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

bored_newbie

Thargor wrote: »

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

I was the same as you. It didn't factor into the discussion because it was obvious I was saving. But as the previous poster says, best practise would to have a regular savings account.

elizunia87

sarahzxe wrote: »

Hi all,

Im looking for some info on applying for mortgage we are currently aiming to apply early 2020.

We are a guard and nurse public sector earning €80,881 basic salary's and we both earn about 10k extra each for allowances, night and weekend work no overtime was just wondering if this is taking into consideration when working out how much we can borrow?

We pay rent €850 per month and save €1100 per month and no kids. Hoping to speak with banks in next few weeks. Thanks x

My Husband and I are working both and making 56k /month, rent 650€ and we save 2500€
You could save much more with your money

gwakamoley

A house I'm interested in is being sold after the owner passed away. There is an executor appointed so it looks like a will was left but it will still have to go through the Probate process. This link (which is a year and a half old) says this could take up to a year?! Is this true??

dudara

Thargor wrote: »

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

The good news is that 6 months of good saving history will do most banks once they can see your serious. So start now

Samuel T. Cogley

elizunia87 wrote: »

My Husband and I are working both and making 56k /month, rent 650€ and we save 2500€
You could save much more with your money

So would you on 56K a month

Glenbhoy

AlmightyCushion wrote: »

You could certainly do it better. You're better off having a set amount leave your account every month and into a separate savings account. The amount shouldn't change and you should never dip into this savings account. You want to make it as easy as possible for the bank to give you a mortgage and your savings history and affordability is a big part of that. Having a set amount going in to a savings account at the same time every month and leaving it there makes that a lot easier for them.

I did similar, bank had no issues with it, as long as it's obvious that salary is being used to finance savings they're fine. Whilst regular savings may be more transparent, they were happy to look at the uplift in savings over a period and work out a monthly.
As for prize bonds being bad value, with current interest rates and dirt, may as well take the chance and do the state a service at the same time!

An Ri rua

Silly question maybe but do all banks require 6 months bank statements or will anyone accept 3?

Anyone know which banks are better for accepting a long rental history and a quickly built-up deposit?

Prospector1989

An Ri rua wrote: »

Silly question maybe but do all banks require 6 months bank statements or will anyone accept 3?

Anyone know which banks are better for accepting a long rental history and a quickly built-up deposit?

I've seen the odd advertisment for banks looking for 3 months but that might only be initially. I think 6 is probably standard?

Edit: 3 months mentioned here: https://digital.ulsterbank.ie/personal/mortgages/guides/mortgage-application-guide.html?intcam=I_PC_HPTO_0_Mtg_Rate_MtgJan2018_FTB_a2

and here: https://www.permanenttsb.ie/mortgages/first-time-buyer-mortgage-how-to-apply/

We have been living rent-free for nearly two years but saving as if we were renting. We were told that as long as you can prove ability to repay then the banks are happy. They will generally count rental payments in your ability to repay.
With regard to the deposit, as long as you can prove where it came from I don't see any issue. If it's a gift, a letter from the 'gifter' will be required.

Phillip k

Hi can anyone tell me what other costs I would need to cover before building a home . I am using my family's land based in kildare area . Note my family member will be doing the foundations . Thanks in advance

el Fenomeno

Prospector1989 wrote: »

I've seen the odd advertisment for banks looking for 3 months but that might only be initially. I think 6 is probably standard?

Edit: 3 months mentioned here: https://digital.ulsterbank.ie/personal/mortgages/guides/mortgage-application-guide.html?intcam=I_PC_HPTO_0_Mtg_Rate_MtgJan2018_FTB_a2

and here: https://www.permanenttsb.ie/mortgages/first-time-buyer-mortgage-how-to-apply/

Interesting - has anyone recently applied to these and if so, was it only 3 months statements required?

GingerLily

el Fenomeno wrote: »

Interesting - has anyone recently applied to these and if so, was it only 3 months statements required?

What are you trying to hide?

el Fenomeno

GingerLily wrote: »

What are you trying to hide?

Dipped into savings when I was in between jobs in September/October. Easily explainable, but just wary of the stories of banks seeing any outgoings from a savings account and immediately rejecting.

Happy to wait a couple of months if need be, but obviously good news if there's banks that won't look back that far.

That, and my massive drugs, hookers and gambling debts. But all easily-explainable.

GingerLily

el Fenomeno wrote: »

GingerLily wrote: »

What are you trying to hide?

Dipped into savings when I was in between jobs in September/October. Easily explainable, but just wary of the stories of banks seeing any outgoings from a savings account and immediately rejecting.

Happy to wait a couple of months if need be, but obviously good news if there's banks that won't look back that far.

That, and my massive drugs, hookers and gambling debts. But all easily-explainable.

They'll know you were between jobs anyway when you submit your salary cert, so they'll definitely look for 6 months of statements

Ohmeha

Can anyone advise is it possible for a single FTB in permanent job to get an exemption above 3.5 on a salary of 42k? Would you need to be on 50k plus?

