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

awec

The Satanist wrote: »

Quick question; if a couple currently living in commuter-land with 2 cars which are needed for work, are planning to move to close to Dublin city centre which will allow them to get rid of one car... would a bank take this into account when calculating monthly outgoings.

What I mean is: can you say to them that the car costs €X per month, this will now be reduced to zero - similar to how current rent paid can be taken into account?

Bank will take your circumstances as they are right now, they don't work against speculation in the future.

alwald

The Satanist wrote: »

Quick question; if a couple currently living in commuter-land with 2 cars which are needed for work, are planning to move to close to Dublin city centre which will allow them to get rid of one car... would a bank take this into account when calculating monthly outgoings.

What I mean is: can you say to them that the car costs €X per month, this will now be reduced to zero - similar to how current rent paid can be taken into account?

I agree with the above comment, and I will add that you shouldn't trust the mortgage advisor in the bank. They will tell you a lot of bull**** about how much you can borrow, and so on, but the decision making sits with the underwriting team.

z0oT

deisedude wrote: »

Getting really frustrated with the bank. Everything is taking ages. Waiting on the formal loan offer and there is nothing on our side thats holding it up. Being put under pressure by the developers to sign the contracts now. Anything we can do to speed them up or just have to wait and be patient?

Is there a reason you need to wait until you've a formal loan offer from the bank to sign the contracts?

Unless your solicitor is asleep at the wheel, he/she should have gotten a "Subject to Loan Offer" clause inserted into the contract.

As long as the "Subject to Loan Offer" clause is in the contracts, I wouldn't have thought you'd have to wait if it's taking a long time. You should be able to just go ahead, sign contracts, and then sort out the loan offer at a later date. If it's a new build, you'll probably have a long wait anyway.

deisedude

z0oT wrote: »

Is there a reason you need to wait until you've a formal loan offer from the bank to sign the contracts?

Unless your solicitor is asleep at the wheel, he/she should have gotten a "Subject to Loan Offer" clause inserted into the contract.

As long as the "Subject to Loan Offer" clause is in the contracts, I wouldn't have thought you'd have to wait if it's taking a long time. You should be able to just go ahead, sign contracts, and then sort out the loan offer at a later date. If it's a new build, you'll probably have a long wait anyway.

If anything went wrong we would lose the deposit on the house once we sign the contract. I mean nothing should but don't want to take a chance either.

Will give the bank a ring today and see whats up

el Fenomeno

deisedude wrote: »

If anything went wrong we would lose the deposit on the house once we sign the contract. I mean nothing should but don't want to take a chance either.

Will give the bank a ring today and see whats up

Have you asked your solicitor to get a Subject to Loan clause inserted?

The vendor won't put it in without being pressed, and usually they don't put up much resistance.

If our experience is anything to go by, it's a fairly quick and easy thing for them to update.

elizunia87

Hi Guys.

We will be mortgage approval in two weeks i believe but the money we will be able to withdraw in September when finished probatuon.

What if we like the house. Is it possible to sale agreed with mortgage approval but money Will be taken in september? I know this things take Time and i dont think we will agree on the house So Quick and we still want to apply for rebuilding ireland. Just in a case if we dont want to wait any longer.

Thanks

GingerLily

el Fenomeno wrote: »

deisedude wrote: »

If anything went wrong we would lose the deposit on the house once we sign the contract. I mean nothing should but don't want to take a chance either.

Will give the bank a ring today and see whats up

Have you asked your solicitor to get a Subject to Loan clause inserted?

The vendor won't put it in without being pressed, and usually they don't put up much resistance.

If our experience is anything to go by, it's a fairly quick and easy thing for them to update.

This is not the case for a lot of developers recently. A lot of people in this forum were not able to get this clause added in when buying NEW developments.

DemocAnarchis

Quick question - at what point in the process do I need to actually contact/organise a solicitor? Looking to put an offer in any day now, but have never had any dealings with a solicitor. Do I need them lined up before I put an offer in?

z0oT

deisedude wrote: »

If anything went wrong we would lose the deposit on the house once we sign the contract. I mean nothing should but don't want to take a chance either.

Will give the bank a ring today and see whats up

That's the whole point of the "Subject to Loan Offer" clause. If anything goes wrong with the mortgage like you can't get a loan offer, the bank goes bust, your circumstances change and you can't do the final draw down etc. You will get your deposit back.

That's why if you have a "Subject to Loan Offer" clause in the contracts you should be 100% covered to proceed and sign anyway even though you don't have the formal Loan Offer yet.

Check with your solicitor to see if they're happy for you to sign rather than the bank.

In our case I had the Auctioneer pressing us to sign contracts telling us we were the last in the row to sign them, the loan offer wasn't the cause of the delay for us since our solicitor held firm as there was still stuff he wanted to clarify in the contracts.

