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

Phileas Frog

ELM327 wrote: »

Banks will allow you draw down if you are not permanent? Really?
Show me that and I'll show you a bank that needs a new credit risk team.

Certainly. Someone on a rolling contract, or someone that is self employed. An IT contractor or a Ryanair pilot for example

DelBoy Trotter

ELM327 wrote: »

Banks will allow you draw down if you are not permanent? Really?
Show me that and I'll show you a bank that needs a new credit risk team.

2 years permanency is not standard. Once you are passed your probation (which is usually six months), it is enough for banks to give approval.

There are also people who are on contract work (depending on the field they are working in) who can also get mortgages.

You do not have to be permanent to get a mortgage, but it definitely helps!

averagejoe123

CaptivePortal wrote: »

hi all,

long time lurker finally in position to buy. just wondering about peoples experiences placing offers.

We placed on offer on a property yesterday to estate agent via email. We have not received any acknowledgement and when i rang their office today i was told the es was on another call and would call me back. this was 4 hours ago.

My question is: should we have received acknowledgment of the offer?

Absolutely they should have acknowledged your offer. This is poor form by the EA.

ELM327

Phileas Frog wrote: »

Certainly. Someone on a rolling contract, or someone that is self employed. An IT contractor or a Ryanair pilot for example

Someone self employed needs to provide 2 years of accounts to show viability.


Rolling contract is a negative in your review which the underwriters will perform.

CaptivePortal

averagejoe123 wrote: »

Absolutely they should have acknowledged your offer. This is poor form by the EA.

Thanks, they actually called not long after posting!

Phileas Frog

ELM327 wrote: »

Someone self employed needs to provide 2 years of accounts to show viability.

No they don't, umbrella company directors for example are self employed but don't need to provide 2 years of accounts.

ELM327 wrote: »

Rolling contract is a negative in your review which the underwriters will perform.

Yes, but it doesn't prevent them drawing down which was your original point. Th eonly negative is that it's the average of 3 years P60s which is used as the 3.5 x calculation.

ELM327

Phileas Frog wrote: »

No they don't, umbrella company directors for example are self employed but don't need to provide 2 years of accounts.




Yes, but it doesn't prevent them drawing down which was your original point. Th eonly negative is that it's the average of 3 years P60s which is used as the 3.5 x calculation.

As a self employed director of a company my partner was advised she needed 2 years of accounts to prove income.


It's all very well and good posting on the internet that "they don't" but in the real world we were told we needed it.

loriexxx

Do ulster bank request up to date payslips and bank statements before draw down if it is still within the 6 month period from loan offer

GingerLily

ELM327 wrote: »

As a self employed director of a company my partner was advised she needed 2 years of accounts to prove income.


It's all very well and good posting on the internet that "they don't" but in the real world we were told we needed it.

You're giving a lot of advice based on your specific treatment.

I lot of what you have said is not true in our case. For example our purchase price was >4.5 times our income but we borrowed using a 3.8 LTI exemption!

derekbro

Phileas Frog wrote: »

No they don't, umbrella company directors for example are self employed but don't need to provide 2 years of accounts.

I am and I did have to provide 2 years of accounts for all banks.

drinkingwater

loriexxx wrote: »

Do ulster bank request up to date payslips and bank statements before draw down if it is still within the 6 month period from loan offer

They didn't ask for anything from us, draw down last Friday with UB

c6ysaphjvqw41k

We applied for a mortgage and we were informed by the lender that we got approval in principle and they would be sending out a letter today so we could go looking for houses.

We only needed €150,000 as we have the rest in savings. Will the approval in principle letter state the amount that we are approved for? It will be the first one we applied for so I'm not sure what to expect. If an estate agent asks for proof of funds when we place a bid, I'm worried it might look like we only have €150,000 to spend. I also don't want to show them bank statements because I don't' want them knowing our max budget. Not sure the procedure here.

Other question I had is regarding bids. There's a few houses up that are €10-€15k over our budget. Is there any point in looking at these houses and putting in an offer on them as long as there are no other bids yet? Or would it be a waste of time?

Phileas Frog

derekbro wrote: »

I am and I did have to provide 2 years of accounts for all banks.

As am I, and I didn't for either EBS or KBC.

Graham

Mod Note

threads merged

hanaimai

Valeria Rich Somehow wrote: »

We applied for a mortgage and we were informed by the lender that we got approval in principle and they would be sending out a letter today so we could go looking for houses.

