock55 wrote: »

We currently saving 1000 per month for last 7 mths and will continue to do so,plus paying a mortgage of 700pm for last 10 yes so that's 1700 pm I am showing I can afford,we'd only be looking for a mortgage of 1000pm but if we go by stress test of 2300 + 250 for each child(2) to be left over each month after mortgage has been paid then I'm short about 300 pm,which would the bank most likely look at as proof we could afford our mortgage

Both. The consistent savings/paying rent shows the ability to repay but the affordability is also looked at and as far as I’m aware you have to statisfy both conditions.