Saving/Applying for a mortgage 2020-22 Edition

Graham

Continued from here: https://www.boards.ie/vbulletin/showthread.php?t=2057501206

Thargor

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...

wirelessdude01

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

ELM327

Surely this should be called the Covid edition :P

Creamy Goodness

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.

8-10

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.

Simonkelly98

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?

Creamy Goodness

Simonkelly98 wrote: »

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.

Simonkelly98

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?

zuhuraswa

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

Simonkelly98

Creamy Goodness wrote: »

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

Oh ok but not otherwise?

Simonkelly98

zuhuraswa wrote: »

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

Just for the previous year?

8-10

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

Kevhog1988

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.

cython

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.

IvoryTower

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

8-10

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

lochgarman512

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

Techn0

lochgarman512 wrote: »

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.

GarIT

lochgarman512 wrote: »

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.

lochgarman512

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?

Techn0

lochgarman512 wrote: »

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.

antimatterx

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.

8-10

antimatterx wrote: »

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.

CIP4

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.

IvoryTower

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.

CIP4

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.

Maz2016

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?

ZX7R

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

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

guyfawkes5

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).

Maz2016

Thanks guys. I think I’ll go through a broker as well just to make things that bit easier

random_banter

We were due to apply in June after saving and getting our ducks in a row the last number of years, and had hoped to secure our first home by the end of the year. There's a possibility my company will introduce temporary wage cuts - the situation isn't as bad for my company as in other industries but they will need to do that while things are quiet. And when this is over, I see the company getting back up to speed over the next 6 months. But even then, I'm guessing it's very wishful thinking that the banks will show some lenience if theres a 3 month wage reduction? The loan amount would probably be calculated off the newer, lower wage, right?

I know it's a first world problem but guess I'm trying to maintain some hope that we may still get to purchase our first home before the year is out after such a long wait/prep period.

IvoryTower

I'd say just wait until you have another 6 months of normal wages. They wont go on your word that it's only temporary imo

I'd wait until house prices drop as well...

sarahzxe

Hey could anyone give me an idea of how much are the extra costs when buying a house for 300k? Legal fees, stamp duty, valuation, structural survey's etc. Based outside of dublin. Thanks ðŸ‘

Starlord_01

IvoryTower wrote: »

I'd say just wait until you have another 6 months of normal wages. They wont go on your word that it's only temporary imo

I'd wait until house prices drop as well...

Any idea on when the prices will begin to fall?

IvoryTower

Starlord_01 wrote: »

Any idea on when the prices will begin to fall?

If you look at the property 2020 thread you will see they're arguing about this constantly. Nobody knows really. I'd say they've already dropped a bit but how far will they go, how long will it take to get there, anyone's guess from what I can see.

accensi0n

sarahzxe wrote: »

Hey could anyone give me an idea of how much are the extra costs when buying a house for 300k? Legal fees, stamp duty, valuation, structural survey's etc. Based outside of dublin. Thanks ðŸ‘

Here's a start:
https://www.ccpc.ie/consumers/housing/buying-home-step-by-step-guide/#link2

Starlord_01

IvoryTower wrote: »

If you look at the property 2020 thread you will see they're arguing about this constantly. Nobody knows really. I'd say they've already dropped a bit but how far will they go, how long will it take to get there, anyone's guess from what I can see.

There will also probably be a drop in the amount available on the market also. Had planned to buy early 2021, but will just wait it out.

antimatterx

Work aren't doing appraisals for the next year, which ****s me in terms of buying a apartment.

I need to look for a new job once the economy bounces back!

fifth

Got a pay increase. Broker is asking the bank for an increase in my mortgage approved amount (as am already approved and ready to move to loan offer.. looking at a slightly nicer property now) let's see how that goes. Anyone had any luck with that? With BOI.

guyfawkes5

sarahzxe wrote: »

Hey could anyone give me an idea of how much are the extra costs when buying a house for 300k? Legal fees, stamp duty, valuation, structural survey's etc. Based outside of dublin. Thanks ðŸ‘

Legal fees will be €1,500 - €2,500 depending on the solicitor. Be aware cheaper fees may mean they are treating your case as part of a backlog and that may entail delays, but this is not always the case.

Stamp duty is simply 1% of the purchase price, so €3,000 in this case.

