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

Frank Castle

tigger123 wrote: »

How much, approx, is a structural pre purchase survey on a house?

Mine was 300 including VAT. In the west of Ireland

fanvil3000

Hi all,

A quick question for people based on their experiences with the banks. Hopeful of been able to buy a place with my partner in late 2019/ early 2020. Our salaries are currently 44k and 21k. Would we get a multiple of 3.5x on the total (65k * 3.5 = 227.5k). Is there any chance of getting more than 3.5x earnings? we are bth late 20s

Have 20k in savings for a deposit and hopeful of having around 30k by the time of the mortgage. Our budget is 250k-270k. Is this realistic given those numbers? Would hope to have an increase in earnings by then of another 6k

Cheers for any advice

GingerLily

fanvil3000 wrote: »

Hi all,

A quick question for people based on their experiences with the banks. Hopeful of been able to buy a place with my partner in late 2019/ early 2020. Our salaries are currently 44k and 21k. Would we get a multiple of 3.5x on the total (65k * 3.5 = 227.5k). Is there any chance of getting more than 3.5x earnings? we are bth late 20s

Have 20k in savings for a deposit and hopeful of having around 30k by the time of the mortgage. Our budget is 250k-270k. Is this realistic given those numbers? Would hope to have an increase in earnings by then of another 6k

Cheers for any advice

You should look into the rebuilding Ireland scheme, your below the 75k joint income threshold

IJS84

The banks have the discretion to loan a higher amount but you can always ask your mortgage advisor

Doop

fanvil3000 wrote: »

Hi all,

A quick question for people based on their experiences with the banks. Hopeful of been able to buy a place with my partner in late 2019/ early 2020. Our salaries are currently 44k and 21k. Would we get a multiple of 3.5x on the total (65k * 3.5 = 227.5k). Is there any chance of getting more than 3.5x earnings? we are bth late 20s

Have 20k in savings for a deposit and hopeful of having around 30k by the time of the mortgage. Our budget is 250k-270k. Is this realistic given those numbers? Would hope to have an increase in earnings by then of another 6k

Cheers for any advice

You will be applying in good time for the exemptions so that might be an option to get above the 3.5 times, although Ptsb told us we would be unlikely to get an exemption. We're in the middle of looking, after being approved at similar levels to yourselves, there are options at those price ranges. We thought we would struggle more. We were approved for 250 and then our deposit on top of that. If your earnings are going up b y 6k they will take that into account too (if you are applying after its gone up).

fanvil3000

GingerLily wrote: »

You should look into the rebuilding Ireland scheme, your below the 75k joint income threshold

Thanks for that will definitely look into that. This is the new scheme from the budget 19?

GingerLily

fanvil3000 wrote: »

Thanks for that will definitely look into that. This is the new scheme from the budget 19?

No its already in place. You need to be rejected /insufficient offers from 2 banks, there's a few threads in this forum about it! It might be a good back up

https://touch.boards.ie/thread/2057847716

trooperdx3117

Frank Castle wrote: »

Buying a new build off plan is quite common. Be up front with the bank, trying to lie to them is not worth it considering the amount of information they require from you, you will most likely get caught out or find yourself in an awkward situation that you can't easily navigate.

Tbh if you can afford to buy, then the bank will do all it can to get you a mortgage, they want your money after all.

And as always, make sure you have a good solicitor (yours does sound like they are keeping you on track correctly)... the help they provide you during the buying process is grossly understated.

Listen to your solicitor and proceed with getting the offer letter, your offer letter can be extended twice. up to a total of 18 months. You just need to keep on top of things and give the bank no reason to withdraw the offer.

Thanks very much for the advice. I've reached out and asked AIB to send out the offer letter.

I advised that its a new build we're purchasing and so it could be more than 6 months before the mortgage will be drawn down.

Hopefully everything will work out but its comforting to know that so far our solicitor is giving us good advice!

myshirt

Fanvil3000, salary way too low for an exemption.

chrismon

Hey guys.
I have my approval in principle for the maximum we can pull down.
I was stress tested over the past 6 months using a loan which finished recently, I continued saving the extra from the loan to get my 6 months.
My question is, as I have my approval, do I need to keep saving this extra amount(500 on top of what I'm saving towards the mortgage).
I can afford it but I'd be alot more comfortable with Christmas coming up having an extra 500 a month to play with.

