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

scheister

Long time lurker rare poster. I am currently savings for my first house I have about 13k put away so far with a 1,200pm being saved. I was looking at buying in Autumn 2020 but due to a swap in jobs it will be now be 2021 before i can draw down due to 1yr probation. As interest rates are crap at the moment i was thinking of putting my savings to date into prize bonds for the year. My main question is if i transfer all the money from savings to prize bonds will the bank/ Rebuilding Ireland see that as my money being touched and the savings clock going back to zero. Savings not touched since August so 5 months.

what_traffic

scheister wrote: »

My main question is if i transfer all the money from savings to prize bonds will the bank/ Rebuilding Ireland see that as my money being touched and the savings clock going back to zero. Savings not touched since August so 5 months.

Would be treated the same as the lump sum of savings. Prize bonds are liquid, can convert back into Cash quickly. As long as you are not rolling back on the amount you are saving weekly/monthly then Bank would not care.

Tipsy McSwagger

Got the keys today to my new build. Been a long process but well worth it. The Help to Buy scheme is a massive help. Never thought I would be able to buy a house but here we are, Happy Christmas everyone!!!

lir6777

Hi all, I'm interested to read this thread and am very curious to know what people's experiences have been with getting mortgage exceptions? I'm going through a broker in January but just keen for a sense of others experiences.
I'm a single first time buyer, earning just over 60,000, with a deposit of 5% and planning to use HTB for the other 5%. I'm in permanent public service employment, no dependents. I have only 1 year left on my car loan, under €200 per month, no other debts ever. I've seen a new build I'm very interested in but buying new is not cheap right now so it would require a 4.5 mortgage exception. I'm told this is unlikely to get but not impossible. Have any other single buyers without massive deposits managed to succeed in this?? Would love to know thanks!

Glenbhoy

lir6777 wrote: »

Hi all, I'm interested to read this thread and am very curious to know what people's experiences have been with getting mortgage exceptions? I'm going through a broker in January but just keen for a sense of others experiences.
I'm a single first time buyer, earning just over 60,000, with a deposit of 5% and planning to use HTB for the other 5%. I'm in permanent public service employment, no dependents. I have only 1 year left on my car loan, under €200 per month, no other debts ever. I've seen a new build I'm very interested in but buying new is not cheap right now so it would require a 4.5 mortgage exception. I'm told this is unlikely to get but not impossible. Have any other single buyers without massive deposits managed to succeed in this?? Would love to know thanks!

I think it's very, very unlikely. The only thing in your favour could be where u currently are on your salary scale, if you're near the bottom and you've annual increments which will substantially increase your gross you might have a chance, otherwise, you can try, but I wouldn't be getting too attached to the house in question, sorry.

lir6777

Glenbhoy wrote: »

I think it's very, very unlikely. The only thing in your favour could be where u currently are on your salary scale, if you're near the bottom and you've annual increments which will substantially increase your gross you might have a chance, otherwise, you can try, but I wouldn't be getting too attached to the house in question, sorry.

Thanks for your thoughts; can I ask are they based on your own experience or just a general sense of the market as it is?

Creamy Goodness

To get an exemption you have to have squeaky clean record, your current loan for your car will stand against you when they do their calculations. I got a 4.4x exemption on a similar salary but there were no outstanding loans and I got AIP in January. It's not impossible but you just got to play it right.

Humour Me

Have you looked at the mortgage repayments calculators online to see what the repayments would be at 4.5 times salary? I met with one of the banks earlier this year to discuss my options as a single buyer. Feedback was that if I could keep my monthly rent and savings above what the monthly mortgage repayment would be, I would be in a better position for an exemption as a single buyer.

Mickiemcfist

lir6777 wrote: »

Hi all, I'm interested to read this thread and am very curious to know what people's experiences have been with getting mortgage exceptions? I'm going through a broker in January but just keen for a sense of others experiences.
I'm a single first time buyer, earning just over 60,000, with a deposit of 5% and planning to use HTB for the other 5%. I'm in permanent public service employment, no dependents. I have only 1 year left on my car loan, under €200 per month, no other debts ever. I've seen a new build I'm very interested in but buying new is not cheap right now so it would require a 4.5 mortgage exception. I'm told this is unlikely to get but not impossible. Have any other single buyers without massive deposits managed to succeed in this?? Would love to know thanks!

I think the best bet is to just give it a try with the banks, asking that question on here will give you two results, a demoralizing knockback or baseless optimism. FWIW, with a car loan, occasional but small payments to paddypower for random rugby bets, a bank account filled with late night pub expenses & lots of the stuff people say you shouldn't do, I was offered an exemption by AIB & the car loan wasn't really mentioned other than how much it was per month.

