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

Hi all,

My partner and I are looking at new builds, we contacted a broker and he said we look like we should be eligible for an exception. He told me today though that the banks want an address of a property you wish to purchase before giving AIP when applying for an exception? He is going to apply with KBC as he thinks with them we have best chance of an exception? Are all banks the same for this?

Thanks

lir6777

tolow wrote: »

Hi all,

My partner and I are looking at new builds, we contacted a broker and he said we look like we should be eligible for an exception. He told me today though that the banks want an address of a property you wish to purchase before giving AIP when applying for an exception? He is going to apply with KBC as he thinks with them we have best chance of an exception? Are all banks the same for this?

Thanks

I don't know about all but definitely some are, BoI for sure. I think it's to make sure people applying for exceptions actually use them- I'm told previously, people were approved but then months later might buy a cheaper house, by which time someone else had lost out on the exception. Kinda fair in that sense but tricky with a new build if you've no specific house in mind yet!

lir6777

lir6777 wrote: »

I don't know about all but definitely some are, BoI for sure. I think it's to make sure people applying for exceptions actually use them- I'm told previously, people were approved but then months later might buy a cheaper house, by which time someone else had lost out on the exception. Kinda fair in that sense but tricky with a new build if you've no specific house in mind yet!

Cheers for the reply. That’s the thing, we are unsure of where exactly we want and knowing if we would get the exception would help us know exactly what we can in reality afford! I suppose it’s understandable where the banks are coming from.

lir6777

tolow wrote: »

Cheers for the reply. That’s the thing, we are unsure of where exactly we want and knowing if we would get the exception would help us know exactly what we can in reality afford! I suppose it’s understandable where the banks are coming from.

I'm pretty certain some banks will apply for an.exception without an address, you could make a few calls yourself and see? Or your broker might be able to get a better guide number for you, I'd keep pushing if it was me and not be made to get selective before you're ready

wally79

tolow wrote: »

Cheers for the reply. That’s the thing, we are unsure of where exactly we want and knowing if we would get the exception would help us know exactly what we can in reality afford! I suppose it’s understandable where the banks are coming from.

2 years ago now but we were with AIB and got exception without an identified property

FastFullBack

Selling your old house whilst buying a new house really ain't easy is it in terms of trying to time the various sales so you could simply move from A to B

- If you buying a 2nd hand home and trying to sell your own you'll either get really lucky and can time them well or have to do a short term let somewhere if you sell first.
- We just viewed a new development where they will put 'subject to owner selling property' into the contract but they force you to sell your own property well in advance of moving into new property (like potentially up to a year). The new development has long lead times in terms of putting down deposit to handing over keys (potentially up to 18 months)

Is this a common thing for new developments where the buyer is selling an old property?

Paul_Mc1988

FastFullBack wrote: »

Selling your old house whilst buying a new house really ain't easy is it in terms of trying to time the various sales so you could simply move from A to B

- If you buying a 2nd hand home and trying to sell your own you'll either get really lucky and can time them well or have to do a short term let somewhere if you sell first.
- We just viewed a new development where they will put 'subject to owner selling property' into the contract but they force you to sell your own property well in advance of moving into new property (like potentially up to a year). The new development has long lead times in terms of putting down deposit to handing over keys (potentially up to 18 months)

Is this a common thing for new developments where the buyer is selling an old property?

They are just covering themselves. I just bought a second hand property and it took 4 months to go fully through. Three of my friends bought. 2 took six months the other a month.

FastFullBack

Paul_Mc1988 wrote: »

They are just covering themselves. I just bought a second hand property and it took 4 months to go fully through. Three of my friends bought. 2 took six months the other a month.

But were you selling as well?

Paul_Mc1988

FastFullBack wrote: »

But were you selling as well?

Sorry I should have been clearer. In all them cases we were first time buyers buying second hand properties. So all the people we were buying of were selling and it took them that long

GingerLily

TM2015 wrote: »

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.

If your already paying rent of 1600 and your stressed payment is below that then your already showing that you can handle the repayments.

So yes, you can save less to cover your holiday, regular savings look good, but the basic requirement is to cover your stressed payments!

TM2015

GingerLily wrote: »

If your already paying rent of 1600 and your stressed payment is below that then your already showing that you can handle the repayments.

So yes, you can save less to cover your holiday, regular savings look good, but the basic requirement is to cover your stressed payments!

Hi, sorry, maybe I didn’t explain it well. The stressed amount would be 3k so 1600 rent plus our monthly savings. The actual mortgage would be around 2k a month. Just thought I’d clarify.

We will check with our mortgage adviser. Just thought some here had been in a similar situation!

Canyon86

Hi

Can somebody tell me if I need the 10% deposit plus legal fees and stamp duty before I go for full mortgage approval ? Or would the 10% alone be sufficient

Thanks

fifth

Canyon86 wrote: »

Hi

Can somebody tell me if I need the 10% deposit plus legal fees and stamp duty before I go for full mortgage approval ? Or would the 10% alone be sufficient

Thanks

You need the 10%, but your bank will also want to see evidence of how you are going to pay the legal fees and stamp duty. (Savings, or a gift from parents etc). Also as far as I know, you can't draw down without paying these fees.

