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

whatawaster

Is the stressed mortgage repayment calculated as 2% + rate of whatever product you are applying for?

For example, if i applied for an Ulster Bank 2 yr fixed at 2.30%, would that make my stress test payments be 4.30%?

Or do they use a standard variable rate?

GingerLily

whatawaster wrote: »

Is the stressed mortgage repayment calculated as 2% + rate of whatever product you are applying for?

For example, if i applied for an Ulster Bank 2 yr fixed at 2.30%, would that make my stress test payments be 4.30%?

Or do they use a standard variable rate?

I think it's usually 2% above the variable rate, try best to assume 6% (EBS website state this figure), to get an upper estimate.

nim1bdeh38l2cw

whatawaster wrote: »

Is the stressed mortgage repayment calculated as 2% + rate of whatever product you are applying for?

For example, if i applied for an Ulster Bank 2 yr fixed at 2.30%, would that make my stress test payments be 4.30%?

Or do they use a standard variable rate?

It's 2% on top of the STV which is currently 4.4% for 90% mortgages, so 6.4% is the stressed rate

dudara

EriT wrote: »

Thanks for the feedback. One other point I'd like to note is that we would have 6 months savings by the time official mortgage offer would be required . It's the approval in principle piece of paper we are after ASAP . I will post in here when I hear back

AIP requires the full deposit to be saved. The final loan offer only comes once you have selected the actual property and done the final valuations etc.

What you are looking for is the "lightweight" AIP that some banks give out. However, this isn't proper AIP, which needs to be generated by the underwriters.

EriT

dudara wrote: »

AIP requires the full deposit to be saved. The final loan offer only comes once you have selected the actual property and done the final valuations etc.

What you are looking for is the "lightweight" AIP that some banks give out. However, this isn't proper AIP, which needs to be generated by the underwriters.

5% deposit (20k+) already saved . I sold an asset last September which covered a big chunk . HTB approved for the other 5%

Exactly . I'm looking for proof of funds to give to the estate agent to secure a house on release date . My finances would be in a better situation by contract signing time i.e I would have 6 months savings ( which actually would be equivalent of monthly repayments ) on top of our rent

Frank Castle

EriT wrote: »

5% deposit (20k+) already saved . I sold an asset last September which covered a big chunk . HTB approved for the other 5%

Exactly . I'm looking for proof of funds to give to the estate agent to secure a house on release date . My finances would be in a better situation by contract signing time i.e I would have 6 months savings ( which actually would be equivalent of monthly repayments ) on top of our rent

If you have been paying rent regularly for over 6 months plus have any savings on top of that you should be fine.

I got my AIP with almost no savings (less than 1000) but 2 years of paying rent. (My deposit was a gift). They were happy with the rent showing consistent management of money and stressed tested our income. We got an exemption for 4.5% ourselves, but we did not need it (not sure why they even offered it tbh as we had the house we wanted in mind before applying for aip).

This was with PTSB. I personally had a great experience with PTSB and would recommend going in and talking to them. they will give you a 'light' aip which you can take to the EA and put down your booking deposit. After this you can look for your proper aip.
If you don't get it then your booking deposit is fully refundable

Note: we put our booking deposit in when the house was still at founds level, it was 3 months after the roof went on our house before we actually singed the contacts, you may have more time than you think to save.

EriT

Frank Castle wrote: »

If you have been paying rent regularly for over 6 months plus have any savings on top of that you should be fine.

I got my AIP with almost no savings (less than 1000) but 2 years of paying rent. (My deposit was a gift). They were happy with the rent showing consistent management of money and stressed tested our income. We got an exemption for 4.5% ourselves, but we did not need it (not sure why they even offered it tbh as we had the house we wanted in mind before applying for aip).

This was with PTSB. I personally had a great experience with PTSB and would recommend going in and talking to them. they will give you a 'light' aip which you can take to the EA and put down your booking deposit. After this you can look for your proper aip.
If you don't get it then your booking deposit is fully refundable

Note: we put our booking deposit in when the house was still at founds level, it was 3 months after the roof went on our house before we actually singed the contacts, you may have more time than you think to save.

Thanks for the feedback . Have 5ish years of paying rent

PTSB are on the list , they may have moved up a few spots now due to your experience

cant26

A friend of mine advised me to start paying our Childminder in cash so that the bank does not know how much we pay in childcare. I’ve been doing this since September in preparation to apply for a mortgage this year, hopefully in the next few months.
Thinking about it now I’m not sure if it’s the right move. Our youngest will be three in August and starting Montessori so our childcare bill will be decreasing dramatically then .
Would it look better to show the bank that we have a chunky childcare bill at the moment but can still meet all of our financial commitments as well as save and that this expense will possibly be halved or eliminated completely come September?
Not sure what to do! Any thoughts?
Also, in relation to mortgage brokers, when do you approach them? I’d love some guidance on a few things, like the above but not sure if they only come into play when you are ready to apply. Any advice?

