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

lir6777

Knex. wrote: »

We're looking at purchasing with a mortgage that is about 25% of our combined take home, after tax.

Little worried that we might be stretching ourselves here, after seeing the couple of posters say that they're at 1/5th or 20%.

Anything that we should be considering here?

If it helps, mine could end up at almost 1/3! To reassure myself that I can manage that, I've been looking at my outgoings over the past few months. The mortgage will be the same or even slightly less than the combination of my rent and saving for a deposit each month, so I know I can live on the rest already. It just feels more stressful as the money isn't accessible to fall back on in a savings account should the unexpected happen, so I'll be working to get even a tiny bit of savings put aside to ease my mind!! Also I'm factoring in increments in my salary, which may or may not be relevant to ye. The percentage matters less than the actual amount of course- 25% of 30000 is very different to 25% of 100k in terms of living off the rest.. Other debts and monthly outgoings etc would be things to consider I guess, whether these tot up and amount to your general living expenses being just too much. For what it's worth (that's not much as I'm no expert!!) 25% doesn't sound mad to me. 20% is amazing but probably not realistic for most people. See how it fits your own budget currently would be my opinion, and good luck with it!

ebayissues

If its an option rent out a room. If rent is less than 14,000 its tax free. Another way of boosting up savings.

Pablo_Flox

Does anyone have any recommendations for a good solicitor? Around South Dublin preferably, but not a deal breaker.

Would love a PM if you had a good experience with yours. Thanks!

Techn0

Hey guys,

Has anyone had experience with applying for a mortgage and only having a certificate of income to satisfy gross pay? I hope to get a promotion in May and will be drawing down funds in either May or early June (i.e. before I get paid my new salary rate) and am wondering if the banks would accept a certificate in lieu of payslips?

Creamy Goodness

Techn0 wrote: »

Hey guys,

Has anyone had experience with applying for a mortgage and only having a certificate of income to satisfy gross pay? I hope to get a promotion in May and will be drawing down funds in either May or early June (i.e. before I get paid my new salary rate) and am wondering if the banks would accept a certificate in lieu of payslips?

No they’ll want to see confirmation of the new pay rise money hitting your account before taking it into account.

A salary cert is not really worth the paper it’s written on by itself.

Techn0

Creamy Goodness wrote: »

No they’ll want to see confirmation of the new pay rise money hitting your account before taking it into account.

A salary cert is not really worth the paper it’s written on by itself.

Thanks for the reply - on that basis do you think just one payslip (say first month) suffice along with the certificate? I can't do much outside of waiting 3 months to build up 3 months of payslips which isn't practical when trying to close out on a house.

Creamy Goodness

Techn0 wrote: »

Thanks for the reply - on that basis do you think just one payslip (say first month) suffice along with the certificate? I can't do much outside of waiting 3 months to build up 3 months of payslips which isn't practical when trying to close out on a house.

When I went for mortgage with AIB I was in a similar position. They said they would want 1 month payslips and an updated salary cert. can’t confirm this isn’t the same now (I applied 2019) and that other banks offer the same.

Techn0

Creamy Goodness wrote: »

When I went for mortgage with AIB I was in a similar position. They said they would want 1 month payslips and an updated salary cert. can’t confirm this isn’t the same now (I applied 2019) and that other banks offer the same.

Thanks a million - I won't have any other choice so let's hope one month will suffice!

niall5098

HI All,

apoligies if i amin the wrong thread, if so could someone point in the right forum.

i was in a relationship when we bought a house pre-first time buyers grant. that relationship has since ended and i was bought out of that mortgage.

i am now looking to apply for a new mortgage. am i still considered a second time buyer and is there any reliefe for a second time buyer?

Thanks

DelBoy Trotter

niall5098 wrote: »

HI All,

apoligies if i amin the wrong thread, if so could someone point in the right forum.

i was in a relationship when we bought a house pre-first time buyers grant. that relationship has since ended and i was bought out of that mortgage.

i am now looking to apply for a new mortgage. am i still considered a second time buyer and is there any reliefe for a second time buyer?

Thanks

Yes you are considered a second time buyer, and no, there isn't any relief for a second time buyer afaik

coffeelover

Just starting to save for a mortgage and wondering is it better to have a joint account or personal savings?

Creamy Goodness

coffeelover wrote: »

Just starting to save for a mortgage and wondering is it better to have a joint account or personal savings?

Whichever gives the best interest rate. It doesn’t matter where your money is saved.

paul-2008

Creamy Goodness wrote: »

Thanks. I stand to save about 1 mortgage payment a year from switching and I’m on their standard variable of 2.95%. Seems like a no-brainier for me. Would be nice to be able to pay a little extra off but oh well.

While you cant exactly overpay while in a fixed rate - you can increase your monthly payment to reduce your term before you enter into the fixed period and this will result in an overpayment. but you have to be sure you can afford the extra payment obviously

whatever76

coffeelover wrote: »

Just starting to save for a mortgage and wondering is it better to have a joint account or personal savings?

BOI do a mortgage Saver account that gives a bonus on draw down if you take it out with them ( 2k - 1300K after DIRT )

But yea it doesn't matter once you show consistent savings that you haven't touched and you prove that you can save X amount a month

red_bairn

whatever76 wrote: »

BOI do a mortgage Saver account that gives a bonus on draw down if you take it out with them ( 2k - 1300K after DIRT )

But yea it doesn't matter once you show consistent savings that you haven't touched and you prove that you can save X amount a month

1300k!!

boi89

Hi Folks,

Just wondering if anyone knows if banks take into account non taxable income?. I receive an allowance every month as part of my job which is guaranteed and works out €2700 a year.