We signed maybe a month after they wanted us to sign. No issues in the end.

el Fenomeno wrote: »

The vendor won't put it in without being pressed, and usually they don't put up much resistance.

If our experience is anything to go by, it's a fairly quick and easy thing for them to update.

GingerLily wrote: »

This is not the case for a lot of developers recently. A lot of people in this forum were not able to get this clause added in when buying NEW developments.

We had no issue getting the Subject to Loan Offer clause inserted either. It should be a pretty routine thing. Any solicitor worth their salt should be insisting on it being inserted.

voluntary

DemocAnarchis wrote: »

Quick question - at what point in the process do I need to actually contact/organise a solicitor? Looking to put an offer in any day now, but have never had any dealings with a solicitor. Do I need them lined up before I put an offer in?

No, you'll need one short after your offer is accepted.

GingerLily

z0oT wrote: »

We had no issue getting the Subject to Loan Offer clause inserted either. It should be a pretty routine thing. Any solicitor worth their salt should be insisting on it being inserted.

Thats a bit of an ignorant comment to be fair. Our solicitor tried, the developers didn't care and were able to deny it as there was a queue of waiting buyers.
We were strongly warned that it was risky, but if the seller doesn't want it, they don't have to include it.

niamhzie

z0oT wrote: »

That's the whole point of the "Subject to Loan Offer" clause. If anything goes wrong with the mortgage like you can't get a loan offer, the bank goes bust, your circumstances change and you can't do the final draw down etc. You will get your deposit back.

That's why if you have a "Subject to Loan Offer" clause in the contracts you should be 100% covered to proceed and sign anyway even though you don't have the formal Loan Offer yet..

Ours was a funny one, new build, and the gist of the clause was that we would make all reasonable attempts to get a loan offer if the original fell through. Our solicitor was OK with it, because our loan offer was fairly secure, and that we would probably be able to secure an alternative offer if anything happened, and worse case scenario she would argue that 'reasonable' was a bit open to interpretation

z0oT

GingerLily wrote: »

Thats a bit of an ignorant comment to be fair. Our solicitor tried, the developers didn't care and were able to deny it as there was a queue of waiting buyers.
We were strongly warned that it was risky, but if the seller doesn't want it, they don't have to include it.

Yes it's truly the seller's choice as it should be. Your experience isn't surprising in a seller's market.

However, my point is that any solicitor that isn't asleep at the wheel should definitely be requesting the clause be inserted if their client is dependent upon a mortgage from a bank to buy. Ignorance not intended.

EDIT: Didn't mean to quote you originally, apologies.

awec

z0oT wrote: »

We had no issue getting the Subject to Loan Offer clause inserted either. It should be a pretty routine thing. Any solicitor worth their salt should be insisting on it being inserted.

Any solicitor can insist all they want. The developers solicitor can deny it if they want.

hanaimai

GingerLily wrote: »

Thats a bit of an ignorant comment to be fair. Our solicitor tried, the developers didn't care and were able to deny it as there was a queue of waiting buyers.
We were strongly warned that it was risky, but if the seller doesn't want it, they don't have to include it.

Same experience here - solicitor tried but developer refused and plenty of people willing to take our spot if we pulled out.

TheShow

The Satanist wrote: »

Quick question; if a couple currently living in commuter-land with 2 cars which are needed for work, are planning to move to close to Dublin city centre which will allow them to get rid of one car... would a bank take this into account when calculating monthly outgoings.

What I mean is: can you say to them that the car costs €X per month, this will now be reduced to zero - similar to how current rent paid can be taken into account?

No. The only thing that would work in your favour is if there was a car loan which would be cleared from the sale of the car, thus one less formal outgoing which increases repayment capacity.

Blanco100

Hi there

We are approved with AIB and they are awaiting our decision on whether we want fixed rate or variable.

5 year fixed rate is 2.85% does this sound like a good deal?

voluntary

If I was to speculate, I'd consider the below:

1) ECB just signaled it may be dropping the rates further.
2) Global economies aren't doing that great, brexit looming, trade war etc
3) Irish mortgage rates are still the highest in the Eurozone. Good rate in Europe would be 1.25% and not 2.6%
4) Irish banks may be inclined towards reducing the rates as the bad mortgages clear off

So again, if I was to speculate, I'd go variable or fix for a shortest time possible and watch how the events unveil.

Blanco100

Blanco100 wrote: »

Hi there

We are approved with AIB and they are awaiting our decision on whether we want fixed rate or variable.

5 year fixed rate is 2.85% does this sound like a good deal?

