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

factnee

amcalester wrote: »

The loan to income is 60%, or the loan to value is 60%?

AFAIK the combined mortgage borrowings need to be less than 3.5 times salary, not just the new mortgage.

From what people are saying on here few banks are currently giving exceptions at the moment, have you tried a broker? Might be your best beat.

Sorry - the loan to income is 2.8:1

ELM327

amcalester wrote: »

The loan to income is 60%, or the loan to value is 60%?

AFAIK the combined mortgage borrowings need to be less than 3.5 times salary, not just the new mortgage.

From what people are saying on here few banks are currently giving exceptions at the moment, have you tried a broker? Might be your best beat.

Very unlikely to get an exception anywhere in Q4, best waiting to 2019 at this stage if you are looking for any exception tbh

Interested Observer

The housing market in Dublin seems to have leveled off a bit at the moment, would we expect it to pick up again in the new year when LTI exceptions are available again or is this a trend beyond that?

Creamy Goodness

Interested Observer wrote: »

The housing market in Dublin seems to have leveled off a bit at the moment, would we expect it to pick up again in the new year when LTI exceptions are available again or is this a trend beyond that?

Always slows down in the winter months.

Goose76

We went sale agreed ten days ago and things appear to be moving swiftly enough (fingers crossed) – we have satisfactory valuation report already and have paid booking deposit, etc. Our EA, solicitor and bank have all been very responsive to date. The vendor is emigrating so I don’t foresee the sale falling through from that perspective.

Would it be madness to hand in our notice to our landlord for the apartment we are currently renting? I don’t actually know how much notice we have to give but believe it could be 56 days We have been there three years.

zedhead

Goose76 wrote: »

We went sale agreed ten days ago and things appear to be moving swiftly enough (fingers crossed) – we have satisfactory valuation report already and have paid booking deposit, etc. Our EA, solicitor and bank have all been very responsive to date. The vendor is emigrating so I don’t foresee the sale falling through from that perspective.

Would it be madness to hand in our notice to our landlord for the apartment we are currently renting? I don’t actually know how much notice we have to give but believe it could be 56 days We have been there three years.

We had a longer notice period for ours but didn't officially hand in our notice until the contracts were signed and we had a closing date (always build in buffer after closing date as these usually move).

We had a good relationship with our Landlord though and had told her we were looking to buy a house well in advance. We had gone sale agreed the previous year and it took 8 months but that eventually fell through. We had considered giving notice at sale agreed and moving in with family if it had taken longer than our notice but we are so glad we didn't do that in the end. (we would have been living with family for close to a year).

We just kept our landlord in the loop (when we went sale agreed, what stage we were at) and she allowed us to give less notice in the end as she knew she would have no issue renting the place out.

I would be cautious about giving notice too early, but def give your LL the heads up if you have a good relationship.

Doop

Goose76 wrote: »

We went sale agreed ten days ago and things appear to be moving swiftly enough (fingers crossed) – we have satisfactory valuation report already and have paid booking deposit, etc. Our EA, solicitor and bank have all been very responsive to date. The vendor is emigrating so I don’t foresee the sale falling through from that perspective.

Would it be madness to hand in our notice to our landlord for the apartment we are currently renting? I don’t actually know how much notice we have to give but believe it could be 56 days We have been there three years.

The previous post says it all really... we are in a very similar position to yourself sale agreed been in the apartment 3.5 years (it is 56 days). But we decided to wait until we have a closing date and will keep the landlord in the loop we have a good relationship. I think your best bet is show your hand let them know but at the same time advise you may need some flexibility. You dont want to be left short.

From the landlords prospective they will have no problem letting it in the current climate. I would suggest offering that towards the end that you are happy for viewings to take place before you leave and that you will have the place clean and tidy etc. At least you are trying to repay some of flexibility.

chrismon

Hi all.

Looking to put an offer on a house, I have my approval.

Just trying to get an idea of how the booking deposit and everything is setup.
Hypothetical numbers for simplicity.

House worth 200k
Savings 25k (20k towards mortgage deposit and 5k towards solicitor etc)

If I need 5% (10k) of the sale price for booking deposit , does that come straight out of my savings?

Is this standard practice for the bank? I wouldn't have 10% in the bank for the mortgage anymore.

Want to make sure I have enough money in the bank.

Frank Castle

chrismon wrote: »

Hi all.

Looking to put an offer on a house, I have my approval.

Just trying to get an idea of how the booking deposit and everything is setup.
Hypothetical numbers for simplicity.

House worth 200k
Savings 25k (20k towards mortgage deposit and 5k towards solicitor etc)

If I need 5% (10k) of the sale price for booking deposit , does that come straight out of my savings?

Is this standard practice for the bank? I wouldn't have 10% in the bank for the mortgage anymore.

