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

ELM327

Social welfare payments are not counted towards the income affordability criteria.
So they are not counted for affordability "ability to repay", nor are they counted towards the 3.5 times rule.

They will look at, and only consider, non SW earnings.

Sureal

ELM327 wrote: »

Social welfare payments are not counted towards the income affordability criteria.
So they are not counted for affordability "ability to repay", nor are they counted towards the 3.5 times rule.

They will look at, and only consider, non SW earnings.

Ok, so if someone is working when technically they're not supposed to be, the bank doesn't mind if they're happy with the amount earned through employment?

Doop

While I wouldn't condone it I cant see how the bank would or wouldn't know if you are entitled to work while on certain SW payments nor could I see them asking.

Sureal

Doop wrote: »

While I wouldn't condone it I cant see how the bank would or wouldn't know if you are entitled to work while on certain SW payments nor could I see them asking.

Ok, thanks. I'm not going to do it, I was just going through every idea to attempt to get a mortgage and this thought came to me. I wonder do many people go down this route. Are banks allowed to give customer information to anyone anyway? What if they had someone who clearly is a tax fraud, can they report them? I know they'd be unlikely to give them a mortgage anyway.

KERSPLAT!

I presume you mean working for cash in hand while on SW? If so I don't know how a bank would take this into consideration, no one paying you cash in hand is going to confirm it in writing for the bank there by implicating themselves in fraud.

Weepsie

Doop wrote: »

While I wouldn't condone it I cant see how the bank would or wouldn't know if you are entitled to work while on certain SW payments nor could I see them asking.

Banks will ask where certain money is coming from though. If they see it as a regular income, but you're down as unemployed that's surely a red flag. If you've proof that it's from some type of employment, maybe they don't care.

I had to produce revolut statements too, just incase anyone thinks that's a way of hiding certain transactions.

GingerLily

Sureal wrote: »

Ok, thanks. I'm not going to do it, I was just going through every idea to attempt to get a mortgage and this thought came to me. I wonder do many people go down this route. Are banks allowed to give customer information to anyone anyway? What if they had someone who clearly is a tax fraud, can they report them? I know they'd be unlikely to give them a mortgage anyway.

Banks don't take into account unvouched for income for mortgages, that will include nixers etc.

If it looks like your money has come from illegal avenues they are required to report you. I don't think they get involved with money that you haven't paid tax on, but they won't consider that income.

Sureal

KERSPLAT! wrote: »

I presume you mean working for cash in hand while on SW? If so I don't know how a bank would take this into consideration, no one paying you cash in hand is going to confirm it in writing for the bank there by implicating themselves in fraud.

Or can't they be getting paid into their bank account?

KERSPLAT!

Sureal wrote: »

Or can't they be getting paid into their bank account?

Then it would most likely be through the books and revenue would know.

Whatever you're thinking here it's not the way to go to get a mortgage. One way or another it'll end badly.

Creamy Goodness

Treat the bank like a new date, don't lie as they'll find out eventually and you'll be up **** creek without a paddle.

Sureal

GingerLily wrote: »

Banks don't take into account unvouched for income for mortgages, that will include nixers etc.

If it looks like your money has come from illegal avenues they are required to report you. I don't think they get involved with money that you haven't paid tax on, but they won't consider that income.

Oh ok. That's interesting to know. I do wonder how some people get mortgages in places like Dublin sometimes.

Sureal

KERSPLAT! wrote: »

Then it would most likely be through the books and revenue would know.

Whatever you're thinking here it's not the way to go to get a mortgage. One way or another it'll end badly.

Oh no, I won't go down this route. Was just interested, don't know how the whole system works.

podgemonster

Today is day 4 in our new home. We got approval in principle for 12 months back in Jan '18 and put a deposit on a new build in March '18 with expected completion date of Oct '18. The bank gave us approval on the condition my wife completed here probation in April '18.

