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

Sono

seamus wrote: »

This practice was made illegal by the EU, so if you're on one of these mortgages like I am, then you may no longer be bound by it. I'd double-check though - mortgages issued before EU law was updated, may still be bound by it.

BOI have modified this offer for new customer so that you now get cashback up front and another cash chunk if you stay for five years.

A cash chunk if you stay 5 years? Never heard of this, must get onto them so.

Cyrus

Sono wrote: »

A cash chunk if you stay 5 years? Never heard of this, must get onto them so.

extra 1%but thats a new thing to encourage people to stay and not leave 2 or 3 years in, you wont be entitled to it if you signed up when they had the clawback clause

whiskeyman

troy wrote: »

Which lenders are currently offering most flexibility on the 3.5 x salary / 20% deposit rules? Any that offer flexibility on both aspects or is it one or the other? Can that include upgrade works?

I heard from someone that each lender can grant exceptions on up to 15% of their loan book in any year.

Thanks

All lenders are given exemptions to work with throughout the year.
The level of flexibility probably depends on the applicants situations.

As it's nearly year end, you may be better to apply in Jan, but be sure all is in order now.

Best of luck

Daisy78

troy wrote: »

Which lenders are currently offering most flexibility on the 3.5 x salary / 20% deposit rules? Any that offer flexibility on both aspects or is it one or the other? Can that include upgrade works?

I heard from someone that each lender can grant exceptions on up to 15% of their loan book in any year.

Thanks

That's now dropped to 5% under the latest revision to the rules.

Michael D Not Higgins

Daisy78 wrote: »

That's now dropped to 5% under the latest revision to the rules.

Only for the first time buyers above 90%. It's 20% of the loan book for second and subsequent buyers above 80%.

Daisy78

Michael D Not Higgins wrote: »

Only for the first time buyers above 90%. It's 20% of the loan book for second and subsequent buyers above 80%.

Sorry was talking about in the context of first time buyers. Should have been clearer.

MentalMario

A possible stupid question.

I'm looking to borrow under 2 times my salary.

I've 6 months savings at double what mortgage payments will be but I'm about 3k off what I need to cover 10%, solicitor fees etc...

If I had a car loan, I'd probably be OK on the mortgage application but what if I got a 3 k personal loan and applied for a mortgage? The loan will be propping up my deposit. Would that be a huge red flag and a massive no?

StupidLikeAFox

MentalMario wrote: »

If I had a car loan, I'd probably be OK on the mortgage application but what if I got a 3 k personal loan and applied for a mortgage? The loan will be propping up my deposit. Would that be a huge red flag and a massive no?

I'm not sure what you mean by "if you had a car loan" - the banks will take into account any debt you have and that will act as a negative in your application. If you are talking about building up evidence of a repayment capacity, you would be better off putting that money into a savings account.

You could potentially get someone else to give you a loan - in terms of a mortgage the banks are happy once they get a letter saying the loan is non refundable, but what you do in the background is your own business

youcancallmeal

Is it possible that you can get a better deal by going direct to banks for a mortgage instead of a broker? I've heard anecdotal stories from friends of friends that they got better interest rate or something like that from one bank after initially using a broker to seek mortgage approval. Maybe they had 6 months AIP through broker and then after that expired applied themselves and got it better. Does this sound realistic?

Cyrus

youcancallmeal wrote: »

Is it possible that you can get a better deal by going direct to banks for a mortgage instead of a broker? I've heard anecdotal stories from friends of friends that they got better interest rate or something like that from one bank after initially using a broker to seek mortgage approval. Maybe they had 6 months AIP through broker and then after that expired applied themselves and got it better. Does this sound realistic?

well anything like the cash back offers etc are only available direct

MentalMario

StupidLikeAFox wrote: »

I'm not sure what you mean by "if you had a car loan" - the banks will take into account any debt you have and that will act as a negative in your application. If you are talking about building up evidence of a repayment capacity, you would be better off putting that money into a savings account.

You could potentially get someone else to give you a loan - in terms of a mortgage the banks are happy once they get a letter saying the loan is non refundable, but what you do in the background is your own business

Thanks.

The loan wouldn't be to show repayment capacity. I definitely show that capacity already. There's a house after coming onto the market in the last few weeks that I like, a few months before I thought I'd be bidding.

It would be to bring my deposit up to €X +solictors fees so I can bid on a house I want right now, rather than wait a couple of months before I have it saved myself.

Utah

Cyrus wrote: »

well anything like the cash back offers etc are only available direct

Incorrect. We got our 2% back and we used a broker.
Got the money 8 days after drawing down too, which was great.

Naid23

Utah wrote: »

Incorrect. We got our 2% back and we used a broker.
Got the money 8 days after drawing down too, which was great.

Thats really quick, i heard it was like a month or 2 before you got the cashback.

