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

wally79

big syke wrote: »

Exactly.

I suppose it's the same idea of owning a car worth 35k with no finance on it.

Sure the asset is worth 35k but it wont help with mortgage affordability.

It’s not even

If the job was gone tomorrow the company car is gone too

At least you still have the asset in the other scenario

Irrelevant I know

Saint Sonner

Heres one for you.

I lived in Dublin for 5 years - moved back to Tyrone back in August 2018 on the basis that I could save my ass off for a deposit on a house. I kept my job in Dublin and have been managing it by a combination of working from Home, commuting and cheap air bnbs.

I'm now getting into a position where I could afford something under HTB scheme if the right property came up. (I'd say I have paid more than €100k in Tax over the years so should be no problem in that regard) wondering is it possible to apply and get the HTB tax rebate if my address is in the North now and also will this cause an issue with getting a mortgage.

ELM327

Would imagine it should be impossible unless you are resident in the south to be fair

TheMilkyPirate

I see people saying to save the same amount every week. If I'm saving 200 a week is it OK if some weeks its 250, 280, 230? I never save below 200 a week and nothing ever comes out of that account.

Creamy Goodness

TheMilkyPirate wrote: »

I see people saying to save the same amount every week. If I'm saving 200 a week is it OK if some weeks its 250, 280, 230? I never save below 200 a week and nothing ever comes out of that account.

It’s better to show the same amount each each month than various amounts.

Save the 200 a week in one account. Any surplus throw into another savings account or credit union.

Monife

TheMilkyPirate wrote: »

I see people saying to save the same amount every week. If I'm saving 200 a week is it OK if some weeks its 250, 280, 230? I never save below 200 a week and nothing ever comes out of that account.

My broker said that was fine, so long as you don't go under a certain amount or dip into your savings.

I do the same, save a minimum of €200 a month but it can vary up to €700 a month depending on my budget for that month (car insurance etc).

Creamy Goodness

Monife wrote: »

My broker said that was fine, so long as you don't go under a certain amount or dip into your savings.

I do the same, save a minimum of €200 a month but it can vary up to €700 a month depending on my budget for that month (car insurance etc).

That just shows the bank that when important payments come up like insurance you’ll pay that before they’ll get their money.

Also depending where you are in the country €800 a month isn’t great savings to show unless you have a decent chunk going on rent.

Monife

Creamy Goodness wrote: »

That just shows the bank that when important payments come up like insurance you’ll pay that before they’ll get their money.

Also depending where you are in the country €800 a month isn’t great savings to show unless you have a decent chunk going on rent.

I disagree. If the amount I am saving plus rent is way above my future stress tested mortgage repayment, i don't see the problem, the bank would always get their money. It shows that I budget my money accordingly and don't dip into my savings.

I pay €1,200 per month on rent and will be looking for a single applicant mortgage of €180k which is under €800 a month mortgage repayment stress tested plus 6%.

TheShow

Saint Sonner wrote: »

Heres one for you.

I lived in Dublin for 5 years - moved back to Tyrone back in August 2018 on the basis that I could save my ass off for a deposit on a house. I kept my job in Dublin and have been managing it by a combination of working from Home, commuting and cheap air bnbs.

I'm now getting into a position where I could afford something under HTB scheme if the right property came up. (I'd say I have paid more than €100k in Tax over the years so should be no problem in that regard) wondering is it possible to apply and get the HTB tax rebate if my address is in the North now and also will this cause an issue with getting a mortgage.

only open to residents of ROI.

TheShow

Creamy Goodness wrote: »

It’s better to show the same amount each each month than various amounts.

Save the 200 a week in one account. Any surplus throw into another savings account or credit union.

thats simply not true.

save as much as you can on a regular basis. that is all.

charlietheminxx

TheShow wrote: »

thats simply not true.

save as much as you can on a regular basis. that is all.

This can actually vary from lender to lender. What AIB advised me is that you need to have a standing order for a set amount (in this case, for €200 per week) and then you can add any extra over and above that into your savings account as well, but setting an amount shows that you can commit to a savings plan. They want to see regular, consistent savings. Of course the more you save the better, but they don't like to see massive amounts of variation.

Saint Sonner

TheShow wrote: »

only open to residents of ROI.

If I was to go back to Dublin to live with my aunt for a month or two would this solve the problem

TheShow

Saint Sonner wrote: »

If I was to go back to Dublin to live with my aunt for a month or two would this solve the problem

https://www.revenue.ie/en/property/documents/htb-summary-applicants.pdf

The fact that you've been paying income tax here may be sufficient, but the only way that to can answer your question with any real clarity is to contact the operators of the scheme.
All you will get here is conjecture and opinions.

Reversal

Have gotten a bit confused looking at the new build sale prices on the property price register.

Am I correct in thinking the sale price shown on the PPR is exclusive of VAT? But the price you actually pay is inclusive of VAT?

If so, why is the PPR exclusive of VAT?

Creamy Goodness

Reversal wrote: »

Have gotten a bit confused looking at the new build sale prices on the property price register.

Am I correct in thinking the sale price shown on the PPR is exclusive of VAT? But the price you actually pay is inclusive of VAT?

If so, why is the PPR exclusive of VAT?

Exclusive of vat. Why? I’m not sure, but not hard to add it on.

Phileas Frog

It is ex VAT for new houses, second hand houses are VAT exempt.

averagejoe123

Reversal wrote: »

Have gotten a bit confused looking at the new build sale prices on the property price register.

Am I correct in thinking the sale price shown on the PPR is exclusive of VAT? But the price you actually pay is inclusive of VAT?