L1011

Huge cash withdrawals will look massively suspicious and could be interpreted as far worse than childcare payments

cant26

L1011 wrote: »

Huge cash withdrawals will look massively suspicious and could be interpreted as far worse than childcare payments

Thanks. We pay weekly so the withdrawals are not suspicious.

IJS84

My experience has been good also with PTSB. However this week Ive been pissed with them. Long story short, We went Sale agreed in April 2018, Solicitors have dragged the arse clean out of it on the sellers side (to say the least). We had life etc all in order Late July 2018.
Our solicitor is now trying to draw down funds to close the sale, got a 2nd Valuation done in September as the 1st was out of date & went back to PTSB to re apply as the initial loan offer was due to expire at the end of November '18, everything re approved and contacted the bank again in December to confirm as I knew we were getting close to drawdown and to make sure everything else in order etc

Yesterday we were informed that we have to get more up to date life cover again, I know from our doctors, if another medical is required as with the 1st application, we are looking at possibly another month & Given that this is causing further delays again, we arent happy, as the last valuation being done in September may need to be done again and costing us more money. Add that to our landlord had given us notice in October he is selling up and needs the property back at the end of January we are getting close to the line now.

awec

cant26 wrote: »

Thanks. We pay weekly so the withdrawals are not suspicious.

Banks can do arithmetic...

They'll still want to know where all the cash is going.

GingerLily

IJS84 wrote: »

My experience has been good also with PTSB. However this week Ive been pissed with them. Long story short, We went Sale agreed in April 2018, Solicitors have dragged the arse clean out of it on the sellers side (to say the least). We had life etc all in order Late July 2018.
Our solicitor is now trying to draw down funds to close the sale, got a 2nd Valuation done in September as the 1st was out of date & went back to PTSB to re apply as the initial loan offer was due to expire at the end of November '18, everything re approved and contacted the bank again in December to confirm as I knew we were getting close to drawdown and to make sure everything else in order etc

Yesterday we were informed that we have to get more up to date life cover again, I know from our doctors, if another medical is required as with the 1st application, we are looking at possibly another month & Given that this is causing further delays again, we arent happy, as the last valuation being done in September may need to be done again and costing us more money. Add that to our landlord had given us notice in October he is selling up and needs the property back at the end of January we are getting close to the line now.

I don't know if it's entirely your banks fault, the life cover is an external company! If its Irish Life then I can understand your frustration, we went with them and they were nothing but trouble, the most stressful part of the process by a mile.

IJS84

GingerLily wrote: »

I don't know if it's entirely your banks fault, the life cover is an external company! If its Irish Life then I can understand your frustration, we went with them and they were nothing but trouble, the most stressful part of the process by a mile.

Ya we have done. To be fair to the bank and Irish Life though, all the delays have come from the sellers solicitors. we went sale agreed in April 2018, we didnt get contracts to our solicitors until November...hence we chased the reapproval etc then to, what we thought was to streamline things on our end.
Meeting with the bank tomorrow so hopefully we can tie things up then

Creamy Goodness

awec wrote: »

Banks can do arithmetic...

They'll still want to know where all the cash is going.

it'd be pretty bad if they couldn't after all these years

tbh trying to hide anything from the bank is pretty shady and will just raise more questions than prevent them.

Interested Observer

I am considering a bid on a house at the moment that needs some work. If the bid was accepted, would it be possible to get someone in to price the work before actually closing the sale? We'd obviously have a limited budget for renovations so if we learned it would be much more expensive than expected it might change our decision. Anyone with experience of something like this?

tobsey

IJS84 wrote: »

Ya we have done. To be fair to the bank and Irish Life though, all the delays have come from the sellers solicitors. we went sale agreed in April 2018, we didnt get contracts to our solicitors until November...hence we chased the reapproval etc then to, what we thought was to streamline things on our end.
Meeting with the bank tomorrow so hopefully we can tie things up then

Can you reduce the amount of the mortgage? Have you managed to save more since April? If you had drawn down the mortgage straight after getting life cover then you would have paid very little principal back since. So if ou can draw down a bit less and set the duration to one year less your mortgage protection should be valid. That might be quicker and easier to arrange with the bank than going through the life cover process again.

heebusjeebus

Interested Observer wrote: »

I am considering a bid on a house at the moment that needs some work. If the bid was accepted, would it be possible to get someone in to price the work before actually closing the sale? We'd obviously have a limited budget for renovations so if we learned it would be much more expensive than expected it might change our decision. Anyone with experience of something like this?

