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

TheShow

J_Dunn wrote: »

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

It really depends on how busy the mortgage dept are, each case get dealt with in a queueing system, get it in as quick as you can , then hopefully 2/3 days or so.

TheShow

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?

No, as long as you have saved what you need and can evidence it, should be good.

TheShow

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

Where you getting 2300 pm? Stress test is 2% on top of standard variable rate. Download a loan repayment calculator on your phone, put In the amount you think you need, over the max term to bring either of ye to 65. For the interest rate use 6% which should be plenty for stress testing.

See below quote.

Just on credit cards I generally run mine up each month and then pay it off. Would that show up as a lot of my income going as a "commitment"?

shamrock55

TheShow wrote: »

Where you getting 2300 pm? Stress test is 2% on top of standard variable rate. Download a loan repayment calculator on your phone, put In the amount you think you need, over the max term to bring either of ye to 65. For the interest rate use 6% which should be plenty for stress testing.

See below quote.

2300 + 250 for each child is roughly what banks look for you to have left over each month after mortgage payment and any other loans you might have

Q&A

[Deleted User] wrote: »

Just on credit cards I generally run mine up each month and then pay it off. Would that show up as a lot of my income going as a "commitment"?

Nothing wrong using your credit card and paying it off monthly. Same as if you used your debit card.

However, if it's a large chunk of your income then the bank will see it as evidence you have limited repayment capacity.

Q&A

Q&A wrote: »

Nothing wrong using your credit card and paying it off monthly. Same as if you used your debit card.

However, if it's a large chunk of your income then the bank will see it as evidence you have limited repayment capacity.

It is, I use it over the debit card just because it contactless. Ah well, time to start holding up people at tills. :P

r93kaey5p2izun

I've never had a credit card. Someone suggested to me this might not be looked on favourably. Could this be the case? Makes no sense to me but what do I know!

Also, why doesn't mortgage term extend to 67 if that's retiring age now?

GingerLily

Amber Round Eyelid wrote: »

I've never had a credit card. Someone suggested to me this might not be looked on favourably. Could this be the case? Makes no sense to me but what do I know!

Also, why doesn't mortgage term extend to 67 if that's retiring age now?

Banks have differing max age/terms.

The credit card thing is not really a problem here, in the UK it probably would be but we have a much less sophisticated credit scoring system here.

GingerLily

Glen_Quagmire wrote: »

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

You two need to sort out your finances, you should know if she has a loan if you're looking to get a mortgage together.
If she is regularly overdrawn etc that could lead to issues getting a joint mortgage.
The lack of fixed hours may also be an issue.

Glen_Quagmire

GingerLily wrote:

You two need to sort out your finances, you should know if she has a loan if you're looking to get a mortgage together. If she is regularly overdrawn etc that could lead to issues getting a joint mortgage. The lack of fixed hours may also be an issue.

Not sure what you mean by us two needing to sort out our finances..

Her contract at the moment is 12 hours but typically does up to 20. We have a young child so that's as much as she can do at the moment without getting childcare.

She hasn't got an overdraft so not an issue and the loan is paid off, I thought there might have been a few months left to go.

I'll go back to my original question. Do both applicants need to show savings or do banks look at both applicants as "one" application as we are doing this together so does it matter who's saves what and who makes what salary once we can afford the repayments and have enough left over to live between us?

12gauge dave

If one was to have 20k saved and house is valued at 80keuro looking to borrow 65k would that be likely to be accepted? Single no kids 30year old earning 30k euro a year living at home currently.

cruizer101

Glen_Quagmire wrote: »

I'll go back to my original question. Do both applicants need to show savings or do banks look at both applicants as "one" application as we are doing this together so does it matter who's saves what and who makes what salary once we can afford the repayments and have enough left over to live between us?

It's good the loan is payed of, if there isn't much left in a loan it is best to try clear it.

In terms of whose savings, from my experience they look at the couple as one unit which makes sense as its both on the mortgage. At end of day one might have been paying all the bills while other saved.

hanaimai

12gauge dave wrote: »

If one was to have 20k saved and house is valued at 80keuro looking to borrow 65k would that be likely to be accepted? Single no kids 30year old earning 30k euro a year living at home currently.

In terms of the lending limits and required deposit, seems fine (3.5 times your income would be 105k and 10% deposit would be 8k). You'll just have to meet all the other requirements too - minimum 6 months savings, permanent job, able to meet the mortgage repayments along with any other loans etc. etc.

Bawnmore

Glen_Quagmire wrote: »

I'll go back to my original question. Do both applicants need to show savings or do banks look at both applicants as "one" application as we are doing this together so does it matter who's saves what and who makes what salary once we can afford the repayments and have enough left over to live between us?

We've a very similar setup and got approved recently without any questions. My wife works variable hours, but typically 25-30 per week at a low wage. We've 2 kids. She has no history of saving as it's just the way we work things - I pay rent, bills etc and she pays childcare and has rest as disposable. She also manages her current account in a way that banks don't like (transferring often between current account and savings, regularly hitting zero on current account etc.). My account is a lot more "bank friendly" - regular consistent savings per month, predictable outgoings etc.. In our case they only really looked at her income over 6 months, and took my account and savings as the main account.

