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

Paul_Mc1988

105k saved and combined income of 100k and they are only offering us a 352k mortgage. I'm happy the banks are sticking to the rules as it stops me from overstretching myself. If the other Half had her way we would take out a mortgage of 500k

Creamy Goodness

Paul_Mc1988 wrote: »

105k saved and combined income of 100k and they are only offering us a 352k mortgage. I'm happy the banks are sticking to the rules as it stops me from overstretching myself. If the other Half had her way we would take out a mortgage of 500k

It's not only your income they base this off. They base it off your discretionary income too.

You can have a salary of 500K but if you have a Ferrari in the garage with a car loan on it they ain't going to give you 3.5 * 500k (a ludicrous example but still...).

My advice is to go to a broker who will be able to apply to all the banks for you and get you the best deal, whilst you only have to supply one set of paperwork

colly10

Is there any reason why some people go directly to a bank rather than a broker?

FitzElla

colly10 wrote: »

Is there any reason why some people go directly to a bank rather than a broker?

If your application is straight forward and you are well within the criteria I'm not sure what else a broker can offer?

Paul_Mc1988

Creamy Goodness wrote:

My advice is to go to a broker who will be able to apply to all the banks for you and get you the best deal, whilst you only have to supply one set of paperwork

I'm happy with the 3.5 so its not an issue. Going with Ulster bank as there rate is the best for what i want.

GingerLily

Paul_Mc1988 wrote: »

105k saved and combined income of 100k and they are only offering us a 352k mortgage. I'm happy the banks are sticking to the rules as it stops me from overstretching myself. If the other Half had her way we would take out a mortgage of 500k

They might be out of exemptions, when theyre gone theyre gone

Phileas Frog

colly10 wrote: »

Is there any reason why some people go directly to a bank rather than a broker?

Because you've to pay a broker in some cases.

el Fenomeno

I haven't actually heard of anyone who's broker wanted payment direct from them. Any people I've spoken to, their broker was paid by the bank directly.

Do many brokers look for it from the applicant?

Phileas Frog

el Fenomeno wrote: »

I haven't actually heard of anyone who's broker wanted payment direct from them. Any people I've spoken to, their broker was paid by the bank directly.

Do many brokers look for it from the applicant?

They do. Never use a broker paid for by the bank, they have a vested interest

Uglysoik1

Is this normal that an EA asks for proof of funds to back up your offer?
I put in an offer on a property but the EA is asking for proof. What should I do.?

Creamy Goodness

Uglysoik1 wrote: »

Is this normal that an EA asks for proof of funds to back up your offer?
I put in an offer on a property but the EA is asking for proof. What should I do.?

The boom is back with regards to buying housing, Estate Agents are basically saving you wasting their time. Usually an Approval in Principle letter from the bank will suffice. This will include the value of a potential mortgage the bank will give you, you're within your right to tippex this amount out.

It's similar to any kind of deal, show me the money, I'll show you the goods.

Paul_Mc1988

Uglysoik1 wrote:

Is this normal that an EA asks for proof of funds to back up your offer? I put in an offer on a property but the EA is asking for proof. What should I do.?

Yes it's fairly normal. I blanked out the amount on the AIP letter and that was good enough for most. In my case it didn't really matter though because if they seen the 350k AIP they would have no idea of the deposit I have so it would be hard to estimate my ceiling amount.

If I was a full cash buyer I would be a bit apprehensive showing my full balance to them.

Uglysoik1

Creamy Goodness wrote: »

The boom is back with regards to buying housing, Estate Agents are basically saving you wasting their time. Usually an Approval in Principle letter from the bank will suffice. This will include the value of a potential mortgage the bank will give you, you're within your right to tippet this amount out.

It's similar to any kind of deal, show me the money, I'll show you the goods.

That's great - thanks very much for this!

CreepOfTheWeek

Can I ask how long people were waiting for their letter of offer from the bank? We got AIP on 30 May and put a booking deposit on a house straight away, now all contracts are ok and waiting to be signed but we are still waiting on the letter of offer?

We have done all the bank have asked and the valuation has been completed so I am really unsure as to what is taking so long. Understandably the estate agent is getting anxious to sign (as am I!!!) Despite constant contact with the mortgage advisor and being told "letter of offer issuing is in progress" I am wondering if this is a normal time frame to wait or if the bank is being unnecessarily slow.

Phileas Frog

Usually a week after the valuation is completed, but it could be 2 weeks.

RVN10

Hi All , I am the final hurdle of my house purchase ordeal. My question is I have mortgage protection , house insurance and final evaluation completed.

My solicitor is waiting on the final homebond cert should be in tomorrow or Thursday at the latest. How long do you think we'll be waiting for drawdown. Its a new build with TSB.

DOC2015

Hello,

Just wondering what people think of my situation. I have a mortgage saver account for around 6 months now and I have been renting for 4 years now roughly just above what my mortgage repayments would be. Recently a house that would be ideal has come up and a friend of mine advised me to get a letter from my parent "gifting" me the deposit amount, then go to the bank and see what they offer? Looking at the mortgage calculator it seems (on paper, at least) that I would be approved the amount I need. But it all seems a bit too simple? Now, it's a smaller mortgage 126,000 approx. but I feel like the banks will find every way NOT to approve a mortgage these days?

Any thoughts greatly appreciated.

GingerLily

DOC2015 wrote: »

Hello,

Just wondering what people think of my situation. I have a mortgage saver account for around 6 months now and I have been renting for 4 years now roughly just above what my mortgage repayments would be. Recently a house that would be ideal has come up and a friend of mine advised me to get a letter from my parent "gifting" me the deposit amount, then go to the bank and see what they offer? Looking at the mortgage calculator it seems (on paper, at least) that I would be approved the amount I need. But it all seems a bit too simple? Now, it's a smaller mortgage 126,000 approx. but I feel like the banks will find every way NOT to approve a mortgage these days?