Want to make sure I have enough money in the bank.

The booking deposit is part of your 10% deposit. The bank knows and takes this into account.

Glen_Quagmire

The bank is chasing us to send them back the below documents even though we am about 6 months away from drawing down, is that the norm?

1. Direct Debit Mandate
2. Deed of Assignment of Life Policy
3. Notice of Interest or Cessation of Interest In Fire Policy form

Also, do we need to have home insurance first before we can complete item 3 as the form is asking for insurance policy numbers?

We won't be getting home insurance until closer to the time of drawdown so how can we complete this form now?

TJ Mackie

We're about to transfer our savings into a joint savings account. Ideally we'd like to put it in a joint account with a bank that we'd be getting a mortgage from - what's the consensus opinion on who's good to go with? Any opinions or advice welcome. It's very daunting

chrismon

TJ Mackie wrote: »

We're about to transfer our savings into a joint savings account. Ideally we'd like to put it in a joint account with a bank that we'd be getting a mortgage from - what's the consensus opinion on who's good to go with? Any opinions or advice welcome. It's very daunting

Are you asking about what bank to get a mortgage from?

TJ Mackie

chrismon wrote: »

Are you asking about what bank to get a mortgage from?

Ideally a bank that ha a combination of a good joint savings account and that would be good to get a mortgage from

chrismon

TJ Mackie wrote: »

Ideally a bank that ha a combination of a good joint savings account and that would be good to get a mortgage from

We used EBS for our savings account and have approval with them.
Found them very good to deal with on both items.
Not the easiest to withdraw from so perfect for savings.

chrismon

Hey again.

Thanks for all the help so far.
Getting close so I've more questions.

What sort of insurance do I "need"?
Is it just mortgage protection, if I went for life assurance would that cover the need for mortgage protection?
How much does it "gererally" cost a month?

Home insurance is surely a must as well?
Is this done after buying the house?

Anything else you can think of I need for the mortgage?

I have savings, approval, engaged a solicitor.

hanaimai

chrismon wrote: »

Hey again.

Thanks for all the help so far.
Getting close so I've more questions.

What sort of insurance do I "need"?
Is it just mortgage protection, if I went for life assurance would that cover the need for mortgage protection?
How much does it "gererally" cost a month?

Home insurance is surely a must as well?
Is this done after buying the house?

Anything else you can think of I need for the mortgage?

I have savings, approval, engaged a solicitor.

Lenders won't accept a life assurance policy unless it can be specifically assigned to the lender. Mortgage protection is a life assurance policy that is designed for this purpose i.e. if you die, the money doesn't go to you, it goes straight to the bank, and it is for the specific amount to cover the mortgage. Difficult to say exactly how much it costs - quotes online will get you about 17-25 per month per person, but this assumes no medical issues whatsoever. If you have medical issues, you may have to pay extra premium.

Some lenders require evidence of house insurance in place before drawdown, others don't. It's pretty essential to have regardless.

amcalester

Glen_Quagmire wrote: »

The bank is chasing us to send them back the below documents even though we am about 6 months away from drawing down, is that the norm?

1. Direct Debit Mandate
2. Deed of Assignment of Life Policy
3. Notice of Interest or Cessation of Interest In Fire Policy form

Also, do we need to have home insurance first before we can complete item 3 as the form is asking for insurance policy numbers?

We won't be getting home insurance until closer to the time of drawdown so how can we complete this form now?

Sounds like Bank of Ireland?

All normal and easily done closer to the time.

From memory the Life Assurance company will take care of 2, and your solicitor number 3 though you'll have to sign it.

1 can be sent in any time.

chrismon

hanaimai wrote: »

Lenders won't accept a life assurance policy unless it can be specifically assigned to the lender. Mortgage protection is a life assurance policy that is designed for this purpose i.e. if you die, the money doesn't go to you, it goes straight to the bank, and it is for the specific amount to cover the mortgage. Difficult to say exactly how much it costs - quotes online will get you about 17-25 per month per person, but this assumes no medical issues whatsoever. If you have medical issues, you may have to pay extra premium.

Some lenders require evidence of house insurance in place before drawdown, others don't. It's pretty essential to have regardless.

Thanks very much!

TheShow

z0oT wrote: »

We've now paid our 10% desposit, and signed contracts.

We're signing our mortage offer now, but a number questions in the meantime:

The house we're purchasing is a new build, contstruction is ongoing now, we have a tentative completion date of February. We may reduce our mortage amount further if circumstances allow before completion.

At what point is worthwhile getting home insurance & mortgage protection sorted out? Or if you're likely to ask for a reduced amount are you better you hold off until you've the final amount?

Also, the bank has sent on documents that it looks like the insurance company and the mortgage protection provider will have to complete. Is this the norm?

