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

pnecilcaser

fungie wrote: »

I have 2 somewhat hypothetical questions:

If I take a mortgage for say 400000 with my partner when buying a house and after a year or 2 we want to switch providers for lower rate etc but one of us has a lower salary than we had when taking initial mortgage out, lower than 3.5 limit, will we be able to switch? What I mean, do central bank rules come into it when switching?

Can I change the term as I go? i.e. If I take out a 30 year loan but after 5 years when moving provider decide I'd like to reduce the term to 20 years. Is this possible?

I have tried to switch a number of times, like you my employment situation changed since I got my mortgage and I have been refused a switch. The central bank rules may not apply but the banks still look at a switch as if there were looking at a new mortgage application in terms of the income levels. You have to have enough income to service the debt. That income needs to be proven and supported by bank statements, p60s stamped salary certificates and employment contracts. all the same paper work pretty much.

one of my jobs switched a fixed term annual contract and the bank said they would only consider that income once the contract had been renewed twice. Even though its the same company I have worked for for 10 years! The really just go by the maths and the rules, there seems to be no subjectivity in the process at all.

cbrbob94

Hi Guys,

Some great info on this thread, it's nice to get some real world situations in regards to mortgages.

Me and the missus are on 30k each without bonus and about 34k each with bonus. Which thankfully in the jobs we are in the bonus is very regular.

We save 1,800 a month pay 1,000 rent and have a PCP deal on a car. I have recently cleared off my loan early and the missus has a loan until this time next year.

We currently have approx 10,000 saved and weren't planning on applying until at least June 2020 for a mortgage.

Here's where we may of shot ourselves in the foot,

We recently moved jobs last month (both working with the same company) to get a payrise of about 3k each along with shorter working hours. Which shouldn't by the time next year gets around be a problem applying for a mortgage. Days after moving job we found out about the HTB scheme. Which in our cases will be worth about 15,000 on the 295,000 new property.

The problem is the HTB scheme ends in December if I'm correct. When October comes around we will have no problem funding the deposit with the HTB scheme and no problem with being permanent in the jobs by then.

So we're meeting the banks during the week and a broker just to see where we will stand. Hopefully all goes well because to lose out on 15,000 HTB money will be a lot.

Dolbhad

cbrbob94 wrote: »

Hi Guys,

Some great info on this thread, it's nice to get some real world situations in regards to mortgages.

Me and the missus are on 30k each without bonus and about 34k each with bonus. Which thankfully in the jobs we are in the bonus is very regular.

We save 1,800 a month pay 1,000 rent and have a PCP deal on a car. I have recently cleared off my loan early and the missus has a loan until this time next year.

We currently have approx 10,000 saved and weren't planning on applying until at least June 2020 for a mortgage.

Here's where we may of shot ourselves in the foot,

We recently moved jobs last month (both working with the same company) to get a payrise of about 3k each along with shorter working hours. Which shouldn't by the time next year gets around be a problem applying for a mortgage. Days after moving job we found out about the HTB scheme. Which in our cases will be worth about 15,000 on the 295,000 new property.

The problem is the HTB scheme ends in December if I'm correct. When October comes around we will have no problem funding the deposit with the HTB scheme and no problem with being permanent in the jobs by then.

So we're meeting the banks during the week and a broker just to see where we will stand. Hopefully all goes well because to lose out on 15,000 HTB money will be a lot.

HTB is for new builds so do look around the area your hoping to buy in and see what is available new build wise and whether their in your price range. If not, the HTB won’t matter then if you are looking at the second hand market.

Officially it’s not been extended but I’d be surprised if in October’s budget it’s not extended. New builds are expensive and rises dramatically every phase. For most FTB they would not be able to afford a new build if it was not for the FTB. Builders won’t bring down the price of new builds if it’s not extended and I think pressure would be out on government of warnings from builders that they can’t keep building if no one will buy.

Creamy Goodness

Also to note saving €1,800 a month you’ll have the HTB amount saved in 8 months. So if it does disappear in December at the start of August next year you’ll have the €15k and only really two month over your original plan.

bricky06

Hi, does anyone know how long it usually takes for the bank (AIB in our case) to issue funds once your solicitor requests draw down? Our solicitor sent the request on Friday.

We are very close to closing but the final stages seem to be dragging out for so long!

awec

bricky06 wrote: »

Hi, does anyone know how long it usually takes for the bank (AIB in our case) to issue funds once your solicitor requests draw down? Our solicitor sent the request on Friday.

We are very close to closing but the final stages seem to be dragging out for so long!

