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

youcancallmeal

lbyrne121 wrote: »

Hi

I just wanted to ask people's advice. I want to go for a mortgage but my fiance is currently in probation which is due to end on the 4th of January 2017. He has been in continuous employment for 7 years as a lecturer (public servant) but left his job for a better paid job as science specialist (private sector).

My question is what are our chances of getting a mortgage in Jan for someone just finished probation and would we be even able to be approved in principal in Dec?

The reason why I ask is we see a house we like and would like to make an offer but we just wondered about get aip prior to his probation period ending.

We have the deposit saved and have showed great savings etc.

I'm kind of same situation, not finished probation until 1st Jan 17. Broker has told us we can apply for AIP now though and should get it no problem. The banks know it will probably be a few months from now before we actually go to draw down and then the real due diligence takes place. Also was told it doesn't matter if you are just out of probation as long you can show a few years continuous employment with no major gaps between jobs

Naid23

youcancallmeal wrote: »

I'm kind of same situation, not finished probation until 1st Jan 17. Broker has told us we can apply for AIP now though and should get it no problem. The banks know it will probably be a few months from now before we actually go to draw down and then the real due diligence takes place. Also was told it doesn't matter if you are just out of probation as long you can show a few years continuous employment with no major gaps between jobs

I was told the same thing regarding continuous employment so long as it was a similar profession - as in not jumping from being a teacher to being a event planner for example. I was just finished my 6 month probation in my current job when we applied for AIP and it was no issue with the banks we applied with.

lbyrne121

I think my husbands profession is slightly different as he was a science lecturer in public sector and went off as a science sales specialist (private sector) so I think that might now be as straight forward as it is not in a similar profession

hooch-85

Great thread this...

Will lay out our situation and see what you guys think.

We are both employed in financial services in the Limerick area, I'm permanent but my girlfriend is on a fixed term 24 month contract. Combined income is 68k. I'm 31, she's 28.

Our mortgage application is for 180k (90% being 162k) and we have 9k in savings so getting 10k as gift from parents to make up shortfall in deposit, legal etc.

I bought a new car this year (20k HP) as I didn't think we would be trying to buy this soon but we were offered the opportunity to buy the house we have been renting for the past 18 months about 6 months ago. I pay maintenance for my son of 300 per month. I also have a small credit card and overdraft (1k combined). My girlfriend has no loans or commitments.

It is a 3 bed cottage which was completely renovated, extended and modernised in 2013/14 if I remember correctly.

It is being sold with all furnishings so it is basically turnkey, it also has approx.. 1.5 acres of land included so will cost us nothing in the first few years.

Went to AIB this week and they didn't seem too interested but said they will apply for us, went to EBS who were much more enthusiastic and more or less said we have a good chance as we have proven our repayment capacity between rent and monthly fixed savings.

So what does the boards massive think our chances are?

listermint

hooch-85 wrote: »

Great thread this...

Will lay out our situation and see what you guys think.

We are both employed in financial services in the Limerick area, I'm permanent but my girlfriend is on a fixed term 24 month contract. Combined income is 68k. I'm 31, she's 28.

Our mortgage application is for 180k (90% being 162k) and we have 9k in savings so getting 10k as gift from parents to make up shortfall in deposit, legal etc.

I bought a new car this year (20k HP) as I didn't think we would be trying to buy this soon but we were offered the opportunity to buy the house we have been renting for the past 18 months about 6 months ago. I pay maintenance for my son of 300 per month. I also have a small credit card and overdraft (1k combined). My girlfriend has no loans or commitments.

It is a 3 bed cottage which was completely renovated, extended and modernised in 2013/14 if I remember correctly.

It is being sold with all furnishings so it is basically turnkey, it also has approx.. 1.5 acres of land included so will cost us nothing in the first few years.

Went to AIB this week and they didn't seem too interested but said they will apply for us, went to EBS who were much more enthusiastic and more or less said we have a good chance as we have proven our repayment capacity between rent and monthly fixed savings.

So what does the boards massive think our chances are?

The credit card has to go.

The HP could go either way tbh. It's not great to have it on it but it will depend on your repayments.

The bank will want to see regular rent regular savings and they will want to see that you have enough to live on at the end of it all.

They will even judge you based on ability to pay if one of you loses work.