Creamy Goodness

Mickiemcfist wrote: »

I think the best bet is to just give it a try with the banks, asking that question on here will give you two results, a demoralizing knockback or baseless optimism. FWIW, with a car loan, occasional but small payments to paddypower for random rugby bets, a bank account filled with late night pub expenses & lots of the stuff people say you shouldn't do, I was offered an exemption by AIB & the car loan wasn't really mentioned other than how much it was per month.

There's nothing wrong with a car loan if the affordability calculations show that you can afford the mortgage. but when the calculations are tight and you're asking the bank to stretch over the normal giving them one less thing to factor in is good.

Having a record of having a car loan and paying it off on time is actually a positive thing compared to someone never having availed of credit. It was remarked to me when getting my mortgage that I was a little unknown to the bank as I never had a loan of any sort (barring a credit card that I paid in full every month).

NearlyForty

lir6777 wrote: »

Hi all, I'm interested to read this thread and am very curious to know what people's experiences have been with getting mortgage exceptions? I'm going through a broker in January but just keen for a sense of others experiences.
I'm a single first time buyer, earning just over 60,000, with a deposit of 5% and planning to use HTB for the other 5%. I'm in permanent public service employment, no dependents. I have only 1 year left on my car loan, under €200 per month, no other debts ever. I've seen a new build I'm very interested in but buying new is not cheap right now so it would require a 4.5 mortgage exception. I'm told this is unlikely to get but not impossible. Have any other single buyers without massive deposits managed to succeed in this?? Would love to know thanks!

The best thing to do is to talk to the bank/broker yourself because as someone else has said above, you’ll get different advise on here that may or may not reflect your own personal circumstances.
The car loan will def go against you as the banks would rather you had no other debts when looking for a particular amount.
My husband had a loan of e63 a month with 6 months left and the bank wanted it gone, which suited us anyway, so we cleared it

So I know there are exemptions but does anyone know if they're given for deposits? I would be able to find somewhere in my desired timeframe much easier if an 8% rather than 10% deposit was required.

Humour Me

[Deleted User] wrote: »

So I know there are exemptions but does anyone know if they're given for deposits? I would be able to find somewhere in my desired timeframe much easier if an 8% rather than 10% deposit was required.

Yes you can have a deposit exemption or an income exemption but not both. If you take the deposit exemption you are automatically restricted to borrowing a maximum of 3.5 x salary.

GingerLily

Humour Me wrote: »

Yes you can have a deposit exemption or an income exemption but not both. If you take the deposit exemption you are automatically restricted to borrowing a maximum of 3.5 x salary.

Below the 10% for FTB? I thought it was only applicable to STBs

hanaimai

GingerLily wrote: »

Below the 10% for FTB? I thought it was only applicable to STBs

The deposit exemption is only available for 5% of FTBs so it is possible to get one but very limited. For comparison, the income exemption is available to 20% of FTBs and the 20% of SSBs can get a deposit exemption.

GingerLily

hanaimai wrote: »

The deposit exemption is only available for 5% of FTBs so it is possible to get one but very limited. For comparison, the income exemption is available to 20% of FTBs and the 20% of SSBs can get a deposit exemption.

It's not though, the deposit to the bank is still 10%, the other 5% can come from HTB but the bank still gets their 10%

hanaimai

GingerLily wrote: »

It's not though, the deposit to the bank is still 10%, the other 5% can come from HTB but the bank still gets their 10%

The 5% I'm referring to is the percentage of all mortgages given to FTBs in a year that can be exempt from the deposit rule i.e. if the bank gives out 100 mortgages a year to FTBs, 5 of those mortgages can be exempt from the 10% deposit rule e.g. they might only require an 8% deposit (of which 5% can of course still come from the HTB).

Hope that makes sense!

lir6777

Humour Me wrote: »

Have you looked at the mortgage repayments calculators online to see what the repayments would be at 4.5 times salary? I met with one of the banks earlier this year to discuss my options as a single buyer. Feedback was that if I could keep my monthly rent and savings above what the monthly mortgage repayment would be, I would be in a better position for an exemption as a single buyer.

Thanks for that, great to know they didn't shoot you down immediately as a single buyer! Best of luck with yours!!

lir6777

Creamy Goodness wrote: »

There's nothing wrong with a car loan if the affordability calculations show that you can afford the mortgage. but when the calculations are tight and you're asking the bank to stretch over the normal giving them one less thing to factor in is good.

Having a record of having a car loan and paying it off on time is actually a positive thing compared to someone never having availed of credit. It was remarked to me when getting my mortgage that I was a little unknown to the bank as I never had a loan of any sort (barring a credit card that I paid in full every month).