Once your insurance, mortgage protection and valuation are in place it should be very quick. It was the next day for us. It would have been the same day except our valuation took an extra day.

wally79

bricky06 wrote: »

Hi, does anyone know how long it usually takes for the bank (AIB in our case) to issue funds once your solicitor requests draw down? Our solicitor sent the request on Friday.

We are very close to closing but the final stages seem to be dragging out for so long!

We were told 3 days by AIB. Don’t think it did take that long. So with the bank holiday it’s only been one day for you

bricky06

OK thanks guys - insurance, mortgage protection and valuation all in place.

I might be being optimistic but hoping to finally close by the end of the week.

Creamy Goodness

Took one day for AIB to transfer to my solicitor and another day for the solicitor to transfer to builders solicitor. It’s totally possible to get keys by end of the week. Start pushing the relevant people.

awec

bricky06 wrote: »

OK thanks guys - insurance, mortgage protection and valuation all in place.

I might be being optimistic but hoping to finally close by the end of the week.

I'd ring your AIB mortgage advisor today to ensure they'll release funds today.

Then ring your solicitor tomorrow to get them to transfer to the developer.

At this stage it's all about the phone calls.

bricky06

I have been calling everybody multiple times a day for the last two weeks trying to get this over the line. The number of mistakes and miscommunications between different departments in the bank and in the solicitors office has been ridiculous.

I'm a broken man at this stage


Edit: Rant over, thanks for the advice

gogo

bricky06 wrote: »

I have been calling everybody multiple times a day for the last two weeks trying to get this over the line. The number of mistakes and miscommunications between different departments in the bank and in the solicitors office has been ridiculous.

I'm a broken man at this stage


Edit: Rant over, thanks for the advice

It also depends on what bank your with and what banks your solicitor is with.. if it’s BOI transfer to AIB or vice versus that can add another few days to the process

Paul_Mc1988

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.

thepropertyguy wrote:

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.

Just a follow up on this. We put in a bid on the 22nd and let couple of days go by and then emailed the estate agent on the 27th to see if any other bits went in. No reply from him. Emailed again this morning and he rang to inform us another bidder came in way over asking and the bid was accepted. Never contacted us to counter bid. Is this normal?

Brian201888

Can see why he wouldn't bother if you've come in 10% below and they've had an offer way over asking

Jack_92

Paul_Mc1988 wrote: »

Just a follow up on this. We put in a bid on the 22nd and let couple of days go by and then emailed the estate agent on the 27th to see if any other bits went in. No reply from him. Emailed again this morning and he rang to inform us another bidder came in way over asking and the bid was accepted. Never contacted us to counter bid. Is this normal?

Although I wouldn't say it's normal, it happens and it happened to me. I placed a bid, followed up a few days later and was informed that another bid came along and the vendor decided to accept it. I questioned why I wasn't notified and the EA responded that the vendor knew to other bidder and decided to go with him instead. Recently I checked on property price register and in fact it was sold for the same price we initially offered..

Lux23

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

awec

Lux23 wrote: »

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

You pay the 10% when you sign the contracts.

If you're doing HTB you'll need to go full approval now. There's no harm really in getting approval now even though you know it will expire.

Lux23

Ah, well that makes sense. We just have to reapply when the six month is up and I won't feel as worried once we get full approval in the first instance! Thanks for your help.

GingerLily

Lux23 wrote: »

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

My experience,
I paid 10k deposit to secure my new build.
After 2 weeks contracts were issued.
We received full loan approval with our bank including an initial valuation, our solicitor attempted to add the subject to loan clause into the contract, it was rejected.

We signed our contracts within 21 days of issue, paid the balance of 10% deposit and attached our loan offer from the bank. Before this stage the booking deposit is refundable, after it is not.

When the property is ready for snagging then you complete the rest - home insurance, mortgage protection and final valuation.

awec

Lux23 wrote: »

Ah, well that makes sense. We just have to reapply when the six month is up and I won't feel as worried once we get full approval in the first instance! Thanks for your help.

Our house took ~14 months from booking deposit to getting keys.

After the mortgage approval expired the first time we didn't bother renewing it as we knew it would expire again and the house wouldn't be ready. We waited 3 or 4 months then renewed it.

We had the subject to loan clause in our contract, and we didn't have an LTI exemption so it was fairly straightforward for us.

Creamy Goodness

GingerLily wrote: »

When the property is ready for snagging then you complete the rest - home insurance, mortgage protection and final valuation.

Just to note you can have these in place anytime once you have AIP/loan offer letter on a particular property.

Mortgage protection can be a lengthy process depending on your health. If you're medically sound it can be sorted in a day, but it's not always the case.

TheShow

Lux23 wrote: »

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

Get your full approval now, estate agent might require proof of same to accept the booking deposit.

