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Saving/Applying for a mortgage 2020/21 Edition

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Comments

  • #2


    Has anyone got a good checklist of things I could do now before I start applying for a mortgage when the current crisis is over? I have my payslips and proof of my savings and that's about it...


  • #2


    Thargor wrote: »
    Has anyone got a good checklist of things I could do now before I start applying for a mortgage when the current crisis is over? I have my payslips and proof of my savings and that's about it...

    Make sure that your bank statements are relatively clean. No payments to online betting etc


  • #2


    Surely this should be called the Covid edition :P


  • #2


    Thargor wrote: »
    Has anyone got a good checklist of things I could do now before I start applying for a mortgage when the current crisis is over? I have my payslips and proof of my savings and that's about it...

    You’ll want a banks salary cert stamped/signed from your employer. Best grab these off the internet and print them so they’re ready to go when you’re back in the office.


  • #2


    Thargor wrote: »
    Has anyone got a good checklist of things I could do now before I start applying for a mortgage when the current crisis is over? I have my payslips and proof of my savings and that's about it...
    • Application
    • Statement for Current Accounts
    • Statement for Credit Cards & Loans
    • Statement from anywhere else you have income e.g. Revolut
    • Proof of savings and continual adding to savings (more bank statements)
    • Last 3 year's P21 Statements from Revenue
    • Last 3 months payslips
    • Latest 'bonus' payslip if you get annual bonus and it wasn't in last 3 months
    • Salary Certificate from employer
    • Latest tenancy agreement if renting
    • Gift letter if getting help with deposit from family

    Applies for both people if applying jointly. Might not need all of this from day 1, and this is not comprehensive just based off what I needed, most institutions will have a quick sit down with you and what's required can differ place to place but if you have everything in order and have good recent history I'd grab everything you can to back up your situation.


  • #2


    8-10 wrote: »
    • Application
    • Statement for Current Accounts
    • Statement for Credit Cards & Loans
    • Statement from anywhere else you have income e.g. Revolut
    • Proof of savings and continual adding to savings (more bank statements)
    • Last 3 year's P21 Statements from Revenue
    • Last 3 months payslips
    • Latest 'bonus' payslip if you get annual bonus and it wasn't in last 3 months
    • Salary Certificate from employer
    • Latest tenancy agreement if renting
    • Gift letter if getting help with deposit from family

    Applies for both people if applying jointly. Might not need all of this from day 1, and this is not comprehensive just based off what I needed, most institutions will have a quick sit down with you and what's required can differ place to place but if you have everything in order and have good recent history I'd grab everything you can to back up your situation.

    Why were they looking for your p21 statements? Is this a normal request? Would it hurt someone's application if they didn't have much earnings prior to the year they applied for a mortgage?


  • #2


    Why were they looking for your p21 statements? Is this a normal request? Would it hurt someone's application if they didn't have much earnings prior to the year they applied for a mortgage?

    p21's are required to be submitted if you're availing of the Help-to-Buy Scheme.


  • #2


    Sorry about all the questions above but I have more. When searching for answers this website came up and it seems very helpful.

    My query is about someone employed by a family member. The company is new and the only employee is the family member. They get paid a salary every 2 weeks. When applying for a mortgage, will this cause any problems?


  • #2


    They didn't look for my P21 statement, but they did look for my P60 statement


  • #2


    p21's are required to be submitted if you're availing of the Help-to-Buy Scheme.

    Oh ok but not otherwise?


  • #2


    zuhuraswa wrote: »
    They didn't look for my P21 statement, but they did look for my P60 statement

    Just for the previous year?


  • #2


    zuhuraswa wrote: »
    They didn't look for my P21 statement, but they did look for my P60 statement

    Yep but P60's haven't been issued since 2018

    It's just another form of proof of household income. I'd personally just submit everything you can to show you've nothing to hide, OP was also just looking for things to get ready during the lockdown in advance so no harm in at least having the P21's requested and saved with the other docs in a folder so they're ready in case they are asked for. If not needed then you don't have to give them


  • #2


    What will mortgage providers view be on people out of work during the crisis and then back to work after. Do we need to wait another 6 months before applying once my partner is back to work?. I am safe in my job but she was let go from hers due to the crisis.


  • #2


    8-10 wrote: »
    Yep but P60's haven't been issued since 2018

    P21's are gone as of Jan 1st of this year also, so they don't exist for 2019, and if you don't have one already for preceding years you won't get one now.


  • #2


    Make sure your passport or drivers license is in date, that just stung us, both were out of date for my missus!both services closed as well, doh


  • #2


    cython wrote: »
    P21's are gone as of Jan 1st of this year also, so they don't exist for 2019, and if you don't have one already for preceding years you won't get one now.

    Statement of Liability or whatever it's called now is what I meant....is it not still the P21? It's the balancing statement you get after filing your return.