So you may be up against it. Start with credit card easiet to get rid off. You want that balance to null

hooch-85

listermint wrote: »

The credit card has to go.

The HP could go either way tbh. It's not great to have it on it but it will depend on your repayments.

The bank will want to see regular rent regular savings and they will want to see that you have enough to live on at the end of it all.

They will even judge you based on ability to pay if one of you loses work.

So you may be up against it. Start with credit card easiet to get rid off. You want that balance to null

The CC is a graduate card i've had for a few years and has a limit of 650 and had a balance of <500 at time we submitted the application, will hardly be the straw the breaks the camels back

But if needed it could be cleared. The guy in EBS was pretty optimistic anyway but maybe he was getting our hopes up.

Like i've said we've passed all the affordability stress tests he did with funds to spare through our rent and savings record over the past 6 months, we first spoke to this guy at the time we were offered the house and he advised us to save an amount along with our rent which we have

Bored Accountant

listermint wrote: »

The credit card has to go.

I don't think they care about you having a balance on your credit card. As long as you make repayments every month and keep it ticking over that should be good enough.

Earleybird

Couldn't disagree more. Needless to get rid of a credit card. The balance is so low it will barely be factored in at all.

Ardennes1944

Hi all, im living in Switzerland and have been saving for a house for years. I am interested in buying a house back home in Ireland and renting it out. Does anyone know if this new 10% mortgage rate and rebate are applicable to those who are currently working abroad?

Thanks.

Baby01032012

Ardennes1944 wrote: »

Hi all, im living in Switzerland and have been saving for a house for years. I am interested in buying a house back home in Ireland and renting it out. Does anyone know if this new 10% mortgage rate and rebate are applicable to those who are currently working abroad?

Thanks.

No, unless you've been paying tax to the Irish revenue here that you now want to claim back.

Can't claim back what you haven't paid.

boris1234

Just got the news of AIP from AIB this morning. Now the fun begins

Earleybird

Earleybird wrote: »

Couldn't disagree more. Needless to get rid of a credit card. The balance is so low it will barely be factored in at all.

People should clarify if they mean get rid of the card completely or clear the balance because getting rid of the card completely is not a practical solution for most people who use their credit card for various different reasons from additional security online to using it for travelling for work (when the money will be claimed back and not wanting to spend your own money on it).

Considering I applied and got a new credit card with a large credit limit from the bank on the same day I was in meeting them about a mortgage application I don't think they care about cards, or even a bit of a balance (few 100 say). What they don't want to see is a 5k credit card debit that's just having the minimum payment paid on it every month etc.

boris1234

Azalea Screeching Padding wrote: »

People should clarify if they mean get rid of the card completely or clear the balance because getting rid of the card completely is not a practical solution for most people who use their credit card for various different reasons from additional security online to using it for travelling for work (when the money will be claimed back and not wanting to spend your own money on it).

Considering I applied and got a new credit card with a large credit limit from the bank on the same day I was in meeting them about a mortgage application I don't think they care about cards, or even a bit of a balance (few 100 say). What they don't want to see is a 5k credit card debit that's just having the minimum payment paid on it every month etc.

Just to add to my two cents. We just got AIP this morning with a credit card that has a balance of around 500.

I have only been clearing it with minimal amounts over the last few months apart from one lump sum to take 500 off. I haven't used it to purchase anything for months though.

purple hands

Might be an odd question, but for those who have gone through the application process, at what point in the process is it no longer possible for the bank to cancel the offer?

Utah

Utah wrote: »

Hi Guys,

Just looking to see if this would be possible.

We've been saving steadily for a deposit for the past 2 years.
We recently found out we're expecting a baby in November.
The apartment we're in would be way to small to fit in a baby with all the stuff so we're going to try and fast track buying a house. We have enough to get a decent sized mortgage and our savings and credit would be clean and consistent.

If we got mortgage approval within the next 2 months, do you think it would be possible to buy a house and be moved in by November? I've heard a lot of people waiting a long time to get keys etc

Thanks

Hi guys

We closed and got the keys this morning. Woohoo!

I wrote the above 8 months ago when we were panicking. We went through the motions and were lucky enough that it all worked out.

We bought a new build so it was only recently completed, this was why it took so long.

