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

68 lost souls

ThisRegard wrote: »

When getting approval we gave a max amount of what we'd want to borrow but at loan pack time the amount we want to draw down is 20% less than what we were approved for. We just told them what we wanted to borrow at the time. It shouldn't be an issue but run it by the bank or broker for your own peace of mind.

Pretty sure they see the point we are at as loan pack time. Not going to be drawing it down until April and hoping to save more between now and then to have to borrow less and make repayments more manageable.

ThisRegard

If you're not drawing down until April you might be better holding off the loan pack. The pack doesn't come into play until you're sale agreed, which I presume you are, but ready to go and it has a term for which it will expire afterwards.

This is my experience anyway so can't be sure it's how others went.

Villa05

68 lost souls wrote:

Can we get full approval now and then change the amount say from 300,000 to 280,000 at draw down? What is involved if we do?

Yes, notify bank of reduced amount required

68 lost souls

Villa05 wrote: »

Yes, notify bank of reduced amount required

Thanks villa
Will it need to go through a new approval process or anything?

jjdonegal

Apologies if asked already but hoping someone has experience of this. Planning to meet banks/brokers in next few weeks and will ask them but will throw it up here to see if anyone knows. Joint application; both FTBs with joint salary around the €121,000 mark and will be looking for €380,000 / 400,000 approximately to buy. Partner owns site previously valued at €110,000.
Do banks accept such things as collateral?

Paying rent at moment of €2250 so repayment capacity evident over last 3 years etc but actual savings only at €23000.

Michael D Not Higgins

You're going to need an actual cash deposit to meet the central bank rules. Even with an exception you'd still need at least 10% (38-40k). If it's a new build, you might qualify for the 20k rebate from the government.

elainep13

68 lost souls wrote: »

Thanks villa
Will it need to go through a new approval process or anything?

No you won't as the drawdown is lower.

Lycoge

68 lost souls wrote:

Thanks villa Will it need to go through a new approval process or anything?

We had loan offer with BOI house hunter approval. House we found was lower price than we had been approved for. It did have to be sent to the underwriters again for approval.

This was the banks explanation for that:
"As it is a change in proposal, it is procedure that we have to get approval from Underwriting to issue the new offer with the new figures".

The lower figure was approved for us. But just wanted to let you know to expect that as it gave us a few days of panic at the time due to not expecting it ourselves.

Mink

boris1234 wrote: »

We just went for our first consultation with our bank today (AIB) and based on the conversation we had we are in a good position to apply for a mortgage now.

Just wondering about shopping around, is there much better value to be had from other lenders? I see all the various lenders seem to have some offers to lure in new customers, such as contributions to legal fees (KBC), 2% cashback on your mortgage (BOI).

Since our current accounts are both with AIB and having a mortgage with them eliminates current account fees then I'm thinking is it just best to stick with them. Or is that view too simplistic given the enormity of the purchase.

If you're a FTB and property around or under 250 then I'm fairly certain AIB have the best deal currently in terms of rates, that's who we went with. They've been a dream to deal with so far and our current account is with another bank.

The guy off Askaboutmoney - Brendan Burgess seems to constantly review it and update the thread giving what is the best deal. Generally the advice seems to be don't be lured in by the cash back offers, better to go with best rates over all.

jjdonegal wrote: »

Apologies if asked already but hoping someone has experience of this. Planning to meet banks/brokers in next few weeks and will ask them but will throw it up here to see if anyone knows. Joint application; both FTBs with joint salary around the €121,000 mark and will be looking for €380,000 / 400,000 approximately to buy. Partner owns site previously valued at €110,000.
Do banks accept such things as collateral?

Paying rent at moment of €2250 so repayment capacity evident over last 3 years etc but actual savings only at €23000.

The asset would have to be sold to free up the cash for deposit. There are no bridging loans anymore.

Would the fact that your partner owns that site not make him a 2nd time buyer?

Michael D Not Higgins

Mink wrote: »

The asset would have to be sold to free up the cash for deposit. There are no bridging loans anymore.

Would the fact that your partner owns that site not make him a 2nd time buyer?

For the purposes of the Central Bank rules, you are a first time buyer if you haven't had a mortgage before.