Yes it is a good deal. You're not going to get much of a lower rate and you have certainty over your payments for the next 5 years, there is a lot to be said for peace of mind. You should ignore advice such as

voluntary wrote: »

I'd consider the below:

3) Irish mortgage rates are still the highest in the Eurozone. Good rate in Europe would be 1.25% and not 2.6%

Because it's completely and utterly irrelevant, you can't get a rate of 1.25% in Ireland so you may as well spend your time yelling at clouds.


If something massively better comes along in the short term then you can break your fixed contract, it isn't that expensive anymore as the bank can't apply punitive fees anymore, only recoup potential losses on their own borrowings.

drunkmonkey

Some of those cash back offers might be better. A 3% fixed rate for 5yrs with cashback would be better offer than a straight 2.85% rate if going fixed.

drunkmonkey

drunkmonkey wrote: »

Some of those cash back offers might be better. A 3% fixed rate for 5yrs with cashback would be better offer than a straight 2.85% rate if going fixed.

That's what I did, house needed a little bit of work and the cashback was worth far more to me up front than the savings over the course of the fixed term. So agree with this, do your sums.

el Fenomeno

GingerLily wrote: »

This is not the case for a lot of developers recently. A lot of people in this forum were not able to get this clause added in when buying NEW developments.

Didn't realise people were being refused this. Our solicitor said it was a standard request that they've never seen refused.

Pretty crappy that people are being pressured to sign without that clause in place. But has anyone ever heard of a case where the sale fell through and the deposit not returned? I imagine we'd have heard of such a case in the news if a developer took a couple's 30/40k leaving them without anything to show for it.

GingerLily

el Fenomeno wrote: »

GingerLily wrote: »

This is not the case for a lot of developers recently. A lot of people in this forum were not able to get this clause added in when buying NEW developments.

Didn't realise people were being refused this. Our solicitor said it was a standard request that they've never seen refused.

Pretty crappy that people are being pressured to sign without that clause in place. But has anyone ever heard of a case where the sale fell through and the deposit not returned? I imagine we'd have heard of such a case in the news if a developer took a couple's 30/40k leaving them without anything to show for it.

Right now there's a waiting list of buyers so you'd probably get your money back minus fees or something.

Your also contractually obliged to buy the property, its not only the deposit that's at stake.

tonytoc11

As the title says, we received planning permission in Cork recently and plan to start building by the end of the year. We’re both living and working in Dublin at the moment and plan to move home when the build is completed, towards the end of 2020.

How will the banks view this in a mortgage application? Will they want us living in Cork and in secure jobs before approving the application.

I have a few meetings arranged with mortgage providers next week, but would like to be prepped beforehand.

Graham

Mod

Threads merged

stdidit

tonytoc11 wrote: »

As the title says, we received planning permission in Cork recently and plan to start building by the end of the year. We’re both living and working in Dublin at the moment and plan to move home when the build is completed, towards the end of 2020.

How will the banks view this in a mortgage application? Will they want us living in Cork and in secure jobs before approving the application.

I have a few meetings arranged with mortgage providers next week, but would like to be prepped beforehand.

I asked a bank this question last year and was told its a non runner. They needed us to be employed in the area we were buying. I can see their reasoning.

I'd advise you to speak to a few mortgage brokers before going to the bank and get their advice, there may be ways around it.

fithotbabe

stdidit wrote: »

I asked a bank this question last year and was told its a non runner. They needed us to be employed in the area we were buying. I can see their reasoning.

I'd advise you to speak to a few mortgage brokers before going to the bank and get their advice, there may be ways around it.

Last year asked the same question in the bank AIB but we wanted to buy in Limerick while we were still in Dublin and move once we have job there secured. The bank said no unless one of us will be there, showing that we are already "attached " to the place. Otherwise we will have to go for buy to let.

TheShow

tonytoc11 wrote: »

As the title says, we received planning permission in Cork recently and plan to start building by the end of the year. We’re both living and working in Dublin at the moment and plan to move home when the build is completed, towards the end of 2020.

How will the banks view this in a mortgage application? Will they want us living in Cork and in secure jobs before approving the application.

I have a few meetings arranged with mortgage providers next week, but would like to be prepped beforehand.

Short answer, Yes.
Dublin to Cork is not a reasonable commutable distance. So i'd say you will find it very difficult to secure any type of mortgage approval until you have employment secured in Cork, with probabtion periods completed.

Dupont

Hi myself and my partner recently applied for a mortage with ulster bank. We were getting 194000. House was costing 220000. They refused us as my partner defaulted on a loan for 600 5 years ago. This was paid in full in the end. On both our icb ratings show nothing but other loans we had/ have that our being paid/paid off. Has anybody any recommendations on what other banks to try. Any advice is greatly appreciated. Thanks

Brian201888

Did he default with Ulster Bank?