Agreed, I don't trust either. Thing is though, I want to sign the contract but my solicitor is refusing to let me without getting a new letter of offer which I won't be getting until December, as said you can't trust the developers. Am I still able to sign the contract?? Builders were happy with subject to financing clause as they understood.
Can anyone recommend a mortgage broker in Cork? first time buyer, will be looking to buy in the North/East of the county.
What happens when you're applying for a mortgage and you get a pay rise / new job with a new salary during the year.
The P60 won't match your current salary as you have not been making that money for a year. Will pay slips suffice to get a mortgage relative to your current salary?
Do you mean that you have approval and now want to up it, or you're just applying? either way bank will ask for your pay slips on multiple occasions... and then again just because. :)
Generally you'll be asked to supply a salary certificate signed by your employer. So if you've received a raise you can get an updated salary cert from your employer and that should be acceptable, along with new payslips when the raise kicks in.
Thanks everyone, that calms my nerves. I move jobs two months ago so I finally am at a salary where I can try to get an apartment.
I was worried they would use my previous lower salary.
What do banks looks for when giving exemptions? Single applicant with a good salary. Do they take into account the size of deposit if you have a large one?
My partner and I are applying for a mortgage. We would like to buy a new built.
We got the approval in principal no problem and I'll probably get a raise in the next few months (been working in the same Company for 7 years now).
We put money aside during the lockdown and we have now about 11K saved (with 2 kids and a rent of 1,609).
Together we save 1,500 euros a month at the moment.
Both salaries combined we are around 81K. When we got the AIP we were told that we could borrow around 283K
Now here is the tough part: I am in the same Company for 7 years now but my partner had to get a new job because they were firing people (he left before they could get to him) and he got a new job very fast (he took the remaining of his holidays on the previous job and started just after to make sure that no gap could be visible and also to make sure that we still both have salaries). His new salary is more than what he got and he has bonuses but the banks won't consider them because he is new on the job.
He is his Company's only helpdesk in Cork in a very stable Company and sector.
He is currently on probation for 6 months and it will end on November 23rd.
We found a house that perfectly fits our criteria but they ask for a formal letter of offer. We went to AIB and PTSB and got rejected because of the probation (note that despite all expenses I am able to save 200 euros more each month and lodge them on my current account).
We then went to a broker who checked our situation and advised us to go with BOI since they tend to be a bit more 'flexible.'
We had a talk with 1 of their Mortgage advisors who told us that they could put a condition on the letter of offer saying that the money will only be released if my partner passes his probation (the house wouldn't be ready before the end of next year).
Has someone already been in that situation? What would you advise us? and is there a way to increase our chances to get a formal approval?
Sorry for the long story and thanks in advance 😀
Sorry, I'm not overly certain what you mean by a formal approval. Passing probation prior to drawdown would be a common enough condition on a loan offer. Almost every loan offer will be subject to some special conditions, it doesn't make it less formal.
He will be passed by the time you look to get funds released, and they will just need a letter from the employer confirming probation has been passed.
Sorry, maybe I used the wrong terms (we are new to all this process). I meant a formal 'letter of offer'
As I said, it would be normal enough to have a condition or two on a letter of offer. It won't make it any less formal, and will allow you to sign contracts etc. The only real risk is if your partner doesn't pass probation for whatever reason.
Just as an aside, if you are not closing until end of next year, your offer will likely have expired before you draw down, so chances are you're gonna have to apply again closer to the time. At that point, he will presumably have passed so the condition wouldn't be in the second one.
Thanks a lot for your reply :).
Yeah, the solicitor told us that the letter would last for 6 months and that we would have to apply again which is fine since the house is not even built yet and won't be ready until next year.
That's the thing.... we would need a bank that would agree to put the fact that he must pass his probation as a condition and agree to lend us money but apparently neither AIB nor PTSB will do.
We are tempted to go with BOI but the Mortgage advisor didn't seem to be sure enough to tell us if it would be possible.
My partner has over 10 years of experience as IT specialist and we have been in Ireland for 7 years now. We were just surprised to be turned down despite the savings, the HTB approval of 30,000 and the fact that technically my partner never stopped working even when he got the new job (there was no gap, only paid holidays from his old job)....
The solicitor didn't receive any contract yet but we're pretty stressed out about this situation and looking for a solution to maybe make the bank more confident :/
@joecork131189 my wife is on fixed term contracts and we had a condition placed on our mortgage offer to show a letter of extension when it was available. Again it was only after a certain date like in your case. No issues once we provided that.
Do you think banks would be bringing in these long fixed terms if they thought interests rates would be rising soon?
As a single person on 45K with a 5K bonus and houses in my area going for 250K i honestly don't know what im saving for.
I'm lucky my rent for my own place is 800.
I don't know if it could work in our situation... We only got the AIP, not a proper Mortgage approval
Rebuilding Ireland gets you there with a bigger deposit. They give 4.5x salary.
(45K * 4.5 + 20%) is 243K. Save a bit more and you're there.
You're saving around 75K for a 1-2 bedroom apartment in Ashbourne, Finglas or Balbriggan. With your salary you should easily be able to save at least 1200 per month. So 75K is possible to save in 5 years. In this time, hopefully, you find a second half, if seeking, or supply will be healthier.
It does not matter. Literally, when the bank lends you at a fixed rate, they will at the same time contract an interest rate swap derivative to cover that risk, so the bank is not taking risk on the interest rate going up or down in the period. We shouldn't judge their expectation based on this. They offer you a rate of x because they are contracting a swap rate that is lower, and they are pocketing the difference (+ covering the risk on non-payment, etc).
These rates are not extraordinary, by the way. In Denmark, last January they were offering 0% 20 year fixed rates on mortgages.
I don't think the rates will rise in the next 3 or 4 years, but at the same time inflation seems to be picking up worldwide... in terms of monetary policy this is uncharted territory, so it is really difficult to get any sort of predictions.
Do Avant Money mortgages only work through brokers?
They've a list of brokers on their site: https://www.avantmoney.ie/mortgages/brokers
Is this the only ones you can use? Thanks in advance.
Yeah, broker only.
Anyone know how long its currently taking to get a loan offer? Have booking deposit down but no loan offer, just got the sales letter from vender and it had a tight timeframe as special conditions.
Do you need 10% saved of the max Rebuilding Ireland will offer you before applying? ie, if they will offer a max loan of 288k, do we need evidence of 28.8k in a savings account prior to applying?
Whats the current deal with getting a mortgage approval having lost my job last year but now in new job full time last 6 months. no probationary period. permanent job.
I know they check p60 from last year where I worked just about 3 - 4 months. I guess half the country is in the same position as I am at the moment. With job losses in the pandemic last year.
Once they're happy with your current employment and the industry it's in (and as you said, full time permanent and have passed probation) you should be fine.
If you're not in probation you should be fine. They generally look for 6 months statements and will want confirmation from your employer that you're full time and permanent.
The bank will request a salary cert and one of the questions is if you subject to a probation period once that is answered no I think you will be fine.
We are waiting nearly a month for letter of offer from PTSB since all requested documents were sent. They came back looking for further info on a structural report. Any request they have resets everything on their side by 10 working days each time. Still no clue when offer letter will be issued. Our vendor is anxious.
Just to warn that there is cap on how much you can offer on a house with the RI Home Loan. Has meant we have been unable to source a house in Dublin for 9 months - cannot bid a cent over 320k despite having a good bit over the 10% required deposit in savings.
Self build question for staged payments with BOI
with boi what do you need to provide for first staged payment? how long does it take