Any thoughts greatly appreciated.

Banks are very eager to lend to customers with full time permanent jobs who meet their affordability criteria.

Your LTI,LTV and your Net income after bills/mortgage will probably be a key metric to decide if you can afford this, along with your savings/rent history.

Banks look to see if you can afford the stressed payments, so typically payments on 2% higher interest rate than their standard variable.

el Fenomeno

Phileas Frog wrote: »

They do. Never use a broker paid for by the bank, they have a vested interest

Why?

As far as I know, any offer you'll get through a broker is the same as the offer you'd get if you applied yourself.

So there's no difference really, you'll get the same offer regardless.

DOC2015

GingerLily wrote: »

Banks are very eager to lend to customers with full time permanent jobs who meet their affordability criteria.

Your LTI,LTV and your Net income after bills/mortgage will probably be a key metric to decide if you can afford this, along with your savings/rent history.

Banks look to see if you can afford the stressed payments, so typically payments on 2% higher interest rate than their standard variable.

Okay, I get you. Makes sense with the stress test. Savings/rent history is basically the usual story - struggling to save while paying rent. How they expect people to save for the Dublin area while paying rent is an absolute disgrace to the government.

Thankfully, I will never be able to afford a mortgage in Dublin but I feel sorry for those who have to get one there.

Thanks very much for the reply

GingerLily

DOC2015 wrote: »

Okay, I get you. Makes sense with the stress test. Savings/rent history is basically the usual story - struggling to save while paying rent. How they expect people to save for the Dublin area while paying rent is an absolute disgrace to the government.

Thankfully, I will never be able to afford a mortgage in Dublin but I feel sorry for those who have to get one there.

Thanks very much for the reply

Banks actually don't care where your deposit comes from if you pass the other affordability metrics. They take your rent plus savings as your repayment history for assessing your affordability.

Blanco100

We are sale agreed also now awaiting our letter of offer we have been told it can take 3 days.

With AIB it seems valuation report will come after letter of offer.

Will the bank organise this themselves? And how much does it cost?

Engineers report is costing around €500 inclusive of VAT

Looly8726

Blanco100 wrote: »

We are sale agreed also now awaiting our letter of offer we have been told it can take 3 days.

With AIB it seems valuation report will come after letter of offer.

Will the bank organise this themselves? And how much does it cost?

Engineers report is costing around €500 inclusive of VAT

Just been through this with same bank - there is a number you need to call to organize the valuation, it was on our letter of offer but I’m sure you can google it if you’d like to be a step ahead. It costs €150 and you pay by card over the phone at time of booking.

Blanco100

Looly8726 wrote: »

Just been through this with same bank - there is a number you need to call to organize the valuation, it was on our letter of offer but I’m sure you can google it if you’d like to be a step ahead. It costs €150 and you pay by card over the phone at time of booking.

what happens in relation to letter of offer? we were told its with underwriters since 21st June, what is exactly happening at this stage?

are they only doing relevant checks now? all this info was provided weeks ago in application process. We are borrowing well below our combined salary x 3.5 max approval amount for what its worth.

cbrbob94

Just out of interest, to the people that got approved for the 4.5 times exemption, what was you combined income and what bank did you use?

I know there is other factors involved other than just income but just want to see are we wasting our time trying to pursue it.

Me and the missus are on ~€60000 basic combined and about €68000 with our bonus.

moonlighting_1

What banks are doing the 4.5 times your wages.
Got approved for 3.5 times my wages but as a single person I am struggling to buy anything for 3.5 times my salary.

Creamy Goodness

moonlighting_1 wrote: »

What banks are doing the 4.5 times your wages.
Got approved for 3.5 times my wages but as a single person I am struggling to buy anything for 3.5 times my salary.

They all can. The max is 4.5 based on you getting an exemption. The only rule is that the banks can only give 20% of their mortgage out as exemptions in a given year. Some will give them out on first come first served basis, and some will spread them out throughout the year.

AIB offered me a 4.4 times exemption, when it came down to it, I didn’t need it. I was a single applicant at
The time as well.

cbrbob94

moonlighting_1 wrote: »

What banks are doing the 4.5 times your wages.
Got approved for 3.5 times my wages but as a single person I am struggling to buy anything for 3.5 times my salary.

All banks can. It’s called an LTI exemption, look it up on google it won’t leave me copy the link to here.

awec

Phileas Frog wrote: »

Because you've to pay a broker in some cases.

Phileas Frog wrote: »

They do. Never use a broker paid for by the bank, they have a vested interest

Almost all brokers are paid by banks. Not really sure what you think their vested interest is.

The reason why many people don't go through a broker is that it's an unnecessary middleman if you have a fairly straightforward application.

Interested Observer

awec wrote: »

Almost all brokers are paid by banks. Not really sure what you think their vested interest is.

The reason why many people don't go through a broker is that it's an unnecessary middleman if you have a fairly straightforward application.

Yes, there's nothing wrong with going with a broker paid by the banks. One thing an applicant might want to check is the broker has the same commission with all the banks, so they've no vested interest in going with one bank over another, but that's it imo.

But no matter how the broker gets paid they have a vested interest in getting you a mortgage. If they take money from the applicant up front but don't do their job very well, they won't be in business for long. I used a broker and it was the best decision I made in this whole process. If I ever move house I'm going straight back to her.