What I learned from the process..
- Don't believe a word the estate agent says regarding timelines or what the house comes with
- Find the foreman as early as possible
- Sort the mortgage protection as early as possible, it took us 7 weeks to get it. If the house was ready it would have been very frustrating

The baby was due yesterday but still no sign of him/her. We will have a house to bring them home from the hospital though which is the main thing!! Very happy, proud and relieved!!

Just have to move now

This thread was an amazing help over past few months. Thanks to all who contribute.

Michael D Not Higgins

Ardennes1944 wrote: »

Hi all, im living in Switzerland and have been saving for a house for years. I am interested in buying a house back home in Ireland and renting it out. Does anyone know if this new 10% mortgage rate and rebate are applicable to those who are currently working abroad?

Thanks.

Baby01032012 wrote: »

No, unless you've been paying tax to the Irish revenue here that you now want to claim back.

Can't claim back what you haven't paid.

Also, it would be a buy to let, so would not qualify, and you need at least 30% deposit for BTL.

Michael D Not Higgins

hooch-85 wrote: »

Great thread this...

Will lay out our situation and see what you guys think.

We are both employed in financial services in the Limerick area, I'm permanent but my girlfriend is on a fixed term 24 month contract. Combined income is 68k. I'm 31, she's 28.

Our mortgage application is for 180k (90% being 162k) and we have 9k in savings so getting 10k as gift from parents to make up shortfall in deposit, legal etc.

I bought a new car this year (20k HP) as I didn't think we would be trying to buy this soon but we were offered the opportunity to buy the house we have been renting for the past 18 months about 6 months ago. I pay maintenance for my son of 300 per month. I also have a small credit card and overdraft (1k combined). My girlfriend has no loans or commitments.

It is a 3 bed cottage which was completely renovated, extended and modernised in 2013/14 if I remember correctly.

It is being sold with all furnishings so it is basically turnkey, it also has approx.. 1.5 acres of land included so will cost us nothing in the first few years.

Went to AIB this week and they didn't seem too interested but said they will apply for us, went to EBS who were much more enthusiastic and more or less said we have a good chance as we have proven our repayment capacity between rent and monthly fixed savings.

So what does the boards massive think our chances are?

You're likely to be able to afford the mortgage no problem but you need a deposit of 18k, plus stamp duty (1.8k) and legal fees (~1k) and other fees (e.g. survey for a few hundred). You say you're going to have 19k, which isn't going to be enough.

hooch-85

We will get 2% cash back if approved from EBS and will have another 1k saved in the next few weeks and can increase the gift amount but were under the impression that the less you get gifted the better it will look on the application.

Earleybird

hooch-85 wrote: »

We will get 2% cash back if approved from EBS and will have another 1k saved in the next few weeks and can increase the gift amount but were under the impression that the less you get gifted the better it will look on the application.

The 2% will likely take a couple of months to get to you and will not be considered for your deposit. You will need to consider valuation and surveyor fees potentially as well.

The size of the gift won't make any difference.

hooch-85

Cool will change the gift to 12k and go from there. That will mean we have a balance of 21.

tony1980

Michael D Not Higgins wrote: »

You're likely to be able to afford the mortgage no problem but you need a deposit of 18k, plus stamp duty (1.8k) and legal fees (~1k) and other fees (e.g. survey for a few hundred). You say you're going to have 19k, which isn't going to be enough.

Yes, we are buying in Limerick too but for 160k as first time buyers. If anyone from there wants a recommendation for a solicitor, send me a pm.

Fees are going to be 1600 on stamp duty, 16k deposit, 1875 for the solicitor - professional fees as well as land registry, etc, etc included in the above and VAT. 130 for the valuation and 430 including VAT for the Survey. We are lucky in that we already have all our furniture which will fit, we were renting with our own furniture. We will change things in the house gradually as we move along.

We probably will have to factor in a bit for things like oil in the new house, electricity been transferred to us, door locks and other costs like changing school for our son. This is just to give other people an idea of costs who are starting the process.

We got our Mortgage Protection sorted yesterday, took a week only, thankfully so that's all ready to go as is House Insurance so hopefully there wont be any major delays. I would expect it to be early to mid January when we close :-)

hooch-85

tony1980 wrote: »

Yes, we are buying in Limerick too but for 160k as first time buyers. If anyone from there wants a recommendation for a solicitor, send me a pm.

