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

el Fenomeno

I would imagine (and our broker told us too) that it's harder to get the 4.5 exemption later in the calendar year too.

Creamy Goodness

el Fenomeno wrote: »

I would imagine (and our broker told us too) that it's harder to get the 4.5 exemption later in the calendar year too.

It depends I was told by a BOI advisor that they just give them out and when there gone there gone. When I went to AIB they said they limited them so that there's exemptions available throughout the year.

Interested Observer

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

Even if you have the capacity to repay and it seems unfair, to save yourself from disappointment I would take the mindset that it is unlikely you'll get a 4.5x exception. But if you want to go for it a good broker will give you the best shot imo. Ours got the bank to take my wife's overtime into account so we didn't need one in the end, but when we'd previously asked the bank about this ourselves we got a flat no.

stdidit

What stage of the buying process do you have to reach to ensure you won't have to renew your mortgage approval? Is it drawdown?
Just wondering because my wife is thinking of changing jobs but obviously we don't want to do anything that could affect a potential renewal. We have just paid the booking deposit and hope to get full loan offer and sign initial contracts in the next few weeks, but Q4 is the estimated completion date we have been given for the house.

Creamy Goodness

stdidit wrote: »

What stage of the buying process do you have to reach to ensure you won't have to renew your mortgage approval? Is it drawdown?
Just wondering because my wife is thinking of changing jobs but obviously we don't want to do anything that could affect a potential renewal. We have just paid the booking deposit and hope to get full loan offer and sign initial contracts in the next few weeks, but Q4 is the estimated completion date we have been given for the house.

Drawdown, once the money is in your solicitors account the only thing the bank want is your monthly mortgage payment. They won't release the funds otherwise.

Lux23

I'm gutted - PTSB just refused us because of my arrears in a loan from over four years ago. We have approval from Ulster Bank but there is feck all to buy for the amount we got and I am worried they might refuse us at the other end. The broker says she's really surprised and that it is harsh decision, but you just don't know how truthful they are being.

TheShow

Lux23 wrote: »

I'm gutted - PTSB just refused us because of my arrears in a loan from over four years ago. We have approval from Ulster Bank but there is feck all to buy for the amount we got and I am worried they might refuse us at the other end. The broker says she's really surprised and that it is harsh decision, but you just don't know how truthful they are being.

Go on the ICB website and request a copy of your history so you know exactly whats on it.
Did you have arrears a few years ago, was it a lot in arrears or just 1 missed payment?
Sometimes the ICB results that the banks get back can be incorrect.
Either ways its always worthwhile to know what is on your credit history.

peteb2

Calltocall wrote:

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?

We got approved for about 3.8 with Ulster Bank.
Broker told us we would need to have joint income of approx 100k to get an exemption, which we didn't have .

Lux23

TheShow wrote: »

Go on the ICB website and request a copy of your history so you know exactly whats on it.
Did you have arrears a few years ago, was it a lot in arrears or just 1 missed payment?
Sometimes the ICB results that the banks get back can be incorrect.
Either ways its always worthwhile to know what is on your credit history.

I have my ICB report, I actually supplied them with it and was completely up front. I was out of work for nearly two years, and was only making a small payment for about a year of that time. The loan was closed in May 2015, and it was restructured into a new loan which was cleared in August last year. I never missed a payment once I was working again.

Ulster Bank have approved us, but I am concerned that they will pull the loan at the last minute. We want to put a deposit down on a new build this Saturday, but don't know what to do now.

Plasandrunt

Hey just looking for some advice from someone in a similar position or someone in the know.

I'm 32, single and no dependants. Earn 35k per year. I bought an appartment 3 years ago with cash from money recieved from the death of a relative. Appartment is worth around 225k. I'd like to start saving for a mortgage so I can buy my own house and bookmarked from next month to start saving 1k a month (looking for mortgage of 120k)

I went through a sticky period financially for a few months around 4 years ago and defaulted on an AIB loan, once I got back on my feet I restructured the loan and paid it off in 2018, 2 years before schedule. However the ICB report states that it stays on my record until 2023 despite me defaulting 2015/2016.

With the sale of my property I'd hold a greater equity so then the value of the mortgage so would the banks take that into consideration? I haven't gone to a broker yet because I haven't started saving yet. Is there any point in going to one or will i wait until I've a few quid put away?

myshirt

Plasandrunt wrote: »

Hey just looking for some advice from someone in a similar position or someone in the know.

I'm 32, single and no dependants. Earn 35k per year. I bought an appartment 3 years ago with cash from money recieved from the death of a relative. Appartment is worth around 225k. I'd like to start saving for a mortgage so I can buy my own house and bookmarked from next month to start saving 1k a month (looking for mortgage of 120k)

I went through a sticky period financially for a few months around 4 years ago and defaulted on an AIB loan, once I got back on my feet I restructured the loan and paid it off in 2018, 2 years before schedule. However the ICB report states that it stays on my record until 2023 despite me defaulting 2015/2016.

With the sale of my property I'd hold a greater equity so then the value of the mortgage so would the banks take that into consideration? I haven't gone to a broker yet because I haven't started saving yet. Is there any point in going to one or will i wait until I've a few quid put away?

You will never, and I mean never, get a mortgage off AIB given you defaulted on a loan. It's just not surmountable. In the UK it is, but you'll feel a bit of sting. In Ireland it isn't possible to get a mortgage with a bank you previously stung, even if it was for 500 quid. Banks are insanely sensitive about credit risk given their experience in the past.

I would say to you do not apply for any credit with a bank you may want a mortgage from until the loan is gone off your record, as they will run a credit report and then have it on file for 7 years. Again, if any bank knows you defaulted then same story. They couldn't give a flying f*ck how much it was for and how long ago it was, it will never make it past underwriting. You could be looking for 50% LTV on a 3 bed semi in a great part of Dublin (i.e strong security for the bank), have great savings records and excellent credit behavior since the default, it doesn't matter.