For new builds, when typically is the valuation for the bank done? I presume it's right up near completion? It actually so happens that the Auctioneer for the new development is on the Banks list of valuers.

mortgage amount and home insurance are not linked, the insurance is based on the value and reinstatement value of the house which will be confirmed when the valuation is done.
the valuation must be done by an independent party, so the auctioned that is selling the property cannot provide the valuation as it is a conflict of interests.


Life cover is quick and easy to arrange if you have a clean bill of heath with no existing issues. if you have a medical condition it gets more complicated.

GaGa21

We went with AIB for our joint account as they waive charges if your AIB mortgage payment comes out of an AIB current/joint a.c.

Sarn

TJ Mackie wrote: »

We're about to transfer our savings into a joint savings account. Ideally we'd like to put it in a joint account with a bank that we'd be getting a mortgage from - what's the consensus opinion on who's good to go with? Any opinions or advice welcome. It's very daunting

No need to have savings with the bank that you intend to get a mortgage from, although it does make it slightly easier on the paperwork.

Best mortgage interest rate is the way to go. If you intend to switch In the short term then the cashback offers can also be good.

Honestfrank01

Well finally getting our keys today must say this forum has been a fountain of knowledge for us thanks again and happy to help anyone if I can starting the mortgage process it's not an easy one but I will say patience and preparation is key in the whole thing

Goose76

The bank sent our loan offer to our solicitor today and gave us a copy in the post.

The loan offer is different to the amount we were approved for in principle. The deposit stated on the loan offer is different to the deposit we showed proof of when we visited the bank to get approval in principle.

Is this common / acceptable? Essentially, we were given no chance to review the terms of the formal loan offer before it was sent to our solicitor. Grateful for any insights as we are fairly annoyed about this.

bri007

That’s sounds odd, so the AIP amount is now different to the acceptance letter?

So the savings you proven you had they have allocated all thag within their figures and price of the house, you should contact them ASAP and inform the bank that you only want to use the standard 10% deposit and the rest to furnish the house etc.

Not at that stage yet so can’t fully answer it but it appears to be some sort of mistake? Can you solicitor advise if you can hold off and get some time to clarify it with the bank?

Goose76 wrote: »

The bank sent our loan offer to our solicitor today and gave us a copy in the post.

The loan offer is different to the amount we were approved for in principle. The deposit stated on the loan offer is different to the deposit we showed proof of when we visited the bank to get approval in principle.

Is this common / acceptable? Essentially, we were given no chance to review the terms of the formal loan offer before it was sent to our solicitor. Grateful for any insights as we are fairly annoyed about this.

Goose76

bri007 wrote: »

That’s sounds odd, so the AIP amount is now different to the acceptance letter?

So the savings you proven you had they have allocated all thag within their figures and price of the house, you should contact them ASAP and inform the bank that you only want to use the standard 10% deposit and the rest to furnish the house etc.

Not at that stage yet so can’t fully answer it but it appears to be some sort of mistake? Can you solicitor advise if you can hold off and get some time to clarify it with the bank?

Thanks for the help. Not sure if it’s a mistake or the bank chancing their arm to loan us more than what we need.

Basically, we showed proof of deposit of 80k and AIP given for 278k. We went sale agreed on a house under the amount we could afford and all of a sudden loan offer given for 257k and deposit of 60k stated on the formal loan offer. Given no chance to discuss before this was sent to solicitor - even though we asked bank for another appointment.

amcalester

Have the bank told you what you were actually approved for?

AIP is irrelevant really, the only number that matters is what the underwriters decide.

Goose76

amcalester wrote: »

Have the bank told you what you were actually approved for?

AIP is irrelevant really, the only number that matters is what the underwriters decide.

But if we can afford 80k deposit, why would they only allow us to contribute 60k?

Either way, we expressly requested an appointment to discuss loan offer terms before it was sent to solicitor and we were ignored.

amcalester

Goose76 wrote: »

But if we can afford 80k deposit, why would they only allow us to contribute 60k?

Either way, we expressly requested an appointment to discuss loan offer terms before it was sent to solicitor and we were ignored.

Ah, I get you now. The bank has reduced the deposit and increased the mortgage amount, that is strange.

More than likely a mistake, I think I had 3 offers sent out before it was correct

chrismon

We have viewed a house twice and want to put an offer down, I want to bring a builder to check the place over.
Is there any point or would I just get the engineer to do any checks?
How detailed of a check does the engineer do?

laserlad2010

Heartbreak.

The surveyor has found major issues with the rear extension and multiple issues throughout the house. The difficulty is separating normal deterioration of an older house from big problems.

The EA had mentioned that the house had gone sale agreed previously but fallen through at survey stage. Clearly they found the same problems we did!

Not sure what to do now. I have no dependents so I am seriously considering switching my focus to an apartment. Just can't face downloading the MyHome app again...