Honestfrank01

chrismon wrote:

Hey guys. I have my approval in principle for the maximum we can pull down. I was stress tested over the past 6 months using a loan which finished recently, I continued saving the extra from the loan to get my 6 months. My question is, as I have my approval, do I need to keep saving this extra amount(500 on top of what I'm saving towards the mortgage). I can afford it but I'd be alot more comfortable with Christmas coming up having an extra 500 a month to play with.

I would keep saving just approval in principle doesn't mean your approved and when it comes to the mortgage application being with under writers it would fall in your favour to have the savings

chrismon

Honestfrank01 wrote: »

I would keep saving just approval in principle doesn't mean your approved and when it comes to the mortgage application being with under writers it would fall in your favour to have the savings

Thanks for that.
I'll keep saving the extra so.

Saint Sonner

If I wanted to buy a new build house in Dublin for £400k in Dublin how much of a deposit would I need. I am a first time buyer. The reason I ask is i find the rules very confusing on how much you 10% - 20% - 10% and 55 rebates blah blah

GingerLily

Saint Sonner wrote: »

If I wanted to buy a new build house in Dublin for £400k in Dublin how much of a deposit would I need. I am a first time buyer. The reason I ask is i find the rules very confusing on how much you 10% - 20% - 10% and 55 rebates blah blah

If you qualify for HTB you will get a 5% tax rebate towards your house, you need 10% deposit for the house and the bank will allow you to use your HTB was part of this.

However,

Some developers are not accepting HTB as part of the deposit, so you'll need to check. In this case you'll pay 10% (less the value of your initial booking deposit) and you can use the HTB as part of the remainder of the balance.

Saint Sonner

So just so I understand - I would only need €20k saved in the right circumstances?

TheShow

chrismon wrote: »

Hey guys.
I have my approval in principle for the maximum we can pull down.
I was stress tested over the past 6 months using a loan which finished recently, I continued saving the extra from the loan to get my 6 months.
My question is, as I have my approval, do I need to keep saving this extra amount(500 on top of what I'm saving towards the mortgage).
I can afford it but I'd be alot more comfortable with Christmas coming up having an extra 500 a month to play with.

get your full approval, then you can relax a little.

GingerLily

Saint Sonner wrote: »

So just so I understand - I would only need €20k saved in the right circumstances?

Depends on the Estate, a lot of Developers in Dublin seem to not accept HTB for contracts.

I don't know how long the scheme will be running for, so that's something else to check if your only looking now.

eoghan104

Hey, QQ....

The bank statements I have been sent are from 01/05 - 18/10. So 5 months and 18 days. Are the bank going to give me hassle here and I need to go and get April too?

TheShow

eoghan104 wrote: »

Hey, QQ....

The bank statements I have been sent are from 01/05 - 18/10. So 5 months and 18 days. Are the bank going to give me hassle here and I need to go and get April too?

yes, they will be pedantic about it.
best to get april now so you dont need to go back again.

aloooof

GingerLily wrote: »

Depends on the Estate, a lot of Developers in Dublin seem to not accept HTB for contracts.

I don't know how long the scheme will be running for, so that's something else to check if your only looking now.

End of 2019, I believe?

EDIT: Revenue has it as end of 2019, but reports suggest it's set to be extended for another year.

ArtyC

TheShow wrote: »

get your full approval, then you can relax a little.

I wouldn't relax until your name is on the property.

I was sale agreed long over a year and they asked for proof of
My continued saving - even though I'd full approval .