In August '18 we reapplied for another bank with a better fixed rate and proceeded to the letter of offer stage however my wife was now pregnant and would not qualify for maternity pay. I decided I'd better tell the bank as they may ask for payslips prior to drawdown and we didn't want to get found out. They retracted the letter of offer and reviewed with their mortgage approval team again and we got another letter of offer again 2 weeks later after we provided a letter from my wife's employer that she will return after 6 months. From March to August we continued to save to reduced our mortgage amount further also.

The completion date of the build was pushed into November. It was a bit of a dose pushing out dates with the mortgage protection and house insurance crowd for the sake of saving a €7-8 a month rather than linking with the banks but that's where I was. As it was a builders finish I had to keep pushing out my flooring and tiles delivery and carpenter and tiler and carpet installer.

I found our solicitor very slow, we probably could have gotten the keys a week earlier if he'd been more proactive. He'd ring me with documents for me to sign on a Monday and it would be Friday before he would have them ready for me to sign.

We got the keys in the start of December. Builders finish. So I had carpenters for flooring and tillers in in December along with a couch from DFS that they were hounding me telling me twas taking up space in their warehouse. By the 21st of December with Christmas all deliveries ground to a halt. But it gave us time to get some deals in the January sales.

I just moved the last few boxes our of our apartment. We've so much more room now and a little garden for our small one to run around in. It was a long journey and the finishing touches of the house will carry on into the summer. We're finally home owners.

This thread has been a great resource as well as the HTB thread, thank you to all who contribute. I know I will now find myself dipping into the DIY forum in the near future.

lillycakes2

What banks have the best offers currently for self build mortgages (first time buyers) ?

Phillip k

Hi is it possible for first time buyers to build a home my partner has land and will build on it . If anyone on here has built there own home would like to hear your story thanks in advance.

Phileas Frog

Has anyone else come across banks taking an average of P60s as your income for the 3.5 calculation? In my case, average of 2016 & 2017 because 2018 isn't available yet, and I changed jobs in March '18.

It's a kick in the stones because I got a large rise when changing jobs and the bank is ignoring it

purpleisafruit

Phileas Frog wrote: »

Has anyone else come across banks taking an average of P60s as your income for the 3.5 calculation? In my case, average of 2016 & 2017 because 2018 isn't available yet, and I changed jobs in March '18.

It's a kick in the stones because I got a large rise when changing jobs and the bank is ignoring it

BoI and AIB didn't in my case anyway. Seems like a crazy way to assess unless someone is self employed

EriT

Phileas Frog wrote: »

Has anyone else come across banks taking an average of P60s as your income for the 3.5 calculation? In my case, average of 2016 & 2017 because 2018 isn't available yet, and I changed jobs in March '18.

It's a kick in the stones because I got a large rise when changing jobs and the bank is ignoring it

This week BOI and AIB both used year end figures from my December 18 payslip.

amcalester

Phileas Frog wrote: »

Has anyone else come across banks taking an average of P60s as your income for the 3.5 calculation? In my case, average of 2016 & 2017 because 2018 isn't available yet, and I changed jobs in March '18.

It's a kick in the stones because I got a large rise when changing jobs and the bank is ignoring it

Is your salary commission based?

When I applied to BOI last year I had just received a 33% raise and once I had a payslip they would accept the higher salary.

I wanted to include bonuses from previous years (all with the same company) and they worked off the average of the last 3 yearly bonuses.

ELM327

Phileas Frog wrote: »

Has anyone else come across banks taking an average of P60s as your income for the 3.5 calculation? In my case, average of 2016 & 2017 because 2018 isn't available yet, and I changed jobs in March '18.

It's a kick in the stones because I got a large rise when changing jobs and the bank is ignoring it

I did but it was because I asked them to do it.
A lot of my work until this year was paid on bonuses, share commission (taxed at source, so it shows up as BIK on payslip and counts towards P60 earnings... normally annoying but good for this instance) and overtime.


Essentially I was earning my base salary and earning the same again or more in the variable payments above.


But of course my salary cert only confirmed my base pay. So I asked them to average 3 P60s.

EriT

Creamy Goodness wrote: »

Yes, but you’re looking at wages 60k or even higher.

GingerLily wrote: »

Not having 6 months of savings could be a massive issue! Especially as your going for a 90% LTV and looking for a high LTI exemption.