Cyrus

Mink wrote: »

The guy off Askaboutmoney - Brendan Burgess seems to constantly review it and update the thread giving what is the best deal. Generally the advice seems to be don't be lured in by the cash back offers, better to go with best rates over all.

not so, he said to avoid BOI and PTSB, but he has EBS as his recommendation

intheclouds

Mink wrote: »

The guy off Askaboutmoney - Brendan Burgess seems to constantly review it and update the thread giving what is the best deal. Generally the advice seems to be don't be lured in by the cash back offers, better to go with best rates over all.

Id do my own research rather than rely on Brendan Burgess tbh.

Cyrus

intheclouds wrote: »

Id do my own research rather than rely on Brendan Burgess tbh.

its not that difficult see what the best mortgage deals are at the moment to be fair

UB for a combo of rate (and not being KBC) and EBS for the 2% cash back and a reasonable variable rate,

also, you can switch from EBS if you want to avail of a better rate a little down the line with no claw back

intheclouds

Cyrus wrote: »

its not that difficult see what the best mortgage deals are at the moment to be fair

UB for a combo of rate (and not being KBC) and EBS for the 2% cash back and a reasonable variable rate,

also, you can switch from EBS if you want to avail of a better rate a little down the line with no claw back

Exactly - its better to do your own research on it.

whiskeyman

intheclouds wrote: »

Id do my own research rather than rely on Brendan Burgess tbh.

This is useful:
http://www.bonkers.ie/compare-mortgages/

Different factors may see different banks work better for different people

Mink

I don't know whether to believe that this will happen within the time frame or not. We went Sale agreed last Tuesday, paid booking deposit etc. We got copy of Sales Advice note from EA saying vendor wants quick sale - closing within 4 weeks.

I don't think I've ever heard of a house sale going through so fast. We've still to drawdown, survey, exchange contracts etc.

Zzippy

Definitely worth doing your own research.

Handy calculator here: https://www.drcalculator.com/mortgage/ie/

Taking, for example, a mortgage of €200,000 on a house of €250,000 over 20 years, with EBS the rate is 3.5%. Over 20 years the cost of credit is €78,380. Take the 2% cashback and if you use it to pay down the loan straightaway, you end up paying €74,425 interest. Monthly payment = €,1159.

If you go with Ulster Bank, you pay 3.1% interest, no cashback although they offer €1,500 legal fees contribution, so same thing. Cost of credit is €68,616, if you put the €1,500 back in you pay €67,342. Monthly payment = €1,119. That's a saving of over €7,000 over the course of the mortgage, plus a tenner a week extra in your pocket.

Calculator is also handy for seeing how regular overpayments could reduce the term and interest paid.

whiskeyman

Mink wrote: »

I don't know whether to believe that this will happen within the time frame or not. We went Sale agreed last Tuesday, paid booking deposit etc. We got copy of Sales Advice note from EA saying vendor wants quick sale - closing within 4 weeks.

I don't think I've ever heard of a house sale going through so fast. We've still to drawdown, survey, exchange contracts etc.

Closing date can always be pushed out. Either solicitor will be back and forth with queries, but best to have some date to work with anyway.
Are your vendors moved out?
That should help with quick move.
Survey should happen within a week - arrange this to be booked asap.
Have you organised life and home insurance? Get on to the life insurance as this could potentially hold things up if any more detail required.

Mink

Yes tenant has moved out, seller already in her own house & eager for sale so she can complete building work on that.

Yes will sort out surveyor and life insurance stuff this week as don't want either to hang us up.

whiskeyman

Mink wrote: »

Yes tenant has moved out, seller already in her own house & eager for sale so she can complete building work on that.

Yes will sort out surveyor and life insurance stuff this week as don't want either to hang us up.

Sounds good Mink.
hopefully all should be smooth sailing and I guess that you'll be in well before Christmas.
That's probably the aim for many people in that boat at the moment!

Cyrus

Zzippy wrote: »

Definitely worth doing your own research.

Handy calculator here: https://www.drcalculator.com/mortgage/ie/

Taking, for example, a mortgage of €200,000 on a house of €250,000 over 20 years, with EBS the rate is 3.5%. Over 20 years the cost of credit is €78,380. Take the 2% cashback and if you use it to pay down the loan straightaway, you end up paying €74,425 interest. Monthly payment = €,1159.