Balance of 10% deposit (less the 7k already paid) to be paid upon signing contracts, best to get your mortgage approval before then as any solicitor in their right mind should not let you sign contracts if mortgage is not approved.

If the mortgage approval expires before the house is ready then you can just get reapproval, which should be a straight forward process as long as your financial position/employment status has not deteriorated.

Paul_Mc1988

Jack_92 wrote:

Although I wouldn't say it's normal, it happens and it happened to me. I placed a bid, followed up a few days later and was informed that another bid came along and the vendor decided to accept it. I questioned why I wasn't notified and the EA responded that the vendor knew to other bidder and decided to go with him instead. Recently I checked on property price register and in fact it was sold for the same price we initially offered..

Yeah I have a feeling this may be the case also. It's the second property we have been bidding on with this estate agent. On the other property we bid 50k more than we did on our initial bid on this property so he knew we had plenty to go. Anyway on to the next one.

august12

Jack_92 wrote: »

Although I wouldn't say it's normal, it happens and it happened to me. I placed a bid, followed up a few days later and was informed that another bid came along and the vendor decided to accept it. I questioned why I wasn't notified and the EA responded that the vendor knew to other bidder and decided to go with him instead. Recently I checked on property price register and in fact it was sold for the same price we initially offered..

Does that mean some connection to EA got the winning bid!!!!

GingerLily

awec wrote: »

Our house took ~14 months from booking deposit to getting keys.

After the mortgage approval expired the first time we didn't bother renewing it as we knew it would expire again and the house wouldn't be ready. We waited 3 or 4 months then renewed it.

Might be worth mentioning - we could not get a subject to loan clause, but our house was meant to be 12 weeks from completion when contracts were issued, it was closer to 20 weeks but still within the 6months mortgage approval!

Paul_Mc1988

august12 wrote:

Does that mean some connection to EA got the winning bid!!!!

You would never know unless you went to the seller and told them the EA never came back to you to see if you wanted to put in another bid.

Although if I see on property price register that it went for way under and the EA lied id try contact the seller and inform them something fishy was up

Calltocall

Hi Folks

How does one get approval for 4.5 times salary when applying for a mortgage? Do you have to be earning in excess of a certain amount to be considered? Are certain banks more likely than others to offer this mortgage amount? is there anything one can do to increase chances of getting 4.5 times salary rather than the standard 3.5?

Any feedback be most appreciated

Musefan

Hey everyone. Since I last posted here my partner and I have changed some of our ideas about where we want to live.

We will be looking for a mortgage for max 320k but most likely around 290k and this is below 3.5 times our income 390k. We started properly saving in March and now have 11K and will be halfway to 30k next month. Our rent is +++above the mortgage repayments we would be making.

I am looking to move jobs from a permanent role to another permanent role in a similar organization. There would be a pay-cut if circa 2k but I’m would be on salary increments as I am on now. I would hope to move in September and probation would be 6 months (March) while if I stayed in my current role, probation is one year and ends in February. I’m in a stable career but my current job is very under resourced and stressful and I am looking to move to a role closer to where I want to buy.

Is this going to mess up mortgage approval in a huge way? Ulster bank mentioned something about needing to see 3+ years working for somewhere.

Creamy Goodness

Musefan wrote: »

Hey everyone. Since I last posted here my partner and I have changed some of our ideas about where we want to live.

We will be looking for a mortgage for max 320k but most likely around 290k and this is below 3.5 times our income 390k. We started properly saving in March and now have 11K and will be halfway to 30k next month. Our rent is +++above the mortgage repayments we would be making.

I am looking to move jobs from a permanent role to another permanent role in a similar organization. There would be a pay-cut if circa 2k but I’m would be on salary increments as I am on now. I would hope to move in September and probation would be 6 months (March) while if I stayed in my current role, probation is one year and ends in February. I’m in a stable career but my current job is very under resourced and stressful and I am looking to move to a role closer to where I want to buy.

Is this going to mess up mortgage approval in a huge way? Ulster bank mentioned something about needing to see 3+ years working for somewhere.

It’s difficult to get approval on probation doesn’t matter the bank.

The bank will not care that your salary will improve over time they do the check based on your current salary and previous account activity.

Creamy Goodness

Calltocall wrote: »

Hi Folks

How does one get approval for 4.5 times salary when applying for a mortgage? Do you have to be earning in excess of a certain amount to be considered? Are certain banks more likely than others to offer this mortgage amount? is there anything one can do to increase chances of getting 4.5 times salary rather than the standard 3.5?

Any feedback be most appreciated

It’s pretty much a black box but you need to be in the top 20% of that banks potential mortgage customers. You’d also need a squeaky clean bank account (no existing loans etc.).