Saving/Applying for a mortgage 2020-22 Edition

popeyed2

https://www.boards.ie/discussion/comment/117709154#Comment_117709154

Our letter of offer arrived last Tuesday (10th Aug). We have provided all documents (payslips, insurances, DD mandates, up to date bank statements) and signed loan pack etc. with our solicitor. Drawdown was requisitioned on Friday. So waiting game now to see how long PTSB takes to process.

HerrKapitan

Is anybody else having difficulty with double barrel surnames with banks?

Each billing company seem to have their own rules regarding which of the two surnames they choose to go with.

I can't understand how in 2021 Irish institutions cannot accept double surnames as we have enough immigrants to warrant it.

It's holding our mortgage application up as different bills have different names.

Colemania

We're applying for a mortgage through a broker and we chose to go with PTSB. We were told 5 weeks and it's been the 8th week now. Incredibly slow. Anyway, that's not the point it this post.

It's being held up by the underwriter as my wife does not have 12 months consecutive current employment and the worst of all, this is only an issue because she's not european even though she's eligible to be an Irish citizen since 2019, we just didn't get around to applying for it as its a fair bit of work.

The broker is absolutely fuming with them and can't believe its being held up by this. We've gone to appeal it but it's so frustrating.

aodh_rua

My mortgage advisor recommended requesting a drawdown a week ahead of close, but she's now saying AIB have a 10 day backlog on issuing funds. Is anyone else experiencing this? We're making the request today, but were hoping to close on the 26th

arleitiss

Finally today got letter of Approval in Principle from two lenders that I applied with.

Some wording they use is confusing and now I am wondering what's next? They mentioned once I find property I am interested in purchasing - a valuation will need to be done.

Does this mean I can start viewing properties I am interested in?

Have few questions on this:

1) Who does the valuation? How does this work and who pays for it? How much does it cost?

2) (Mostly looking for new builds to utilize HTB that I got approved for) Let's say I found a house in one of the new build estates (which technically hasn't been built yet) - how does valuation work on that?

3) I was told to continue saving until the mortgage starts (without dipping into the funds unless it's for House Deposit), how do these work? Do I view demo house of new build that I am interested in and pay deposit to secure it? Is it refundable (if I pay deposit on lets say 3 different houses that I am potentially interested in but will only pick one in the end?)

spalpeen

If I switch jobs, do my 6 months of income start again, even if it's a seamless change in the same line of work, just with a different employer?

G_R

https://www.boards.ie/discussion/comment/117773827#Comment_117773827

1) Val is carried out by a valuer local to the area. Will be instructed by the bank, and be paid for by you. €100-€150

2) A valuation will be done on the plans to allow a loan offer to issue, and then a final valuation will be done prior to drawdown to confirm it's all completed.

3) A booking deposit is usually €5,000 and is fully refundable. You'll then pay an increased deposit once you go sale agreed - usually c. 5% (original €5k included in this), with the balance payable on completion. Using your savings for the deposit is fine, that's what it's for.

G_R

https://www.boards.ie/discussion/comment/117773910#Comment_117773910

Every bank has their own criteria on length of employment, but in general, once you are full time, permanent and not on probation, you are good.

They may look for details of previous employment so they can see your income is transferable and you have been earning at that level for a while.

arleitiss

https://www.boards.ie/discussion/comment/117774028#Comment_117774028

Perfect thank you for this.

Just wondering about this part: "a final valuation will be done prior to drawdown to confirm it's all completed.""

Just wondering now how does HTB work in this case, I know it's valid until the end of year but lets say I put a deposit on a new build next week from today.

It may take about 6-7 months to complete - HTB wont/may not be available then?

What happens then? Am I screwed kind of?

G_R

https://www.boards.ie/discussion/comment/117774152#Comment_117774152

Well it's currently in place until the end of the year - once the builder claims the funds before then, you'll be fine.

In all likelihood (IMO), it will be extended - if so, you will just need to reapply on 01/01/2022 (as it based off your most recent 4 years taxes) and provide your builder with up to date access codes for it.

If it isnt extended, if I was the builder, I'd be ensuring I was getting contracts signed and claiming the deposit prior to it expiring.