Valuation I've heard of being around €100, and there's not much wiggle room here as you will have to pick a valuer from the list the bank gives you.

Structural surveys are around €100-400 and there is a degree of you get what you pay for here in terms of detail. There is also probably a price variation in terms of what kind of property you want surveyed.

Don't forget land registry fees, I haven't paid this myself yet but believe it's in the range of €500. Someone can correct here if needed.

guyfawkes5

fifth wrote: »

Got a pay increase. Broker is asking the bank for an increase in my mortgage approved amount (as am already approved and ready to move to loan offer.. looking at a slightly nicer property now) let's see how that goes. Anyone had any luck with that? With BOI.

I'm with the exact same bank and have done the same thing. They said a new salary cert filled out by your employer and at least one payslip showing your new salary in effect is all it took.

Dolbhad

guyfawkes5 wrote: »

Legal fees will be €1,500 - €2,500 depending on the solicitor. Be aware cheaper fees may mean they are treating your case as part of a backlog and that may entail delays, but this is not always the case.

Stamp duty is simply 1% of the purchase price, so €3,000 in this case.

Valuation I've heard of being around €100, and there's not much wiggle room here as you will have to pick a valuer from the list the bank gives you.

Structural surveys are around €100-400 and there is a degree of you get what you pay for here in terms of detail. There is also probably a price variation in terms of what kind of property you want surveyed.

Don't forget land registry fees, I haven't paid this myself yet but believe it's in the range of €500. Someone can correct here if needed.

The above is spot on with the legal fees I found.

PRA charge €700 to register a house with a value of €200-400k. Register mortgage is €175. Will also have outlay like searches, commissioner for oaths. I’d add another €200 for that then.

CIP4

When applying for a mortgage would it be normal for the bank to look for your employment contract. I have a permanent job and get paid a certain amount overtime which is mentioned in my contract but now the bank want to see my contract as proof. I wouldn't of thought this is something they typically look for.

TheSheriff

CIP4 wrote: »

When applying for a mortgage would it be normal for the bank to look for your employment contract. I have a permanent job and get paid a certain amount overtime which is mentioned in my contract but now the bank want to see my contract as proof. I wouldn't of thought this is something they typically look for.

Yes, I had to provide my employment contract.

I changed jobs within the company during the approval and they wanted my new contract also.

Would have thought this was fairly standard being honest.....

houghton88

Hi everyone, I went through the mortgage application on my own during the crash. It was a nightmare. Incredibly time consuming and stressful. In the end, we pulled out of the purchase late on due to the volatility of the market at the time.

We went on to buy our first house 3 years ago. I used a broker. I CANNOT stress strongly enough how much easier life was going through a broker. I know how difficult the process is and I went through it alone during the last crash. Don't make the same mistake I did. <SNIP A BROKER>. I highly recommend.

Best of luck to you all going forward. I wish you well.

lomb

Heres hsbc approach in UK. Seems reasonable https://www.mortgagestrategy.co.uk/news/hsbc-makes-changes-to-income-assessment/

fifth

houghton88 wrote: »

Hi everyone, I went through the mortgage application on my own during the crash. It was a nightmare. Incredibly time consuming and stressful. In the end, we pulled out of the purchase late on due to the volatility of the market at the time.

We went on to buy our first house 3 years ago. I used a broker. I CANNOT stress strongly enough how much easier life was going through a broker. I know how difficult the process is and I went through it alone during the last crash. Don't make the same mistake I did. <SNIP A BROKER>. I highly recommend.

Best of luck to you all going forward. I wish you well.

+1 on using a broker. The broker I am using came highly recommended and has been amazing through all of this. Super quick to get responses from the bank and very patient with me as I changed my mind on houses, changed jobs etc etc.

iQuestion

Are banks such as BOI, PTSB accepting mortgages applications at this time or they have stopped doing so because of covid?

Is it legal to take mortgage at this time since we are in a lock down?

Creamy Goodness

iQuestion wrote: »

Is it legal to take mortgage at this time since we are in a lock down?

Banks are deemed an essential service. As long as they’re happy to give you the money and you’re happy with the loan terms then I don’t see anything illegal.

The only real snag will be signing contracts but we’ll hopefully be out of lockdown by the time it comes to that.