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

Butterface

OEP wrote: »

If it's your forever home a drop in prices doesn't matter that much. Negative equity is only a big issue if you're looking to sell. It's unlikely that any price drops are going to be that much anyway, certainly no where near like before - maybe 10%

Yeah, obviously we can never know what happens in the future, but we have always said we're not going to buy a house we don't consider to be a long-term home. The location of the development is too good to pass up. I guess if the prices drop it will sting, but we won't be planning to sell any time in the near future so shouldn't matter too much.

Creamy Goodness

If it’s a new build be careful waiting for a drop especially considering the uncertainty of the Help-To-Buy scheme end date. New builds in my area have all generated queues 3-5 fold the amount of houses per phase and each property gone up roughly 30-40k per phase. The estate agent will just go to next in line and you’ll be kicking yourself.

In the grand scheme of things if the house is something you definitely want a 10% drop is minuscule in terms of 15-20 years.

charlietheminxx

Another point to note is if you're waiting 2-3 years for a good price drop, how much rent have you paid while you're waiting? For a lot of people in Dublin, that can be about €30-60k per couple... it seems like a gamble on house prices dropping by that much.

ste

charlietheminxx wrote: »

Another point to note is if you're waiting 2-3 years for a good price drop, how much rent have you paid while you're waiting? For a lot of people in Dublin, that can be about €30-60k per couple... it seems like a gamble on house prices dropping by that much.

Agreed. Also the cost to build in Ireland is not going to change much (will remain high) in any short-medium period of time. Already builders are slowing housing completions in Dublin as stock isn't clearing as fast. They will not make the same mistake of over-building & there being a glut of new homes. It looks like there will only be 22k new houses (or thereabouts) this year. Control supply, control prices.

I must say though that some new build prices in Dublin are cheekily high. In some areas they are way out if line with older properties. Yes refurb costs are high & yes Help-to-buy is nice but still I think there are some overpriced new homes. Nothing that would move the dial on general house price growth/decline, just regional blips imo.

Corruptedmorals

Far more relaxed now that the little things are all done or ready to roll as soon as we have a date. It's reassuring to see all of the tasks accomplished on the AIB app. It hasn't been 4 weeks yet, would love the contracts to issue before August purely because we feel nothing will be done that month with the high chance of annual leave but it's not a disaster if it doesn't and at least we know nothing on the bank or insurance side can hold us up.

Misssally

Does Anyone know the average time for the loan pack to issue? Had underwritten AIP & went sale agreed almost 5 weeks ago. House valued by bank a week later & still no loan offer. They keep saying it’ll be issued in the coming days but as of Friday it still hadn’t. They’re not waiting on anything from me. Is this normal? I’m starting to worry.

Dolbhad

Misssally wrote: »

Does Anyone know the average time for the loan pack to issue? Had underwritten AIP & went sale agreed almost 5 weeks ago. House valued by bank a week later & still no loan offer. They keep saying it’ll be issued in the coming days but as of Friday it still hadn’t. They’re not waiting on anything from me. Is this normal? I’m starting to worry.

Which bank is is? I was Ulster Bank and took about three weeks. However it is holiday time so I expect banks to have delay due to staff going on holidays so may be nothing to worry about.

Corruptedmorals

Depends on the bank. AIB have a standard set of 5 working days, must apply only when there is no outstanding paperwork etc. It took 2 days post sale information being sent for them to move it to underwriters and then 5 to issue the letter. Whatever bank that is, would definitely keep on to them. They might be struggling a bit with timelines with annual leave I suppose.

Sunrise_Sunset

Misssally wrote: »

Does Anyone know the average time for the loan pack to issue? Had underwritten AIP & went sale agreed almost 5 weeks ago. House valued by bank a week later & still no loan offer. They keep saying it’ll be issued in the coming days but as of Friday it still hadn’t. They’re not waiting on anything from me. Is this normal? I’m starting to worry.

We are with PTSB and got ours within about 4 weeks I think.
That was last month. There could be slight delays now with staff being on annual leave.

Uncle_Joe

I’m about to close this week and I’ve just had an email telling me the bank has requested another drive-by valuation.

Is this normal? Especially when the deal so close to closing?

The last one was done in April.

GingerLily

Uncle_Joe wrote: »

I’m about to close this week and I’ve just had an email telling me the bank has requested another drive-by valuation.

Is this normal? Especially when the deal so close to closing?

The last one was done in April.

Is it a new build?

VonLuck

Does anyone know if any banks are currently providing exemptions? I do not need a particularly large one, but I would like to avoid asking my parents for the gifting of the small amount to get me across the line.

Dolbhad

Uncle_Joe wrote: »

I’m about to close this week and I’ve just had an email telling me the bank has requested another drive-by valuation.

Is this normal? Especially when the deal so close to closing?

The last one was done in April.

As another poster said if it’s a new build, a final valuation is needed. Just to note Valuations are only valid for 4 months.

Misssally

Sunrise_Sunset wrote: »

We are with PTSB and got ours within about 4 weeks I think.
That was last month. There could be slight delays now with staff being on annual leave.