    3 of those! :P


  • #2


    Would a personal loan repayment of €100 a month majorly impact an application? I’d be confident we’d well be compliant with all requirements for first time buyers regarding salary, deposit, etc


  • #2


    Would a personal loan repayment of €100 a month majorly impact an application? I’d be confident we’d well be compliant with all requirements for first time buyers regarding salary, deposit, etc

    It's all relevant but most likely no. Your mortgage application will be tested on ability to repay. If, after factoring in monthly living expenses (say €1,200), plus your loan of €100, you have enough to repay the mortgage (which they'll stress test), it won't impact.


  • #2


    Would a personal loan repayment of €100 a month majorly impact an application? I’d be confident we’d well be compliant with all requirements for first time buyers regarding salary, deposit, etc


    It will reduce what you can borrow by €100 miltiplied by 12 (months) by the term of the mortgage (years), so €36,000 for a 30 year mortgage.


    You might not be affected by it in some circumstances, such as if you are limited by the 3.5 time cap rather than the repayment ability.


  • #2


    Techn0 wrote: »
    It's all relevant but most likely no. Your mortgage application will be tested on ability to repay. If, after factoring in monthly living expenses (say €1,200), plus your loan of €100, you have enough to repay the mortgage (which they'll stress test), it won't impact.

    So if my current rent is more than the mortgage repayments and I’m good for saving for the deposit I’d likely be grand with €100 p/m?


  • #2


    So if my current rent is more than the mortgage repayments and I’m good for saving for the deposit I’d likely be grand with €100 p/m?

    We don't know enough about your monthly inflows and outflows but assuming you have no problem repaying the mortgage (stress tested) when factoring in your €100 loan plus living expenses (typically €1,300 per person give or take) you should be fine.


  • #2


    What are people's experiences buying as a single person? I'm 24 and looking to get an apartment in the next few years. Current salary 32k. It Will be ~50K within 2 years, and I saved 70%. I should be in a good financial situation.


  • #2


    What are people's experiences buying as a single person? I'm 24 and looking to get an apartment in the next few years. Current salary 32k. It Will be ~50K within 2 years, and I saved 70%. I should be in a good financial situation.

    Just keep saving. You'll be fine. No need to rush right now as there's no stock going up and new builds halted. If you're 70% of deposit saved then now is a good time to put a bit more away.


  • #2


    Applying for a mortgage at the minute just started with my local bank. I have application form filled in, sent statements for accounts not held in the bank, 3 months payslip, Revenue employment summary. Haven't managed to get the salary cert completed by my employer at the minute as the way things are working with people working from home making it difficult. I thought the bank would be able to proceed and offer me approval in principle without the salary cert ? So far they haven't told me anything in terms of what I can borrow just are requesting forms, documents etc. I kind of thought it would be just fill in the basics they tell you what you can borrow then you get into the detailed documents seems to be the other way around.

    Again my first time applying so maybe its normal. Kind of want to know what I can borrow so I know what level of house I can buy to start looking so as to avoid me looking at houses way outside my budget.


  • #2


    I'm at the same stage, just handed in all my documents yesterday. The person I was dealing with in both banks was able to tell me what I could borrow based on what they knew. If it's a straight forward application the online calculators will tell you. Then the amount changes with each loan, kid, etc.


  • #2


    IvoryTower wrote: »
    I'm at the same stage, just handed in all my documents yesterday. The person I was dealing with in both banks was able to tell me what I could borrow based on what they knew. If it's a straight forward application the online calculators will tell you. Then the amount changes with each loan, kid, etc.

    Yes I have tried a few online calculators to get an idea alright. But while 3.5 times my base salary is straight forward. I get an annual bonus and then do a certain amount of weekend overtime which is guaranteed in my contract. Both are substantial amounts annually so depending how the bank counts this will swing the amount I can borrow a good bit.


  • #2


    Just about to start the process as a single person. I’ve a good bit built up in savings , can prove I can save 1000 per month , accounts are cleanish and all paperwork ready to go. One thing that I’m worried will come against me. I have a heart condition. I needed surgery for it 3 years ago There is nothing so say I won’t need surgery in future as this is a lifelong condition. However, my cardiologist said as of now my heart is perfect. Could this be an issue?


  • #2


    Maz2016 wrote: »
    Just about to start the process as a single person. I’ve a good bit built up in savings , can prove I can save 1000 per month , accounts are cleanish and all paperwork ready to go. One thing that I’m worried will come against me. I have a heart condition. I needed surgery for it 3 years ago There is nothing so say I won’t need surgery in future as this is a lifelong condition. However, my cardiologist said as of now my heart is perfect. Could this be an issue?

    No it should not be, the bank may require a health policy to cover the Life of the mortgage in case anything happens


  • #2


    My mother sent me this, I applied for a mortgage last week. Had been intending to buy soon. I'll hold off


  • #2


    It'll come up in mortgage protection insurance and it might mean a physical by a doctor and probably a higher premium but nothing life-changing (mortgage protection insurance starts at around €5 per month).


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