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

Mantis Toboggan

I'd imagine 30 days notice would be sufficient.

AppleBottle

Bawnmore wrote: »

We're renting at the moment and are sale agreed on a house. Our rental has just rolled on with no fixed contract and our landlord knows we're looking to buy for quite awhile. When's an appropriate time to let them know? We've been up to the point of contract signing on another house when the other party pulled out so we know anything can happen, but don't want to just spring it on our landord at the last minute either.

There is a minimum notice required:

https://www.threshold.ie/advice/ending-a-tenancy/ending-your-tenancy/

You have already let them know you are looking. So maybe they would be okay with receiving less notice? I would personally go about it with giving formal notice under the guidelines in the above link. You never know when someone can turn on you.

Bawnmore

AppleBottle wrote: »

There is a minimum notice required:

https://www.threshold.ie/advice/ending-a-tenancy/ending-your-tenancy/

You have already let them know you are looking. So maybe they would be okay with receiving less notice? I would personally go about it with giving formal notice under the guidelines in the above link. You never know when someone can turn on you.

Good stuff - I'll keep that in mind.

ILikeBoats

ILikeBoats wrote: »

Just rang PTSB to find out how much it would be but they couldn't give the information over the phone :rolleyes: have to wait for it to be posted out.

Could save a lot by moving to BoI

Just following up on this.

Got the paperwork from PTSB and the fee to break a fixed term is €0.00. So they couldn't tell me over the phone that it was free to switch mortgages.
Interestingly, they attached a sheet that we could just sign and it would change our fixed % rate to a lower rate....so just for asking how much it cost to break out of a fixed term, they give us an easy option to move to a lower rate! Insanity. Granted it 0.2% but that's still a lot of money over time just for asking a question....
Anyway, we are going to get the ball rolling on switching.

GingerLily

ILikeBoats wrote: »

Just following up on this.

Got the paperwork from PTSB and the fee to break a fixed term is €0.00. So they couldn't tell me over the phone that it was free to switch mortgages.
Interestingly, they attached a sheet that we could just sign and it would change our fixed % rate to a lower rate....so just for asking how much it cost to break out of a fixed term, they give us an easy option to move to a lower rate! Insanity. Granted it 0.2% but that's still a lot of money over time just for asking a question....
Anyway, we are going to get the ball rolling on switching.

Its not necessarily free to switch, there is a formula in your mortgage contract that details this.

If you Google ptsb fixed term breakage fee you'll find it.

Bawnmore

Cows Go µ wrote: »

Are the bank aware of the fact that there is that amount of land? I remember that when I was initially looking for approval in principle I mentioned that I wanted land and the tsb said they wouldn't give me a mortgage for a house with more than 2 acres. I only wanted an acre or so, so it made no difference to me

Just to follow up on this - valuation was completed and bank manager has been on to me to say that all looks in order regardless of the 10 acres - loan offer will be made this week. So not a one size fits all thing possibly which is great news for us!

ILikeBoats

GingerLily wrote: »

Its not necessarily free to switch, there is a formula in your mortgage contract that details this.

If you Google ptsb fixed term breakage fee you'll find it.

I'm confused. They told us there is no breakage fee.

ButWhy

Natashaw88x wrote: »

Hi all, I’m currently applying for a mortgage. I have a revoked credit card which is on my icb. I’ve written a letter explaining why it happened, and the bank has come back asking for a stronger letter. They want more details etc. Anyone any experience with this and did you get approved in the end?

We had some concerns, since the debt we were owning was sold to a vulture fund few years back. The first thing our bank said we need is a clean ICB, which it came back clean, we needed also a letter to explain what happened, letter from court (it was settled that we would pay monthly) and all the statements showing we paid all this time on time. Our mortgage was approved in 5 days .

GingerLily

ILikeBoats wrote: »

I'm confused. They told us there is no breakage fee.

In your specific case yes, for other people it will be different, it depends on the market and swap rates, your interest rate, term remaining and balance remaining. Like I said there's a formula they follow.

Other customers may have a breakage fee

Cows Go µ

Bawnmore wrote: »

Just to follow up on this - valuation was completed and bank manager has been on to me to say that all looks in order regardless of the 10 acres - loan offer will be made this week. So not a one size fits all thing possibly which is great news for us!