Thanks, this was actually why I took out a car loan in the first place actually! A friend advised not having a credit rating at all (never had any loan or even credit card) might not be a good thing to the banks. Hard to know really isn't it!

lir6777

NearlyForty wrote: »

The best thing to do is to talk to the bank/broker yourself because as someone else has said above, you’ll get different advise on here that may or may not reflect your own personal circumstances.
The car loan will def go against you as the banks would rather you had no other debts when looking for a particular amount.
My husband had a loan of e63 a month with 6 months left and the bank wanted it gone, which suited us anyway, so we cleared it

That seems crazy, it's not even a tank of petrol a month to pay :rolleyes: I have debated just clearing it but for now I'd rather have the 2000-odd in my savings when my statements are all being reviewed by the banks- my broker may advise otherwise so I'll go with either option if it will make a difference! Thanks

lir6777

Deleted User wrote: »

So I know there are exemptions but does anyone know if they're given for deposits? I would be able to find somewhere in my desired timeframe much easier if an 8% rather than 10% deposit was required.

You know about HTB if it's a new build I assume? I'm hoping to go through that, it's a huge help as someone else on here already said! Good luck

GarIT

lir6777 wrote: »

Hard to know really isn't it!

No

NearlyForty

lir6777 wrote: »

That seems crazy, it's not even a tank of petrol a month to pay :rolleyes: I have debated just clearing it but for now I'd rather have the 2000-odd in my savings when my statements are all being reviewed by the banks- my broker may advise otherwise so I'll go with either option if it will make a difference! Thanks

I think it just depends on your personal circumstances really. We also had 2 overdrafts of e1000 each on our bank accounts and our broker advised us to have it gone if possible as my husband had a tendency to constantly use his and even let it go over (into arrears) the odd time, so it was best for his credit history as such to just have it gone. So we took money out of our savings to clear them and the bank didn’t bat an eyelid. They rathered we had no debt at all
So you’d be surprised what your bank would look for. Good luck!

lir6777

NearlyForty wrote: »

I think it just depends on your personal circumstances really. We also had 2 overdrafts of e1000 each on our bank accounts and our broker advised us to have it gone if possible as my husband had a tendency to constantly use his and even let it go over (into arrears) the odd time, so it was best for his credit history as such to just have it gone. So we took money out of our savings to clear them and the bank didn’t bat an eyelid. They rathered we had no debt at all
So you’d be surprised what your bank would look for. Good luck!

You're so right, I guess its all about the broader context ey? Thanks so much, my first post was asking others'experiences so I'm really grateful to you for sharing yours!

Bargain_Hound

lir6777 wrote: »

Hi all, I'm interested to read this thread and am very curious to know what people's experiences have been with getting mortgage exceptions? I'm going through a broker in January but just keen for a sense of others experiences.
I'm a single first time buyer, earning just over 60,000, with a deposit of 5% and planning to use HTB for the other 5%. I'm in permanent public service employment, no dependents. I have only 1 year left on my car loan, under €200 per month, no other debts ever. I've seen a new build I'm very interested in but buying new is not cheap right now so it would require a 4.5 mortgage exception. I'm told this is unlikely to get but not impossible. Have any other single buyers without massive deposits managed to succeed in this?? Would love to know thanks!

I got a 4 x exemption on a slightly lower salary last year as a single applicant. It's possible. No other loans, new property. I was told it isn't as straight forward on second hand properties but don't quote me on that.

Now trying to seek an exemption on the 20% deposit rule for second time buyers. Sold the above mentioned property already.

Q: Anybody successfully navigated their way through a deposit exemption as a second time buyer? Looking at purchase price ~300k with a 50k deposit & Combined salary ~80k.

XsApollo

I got a deposit exemption as a second time buyer.
Combined salary of just over 70k on a 150k house still keeping first house.
Went with PTSB had no intention of going for the exemption till I went in to see what I was at and it was mentioned to me.

Got all approved within 2 weeks and keys 5 weeks later.

Pretty painless process through PTSB I might add.

Paul_Mc1988

Bargain_Hound wrote: »

I got a 4 x exemption on a slightly lower salary last year as a single applicant. It's possible. No other loans, new property. I was told it isn't as straight forward on second hand properties but don't quote me on that.

Now trying to seek an exemption on the 20% deposit rule for second time buyers. Sold the above mentioned property already.

Q: Anybody successfully navigated their way through a deposit exemption as a second time buyer? Looking at purchase price ~300k with a 50k deposit & Combined salary ~80k.

Can I ask why you moved so quick. Strange to go through all the hassle and fees only to move a year later.

thomasdylan

Does anyone know if you have get a medical report from your GP as part of the application for mortgage protection, etc..

I haven't been to a doctor in 10 or 12 years, have never had any medical issues and think my GP is retired.

hanaimai

thomasdylan wrote: »

Does anyone know if you have get a medical report from your GP as part of the application for mortgage protection, etc..

I haven't been to a doctor in 10 or 12 years, have never had any medical issues and think my GP is retired.

You usually only need to get a medical report if you have medical issues to disclose. In your case you shouldn't need to.

Interested Observer

thomasdylan wrote: »

Does anyone know if you have get a medical report from your GP as part of the application for mortgage protection, etc..

I haven't been to a doctor in 10 or 12 years, have never had any medical issues and think my GP is retired.

Not if you're healthy.