Samuel T. Cogley

Ohmeha wrote: »

Can anyone advise is it possible for a single FTB in permanent job to get an exemption above 3.5 on a salary of 42k? Would you need to be on 50k plus?

It's possible.

Goose76

Got our keys yesterday evening. Exhilaration was soon replaced by exhaustion and relief! I cannot believe the whole thing is done.

We went with PTSB and the cashback was paid nine business days after drawdown.

Found the bank and our solicitors to be great and the EA was absolutely out of this world to be honest. And yet I still found the entire process to be one of the most stressful things I have ever ever done. What it’s like for people who have lazy EAs and solicitors, I can’t imagine.

Genuinely think the entire process of buying a home in this country is completely outdated and needs revising. But that’s a whole other thread

Prospector1989

el Fenomeno wrote: »

Dipped into savings when I was in between jobs in September/October. Easily explainable, but just wary of the stories of banks seeing any outgoings from a savings account and immediately rejecting.

Happy to wait a couple of months if need be, but obviously good news if there's banks that won't look back that far.

That, and my massive drugs, hookers and gambling debts. But all easily-explainable.

Also they'll look to confirm you're not on any sort of probation in the new job so worth keeping that in mind as well.

el Fenomeno

Prospector1989 wrote: »

Also they'll look to confirm you're not on any sort of probation in the new job so worth keeping that in mind as well.

Yeah, I spoke to a broker who said that they're likely to give you AIP even if you're on probation, but you'll need to confirm you're permanent before you draw-down so I don't expect that to be a problem. Hopefully!

GingerLily

el Fenomeno wrote: »

Prospector1989 wrote: »

Also they'll look to confirm you're not on any sort of probation in the new job so worth keeping that in mind as well.

Yeah, I spoke to a broker who said that they're likely to give you AIP even if you're on probation, but you'll need to confirm you're permanent before you draw-down so I don't expect that to be a problem. Hopefully!

There's usually a higher level of scrutiny for these cases, I'd be surprised if they didn't ask for 12 months of bank statements, let alone 6!!

el Fenomeno

GingerLily wrote: »

There's usually a higher level of scrutiny for these cases, I'd be surprised if they didn't ask for 12 months of bank statements, let alone 6!!

Will hopefully be permanent at the end of March so happy to leave applying until then anyway.

Tipsy McSwagger

Silly question but what is a definite when you get a mortgage, mortgage protection, home insurance or life insurance? Also which can be paid annually rather than monthly?

Frank Castle

Tipsy McSwagger wrote: »

Silly question but what is a definite when you get a mortgage, mortgage protection, home insurance or life insurance?

You will need home insurance (don't think any bank lets you avoid this).

And you will need either mortgage protection or life insurance - which one is best for you is your personal decision (I went for mortgage protection)

Tipsy McSwagger

Frank Castle wrote: »

You will need home insurance (don't think any bank lets you avoid this).

And you will need either mortgage protection or life insurance - which one is best for you is your personal decision (I went for mortgage protection)

I have life insurance through work.

Frank Castle

Tipsy McSwagger wrote: »

I have life insurance through work.

Your bank will tell you what they require, but you will probably need to have that signed over to the bank, so that the money is paid directly to them if something happens.

you will need home insurance too probably, if the bank require you to have this they will put it in as one of their pre draw down conditions

Interested Observer

GingerLily wrote: »

There's usually a higher level of scrutiny for these cases, I'd be surprised if they didn't ask for 12 months of bank statements, let alone 6!!

I was on probation when I applied for my mortgage and there was no such requirement. It was the exact same as any other application with the condition that draw down would be after I was made permanent which was fine.

limnam

Goose76 wrote: »

Genuinely think the entire process of buying a home in this country is completely outdated and needs revising. But that’s a whole other thread

Buyers could also chill out a bit.


Purchasing a home tends to turn grown adults into impatient spoiled children waiting for xmas.

charlietheminxx

limnam wrote: »

Buyers could also chill out a bit.


Purchasing a home tends to turn grown adults into impatient spoiled children waiting for xmas.

God forbid people be eager to move into a home that they have spent years saving for :rolleyes:

Ohmeha

Samuel T. Cogley wrote: »

It's possible.

Would you think a loan of 4.5 on 42k is likely?

myshirt

Ohmeha wrote: »

Would you think a loan of 4.5 on 42k is likely?

No. Definitely not.

Ggkoy

Myself and my partner are looking into building an extension on to her parents home with the aim to have this as a separate living area (approx size of 80sq m, with 2 bedrooms, bathroom & open plan kitchen/living area).

Has anyone done something similar? Looking for advice around funding & very new to all of this. My partners name will be added to the deeds of the house. There is no current mortgage on the house.

Would it be possible for us to get a joint mortgage for this due to it being an extension rather than a new build for example? Would a home improvement loan be another option? Again, would the lender have any issue with this for myself as my name is not tied to the house in any way?

Thanks in advance.