If you go with Ulster Bank, you pay 3.1% interest, no cashback although they offer €1,500 legal fees contribution, so same thing. Cost of credit is €68,616, if you put the €1,500 back in you pay €67,342. Monthly payment = €1,119. That's a saving of over €7,000 over the course of the mortgage, plus a tenner a week extra in your pocket.

Calculator is also handy for seeing how regular overpayments could reduce the term and interest paid.

or get the mortgage with EBS, and switch the UB a few months later

zedhead

zedhead wrote: »

So got some sort of update from the EA last night but she is waiting to talk to the vendors solicitor today to give us more information. Basically the house the vendors are buying is in receivership which mean it is not a straightforward purchase. The EA is going to try and find out what the details of the hold up are, but from doing some research on here they may not get that info and who knows how long it will take to sort out...

Feeling a little deflated now and just waiting on the EA to call with any more info.

Not getting any contact now with the EA since last Thursday and our solicitor has no luck with getting in touch with their solicitor.

Has anyone else been in this situation, where they are buying a house in a chain but the vendors are buying a house in receivership? Or any advice on what we can do?

lillycakes2

when looking for a mortgage , roughly how much "savings" (deposit) would i need ,if my mortgage was going to be 200,000?

thanks

(am new to this - starting to plan for building a house/getting a mortgage)

Greyian

lillycakes2 wrote: »

when looking for a mortgage , roughly how much "savings" (deposit) would i need ,if my mortgage was going to be 200,000?

thanks

(am new to this - starting to plan for building a house/getting a mortgage)

You'd need a deposit of €22,500 if you're a first time buyer (€22,000 to qualify for the first €198,000, then €500 for the last €2,000) - so a total of €222,500 to spend (€22,500 deposit, €200,000 mortgage)
If you're not a first time buyer, you'd need €50,000 to get a €200,000 mortgage, giving you a total of €250,000 to spend.

If you just need €200,000 in total, you'd need €20,000 deposit to get €180,000 mortgage as a first time buyer, or €40,000 to get €160,000 mortgage as a non-first time buyer.


Edit: This is then also subject to sufficient income to meet the loan to income requirement (max mortgage, without exemption, of 3.5*income).

Utah

lillycakes2 wrote: »

when looking for a mortgage , roughly how much "savings" (deposit) would i need ,if my mortgage was going to be 200,000?

thanks

(am new to this - starting to plan for building a house/getting a mortgage)

If the house value is 200k, you'd need 20k minimum deposit + around 3.5/4k for legal fees + possible survey report fees or similar.

Call it 25k all in

Azza89

Cyrus wrote: »

or get the mortgage with EBS, and switch the UB a few months later

If you were to take this approach and refinance after a few months, what would be the average for solicitors fee's if you were to do this does anyone know?

cnlbel

we are due to close today. Oh my nerves!!!!

Cyrus

Azza89 wrote: »

If you were to take this approach and refinance after a few months, what would be the average for solicitors fee's if you were to do this does anyone know?

the solicitors fees would be covered largely, for example ulster bank offer €1.5k towards them if you switch

Black_Knight

We've found a house we could see ourselves living in, so we've put in a bid. The waiting game is painful - evenings are spent running through all the hypothetical scenarios of the EA getting back to us with varying news.

I did a little bit of searching before we bid, and noticed the property details aren't on landdirect.ie - it says "The area selected is not registered with the Land Registry. Information about this property may be available from the Registry of Deeds."

What's this actual mean?

cnlbel

Black_Knight wrote: »

We've found a house we could see ourselves living in, so we've put in a bid. The waiting game is painful - evenings are spent running through all the hypothetical scenarios of the EA getting back to us with varying news.

I did a little bit of searching before we bid, and noticed the property details aren't on landdirect.ie - it says "The area selected is not registered with the Land Registry. Information about this property may be available from the Registry of Deeds."

What's this actual mean?

Its a property that is unregistered. it has no folio number. It also means that it is subject to first registration when you purchase which converts it to registered property.