Glen_Quagmire

Bawnmore wrote:

We've a very similar setup and got approved recently without any questions. My wife works variable hours, but typically 25-30 per week at a low wage. We've 2 kids. She has no history of saving as it's just the way we work things - I pay rent, bills etc and she pays childcare and has rest as disposable. She also manages her current account in a way that banks don't like (transferring often between current account and savings, regularly hitting zero on current account etc.). My account is a lot more "bank friendly" - regular consistent savings per month, predictable outgoings etc.. In our case they only really looked at her income over 6 months, and took my account and savings as the main account.

Sounds nearly identical. Thanks for the reply

z0oT

Glen_Quagmire wrote: »

I'll go back to my original question. Do both applicants need to show savings or do banks look at both applicants as "one" application as we are doing this together so does it matter who's saves what and who makes what salary once we can afford the repayments and have enough left over to live between us?

We got AIP from BOI just last week, and all our savings are in my name


My wife has practically no savings in her name now - we raided them for her car insurance just recently.


We were told upon applying to the bank that as long as one of you has consistant savings in one of your names then it's no issue (for married couples anyway).

Glen_Quagmire

z0oT wrote:

We were told upon applying to the bank that as long as one of you has consistant savings in one of your names then it's no issue (for married couples anyway).

That could be the kicker there as we are not married. I have a sneaky feeling the same rules don't apply for cohabiting couples

limnam

Glen_Quagmire wrote: »

That could be the kicker there as we are not married. I have a sneaky feeling the same rules don't apply for cohabiting couples

It doesn't matter if you're married or not.

TheShow

Glen_Quagmire wrote: »

That could be the kicker there as we are not married. I have a sneaky feeling the same rules don't apply for cohabiting couples

It won’t make a difference who has the savings or whether you’re married or not. Giggidy.

z0oT

Glen_Quagmire wrote: »

That could be the kicker there as we are not married. I have a sneaky feeling the same rules don't apply for cohabiting couples

I can only speak based on my own experience and we're married. Don't know otherwise.


I think you'll be fine though, as other posters have said.

Interested Observer

Glen_Quagmire wrote: »

That could be the kicker there as we are not married. I have a sneaky feeling the same rules don't apply for cohabiting couples

From my experience this is not relevant.

Liam McPoyle

We got approval yesterday so I just wanted to highlight a couple of things wrt our application that prior to application I would have thought would have been an issue. The below is based on a mortgage approval of €495k with combined gross income of €142k.

1) we didn't have 6 months savings at time of application, we had only 3 months, there was no issue with this as far as we could tell, certainly not that we were privy to. We did have approx €20k separate to our savings that my wife received this year from selling shares she got through her job. We have a property that is now out of negative equity (based on valuations there would be a max of around €20k equity in it) so that was also included as part of our deposit/savings.

2) we got an exemption from PTSB in terms of deposit. The chap we were dealing with said that they are almost at their limit for the year in terms of exemptions.

3) we got a 30 year term. Oldest applicant is 40 and has a pension through work. Youngest is 39 and does not. An exemption was also granted for here as initial conversations indicated a max term of 26 years. We asked if we could get a longer term and it was granted by underwriting.

4) one child in full time childcare, number two due in 2 weeks.

5) both have credit cards, statements were not requested. I have a car loan @ €160 a month which will be cleared June 2019. No other debt other than current mortgage.

chrismon

Business Cat wrote: »

1) we didn't have 6 months savings at time of application, we had only 3 months, there was no issue with this as far as we could tell, certainly not that we were privy to. We did have approx €20k separate to our

I wonder if your mortgage repayments on your current home counted towards it.

wardides

chrismon wrote: »

I wonder if your mortgage repayments on your current home counted towards it.

I'd hope so. We've recently gone through a broker and and he mentioned that the fact we've been renting for more or less exactly what our mortgage would be (if not paying more rent) is a pretty A+ thing to have going for you. I think they'd much rather see someone who is paying €1,000 a month rent as opposed to somebody who is saving €1,000 a month but living at home.

awec

Once you show that you saved the deposit I don't think they are overly bothered if it took you 1 month, 3 months, 6 months or 6 years.

I imagine they'd have an issue if you have only a few months savings but half your deposit is made up from money from someone else.

Bawnmore

We've just had an offer accepted on a house we love (woohoo!), but haven't got a solicitor lined up. We've been asked for a 7k booking deposit to go Sale Agreed which is fine. The estate agent has sent over bank details - I'm assuming we're OK to transfer this to him directly without needing to go through a solicitor. Is that right?

TheShow

Bawnmore wrote: »

We've just had an offer accepted on a house we love (woohoo!), but haven't got a solicitor lined up. We've been asked for a 7k booking deposit to go Sale Agreed which is fine. The estate agent has sent over bank details - I'm assuming we're OK to transfer this to him directly without needing to go through a solicitor. Is that right?

yep, all good. just make sure they give you a receipt.

GingerLily

awec wrote: »

Once you show that you saved the deposit I don't think they are overly bothered if it took you 1 month, 3 months, 6 months or 6 years.

I imagine they'd have an issue if you have only a few months savings but half your deposit is made up from money from someone else.

That's not true - steady regular payments are important. If it have a very healthy wage you might get away with a shorter savings history but anyone thinking of buying in the next year should start saving now, even if they have historical savings

Interested Observer

GingerLily wrote: »

That's not true - steady regular payments are important. If it have a very healthy wage you might get away with a shorter savings history but anyone thinking of buying in the next year should start saving now, even if they have historical savings

Well that poster and their partner were on a combined wage of 140k so I'm guessing that's more than most.

For most people I think the sensible approach is steady and consistent savings.