If so, why is the PPR exclusive of VAT?

Multiply the PPR price for new builds by 1.135 to get the actual price paid. The VAT free amount is the figure used for stamp duty.

2nd hand homes on the PPR should be the total price paid

Radsky

Need advice. We have underwritten AIP valid for 6 months. We can sign contract for a new build with just the AIP. The new build will not be completed until December. Do we process the offer letter now, which will require us to renew this prior to December, or do we wait until at least a month before the AIP expires to process the offer letter? In the latter scenario, the offer letter will be valid beyond December. What are the pros and cons of either scenario?

hanaimai

Radsky wrote: »

Need advice. We have underwritten AIP valid for 6 months. We can sign contract for a new build with just the AIP. The new build will not be completed until December. Do we process the offer letter now, which will require us to renew this prior to December, or do we wait until at least a month before the AIP expires to process the offer letter? In the latter scenario, the offer letter will be valid beyond December. What are the pros and cons of either scenario?

You'll need your letter of offer to sign contracts, so it depends on when you expect to get contracts.

Radsky

hanaimai wrote: »

You'll need your letter of offer to sign contracts, so it depends on when you expect to get contracts.

We got confirmation that we can sign contracts with just the underwritten AIP.

GingerLily

Radsky wrote: »

hanaimai wrote: »

You'll need your letter of offer to sign contracts, so it depends on when you expect to get contracts.

We got confirmation that we can sign contracts with just the underwritten AIP.

Really?? We needed a full loan offer at contract signing stage

TheShow

Reversal wrote: »

Have gotten a bit confused looking at the new build sale prices on the property price register.

Am I correct in thinking the sale price shown on the PPR is exclusive of VAT? But the price you actually pay is inclusive of VAT?

If so, why is the PPR exclusive of VAT?

PPR is updated when Stamp duty is paid. Stamp Duty is only eligible on EX Vat cost as you don't pay tax on a tax.

The full sale price for a new house includes Vat, there is no VAT on "used" houses.

TheShow

Radsky wrote: »

We got confirmation that we can sign contracts with just the underwritten AIP.

from the vendors solicitor or yours? seems unusual to be honest.

If that is the case, wait as long as you can on the AIP, then request contracts...

Natashaw88x

TheShow wrote: »

from the vendors solicitor or yours? seems unusual to be honest.

If that is the case, wait as long as you can on the AIP, then request contracts...

Never heard of that. We have underwritten AIP and solicitor required letter of offer for contracts. It’s very unusual, I personally would be vary of doing it. Nothing is official till you get your letter of offer.

Glen_Quagmire

Has anyone have any difficulties with using online payslips and if so how you got around it?

The OH gets her payslips through an online portal but there is a separate window/tab for each section of the payslip so you cannot see all the details in one screen. I saved all the different sections and them combined them into one PDF for each month but the bank has comeback to us saying they are not sufficient as it is an online version and are asking for a "proper" payslip, however the OH says her employer doesn't give out payslips any other way but the online portal.

Any suggestions?

Rfrip

Glen_Quagmire wrote: »

Has anyone have any difficulties with using online payslips and if so how you got around it?

The OH gets her payslips through an online portal but there is a separate window/tab for each section of the payslip so you cannot see all the details in one screen. I saved all the different sections and them combined them into one PDF for each month but the bank has comeback to us saying they are not sufficient as it is an online version and are asking for a "proper" payslip, however the OH says her employer doesn't give out payslips any other way but the online portal.

Any suggestions?

Who are you with? I was with bank of Ireland and they accepted online payslips. Like there’s no other option in my work so they have to accept them....

Glen_Quagmire

Rfrip wrote:

Who are you with? I was with bank of Ireland and they accepted online payslips. Like there’s no other option in my work so they have to accept them....

We are applying with BOI. Yeah I think 90% of people get online payslip these days, I think it's just the way the OH's are formatted is the issue. The stupid things omit her name also but has her PPS number.

She emailed her HR department a while ago but she reckons they won't do anything as it's a large company with HR is based in the UK and are apparently not great to deal with.

Musefan

Hi all,

Wondering if anyone has a bit of advice!

My spouse and I were previously considering buying in Dublin/surrounding counties as this is where we work at the minute. After a number of years here we have realised that we're not tied to city living.

In the last few months our priorities have changed and we have decided that we would prefer to move back closer to our family. Both of us have the option to work from home/relocate closer to where our families are based.

According to the 3.5 rule, we would be able to borrow about 390000. We would be looking to purchase a house in the 280000-300000 range. We have one car loan which has <10,000 left on it and will be completed in Nov 20. We currently pay out 2100 a month (rent and car loan included) and manage this comfortably without any debts. No previous debts/no credit cards etc.

At the min, we have about 7000 saving. We have access to RSUs which we cash in as soon as they vest, so they should add about 5000 this year.

My first question is what should we be budgeting in for extra costs (solicitor etc), and will anyone even look at us with less than 10% of the deposit considering that we pay out more on a monthly basis than we would be spending on mortgage repayments. We don't need to factor in the cost of a survey as we have a family member who is qualified to complete this.

Thanks.

Interested Observer

Survey is relatively cheap anyway. The biggest cost is stamp duty which is 1% of the purchase price.

And no I don't think you'll get a mortgage without the deposit saved. You'll need 11% of the house price plus an extra few thousand for solicitor.

el Fenomeno

For new build mortgage where you're looking for 90% LTV, is it sufficient to provide proof of 5% mortgage saved and confirmation that you're approved for help to buy (which covers the other 5%)?