That's great to hear. I was only looking at an acre at the time and in the end I got even less so I never really fully investigated it. And I'm almost glad now because the garden is going to be hard enough to maintain as it is!

The_Conductor

Geuze wrote: »

Income tax rates in Ireland are 20% and 40%.

USC may also apply to net rental profits.

USC is the joker in the pack- it applies to the gross rental income- not the net.
Aka- you could make a signficant net loss in a given year- but still have a sizable tax bill- as USC is agnostic of any other costs.

USC, in the context of rental income, is grossly unfair.

Natashaw88x

ButWhy wrote: »

We had some concerns, since the debt we were owning was sold to a vulture fund few years back. The first thing our bank said we need is a clean ICB, which it came back clean, we needed also a letter to explain what happened, letter from court (it was settled that we would pay monthly) and all the statements showing we paid all this time on time. Our mortgage was approved in 5 days .

That’s great to hear! Do you mind me asking who you went with? I’ve sent off another letter giving them more detail so hoping it’s approved

prettyboy81

Afternoon

Great thread for information on all the different experiences people are going through in the current Housing Market. Any advice of tips on my situation below?

Plan on selling my 2 Bed apt in the New Year when wife returns to work after maternity leave. The apt has approx €50-60k capital on current market rates and mortgage payments, bills, etc always on time with no ICB issues. Will banks consider the capital from apt sale towards deposit for new mortgage with us only having small savings around €10k. I plan on squeezing as much saving as possible to cover solicitor, stamp duty, agent fees.

Just looking for any info on people who have moved on from an apartment to a house due to the joys of children. Cheers.

TheShow

prettyboy81 wrote: »

Afternoon

Great thread for information on all the different experiences people are going through in the current Housing Market. Any advice of tips on my situation below?

Plan on selling my 2 Bed apt in the New Year when wife returns to work after maternity leave. The apt has approx €50-60k capital on current market rates and mortgage payments, bills, etc always on time with no ICB issues. Will banks consider the capital from apt sale towards deposit for new mortgage with us only having small savings around €10k. I plan on squeezing as much saving as possible to cover solicitor, stamp duty, agent fees.

Just looking for any info on people who have moved on from an apartment to a house due to the joys of children. Cheers.

yes they will take any surplus from sale of existing towards new property.

tobsey

prettyboy81 wrote: »

Afternoon

Great thread for information on all the different experiences people are going through in the current Housing Market. Any advice of tips on my situation below?

Plan on selling my 2 Bed apt in the New Year when wife returns to work after maternity leave. The apt has approx €50-60k capital on current market rates and mortgage payments, bills, etc always on time with no ICB issues. Will banks consider the capital from apt sale towards deposit for new mortgage with us only having small savings around €10k. I plan on squeezing as much saving as possible to cover solicitor, stamp duty, agent fees.

Just looking for any info on people who have moved on from an apartment to a house due to the joys of children. Cheers.

We’re just starting the process of selling to buy. Ours is a house but doesn’t really make a difference I don’t think. We have an average three bed in north Dublin but with 4 kids now we’re looking for something bigger. One thing to watch out for is the affordability.

We’ve got our first approval I principal of 312k which is about 50k below what 3.5 times our income is. The banks stress test you on 2% above their variable rate. It varies from bank to bank but you need roughly 2300 per couple, plus 225-250 per child, plus childcare every month and still have enough income to pay the stress tested mortgage. That 2% extra is about 400 a month I think on a 350k mortgage over 35 years.

Our childcare is 950 a month now, In 12 months it should drop to about 600 when they’ve all started at least pre-school. That plus pension contributions is a killer. I’m public sector and between pension and the pension levy it takes 740 a month from my gross. I’ve no choice but to pay them too so I can’t reduce it to make my net increase even for the short term.

We might just about get what we want at that but we only have about 70k between equity and savings and we can’t get the LTV exemption to let us above 80%. To get that we’d need an extra 650 per month of disposable income. We’re waiting to hear back from three other banks so maybe they’ll be slightly better.

We got a mortgage of 322k in 2009 against a property of 350k. It’s still not worth that again but it’s getting closer at least so at least here is a possibility of movement in the short term. We might have to wait the year until the childcare comes down and at least then we’d have cleared about 7k extra for equity plus the value of our current house might have gone up a bit again.

