Exemption for 2019

bri007

Hi,

We have been mortgage approved with 3 different banks.

We have been looking to buy a house for the past 6 months but just keep falling short of 20-30k. We have a large deposit saved.

I’m trying to ascertain from the banks we have been approved for if we would be eligible for an exemption.

One bank has said yes but gave no timeline as to when or how early in the new year they will become available.

My question is, from experience how early in the new year do these exemptions take effect. Is there no point continuing bidding on property’s now until we know for sure the exemptions are full implemented.

I am getting a letter today from one bank confirming we are getting one but it will be after Xmas but can’t clarify exact date!

We are looking at a lovely house but got outbid and it’s ready to close, just need that extra 10-20k.

I know what everyone will say, walk away and wait for another one to come up but we have researched it and know this is the one we want.

Thanks

averagejoe123

I believe that banks are going to be far more selective with their exemptions in 2019. From speaking to brokers the people who are most likely to get exemptions going forward will have a combined salary of €100k + and will be looking to borrow the maximum. Whilst this may not be fair it makes sense as the banks are trying to maximise their profits.

They should start to come on stream in January as their allowance is done on a calendar year basis.

Personally I would be reluctant to continue bidding on a house that I may know be able to afford but I am sure that you aren't the only one waiting until 2019 to hopefully have access to a larger mortgage.

bri007

Thanks for the reply,

Do you think there are currently people bidding on houses and basing their offers on the probability of getting an exemption from the banks even though not fully guaranteed?

averagejoe123 wrote: »

I believe that banks are going to be far more selective with their exemptions in 2019. From speaking to brokers the people who are most likely to get exemptions going forward will have a combined salary of €100k + and will be looking to borrow the maximum. Whilst this may not be fair it makes sense as the banks are trying to maximise their profits.

They should start to come on stream in January as their allowance is done on a calendar year basis.

Personally I would be reluctant to continue bidding on a house that I may know be able to afford but I am sure that you aren't the only one waiting until 2019 to hopefully have access to a larger mortgage.

averagejoe123

bri007 wrote: »

Thanks for the reply,

Do you think there are currently people bidding on houses and basing their offers on the probability of getting an exemption from the banks even though not fully guaranteed?

Would I say there are people doing it?- Yes
Do I agree with it?- No

People should not be looking at these exemptions as a goal to be hitting. The current restrictions are in place to protect borrowers and to ensure that there isn't a repeat of 2008-2012.

Will an extra 10-20k get this done? What happens if you are outbid again at that point?

You need to set your maximum and stick to it. Bare in mind that moving into a house is a costly exercise and you will need a decent sum set aside to cover everything