Keep things exactly as you've been doing until drawdown

Diemos

fanvil3000 wrote: »

Hi all,

A quick question for people based on their experiences with the banks. Hopeful of been able to buy a place with my partner in late 2019/ early 2020. Our salaries are currently 44k and 21k. Would we get a multiple of 3.5x on the total (65k * 3.5 = 227.5k). Is there any chance of getting more than 3.5x earnings? we are bth late 20s

Have 20k in savings for a deposit and hopeful of having around 30k by the time of the mortgage. Our budget is 250k-270k. Is this realistic given those numbers? Would hope to have an increase in earnings by then of another 6k

Cheers for any advice

How confident are you on the 6k increase, because at 3.5, with a 30k deposit would put you over your budget without the need for an exception.

Try not to count on an exemption, nearly everyone asks for one and only 1 in 5 can get it.
In the mean time, keep saving consistently, speak to your bank, or any bank, and ask them what they need from you for mortgage approval.

We were kicked for having inconsistent saving, we were over zealous saving and some months we saved loads and that left us thin the next month and as a result we saved very little that month. This cost us, when I asked I was told that we could have saved less over all and we would have been fine, the issue was our consistency, and it delayed us by 6 months. Learn from our mistakes.

Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.
Good luck.

TheShow

ArtyC wrote: »

I wouldn't relax until your name is on the property.

I was sale agreed long over a year and they asked for proof of
My continued saving - even though I'd full approval .

Keep things exactly as you've been doing until drawdown

Its all relative, if your approval lasts for 6 months and you will drawdown within that time frame then they cant ask you for additional information before drawdown, the only things you will need to provide are those items listed in the conditions of drawdown.

If your approval expires and needs to be refreshed then they will ask for up to date information etc.

In what you describe above, sounds like your approval had expired so needed to be refreshed, hence the additional requirement.

TheShow

Diemos wrote: »

Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.
Good luck.

This is a common myth and it is untrue. It is perfectly acceptable to have loans and/or credit cards, they are not frowned upon. it does however impact on your ability to borrow as it reduces your repayment capacity.

The best advise is to use one of the many mortgage calculators on the banks websites and it should give you a rough idea of how much you can get approved for. Run calculations with loan repayments and run calculation without loan repayments, see how much the difference is and then look at clearing loans if you need to.

aloooof

TheShow wrote: »

This is a common myth and it is untrue. It is perfectly acceptable to have loans and/or credit cards, they are not frowned upon. it does however impact on your ability to borrow as it reduces your repayment capacity.

To be fair, he/she didn't suggest it was absolutely necessary. Just that it was favourable.

TheShow

aloooof wrote: »

To be fair, he/she didn't suggest it was absolutely necessary. Just that it was favourable.

Very true, alot of people do misinterpret that though, so I was just setting the record straight.

myshirt

TheShow wrote: »

Very true, alot of people do misinterpret that though, so I was just setting the record straight.

And I think fair play to you. Too many people googling and googling and parroting back advice that's better suited to Americans, thinking it applies here.

Interested Observer

As long as you still can show affordability for your mortgage then having other loans is fine.

Glen_Quagmire

I signed contracts with bank and solicitors about 2 weeks ago for a new build and am currently waiting for the builders solicitor to send back the counter signed contract so I can upload this along with the signed mortgage offer into Revenue so the builder can claim the 5% HTB grant towards the overall 10% deposit.

So far he will have only received the 5% I paid. I think the contract said the full 10% needs to be paid 14 days after putting down the initial booking deposit which was about 5 or 6 weeks ago.

I emailed my solicitor and asked was there any update on the signed contract back from the builders solicitor and explained that I need it for the HTB claim and they said they haven't received it back yet but will contact me as soon as they have it.

Should I be concerned that the builder cannot claim the remaining 5% from the HTB yet or is that normal for things to take this length of time?

ArtyC

TheShow wrote: »

Its all relative, if your approval lasts for 6 months and you will drawdown within that time frame then they cant ask you for additional information before drawdown, the only things you will need to provide are those items listed in the conditions of drawdown.

If your approval expires and needs to be refreshed then they will ask for up to date information etc.

In what you describe above, sounds like your approval had expired so needed to be refreshed, hence the additional requirement.

Getting that far in just to fail because of being relaxed ?? Madness!!
Yes it expired , unfortunately many sales in Ireland hit problems
and approvals expire- they are rarely expected

My advice was good --- just keep saving until it's done