DubJJ

Canyon86 wrote: »

Hi

Can somebody tell me if I need the 10% deposit plus legal fees and stamp duty before I go for full mortgage approval ? Or would the 10% alone be sufficient

Thanks

Don’t forget there are plenty of mortgage providers out there who are offering to pay legal fees, and some are offering 3% cashback which may be enough to cover stamp duty as well!

scarepanda

Legal fees don't get paid into your bank account for up to 6 weeks afterwards in some cases and any gift, even to tide you over, the gifter needs to get independent legal advice and it will be a clause in the mortgage offer letter.

oleard1987

scarepanda wrote: »

Legal fees don't get paid into your bank account for up to 6 weeks afterwards in some cases and any gift, even to tide you over, the gifter needs to get independent legal advice and it will be a clause in the mortgage offer letter.

We received a gift from Wives father and he had to get a letter signed by a different solicitor from the one we were using stating that he was gifting the money and no legal entitlement to the house

GingerLily

TM2015 wrote: »

Hi, sorry, maybe I didn’t explain it well. The stressed amount would be 3k so 1600 rent plus our monthly savings. The actual mortgage would be around 2k a month. Just thought I’d clarify.

We will check with our mortgage adviser. Just thought some here had been in a similar situation!

You can't spend that 1400 savings then, you need to show up can afford the stressed payments every month before drawdown.

Micko99

Does anybody know if its possible to change bank offering a mortgage given this scenario.
I have signed contract with a developer, bank and claimed htb. However I have found out BOI are ending their 2% cashback offer in June 2020. Is it possible to apply for a mortgage with another bank in this scenario? PTSB and kbc have cashback until the end of 2020 so looking to change to one of these.

Techn0

Micko99 wrote: »

Does anybody know if its possible to change bank offering a mortgage given this scenario.
I have signed contract with a developer, bank and claimed htb. However I have found out BOI are ending their 2% cashback offer in June 2020. Is it possible to apply for a mortgage with another bank in this scenario? PTSB and kbc have cashback until the end of 2020 so looking to change to one of these.

Hi Mick,

My understanding is nothing is binding up until drawdown. You can still look to other banks if you've yet to draw down.

scarepanda

Micko99 wrote: »

Does anybody know if its possible to change bank offering a mortgage given this scenario.
I have signed contract with a developer, bank and claimed htb. However I have found out BOI are ending their 2% cashback offer in June 2020. Is it possible to apply for a mortgage with another bank in this scenario? PTSB and kbc have cashback until the end of 2020 so looking to change to one of these.

Have a look at the T&C's, if you have your loan pack already you could still qualify for it. We were in a sort of similar position before Christmas, before PTSB extended their offer. But because we already had everything organised ready to draw down before the original expiry date, we would have received it even drawing down after that date.

GingerLily

Micko99 wrote: »

Does anybody know if its possible to change bank offering a mortgage given this scenario.
I have signed contract with a developer, bank and claimed htb. However I have found out BOI are ending their 2% cashback offer in June 2020. Is it possible to apply for a mortgage with another bank in this scenario? PTSB and kbc have cashback until the end of 2020 so looking to change to one of these.

I'd check in with Revenue, the HTB is the real issue, as you submitted your loan pack to them already and claimed!

fibix

A random question for a person that needs to get her finances in order. I’m looking for someone who can sit down with me, look at my bank accounts and tell me: this is too much spending here, this loan charging you that, in order to have your house deposit you need to do xyz, banks lending this and you need that. Where can I go for this sort of advice?
I want my own place more than anything, lucky with decent enough job but just need to get myself sorted.
Thanks!

JJJackal

A good start would be to sit down yourself and look at your ins and outs for a 2 month period

See if you have any loans and go on line and see are there cheaper repayment options

Clear any credit card debt

fibix

JJJackal wrote: »

A good start would be to sit down yourself and look at your ins and outs for a 2 month period

See if you have any loans and go on line and see are there cheaper repayment options

Clear any credit card debt

Thanks, I’ve done some of this but I need a more of a long term plan from someone in the know.

Black_Knight

Have you looked up anything yourself? Some of it is pretty boilerplate. You can only borrow up to 3.5 times your salary. You need at least 10% of the house price as a deposit. The bank will need to see you can afford to repay the mortgage every month, and they'll stress test that by adding 2% to the interest rate you're quoted. Eg. If you're looking to get a mortgage at 3% interest, you'll need to be able to show you can afford 5% interest repayments.

Have you loans?
Do you overspend on credit cards?
Have you savings?
Are you better off saving every month when you could be using that money to pay off your loan?

fibix

Ok, so no specific recommendations so as to the institutions that could help then;)

Bubbaclaus

fibix wrote: »

Ok, so no specific recommendations so as to the institutions that could help then;)

What you are asking for is very basic. A bit like asking for professional chef recommendations to show you how to boil pasta.

The J Stands for Jay

fibix wrote: »

A random question for a person that needs to get her finances in order. I’m looking for someone who can sit down with me, look at my bank accounts and tell me: this is too much spending here, this loan charging you that, in order to have your house deposit you need to do xyz, banks lending this and you need that. Where can I go for this sort of advice?
I want my own place more than anything, lucky with decent enough job but just need to get myself sorted.
Thanks!

Look at the mabs and ccpc website, they have lots of info on budgeting.

I'll have a stab at it without knowing anything about you:
You spend too much on:
Nights out
Takeaways
Clothes makeup
More car than you need
Starbucks.
Apple stuff
Spotify
Satellite/cable

Fol20

https://www.askaboutmoney.com/forums/money-makeover.62/

You could post here. You need to fill in a template and give a good breakdown of saving,spending pattern, goals and objectives etc.


Its an irish forum and some of the guys on there are very good.

lcwill

fibix wrote: »

Ok, so no specific recommendations so as to the institutions that could help then;)

Why don't you take a look here:
https://www.reddit.com/r/irishpersonalfinance/

There are a few helpful posts and people who can give ideas.