ButWhy

Natashaw88x wrote: »

That’s great to hear! Do you mind me asking who you went with? I’ve sent off another letter giving them more detail so hoping it’s approved

It is with BOI. Best of luck!

SpaceRocket

Would anyone have advice for our situation? I'm self employed, partner is private sector PAYE. We are saving for a mortgage.
Would 15% deposit be enough for us to apply for the 4.5 income exemption? Does my being self employed effect our ability to attain an exemption? Apart from the requirement of 2-3 yrs accounts for self employed as opposed to 6 months for PAYE, is there any other obstacles I should prepare for?
Any suggestions of lenders that won't look negatively upon self employed workers?
We have no loans, no childcare fees, just paying rent and saving hard for now.
Thanks in advance for any advice or pointers!

derekbro

SpaceRocket wrote: »

Would anyone have advice for our situation? I'm self employed, partner is private sector PAYE. We are saving for a mortgage.
Would 15% deposit be enough for us to apply for the 4.5 income exemption? Does my being self employed effect our ability to attain an exemption? Apart from the requirement of 2-3 yrs accounts for self employed as opposed to 6 months for PAYE, is there any other obstacles I should prepare for?
Any suggestions of lenders that won't look negatively upon self employed workers?
We have no loans, no childcare fees, just paying rent and saving hard for now.
Thanks in advance for any advice or pointers!

I'd advise you to go with a broker if you can. I was in your exact same position and got an exemption through them with KBC, In our house 1 year now. My first application for a mortgage was directly to AIB without a broker and they kept coming back asking for more random documentation, even a CV at one point, it took forever and didn't get an exemption in the end. I had none of that crap with the broker. We applied in December and had the exemption for the next year.

prettyboy81

tobsey wrote: »

We’re just starting the process of selling to buy. Ours is a house but doesn’t really make a difference I don’t think. We have an average three bed in north Dublin but with 4 kids now we’re looking for something bigger. One thing to watch out for is the affordability.

We’ve got our first approval I principal of 312k which is about 50k below what 3.5 times our income is. The banks stress test you on 2% above their variable rate. It varies from bank to bank but you need roughly 2300 per couple, plus 225-250 per child, plus childcare every month and still have enough income to pay the stress tested mortgage. That 2% extra is about 400 a month I think on a 350k mortgage over 35 years.

Our childcare is 950 a month now, In 12 months it should drop to about 600 when they’ve all started at least pre-school. That plus pension contributions is a killer. I’m public sector and between pension and the pension levy it takes 740 a month from my gross. I’ve no choice but to pay them too so I can’t reduce it to make my net increase even for the short term.

We might just about get what we want at that but we only have about 70k between equity and savings and we can’t get the LTV exemption to let us above 80%. To get that we’d need an extra 650 per month of disposable income. We’re waiting to hear back from three other banks so maybe they’ll be slightly better.

We got a mortgage of 322k in 2009 against a property of 350k. It’s still not worth that again but it’s getting closer at least so at least here is a possibility of movement in the short term. We might have to wait the year until the childcare comes down and at least then we’d have cleared about 7k extra for equity plus the value of our current house might have gone up a bit again.

Thanks for information & best of luck ahead with your own new purchase.

- bo -

SpaceRocket wrote: »

Would anyone have advice for our situation? I'm self employed, partner is private sector PAYE. We are saving for a mortgage.
Would 15% deposit be enough for us to apply for the 4.5 income exemption? Does my being self employed effect our ability to attain an exemption? Apart from the requirement of 2-3 yrs accounts for self employed as opposed to 6 months for PAYE, is there any other obstacles I should prepare for?
Any suggestions of lenders that won't look negatively upon self employed workers?
We have no loans, no childcare fees, just paying rent and saving hard for now.
Thanks in advance for any advice or pointers!

derekbro wrote: »

I'd advise you to go with a broker if you can. I was in your exact same position and got an exemption through them with KBC, In our house 1 year now. My first application for a mortgage was directly to AIB without a broker and they kept coming back asking for more random documentation, even a CV at one point, it took forever and didn't get an exemption in the end. I had none of that crap with the broker. We applied in December and had the exemption for the next year.