Now, banks may ask on an application form anyway "did you ever default" and you have to answer honestly. It's a conundrum as if you answer honestly as you will not get the loan.

Let it be a lesson for anyone, don't ever default on a loan. Make some level of payment as you will eventually recover your creditworthiness, but if you are marked as having defaulted then it's curtains I'm afraid.

Plasandrunt

Thanks for your reply even if it's a right kick In the balls.

Is there even any point in me gearing towards saving for a mortgage so?

deisedude

Plasandrunt wrote: »

Thanks for your reply even if it's a right kick In the balls.

Is there even any point in me gearing towards saving for a mortgage so?

Maybe meet with a mortgage broker and tell them the state of play and see what your options are from there

dudara

Plasandrunt wrote: »

Thanks for your reply even if it's a right kick In the balls.

Is there even any point in me gearing towards saving for a mortgage so?

Definitely meet with a mortgage broker, as this is the kind of situation they should be able to help with. Ask your friends &colleagues for recommendations.

pnecilcaser

Has anyone had any experience with the following situation:

- You buy a house as a first time buyer and live in it while you pay off you mortgage.

- You finish paying off you mortgage and want to buy another house.

- You convert the house you already have to an "investment property" by moving out and putting it up for rent with PRTB registration


... can you then apply for a residential rate mortgage on the new house you will buy to live in?

Musefan

Creamy Goodness wrote: »

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.

Hey, thanks for your reply! Interestingly, the advisor in ulster bank emailed me to clarify that it won't count against me at all as the role is similar, and that probation won't matter because it's more of a lateral move e.g. moving from X to X in another organisation as opposed to X to Y.

myshirt

Plasandrunt wrote: »

Thanks for your reply even if it's a right kick In the balls.

Is there even any point in me gearing towards saving for a mortgage so?

Hey, listen, don't fret. You can work your way through it but it's going to take some planning. Go meet with a financial planner or a mortgage broker and tell them the story. You can put in place a 2 to 3 year plan specific to your scenario. Not many people realise how bad it is to default on a loan when it comes to getting a mortgage. You are certainly a write off with AIB, but don't mess it up by applying for a mortgage with anyone else until you speak to someone who can help you. Say for example you waited until 1 month before it was due to come off, you'll basically reset the clock 7 years with that bank all for the sake of 1 month. Wait until it's gone off your report.

drunkmonkey

pnecilcaser wrote: »

... can you then apply for a residential rate mortgage on the new house you will buy to live in?

Yes

Mrnew

I have recently applied for a mortgage but the bank is questioning a loan and what it was used for even tho it was over 9 months ago I thought they only check 6 months bank statements. Loan has since been cleared so is no relevance to application. Any ideas ?

awec

Mrnew wrote: »

I have recently applied for a mortgage but the bank is questioning a loan and what it was used for even tho it was over 9 months ago I thought they only check 6 months bank statements. Loan has since been cleared so is no relevance to application. Any ideas ?

They can go back as far as they want.

You are free to refuse to tell them what it was for, and then they are free to refuse you a mortgage.

FitzElla

Mrnew wrote: »

I have recently applied for a mortgage but the bank is questioning a loan and what it was used for even tho it was over 9 months ago I thought they only check 6 months bank statements. Loan has since been cleared so is no relevance to application. Any ideas ?

Was there any missed or late payments for the loan? They would still show up on a credit report even if the loan is now cleared.

TheShow

pnecilcaser wrote: »

Has anyone had any experience with the following situation:

- You buy a house as a first time buyer and live in it while you pay off you mortgage.

- You finish paying off you mortgage and want to buy another house.

- You convert the house you already have to an "investment property" by moving out and putting it up for rent with PRTB registration


... can you then apply for a residential rate mortgage on the new house you will buy to live in?

Yes.

TheShow

Mrnew wrote: »

I have recently applied for a mortgage but the bank is questioning a loan and what it was used for even tho it was over 9 months ago I thought they only check 6 months bank statements. Loan has since been cleared so is no relevance to application. Any ideas ?

Standard question when assessing a mortgage application.
You took out a loan 9 months ago and since cleared it, a little unusual behaviour to be honest.

Mrnew

TheShow wrote: »

Standard question when assessing a mortgage application.
You took out a loan 9 months ago and since cleared it, a little unusual behaviour to be honest.

it was only a small loan and I just cleared it now as I wanted no loan applying for a mortgage,

Mrnew

Thanks guys there was no missed payments just got me worried when they were questioning it.

awec

Mrnew wrote: »

Thanks guys there was no missed payments just got me worried when they were questioning it.

They just want to make sure the loan wasn't to pay off your debt to big Paddy the loan shark from down the street.

TheShow

Mrnew wrote: »

it was only a small loan and I just cleared it now as I wanted no loan applying for a mortgage,

just tell them the truth so.

skippy123!

Hey guys,

I'm in the situation where an EA for a new build is asking that contracts are signed within 21 days after paying the initial deposit. Is this a normal practice? I am 100% sure I want to buy the place but still waiting for divorce papers which are preventing me of actually signing the contracts.

el Fenomeno

skippy123! wrote: »

Hey guys,

I'm in the situation where an EA for a new build is asking that contracts are signed within 21 days after paying the initial deposit. Is this a normal practice? I am 100% sure I want to buy the place but still waiting for divorce papers which are preventing me of actually signing the contracts.

Standard practice, but any decent solicitor will get you an extra 2/3 weeks.

We needed some time, and our solicitor just told the vendor's solicitor that she was on holiday for 2 weeks.

Phileas Frog

Yes, that's normal