Cyrus

Utah wrote: »

Incorrect. We got our 2% back and we used a broker.
Got the money 8 days after drawing down too, which was great.

good to hear, everything ive heard suggested otherwise

the aib cash contribution you dont get through a broker i believe

Utah

Cyrus wrote: »

good to hear, everything ive heard suggested otherwise

the aib cash contribution you dont get through a broker i believe

Maybe.
We went with PTSB.

Zzippy

MentalMario wrote: »

Thanks.

The loan wouldn't be to show repayment capacity. I definitely show that capacity already. There's a house after coming onto the market in the last few weeks that I like, a few months before I thought I'd be bidding.

It would be to bring my deposit up to €X +solictors fees so I can bid on a house I want right now, rather than wait a couple of months before I have it saved myself.

Banks usually want to see the source of funds - savings statements, proof of any lump sum payments and what they are from. I'd imagine they wouldn't look too favourably on a loan being used to fund a deposit

Naid23

Hoping for some good news either today or tomorrow. After a really $hitty year, it would be nice to have some good news going into christmas!

Edit: Just got a phone call and the other bidder has pulled out so our offer has been put to the owner so they said they'll let us know tomorrow!

whiskeyman

Fingers crossed Naid!

Creme fraiche

Hi all,

newcomer to the thread, I’ve read back a couple of pages and feeling a bit low.

I’m 30, in a really good job paying €64K, 10% annual bonus (team target driven which I might miss) have €18K in savings and saving €1K a month, paying €350 in rent and paying €150 to help my girlfriend pay off her credit union loan (home improvement €5K) quicker. I also commit 6% of my salary to my pension.

She’s also 30, earns €1.5K (gross) but has her own house bought at the height of the boom, paid €285k for a terrace in not a great area. her mortgage is €700 (tracker) and have a lodger who pays €350 for a room. Other than the loan above she has no other irregular outgoings bar day-to-day expenses. At the moment she’s not saving

However I feel like we’re nowhere near being able to afford a deposit or even where to start. Do I try go the first time buyers route, or do we sell this house, get approx (20K profit if we can call it that), or try keep it and go it together.

I would really like to get a new build house close to our home (South Dublin/North Wicklow) area but houses seem to be way out of our range of €400K plus.

Anyone have any good advice? I’m planning to try and up my savings to €1500 after Christmas but then again I feel that’s still not enough.

whiskeyman

You're only saving 1k after paying 350 on rent on that salary?
That's as far as I got... I think you need to question your spending.

Creme fraiche

did forget to mention, the gf up until 2 months ago was on minimum wage. I paid all bills/groceries/petrol/tax/insurance. We did enjoy regular breaks away in Ireland, after the last one (september) I realised this wasn't going to get us anywhere.

StupidLikeAFox

I did some back of an envelope calculations for you OP:

Monthly Net Income
You 3426
Her 1458
Lodger 350
Total - 5234

Monthly Outgoings
Credit Union Loan 150
Rent 350
Mortgage 700
Total - 1200

There is a difference there of €4,034 per month - you could surely up it to €2k and still live relatively comfortable. Would you consider moving in with the GF? You would save a lot on on rent and meals

listermint

Erm, might be totally off the wall but why not move into her townhouse pay the 700 tracker and save away the pair of you. Where is the rush? you have a nice starter deposit and have a handy tracker under your belts.

Mink

MentalMario wrote: »

The loan wouldn't be to show repayment capacity. I definitely show that capacity already. There's a house after coming onto the market in the last few weeks that I like, a few months before I thought I'd be bidding.

It would be to bring my deposit up to €X +solictors fees so I can bid on a house I want right now, rather than wait a couple of months before I have it saved myself.

I'll put it to you this way, we had a loan when first applying for a mortgage and the amount we were offered was 15% less than what it would be without the loan. This was the same through a broker and direct.

The bank looks at loans/ childcare costs and any other obligation as potentially taking priority over the mortgage so they will lower the amount they can lend you.

If you can get a "gift" from someone so as to get over the hurdle and then have private arrangement to repay it as already suggested above.

Mink

Nothing happening here before Christmas break anyway. We chased up with EA as our solicitor still hadn't received contracts.

So apparently the vendor solicitor realised they needed the BER cert. We went Sale agreed on 1st November and EA sent the Sales Advice note to both solicitors on 7th Novemeber. The BER is already done as it was part of the property ad. So it's taken them a month to work out they don't have it.

I feel like this is going to take waaaay longer then I thought. I actually don't mind as long as seller doesn't pull out. Would rather move in Spring anyway.

Naid23

Naid23 wrote: »

Hoping for some good news either today or tomorrow. After a really $hitty year, it would be nice to have some good news going into christmas!

Edit: Just got a phone call and the other bidder has pulled out so our offer has been put to the owner so they said they'll let us know tomorrow!