We only needed €150,000 as we have the rest in savings. Will the approval in principle letter state the amount that we are approved for? It will be the first one we applied for so I'm not sure what to expect. If an estate agent asks for proof of funds when we place a bid, I'm worried it might look like we only have €150,000 to spend. I also don't want to show them bank statements because I don't' want them knowing our max budget. Not sure the procedure here.

Other question I had is regarding bids. There's a few houses up that are €10-€15k over our budget. Is there any point in looking at these houses and putting in an offer on them as long as there are no other bids yet? Or would it be a waste of time?

Yes your AIP letter will state how much you've been approved for. If the estate agent asks for proof just send them the letter with the amount blacked out. We were never asked ourselves for proof of funds but that was advice I saw on here from other people when we were looking.

c6ysaphjvqw41k

hanaimai wrote: »

Yes your AIP letter will state how much you've been approved for. If the estate agent asks for proof just send them the letter with the amount blacked out. We were never asked ourselves for proof of funds but that was advice I saw on here from other people when we were looking.

Makes sense, thanks for the advice. We will do that. I kind of thought they might not ask because most people I know were never asked but I know they could ask.

Glen_Quagmire

Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?

GingerLily

Glen_Quagmire wrote: »

Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?

They might

Valeria Rich Somehow

Valeria Rich Somehow wrote: »

Makes sense, thanks for the advice. We will do that. I kind of thought they might not ask because most people I know were never asked but I know they could ask.

We just got our broker to send a letter saying we could afford the house and that was it. You could possibly ask the bank for similar.

myshirt

Glen_Quagmire wrote: »

Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?

If they will then it won't be for 8-12 months. A lot of the loan book is forward funded.

averagejoe123

Glen_Quagmire wrote: »

Bit of a crystal ball question but would you say the other banks will reconsider their fixed rates now that AIB has dropped theirs to 2.85%?

I'm not sure why people are making such a song and dance about AIBs rates when there is already better value in the market.

The 10 year rate is currently the best available so perhaps others might react to this.

Misssally

Question re deposit, second time buyer & most of our deposit is tied up in our current home. Do we have to finalise sale & move out etc before we put an offer on another house or is there any way to bridge the deposit? We’ve small kids so want to avoid having to move in with family if possible so any advice welcome!

averagejoe123

Misssally wrote: »

Question re deposit, second time buyer & most of our deposit is tied up in our current home. Do we have to finalise sale & move out etc before we put an offer on another house or is there any way to bridge the deposit? We’ve small kids so want to avoid having to move in with family if possible so any advice welcome!

Whilst it is possible to buy and sell on the same day it is very difficult. I would be planning to have a week or two between buying and selling.

You don't need to have your own sale finalised before bidding but most EAs will want you to be at least sale agreed on your own house before considering your offer.

Misssally

Thanks! A few weeks I could deal with. But what about deposit? Would I need the funds from my sale for the deposit? I don’t have 10% in savings & I imagine I can’t use the deposit placed by a buyer on my home? (Presuming I’m
Sale agreed with contracts signed on my place). Interested to hear how’s others do it?

averagejoe123

The holding deposit of 10-15k should be paid out of savings.

The balance of the 10% can be postponed until your own sale is completed if you explain to all parties that you will be using the equity from your own sale to purchase the new property.

voluntary

I would question if you are not overpaying for the property if the seller is willing to accept waiting until you manage to sell your old property. He either cannot sell for a long time or you placed an over the roof offer on the place. Think twice. Better be safe than sorry. Mind, the property prices have been going down for the last 3 months.

Bluefoam

voluntary wrote: »

Mind, the property prices have been going down for the last 3 months.

Have they? Please provide a link to this information. It's new information, so please provide the source...

Are you refering specifically to the 1% drop in one suburb of one city in the entire country?

derekbro

Bluefoam wrote: »

Have they? Please provide a link to this information. It's new information, so please provide the source...

https://www.cso.ie/en/releasesandpublications/ep/p-rppi/residentialpropertypriceindexjanuary2019/

Bluefoam

derekbro wrote: »

https://www.cso.ie/en/releasesandpublications/ep/p-rppi/residentialpropertypriceindexjanuary2019/

I see... You refer to the three months up to January. No stats there for the past three months.

voluntary

Bluefoam wrote: »

I see... You refer to the three months up to January. No stats there for the past three months.

Yeah, the prices dropped in November, December and January. The report for February is scheduled to be out tomorrow.
The Dublin's properties dropped by 2.8% in the last 3 reported months which equals to 8400 Euros drop for an average home in the 300k bracket.