Fees are going to be 1600 on stamp duty, 16k deposit, 1875 for the solicitor - professional fees as well as land registry, etc, etc included in the above and VAT. 130 for the valuation and 430 including VAT for the Survey. We are lucky in that we already have all our furniture which will fit, we were renting with our own furniture. We will change things in the house gradually as we move along.

We probably will have to factor in a bit for things like oil in the new house, electricity been transferred to us, door locks and other costs like changing school for our son. This is just to give other people an idea of costs who are starting the process.

We got our Mortgage Protection sorted yesterday, took a week only, thankfully so that's all ready to go as is House Insurance so hopefully there wont be any major delays. I would expect it to be early to mid January when we close :-)

Thanks for that, we are lucky in that we are in the house already, bills are in our name, all the furniture is being left there, down to beds, lamps, fittings kitchen appliances etc. and it was renovated to a very high standard. So we are probably paying a little above market price but taking that into account it seems a fair deal.

The only difference will be we will be paying mortgage to bank instead of rent to landlord.

tony1980

hooch-85 wrote: »

Cool will change the gift to 12k and go from there. That will mean we have a balance of 21.

I would say 23k will be needed, roughly.

18k Deposit
1800 Stamp Duty
1850 Solicitor
130 Valuation
430 Survey
Little more for Misc items, possibly more depending on your situation.

We are getting the 2% cashback too but can't use it for any of the above as its well after the process when you will get it but it will be nice to get it then anyway to put towards anything new we would like, curtains, floors, etc.

tony1980

hooch-85 wrote: »

Thanks for that, we are lucky in that we are in the house already, bills are in our name, all the furniture is being left there, down to beds, lamps, fittings kitchen appliances etc. and it was renovated to a very high standard. So we are probably paying a little above market price but taking that into account it seems a fair deal.

The only difference will be we will be paying mortgage to bank instead of rent to landlord.

Best of luck with it, hope it works out and the process isn't too stressful. We have been luck so far, we have really enjoyed the process, we only went sale agreed on Nov 15th so if we are in early Jan with no issues, I would say that has been a very sucessful and straight forward process so fingers crossed, the last bit goes well :-)

Mink

Utah - great success story!

For those getting mortgage protection, we went through on line broker rather than bank and got good deal through Royal London ireland (formerly Caledonian) for about 18 per month. Non smokers but my husband had to have procedure done recently and both my parents died before 55 so we thought it would be very high.

We decided not to opt for 6mth moratorium as when we really looked at the figures, it was going to cost us an extra 3k in interest over life of mortgage. So rather than paying 780 per mth, we would have been paying 803, for 29 jaysus years.

whiskeyman

purple hands wrote: »

Might be an odd question, but for those who have gone through the application process, at what point in the process is it no longer possible for the bank to cancel the offer?

The bank could cancel the offer right up to drawdown I would have thought?

and by 'offer' - do you mean the Loan Offer from the bank?

tony1980

Mink wrote: »

Utah - great success story!

For those getting mortgage protection, we went through on line broker rather than bank and got good deal through Royal London ireland (formerly Caledonian) for about 18 per month. Non smokers but my husband had to have procedure done recently and both my parents died before 55 so we thought it would be very high.

We decided not to opt for 6mth moratorium as when we really looked at the figures, it was going to cost us an extra 3k in interest over life of mortgage. So rather than paying 780 per mth, we would have been paying 803, for 29 jaysus years.

That's great in regards to the Mortgage Protection. We were also worried as my wife has Arthritis and is on an infusion every 6 weeks and medication for flare ups but it was straight forward through the broker with Zurich. They didn't increase the price and we got it for just over 16 euro a month so we are delighted :-)

lbyrne121

Hi I was wondering how long does it take to get mortgage approval in principal? I am going to a broker on the 12th of Dec he gave me a huge list of documentation to bring but was just wondering how long would it take?

Bored Accountant

lbyrne121 wrote: »

Hi I was wondering how long does it take to get mortgage approval in principal? I am going to a broker on the 12th of Dec he gave me a huge list of documentation to bring but was just wondering how long would it take?

From when our broker actually submitted to the bank, it was 8 to 10 working days for an answer

little bess

Anyone know if the banks are lending to construction workers who are in permanent employment?