Owner has decided that they wont accept our offer and will decide after christmas - so basically they want to see if they can get more money and use our offer to increase it.
House is up and number of weeks and had 3 viewings with only us and another couple bidding on it. So so Frustrating!!!

We've told them that we want a yes/No answer this week or we are withdrawing our offer.

zedhead

Still waiting. Contracts arrived to our solicitor but there was no closing date and basically he said we'd be mad to sign them as they were. He was to go back and get more info and we heard nothing for 2 weeks. The vendors are buying a house in receivership and they can't give us a closing date until they get a closing date on their purchase. Their solicitor said they are doing everything they can to move things along but its unlikely we will hear anything at all this side of Christmas (very frustrating that work seems to just stop for december).

It's been nearly 4 months since we went sale agreed and to be honest I don't mind the wait, I just want some reassurance that the house is still ours and a little more communication so our calls/emails aren't going unanswered. The worst thing that can happen is their purchase can fall through and then we are back to square 1. I have been looking at the houses out there, but there is nothing else I really like enough to even go view. I don't want to put all my eggs in one basket, but I went and got attached to this house....really hoping the new year can bring some good news.

Anyone have any advice or has been through something similar?

q85dw7osi4lebg

zedhead wrote: »

Still waiting. Contracts arrived to our solicitor but there was no closing date and basically he said we'd be mad to sign them as they were. He was to go back and get more info and we heard nothing for 2 weeks. The vendors are buying a house in receivership and they can't give us a closing date until they get a closing date on their purchase. Their solicitor said they are doing everything they can to move things along but its unlikely we will hear anything at all this side of Christmas (very frustrating that work seems to just stop for december).

It's been nearly 4 months since we went sale agreed and to be honest I don't mind the wait, I just want some reassurance that the house is still ours and a little more communication so our calls/emails aren't going unanswered. The worst thing that can happen is their purchase can fall through and then we are back to square 1. I have been looking at the houses out there, but there is nothing else I really like enough to even go view. I don't want to put all my eggs in one basket, but I went and got attached to this house....really hoping the new year can bring some good news.

Anyone have any advice or has been through something similar?

All of this seems usual bar the fact that the receiver is willing to sell to a party that hasn't got a contract signed on their own property.

From my experience, receivers will only deal with parties who are cash, or at least sale agreed with contracts signed on their own home. Of course they are open to buyers with mortgage approval but they are usually very far down the pecking lime.

sadie1502

zedhead wrote: »

Still waiting. Contracts arrived to our solicitor but there was no closing date and basically he said we'd be mad to sign them as they were. He was to go back and get more info and we heard nothing for 2 weeks. The vendors are buying a house in receivership and they can't give us a closing date until they get a closing date on their purchase. Their solicitor said they are doing everything they can to move things along but its unlikely we will hear anything at all this side of Christmas (very frustrating that work seems to just stop for december).

It's been nearly 4 months since we went sale agreed and to be honest I don't mind the wait, I just want some reassurance that the house is still ours and a little more communication so our calls/emails aren't going unanswered. The worst thing that can happen is their purchase can fall through and then we are back to square 1. I have been looking at the houses out there, but there is nothing else I really like enough to even go view. I don't want to put all my eggs in one basket, but I went and got attached to this house....really hoping the new year can bring some good news.

Anyone have any advice or has been through something similar?

The people that sold their house to us also were buying a house in receivership. But we stipulated we would not buy unless they moved regardless of what stage they were at. That's very frustrating for you. That could take months how long is a piece of string sorry but you really shouldnt keep all your eggs in one basket. We are in the house and they are renting well they were renting we were told it could take them six months for their sale to go through. I'd keep a look out to be honest for other properties.

zedhead

sadie1502 wrote: »

The people that sold their house to us also were buying a house in receivership. But we stipulated we would not buy unless they moved regardless of what stage they were at. That's very frustrating for you. That could take months how long is a piece of string sorry but you really shouldnt keep all your eggs in one basket. We are in the house and they are renting well they were renting we were told it could take them six months for their sale to go through. I'd keep a look out to be honest for other properties.

We didn't find out they were buying a house in receivership until 2.5 months had passed. Don't think that they will go with that deal now. The contracts we received had a lot of stipulations in about the contracts only being valid if their purchase completes. We are definitely still looking but just not happy with what is out there right now. I don't want to lower our standards while we still have the possibility of this one - but we may have to.

Reese Lively Cabinet wrote: »

All of this seems usual bar the fact that the receiver is willing to sell to a party that hasn't got a contract signed on their own property.

From my experience, receivers will only deal with parties who are cash, or at least sale agreed with contracts signed on their own home. Of course they are open to buyers with mortgage approval but they are usually very far down the pecking lime.

Yeh my partner mentioned this to me today. Before we knew it was a receivership sale, our estate agent told us that they just had to be sale agreed on their end before they could progress with their purchase.