Bring a builder to see the house before you bid.
I went to many viewings where work was needed and in some cases, the estate agents suggested a builder or engineer should also attend viewing.

chrismon

IJS84 wrote: »

My experience has been good also with PTSB. However this week Ive been pissed with them. Long story short, We went Sale agreed in April 2018, Solicitors have dragged the arse clean out of it on the sellers side (to say the least). We had life etc all in order Late July 2018.
Our solicitor is now trying to draw down funds to close the sale, got a 2nd Valuation done in September as the 1st was out of date & went back to PTSB to re apply as the initial loan offer was due to expire at the end of November '18, everything re approved and contacted the bank again in December to confirm as I knew we were getting close to drawdown and to make sure everything else in order etc

Yesterday we were informed that we have to get more up to date life cover again, I know from our doctors, if another medical is required as with the 1st application, we are looking at possibly another month & Given that this is causing further delays again, we arent happy, as the last valuation being done in September may need to be done again and costing us more money. Add that to our landlord had given us notice in October he is selling up and needs the property back at the end of January we are getting close to the line now.

April 2018!
That's crazy, we went sale agreed in December and hope to get the keys in the next month.
Hope you get sorted soon.

gerardmillrace

Hi All,

We received a cash gift from parents towards a deposit. Are we likely to be viewed with any chance if we cannot show savings records ourselves. Ie The full deposit is met be cash gift?

It depends. If everything else is fine you might be grand.
They will ask for a declaration from your parents that is a gift and not to be returned.

If you are looking for an exemption or say aren't paying rent now it might be a problem.

GingerLily

gerardmillrace wrote: »

Hi All,

We received a cash gift from parents towards a deposit. Are we likely to be viewed with any chance if we cannot show savings records ourselves. Ie The full deposit is met be cash gift?

What level are rent are you paying compared to what your mortgage payments will be?

If you're not paying rent and your not saving then the banks won't give you a mortgage because you have no history to show that you could handle paying a mortgage.

Frank Castle

gerardmillrace wrote: »

Hi All,

We received a cash gift from parents towards a deposit. Are we likely to be viewed with any chance if we cannot show savings records ourselves. Ie The full deposit is met be cash gift?

My full deposit was a cash gift (well 5%, other 5% was HTB)

Its not a problem provided you have the income to pass their stress test and have some form of consistent money management such as paying rent.

You will need your parents to sign a letter with a solicitor saying that the money is a gift and they have no stake in the house due to that money. (Wait until the bank asks for this letter before getting it)

Charlie

Question for those with a bit of experience on the CBI lending exemptions.

My partner and I are starting to look as first time buyers. We have anticipated that we would look for an exemption as we reckon we’ll want to borrow 4 times our joint income.

Speaking with BOI today, they advised that an exemption can only be granted for a specific property and the exemption is only valid for that property.

Is this the case with all the lenders, and if so, how does this work in practice when you’re viewing properties? Surely the estate agent will want proof that you’re approved for the exempted amount?

Or is it a case of bidding on the house, going sale agreed, and then going to your bank for an exemption?

‘tis all very confusing.

Creamy Goodness

BOI and KBC were two banks that requested a specific property before giving an exemption.

AIB however did not. This is my experience, yours may vary.

derekbro

Charlie wrote: »

Or is it a case of bidding on the house, going sale agreed, and then going to your bank for an exemption?

For me through a broker, KBC and Haven(AIB) gave an exception for AIP, Ulster bank requested a particular property.

Frank Castle

Just as an update, as I forgot to post it before.

Got the cashback from PTSB after 2 weeks. (in case anyone is wondering)

Can be hard to get this information as people tend to stop posting once they get their keys!

Misssally

Hoping to apply for a mortgage soon & have built up 6 months of saving to show affordability (in addition to existing morg repayments) however I’ve a credit card with a balance of €2k that I’m paying off, I’d like to take the 2k from savings (€4.5k) at the moment& pay it off (it’s closed I’m just paying the balance) but would that impact showing my ability to repay? Deposit is coming from existing property & I plan to apply the end of March? Not sure what the best thing to do is?

soc

Misssally wrote: »

Hoping to apply for a mortgage soon & have built up 6 months of saving to show affordability (in addition to existing morg repayments) however I’ve a credit card with a balance of €2k that I’m paying off, I’d like to take the 2k from savings (€4.5k) at the moment& pay it off (it’s closed I’m just paying the balance) but would that impact showing my ability to repay? Deposit is coming from existing property & I plan to apply the end of March? Not sure what the best thing to do is?

I really don't understand why you have savings and still have a credit card debt. Having a debt like that is unnecessary and it would actually look better to have no credit card debt...the ability to repay loans to a bank only really matter to long term loans (like car). Be rid of the cred card debt straight away then focus back on savings.

If anything what you should do is use the credit card every month but make sure pay it off entirely when you get the statement in every month...that would have more positive response from bank as it shows that you can live within your means and pay credit card bill. Do not carry credit card balance and save

Creamy Goodness

soc wrote: »

If anything what you should do is use the credit card every month but make sure pay it off entirely when you get the statement in every month...that would have more positive response from bank as it shows that you can live within your means and pay credit card bill. Do not carry credit card balance and save

Telling a person who has credit card debt to use their card more isn’t really the best advice.