I would +1 derekbro's post on this, SpaceRocket. Both myself and other half are and were self-employed when we applied in February gone. Since different banks had varying requirements with the amount of years trading etc, we just went with a broker from the off (you're welcome to PM if you'd like a recommendation and it's not against any rules here).

We ended up with KBC, had to do our books early in the year and to show two full years' trading and improvements on our profits (they take average from the 2 years or more). We were a small bit surprised at getting approved to be honest, even if it is a fairly small mortgage. It's tested our patience over the past 6 months but we found a place and we're thankfully at a stage where everything is in place and we're hoping to draw down and collect keys in the coming days.

TheShow

SpaceRocket wrote: »

Would anyone have advice for our situation? I'm self employed, partner is private sector PAYE. We are saving for a mortgage.
Would 15% deposit be enough for us to apply for the 4.5 income exemption? Does my being self employed effect our ability to attain an exemption? Apart from the requirement of 2-3 yrs accounts for self employed as opposed to 6 months for PAYE, is there any other obstacles I should prepare for?
Any suggestions of lenders that won't look negatively upon self employed workers?
We have no loans, no childcare fees, just paying rent and saving hard for now.
Thanks in advance for any advice or pointers!

At this time of year, I'd say most banks are full to exemptions. Go to talk to a broker is the best advice. If you can hold off until the new year then you'd have a much better chance of securing exemptions.

Irishcrx

Hi guys ,

Could someone please PM me the name of a good broker they used? I am looking for a mortgage but have a complex situation around finances in the sale and buying and think I am going to need a broker for good advice on what approach to take.

We were planning on getting married later this year before applying early next year but after reading up I'm thinking about holding off and applying for the new mortgage solely in my name , my other half doesn't work and look's after the home.

I'm worried that if married even though I'll earn more via Tax break that they will calculate it as a burden rate and therefore be willing to lend less, to get what we want I'll need the full 3.5 multiplier available based on my salary...

Canyon86

Hi All
Im a total newbie to all things mortgages etc etc, just looking for some advice at the moment,
Im 28, Single applicant on a salary of 45,000 plus guranteed additonal income 4,000,
I have 10,000 in savings, with no loan or CC, I know i ll need more for a desposit etc,
My questions are
1)How long does the process take roughly? say I apply in May 2019 would I be looking at 6 months before moving in?
2)Is there anything i can be doing now to boost my application? I dont have any paddy power gambling a/cs
3)besides the deposit, would I be looking at an extra 5k for stamp duty, solicitor fees etc?
Thanks for any replies,

limnam

Canyon86 wrote: »

1)How long does the process take roughly? say I apply in May 2019 would I be looking at 6 months before moving in?

This depends on a huge amount of factors.

Canyon86 wrote: »

2)Is there anything i can be doing now to boost my application? I dont have any paddy power gambling a/cs

Well "maintained" current account/ consistent savings/no loans etc will help

Canyon86 wrote: »

3)besides the deposit, would I be looking at an extra 5k for stamp duty, solicitor fees etc?
Thanks for any replies,

Stamp duty is calculated as a percentage of the cost of the house.


Solicitors vary wildly, shop around.

TheShow

SD is 1% of the purchase price.
If its a new build the purchase price will be less VAT and possibly site cost and SD will be based off that net figure.

Solicitor fees vary so much that its best to just price around.

noclee

Could someone please PM a broker they have used in the past, looking to apply for a mortgage at the moment and have the 20% required.

limnam

noclee wrote: »

Could someone please PM a broker they have used in the past, looking to apply for a mortgage at the moment and have the 20% required.

You might want to advise on where your living if you want someone relatively local

AppleBottle

Got approved in principal with AIB - delighted! We need to send in some more documents but should be no issues.

Very excited to start looking for our home! And of course are ready for the stresses that will come with it no doubt!

simons104

Would you need AIP for a deposit to be accepted on a new build? Mortgage obviously wouldn't be drawn down until months later when the house is finished

awec

simons104 wrote: »

Would you need AIP for a deposit to be accepted on a new build? Mortgage obviously wouldn't be drawn down until months later when the house is finished

Usually yes, in areas of high demand at least.