Yeah it’s ptsb. Good to know it’s not too unusual for them!

charlietheminxx

VonLuck wrote: »

Does anyone know if any banks are currently providing exemptions? I do not need a particularly large one, but I would like to avoid asking my parents for the gifting of the small amount to get me across the line.

It usually depends on the bank, but I know when I first applied in August last year, there were none left to be had - we waited until January to get one.

charlietheminxx

charlietheminxx wrote: »

It usually depends on the bank, but I know when I first applied in August last year, there were none left to be had - we waited until January to get one.

Apparently not all banks used all their exemptions last year, read it either in this thread or the Property Market thread.

ELM327

Back onto this thread again, about 18 months after getting the keys to my last property I want to sell up and buy a larger one with herself.
Booked appointment with PTSB next week, memories of how arduous the process was last time are still fresh in my mind!

Luckily my property has appreciated in the last 18 months and I put down a 20% deposit initially, so I have a fair bit of equity to move, coupled with joint savings near 20k.

Mickiemcfist

Quick query, would going through a broker in any way harm your chances? Why wouldn't everyone do so?

ELM327

Mickiemcfist wrote: »

Quick query, would going through a broker in any way harm your chances? Why wouldn't everyone do so?

Wouldnt harm your chances but theres no need to add a middleman if one is not needed

Some cases which the bank may not approve directly apparently get through via brokers - which as far as I can see, is the only reason to go with one.

Creamy Goodness

Mickiemcfist wrote: »

Quick query, would going through a broker in any way harm your chances? Why wouldn't everyone do so?

Going with a broker is only good if your situation is complicated. If you've a clean financial record there's no difference doing it yourself.

ELM327

ELM327 wrote: »

Wouldnt harm your chances but theres no need to add a middleman if one is not needed

Some cases which the bank may not approve directly apparently get through via brokers - which as far as I can see, is the only reason to go with one.

Well that's a pretty big reason in itself. The other reasons are that it consolidates all your applications into one, you'll get good advice on the different products on the market, it speeds up any communications with the bank as the broker will have a direct line to someone, we also got to borrow more through the broker without need an exemption as they got the bank at account for variable income. I highly recommend using a broker, as someone who tried doing it myself initially.

Kh1993

VonLuck wrote: »

Does anyone know if any banks are currently providing exemptions? I do not need a particularly large one, but I would like to avoid asking my parents for the gifting of the small amount to get me across the line.

Best bet is to ask them all. PTSB told us recently that they do offer exemptions, but only if salaries combined are over 80k.

Sunrise_Sunset

Kh1993 wrote: »

Best bet is to ask them all. PTSB told us recently that they do offer exemptions, but only if salaries combined are over 80k.

They told us no exemptions at all.

Sunrise_Sunset

Misssally wrote: »

Yeah it’s ptsb. Good to know it’s not too unusual for them!

I didn't worry about it, as I wasn't expecting that there could be issues relating to that. I have plenty of other worries now though

r93kaey5p2izun

For anyone who used a broker, how long should it typically take to get AIP once all documents provided and broker is submitting the application?

stdidit

Amber Round Eyelid wrote: »

For anyone who used a broker, how long should it typically take to get AIP once all documents provided and broker is submitting the application?

It took our broker exactly 7 days.

r93kaey5p2izun

Is it normal for AIP to be issued with a maximum purchase price stated as one of the conditions of the offer?

Corruptedmorals

Amber Round Eyelid wrote: »

Is it normal for AIP to be issued with a maximum purchase price stated as one of the conditions of the offer?

That sounds a bit mad. How they can account for cash on top of the mortgage? Our mortgage is one-third cash which is good news all around since it lowers the LTV.

I think I'll wait until 6 weeks (4 weeks now) before asking solicitor to chase contracts as we haven't gotten any yet but it's sloooow summer season so remaining hopeful they will issue soon rather than anxious that they haven't so far.

stdidit

Amber Round Eyelid wrote: »

Is it normal for AIP to be issued with a maximum purchase price stated as one of the conditions of the offer?

Our one had our 'max purchase price' on it, which we had told our broker was the max we wanted to pay for a house - it was labelled as purchase price.
It also had the loan value on it which was based on the max purchase price minus help to buy and our cash deposit.

I would have thought it was standard enough to get AIP for the max you can afford or the max your want to pay (whichever is higher)

r93kaey5p2izun

Corruptedmorals wrote: »

That sounds a bit mad. How they can account for cash on top of the mortgage? Our mortgage is one-third cash which is good news all around since it lowers the LTV.

Yes I will have more than 30% deposit and I don't get why it would matter how much more money I put in. It's also not a round figure - say 3k off the next ten thousand. If I don't go sale agreed until near the end of the the 6 months I would have another 20k to add to the deposit - it makes no sense to me to be capped at this figure.

The letter states AIP for €x subject to the following conditions... including max purchase price of €y and me providing minimum deposit of €z, (difference between x and y). I just want to understand if this is typical and flexible or if it's unusual.