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

Mickiemcfist

Quick question re approval - I'm going to be looking for a house which will presumably take months to finalise & draw down. When you get loan approval in principle can you get away with using your post-payday bank balance to make up the 10%? I'll have the full deposit in 2/3 months but just looking to get the ball rolling early. Thanks in advance.

Creamy Goodness

Mickiemcfist wrote: »

Quick question re approval - I'm going to be looking for a house which will presumably take months to finalise & draw down. When you get loan approval in principle can you get away with using your post-payday bank balance to make up the 10%? I'll have the full deposit in 2/3 months but just looking to get the ball rolling early. Thanks in advance.

Banks will want to see the full deposit and at least the solicitors fees (if not some money to furnish the house) in your accounts before they give you an underwritten AIP. Every other type of AIP is not worth the paper it’s written on.

Mickiemcfist

Creamy Goodness wrote: »

Banks will want to see the full deposit and at least the solicitors fees (if not some money to furnish the house) in your accounts before they give you an underwritten AIP. Every other type of AIP is not worth the paper it’s written on.

Thanks, can you use your post payday bank balance to achieve this? If so I'm grand

FitzElla

Another quick question on approval in principal - how long does it normally take to get back underwritten AIP? Have been waiting 6 weeks so far and not a work from the bank. Not sure if that is normal or not?

Creamy Goodness

Mickiemcfist wrote: »

Thanks, can you use your post payday bank balance to achieve this? If so I'm grand

I wouldn't think so, however my bank said to me to get my parent to write a gift letter for the amount I was short by, that I'd make up in savings by the time the house was built. In the end my house was delayed anyways and I didn't need the letter before getting my underwritten AIP.

deisedude

FitzElla wrote: »

Another quick question on approval in principal - how long does it normally take to get back underwritten AIP? Have been waiting 6 weeks so far and not a work from the bank. Not sure if that is normal or not?

Its normally up to 10 working days so i think you need to contact the bank and see whats going on

alwald

Haven have some good interest rates but there is a need to apply through an intermediary. I checked few intermediaries and the majority of them charge a fee. Can anybody recommend in Dublin an intermediary that doesn't charge a fee please. Thanks!

Dolbhad

Creamy Goodness wrote: »

I wouldn't think so, however my bank said to me to get my parent to write a gift letter for the amount I was short by, that I'd make up in savings by the time the house was built. In the end my house was delayed anyways and I didn't need the letter before getting my underwritten AIP.

I had to do this as we were short 5k with Ulster Bank so gave a gift letter. However it was then a term in our Loan offer that the person who gave the gift letter had to get independent legal advice and sign a deed of confirmation. Our options were pay another solicitor to do this or ask for a new loan offer to issue without the clause but resubmit all paperwork again and risk the loan offer. So beware of the gift letters. Solicitor said only Ulster Bank insist on independent legal advice but rest of banks would just advise it.

alwald wrote: »

Haven have some good interest rates but there is a need to apply through an intermediary. I checked few intermediaries and the majority of them charge a fee. Can anybody recommend in Dublin an intermediary that doesn't charge a fee please. Thanks!

We went through broker who took a deposit which would be refunded to us on drawdown - it was to cover any work done if we didn’t drawn down with them to cover the time they spent i.e go to another bank. In the end we didn’t go ahead with purchase so loss the deposit but that’s fair enough. I would say I was supposed to find out that if you switch banks with 3 years that the banks can seek their fee off the broker which in turn allows them seek the fee off you so beware of using a broker if you plan on moving banks within 3 years

Haven is the broker section of AIB so I would think you’d have the same rates with haven as AIB and also EBS is linked with AIB so you check with them also.

Mickiemcfist

Creamy Goodness wrote: »

I wouldn't think so, however my bank said to me to get my parent to write a gift letter for the amount I was short by, that I'd make up in savings by the time the house was built. In the end my house was delayed anyways and I didn't need the letter before getting my underwritten AIP.

Ah thanks good idea.

Looly8726

Quick question re approval in principle... just reading through here and see that you can have underwritten approval and not underwritten. How would I know which one we have??

awec

Looly8726 wrote: »

Quick question re approval in principle... just reading through here and see that you can have underwritten approval and not underwritten. How would I know which one we have??

Did you have to supply bank statements, pay slips, credit checks etc, and then wait for a number of days to hear back?

Looly8726

awec wrote: »

Did you have to supply bank statements, pay slips, credit checks etc, and then wait for a number of days to hear back?

Yes provided all above and more. Took approx 3 weeks total.

awec

Looly8726 wrote: »

Yes provided all above and more. Took approx 3 weeks total.

That'll be underwritten so.

Looly8726

awec wrote: »

That'll be underwritten so.

Great! Only thing we have to do now according the AIP letter is provide them details of the property and solicitors details. It hasn’t mentioned a valuation though. Does this come with the loan offer or when should we expect to be requested to do that?

awec

Looly8726 wrote: »

Great! Only thing we have to do now according the AIP letter is provide them details of the property and solicitors details. It hasn’t mentioned a valuation though. Does this come with the loan offer or when should we expect to be requested to do that?

Someone asked that recently.

It seems some banks require 2 valuations; one when you get the full loan offer and one when you draw down at completion. Other banks just require a valuation during completion.

Don't sweat it about the valuation(s), when the banks need them they'll ask you for them, and it's a very quick process.