Appreciate if anyone has any advice on this.

lir6777

boi89 wrote: »

Hi Folks,

Just wondering if anyone knows if banks take into account non taxable income?. I receive an allowance every month as part of my job which is guaranteed and works out €2700 a year.

Appreciate if anyone has any advice on this.

I could be wrong because my travel is variable but I think the bank said non-taxable isn't taken into account

boi89

lir6777 wrote: »

I could be wrong because my travel is variable but I think the bank said non-taxable isn't taken into account

Yeah I can understand if the allowance changed from month to month but this is a fixed allowance which I receive every month.

Had a meeting with ulsterbank mortgage adviser last week and he suggested that they wouldn't be able to count it as income but he wasn't 100% sure and said he would come back to me. It doesn't make sense to me as its guaranteed and I have a salary cert stating it.

Gael23

What’s the best deal for a single first time buyer. Looking to borrow around 160k

GarIT

boi89 wrote: »

Yeah I can understand if the allowance changed from month to month but this is a fixed allowance which I receive every month.

Had a meeting with ulsterbank mortgage adviser last week and he suggested that they wouldn't be able to count it as income but he wasn't 100% sure and said he would come back to me. It doesn't make sense to me as its guaranteed and I have a salary cert stating it.

No it can't be counted, and if any of that isn't spent on work related expenses you are legally required to return it to the company or inform Revenue so you can pay the appropraite tax on it at which point it could be counted.

8-10

Anybody know what banks do allow you to overpay?

I want to be a bit more aggressive in the first couple of years when I know I can afford it but don't want to commit to higher payments by up front reducing the length

Stark

Bank of Ireland and Ulster Bank both let you overpay.

whatever76

8-10 wrote: »

Anybody know what banks do allow you to overpay?

I want to be a bit more aggressive in the first couple of years when I know I can afford it but don't want to commit to higher payments by up front reducing the length

Went 2yr fixed last year with BOI and they all up to 10% overpayment a month.
Hoping to do start this myself over next few months while I can afford it and chip away at it as every little helps when it comes to that pesky compound interest !

TM2015

We have approx 70k in savings, looking to buy a house in the next 6 months. The 70k will cover our deposit, somewhere between 55 to 60k, and the other fees quite comfortably.

The problem is that we now want to book a few holiday for the summer and to do so I don't think we'll be able to put away our usual monthly savings.

Would this be an issue with the bank? We are obviously gonna keep saving but instead of 1500 a month we'd only put away 1000. The 1500 was the recommended amount to ensure we pass the stress test for an exemption.

GingerLily

TM2015 wrote: »

We have approx 70k in savings, looking to buy a house in the next 6 months. The 70k will cover our deposit, somewhere between 55 to 60k, and the other fees quite comfortably.

The problem is that we now want to book a few holiday for the summer and to do so I don't think we'll be able to put away our usual monthly savings.

Would this be an issue with the bank? We are obviously gonna keep saving but instead of 1500 a month we'd only put away 1000. The 1500 was the recommended amount to ensure we pass the stress test for an exemption.

If you were recommended to save 1500 to make sure your over the stress testing level then you have to save 1500 each and every money until drawdown. Holiday in Ireland this year!

TM2015

GingerLily wrote: »

Holiday in Ireland this year!

Don't say that! :eek:

I suppose I just didn't want to put the flights and hotel on the credit card and thought we could just not put in full savings amount one month and use that money to pay for the holiday.

Creamy Goodness

TM2015 wrote: »

Don't say that! :eek:

Why is that bad? our country is gorgeous and it's a small sacrifice for a long term gain. go on a holiday when you've got the house.

If you go from renting to a mortgage you'll generally free up more money after moving in settles and more importantly you're not having someone scrutinising your accounts once you've got the keys.

TM2015

Creamy Goodness wrote: »

Why is that bad? our country is gorgeous and it's a small sacrifice for a long term gain. go on a holiday when you've got the house.

If you go from renting to a mortgage you'll generally free up more money after moving in settles and more importantly you're not having someone scrutinising your accounts once you've got the keys.

Did an Irish holiday last year x 2 and the year before. Cost us a bomb! I personally find that a holiday in ireland costs a lot more than abroad and I'm not even talking about a tacky package deal in Costa Del Sol.

We will keep on saving the 1500 until the drawdown. It's manageable but had hoped i could just pay for the holiday in one go and not have to worry about it again.

GingerLily

TM2015 wrote: »

Did an Irish holiday last year x 2 and the year before. Cost us a bomb! I personally find that a holiday in ireland costs a lot more than abroad and I'm not even talking about a tacky package deal in Costa Del Sol.

We will keep on saving the 1500 until the drawdown. It's manageable but had hoped i could just pay for the holiday in one go and not have to worry about it again.

Are you paying rent or mortgage at the moment? If not then you'll have to save that at least each and every month for the 6 months or longer before you apply and drawdown.

If you're paying rent /morrgage then it's that amount plus savings that need to be above the stressed amount.

You have 6 months, you should be able to save for a modest holiday on top of consistent saving.

TM2015

GingerLily wrote: »

Are you paying rent or mortgage at the moment? If not then you'll have to save that at least each and every month for the 6 months or longer before you apply and drawdown.

If you're paying rent /morrgage then it's that amount plus savings that need to be above the stressed amount.

You have 6 months, you should be able to save for a modest holiday on top of consistent saving.

We pay rent of nearly 1600. We are above the stressed amount with the 1500 savings on top of it. My question was whether now that we have the deposit, funds for the fees and tax etc, can we just take a break from saving as much. Like, what if we can’t find the house we like for another 12 months.

As I said we will manage with the savings and can book the holidays too but had hoped that the bank would have no issue with us not putting in the full savings amount for a month or 2.