mortgage information

lucast2007us

Hi guys my wife and I are going to be applying for a mortgage soon.
How does it work for the 10% ?

We have about 8,000 euro in all our savings accounts but with our current accounts combined and added to that we would have 20,000 euro.

Can we therefore apply for a house with a valuation of 180,000?

Hopefully someone can clear this up for me
Thanks

gmisk

lucast2007us wrote: »

Hi guys my wife and I are going to be applying for a mortgage soon.
How does it work for the 10% ?

We have about 8,000 euro in all our savings accounts but with our current accounts combined and added to that we would have 18,000 euro.

Can we therefore apply for a house with a valuation of 180,000?

Hopefully someone can clear this up for me
Thanks

You will also need solicitors fees etc.
The bank would likely want to see a bit more than 10 percent

mel.b

You can get a mortgage that is 3.5 x your combined salaries, so if the 180,000 falls under that then that's ok (some exceptions given up to 4.5 x salary).

Then you'll need a 10% deposit, so yes, if the house is 180,000 you'll need 18,000 plus enough to cover stamp duty (1%) and legal fees etc - allow around 2-3000 for these. Then don't forget moving costs etc.

lucast2007us

Thanks for the help but for 10% would they accept the fact that we have the 10 % in all our accounts combined ? ( Not just savings)

My bad the house is valued at 175,000

mel.b

It doesn't matter where the 10% is in terms of accounts but you will need closer to 15% once stamp duty etc are included

amcalester

lucast2007us wrote: »

Thanks for the help but for 10% would they accept the fact that we have the 10 % in all our accounts combined ? ( Not just savings)

Makes no difference what account the money is in.

But, why not just move the money into a savings account?

lucast2007us

amcalester wrote:

Makes no difference what account the money is in.

amcalester wrote:

But, why not just move the money into a savings account?

Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

Blazedup

What's the average for taking out a mortgage?

Blazedup

What's the average for taking out a mortgage?

testicles

This post has been deleted.

mel.b

lucast2007us wrote: »

Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

They normally don't give it back until 30 - 45 days after the mortgage is drawn down so you still need to pay those costs yourself. Also check that the cash back isn't just for people switching their mortgage (which I think it might be)

amcalester

lucast2007us wrote: »

Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

I’m in the process of applying and had to show funds to cover the 10% deposit plus €5k for the legals.

This is despite Ulster Bank offering €1500 towards legal fees.

lucast2007us

mel.b wrote:

They normally don't give it back until 30 - 45 days after the mortgage is drawn down so you still need to pay those costs yourself. Also check that the cash back isn't just for people switching their mortgage (which I think it might be)

It says that if I have 5,000 in the mortgage saver account when applying then it would give back 2,000 when drawing down

Sarn

lucast2007us wrote: »

Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

That would cover the stamp duty, but you’d need another 2-3k for the legal fees.

lucast2007us

Sarn wrote:

That would cover the stamp duty, but you’d need another 2-3k for the legal fees.

What do legal fees cover?? The solicitor does what exactly??

mel.b

That's a handy little bonus alright. You'll still need those fees upfront though and then there are things such as valuation fees, structural survey etc that all need to be paid before hand. The solicitor will need paying on the day you draw down and you won't have the 2000 bonus until after the mortgage is drawn down (even if the bank is super efficient and pay it the day after drawing down).

mel.b

lucast2007us wrote: »

What do legal fees cover?? The solicitor does what exactly??

This basically covers it...
https://www.lawyer.ie/property/buying-a-house/

lucast2007us

mel.b wrote:

This basically covers it...

Thanks for all your help Mel

Sarn

lucast2007us wrote: »

It says that if I have 5,000 in the mortgage saver account when applying then it would give back 2,000 when drawing down

Sorry to say, but you have to take DIRT off the €2k. That means you end up getting €1,260 into your hand.

You’ll need €300-400 for a structural survey (if 2nd hand) as well as €150 for the bank valuation.

dudara

lucast2007us wrote: »

Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

Cashback from the bank can be tempting, but it may not be the best mortgage in terms of rates etc. You could end up paying more in the long term. Check out all the options.

lucast2007us

Thanks guys it's a new build so would I have some of those fees still?

Samuel T. Cogley

Yep you'll still have all the fees, however there may be a recommended solicitor.

lucast2007us

Samuel T. Cogley wrote:

Yep you'll still have all the fees, however there may be a recommended solicitor.

Does the bank appoint a solicitor or can I use my own ??

amcalester

lucast2007us wrote: »

Does the bank appoint a solicitor or can I use my own ??

Use your own.

The solicitor works for you not the bank.

Samuel T. Cogley

lucast2007us wrote: »

Does the bank appoint a solicitor or can I use my own ??

You use your own, don't go for the cheapest.

Specialun

dont forget about the help to buy scheme op, that if its of use to you and your OH

banks want to see alot more than the 10% in savings. dont forgot about legal fees of 2k-2.5k, stamp duty of 1% plus costs of furnishings. when i was doing mine a few months ago they wanted to see min 10k outside of the deposit plus a little bit of a rainy day fund