Dolbhad

Valuations only last for 4 months. So if you’ve get a valuation at the start and takes more than 4 months to close the sale you will need a new valuation with a second hand house. New builds are at the start and the end. It’s a dose if you’ve to pay for it yourself but some banks cover the cost.

Looly8726

Thanks for that!
How long does it take to get the letter of offer once all details are submitted usually?

awec

Dolbhad wrote: »

Valuations only last for 4 months. So if you’ve get a valuation at the start and takes more than 4 months to close the sale you will need a new valuation with a second hand house. New builds are at the start and the end. It’s a dose if you’ve to pay for it yourself but some banks cover the cost.

Not always. It entirely depends on your bank.

awec

Looly8726 wrote: »

Thanks for that!
How long does it take to get the letter of offer once all details are submitted usually?

Anything from a few days to a few weeks.

Looly8726

awec wrote: »

Anything from a few days to a few weeks.

Wonderful! It’s so stressful! Thanks for the info.

niamhzie

Our building contract specifies a deposit amount, say 25k, but the mortgage is based on 10% deposit of the house price, say 350k > 35k deposit. We previously paid a booking deposit of 5k to the estate agent. Our solicitor is deducting the HTB (say 17.5k) from this building deposit of 25k and we are to pay them 7.5k now, with the balance of the 10% deposit due at a later date.

Does that sound familiar to anyone? The whole buying process makes me feel like a bit of a thicko.

thepropertyguy

niamhzie wrote: »

Our building contract specifies a deposit amount, say 25k, but the mortgage is based on 10% deposit of the house price, say 350k > 35k deposit. We previously paid a booking deposit of 5k to the estate agent. Our solicitor is deducting the HTB (say 17.5k) from this building deposit of 25k and we are to pay them 7.5k now, with the balance of the 10% deposit due at a later date.

Does that sound familiar to anyone? The whole buying process makes me feel like a bit of a thicko.

Hi Niamhzie

The buying process can be very confusing. When you buy a newly built house there can be two contracts in play, 1. the building contract and 2. the sale contract (for the land the house sits on). It is typical to have the arrangement you have outlined above in new house builds, the reason for this is that the builder needs cash flow to finish construction so the balance of the deposit will be paid closer to the completion date.

Paul_Mc1988

Anybody know if you put in an offer can the estate agent tell you he can not bring the offer to the vendor as its too low. We went in 10% under asking as we think the house is slightly over priced.

thepropertyguy

Paul_Mc1988 wrote: »

Anybody know if you put in an offer can the estate agent tell you he can not bring the offer to the vendor as its too low. We went in 10% under asking as we think the house is slightly over priced.

Hi Paul, yes the estate agent can say that. Remember to ensure your bid is sent by email that way the estate agent has to record it. In my experience the agent will tell the vendors about your bid, but they will advise them to hold out. If your correct with you're valuation then they will come back to you. The agent works for the vendors not the purchaser and they are tasked with getting the highest amount possible, so this is a negotiation technique.

Looly8726

Paul_Mc1988 wrote: »

Anybody know if you put in an offer can the estate agent tell you he can not bring the offer to the vendor as its too low. We went in 10% under asking as we think the house is slightly over priced.

Our house is on the market at the moment and the agent came to us and said there was an offer way under asking price but but he hadn’t really entertained it. Our contract does say that he will pass on all bids to us though

Paul_Mc1988

Thanks for the help all. I'm going to hold out to see if another offer goes in. If not they might come back and ask to meet us in the middle which i would be happy with.

Thargor

I got my first payslip after a significant raise today so its time to start getting myself in order for approval.

Problem is my finances are a bit messy. I have enough for about a 50% deposit saved, its split between shares, prize bonds, post office savings and cash in my current account.

The problem is last year my landlord gave me a couple of weeks free rent in exchange for a cash lump sum covering 6 months rent. Last week he called round and we did the same thing again so now I'm paid up until next November, but now I'm wondering if I've shot myself in the foot as there will be no regular outgoings for rent.

What should I do? Do I need to consolidate my savings now or will they accept statements from each account? Should I go straight to a broker? Should I start paying 50% of my wages into some kind of regular saver?

Sorry for all the questions but I'm a bit lost...

voluntary

Thargor wrote: »

I got...

They should accept your liquid assets (like shares and bonds) for the purpose of giving an approval in principle, but will require to have funds covering your own part of investment in a bank account before releasing a mortgage offer for a specific property.

chases0102

Hi folks, a quick question here that someone may have the answer to.

Recently bought a new build, along with HTB.

When I check the PPR, it seems our house has a more expensive price next to it than literally every other house on the road. Would anyone know why that may be? In fact, all the houses on that road are all in the PPR at different rates - which I find odd seeing, as with new build, they had a flat cost.

Creamy Goodness

chases0102 wrote: »

Hi folks, a quick question here that someone may have the answer to.

Recently bought a new build, along with HTB.

When I check the PPR, it seems our house has a more expensive price next to it than literally every other house on the road. Would anyone know why that may be? In fact, all the houses on that road are all in the PPR at different rates - which I find odd seeing, as with new build, they had a flat cost.

different gardens, down a quiet end, bedroom count, square meterage, end or terrace, affordable housing etc. will all factor in. Not all houses are at the same price in a new development. Also PPR prices are excluding VAT at 13.5%.

It also doesn't matter a jot, if you paid what you were asked to and you paid it and can pay the repayments, what me worry?