EriT wrote: »

1.So we Currently pay rent not far off the mortgage payments we would be looking at (75% of potential mortgage ish) on top of that I have 1500 a month in savings for last 3 months. Previous to those 3 months Saving we had been heavily paying off Credit cards /loans total value of over 1000 a month. I understand this isn't 6 month savings but will the consider the previous 3 months clearing debt ?

2.Currently debt free.

Mortgage would come in under 30% of Net monthly income

3.No kids or loans etc

4.90%.

How do we look ? Mortgage meetings booked for end of next week . We are looking at new builds due to be released in feb

Creamy Goodness wrote: »

The problem here is the bank won't see it this way. They'll see it as "why did you have this much debt?" and see it as bad financial planning. How will they be sure that other debts won't come into play again given that you have a record of debt. I got the feeling from your posts that the debt wasn't paid off in a timely fashion, if this is the case disregard.

GingerLily wrote: »

You can always ask

Asked and received .
AIP received today for 4.45 with AIB ( we asked for less and got approved for more ). Likely to receive similar with BOI today as exceptions team have already approved us.

Some important notes to people considering going to the bank
1. Niether of us earn close to 60k atm
2. Currently only have 3 months savings however 5% deposit and htb approved .
3.The stress test seemed to be that a couple must have 3k a month left after a higher mortgage payment(unsure of stressed rate. I've seen people on here say +2% which would tie closely with my figures)

Creamy Goodness

EriT wrote: »

Asked and received .
AIP received today for 4.45 with AIB ( we asked for less and got approved for more ). Likely to receive similar with BOI today as exceptions team have already approved us.

Some important notes to people considering going to the bank
1. Niether of us earn close to 60k atm
2. Currently only have 3 months savings however 5% deposit and htb approved .
3.The stress test seemed to be that a couple must have 3k a month left after a higher mortgage payment(unsure of stressed rate. I've seen people on here say +2% which would tie closely with my figures)

I meant combined wages sorry. I went as a single applicant so the language of my post was geared to that.

Also for exemptions bear in mind that the time of year makes a difference for certain banks depending on how they handle their exemptions.

As with all info here, it should be used as guidance. Only the banks can tell you the gospel truth.

Lastly congrats on getting what you need!

GingerLily

AIP form AIB means nothing

EriT

Creamy Goodness wrote: »

I meant combined wages sorry. I went as a single applicant so the language of my post was geared to that.

Also for exemptions bear in mind that the time of year makes a difference for certain banks depending on how they handle their exemptions.

As with all info here, it should be used as guidance. Only the banks can tell you the gospel truth.

Lastly congrats on getting what you need!

I would say for a single aplicant looking for an exception they would probably need the 60k + alright.

Regarding the time of year - aib mentioned that at the end of the year the stress test was changed from 3000 after mortgage payment for a couple to 4200. I'm assuming this was due to the fact they gave to many early.

Thanks

EriT

GingerLily wrote: »

AIP form AIB means nothing

Okay

Creamy Goodness

GingerLily wrote: »

AIP form AIB means nothing

Wouldn’t say nothing nothing but legally, yes.

EriT wrote: »

Okay

EirT, it’s enough to get you talking to estate agents and putting bids on houses. When you’ve found a place you’ll be assessed by their underwriters, only they will say exactly what you can borrow and over how long.

ELM327

GingerLily wrote: »

AIP form AIB means nothing

AIP from any bank means nothing unless you've been assessed by the underwriters

GingerLily

ELM327 wrote: »

GingerLily wrote: »

AIP form AIB means nothing

AIP from any bank means nothing unless you've been assessed by the underwriters

PTSB process your full application before giving AIP, AIB just put your basics in a calculator, very different

Sarn

As above, if the underwriters have seen it you’re likely to be fine. An in branch only assessment is essentially worthless.

tigger123

GingerLily wrote: »

PTSB process your full application before giving AIP, AIB just put your basics in a calculator, very different

Did you have a bad experience with AIB? Were you told you'd be approved and then weren't for some reason?