Blaa.boy

Hi just wondering do banks preferably ptsb look for more payslips etc at drawdown? Or is it just when originally applying. Will be a month after AIP house will be ready so not as if it's a few months after sent in original documents.

Thanks

itsusuallyjazz

https://www.boards.ie/discussion/comment/117776574#Comment_117776574

Yes they will look for payslips and latest bank statements at drawdown

Spooch

Loan offer with KBC is due to expire this month, new build was delayed until November. Anyone get an offer with KBC have information on extending/reapplying with them? Our broker wants us to apply to a different bank due to KBC pulling out of Ireland but I'm anxious about getting approved in time for the house being completed. Would be ideal if we could just supply KBC with latest payslips and avoid beginning the whole process again.

Blaa.boy

https://www.boards.ie/discussion/comment/117779130#Comment_117779130

Thanks. Will probably be drawing down in October/ early november and won't have any difference in payslips and bank statements as would be from October so should be fine. November there might be a change but won't need to show hopefully.

G_R

https://www.boards.ie/discussion/comment/117779224#Comment_117779224

They will extend up to 12 months from when your AIP was approved originally with minimal extra docs (bank statement and payslip). Beyond that, you will need to reapply.

theintern

https://www.boards.ie/discussion/comment/117773910#Comment_117773910

You'll likely be on probation with your new employer, which banks won't like. You may get approval condition to your probation being completed before drawdown. Or you could maybe negotiate no probation period with the new employer.

Interested Observer

https://www.boards.ie/discussion/comment/117791670#Comment_117791670

Yep, I would be working under the assumption that if you change employer/are on probation you won't be drawing down within the first 6 months of being with the new employer.

You can do everything else, get all the way to loan offer, but you'll almost certainly have to wait. I've heard of some banks giving waivers on this to certain professions or if one of a couple is a doctor or something but it seems rare.

arleitiss

Got approval in principle from three banks now.

I am confused about whole process of buying or even looking for house.

I got approved for HTB scheme also.

1) If I find new build I am interested in on daft/myhome - can I just arrange viewing? (This may sound bizzare but it still feels like I can't view it because I feel I am not entitled to viewing, I may need some sort of proof or something [Been a renter ever since I came to Ireland in 2008])

2) If I view some new build and I am happy with it - I can put deposit up right away, does this mean that one of houses is secured for me or what does this actually entail? (I've heard this deposit is fully refundable)

3) How does HTB actually work? If I literally dive right into purchase tomorrow - will I still be able to avail HTB even if house if ready in January 2022 (as an example) or it must be completed and done by end of 2021?

spalpeen

https://www.boards.ie/discussion/comment/117791872#Comment_117791872

Thanks. I'm a doctor so we generally don't have a probation period as doing the same thing with a new employer, fully qualified etc. So hopefully no problem

Emma2019

https://www.boards.ie/discussion/comment/117799828#Comment_117799828

Theres a whole HTB thread that will probably have your answers.

theintern

https://www.boards.ie/discussion/comment/117799828#Comment_117799828

https://www.boards.ie/discussion/comment/117774152#Comment_117774152

1. Just go look! You can't go any further now until you find a house you want to buy.
2. On a new build, you usually put down a booking deposit. This is a few thousand and is usually refundable up until contracts are signed. After you put down the booking deposit, you'll need a solicitor because the solicitor for the developer will want to send contracts to your solicitor. They'll go back and forth on minor points until you go in and sign the contracts for the house. Now you and the builder are contractually locked in. Either you or the builder could pull out no questions asked up to this time.
3. As far as I'm aware, and how it worked for us, the builder needs to claim the HTB. This happened around the time we signed the contracts. Once the builder claims it with your HTB number and access code, I think it's locked in, but best to check up with that.

Spooch

Got AIP in place with PTSB, broker sent in the application last Friday and came back this morning with the good news, working on getting us to Loan Offer straight away. It's going a lot smoother/faster than I anticipated and taking a lot of pressure off. Might finally let myself start to get a bit excited 😬

crashbang1

https://www.boards.ie/discussion/comment/117760696#Comment_117760696

Hopefully you've drawn down and are in the process of moving in! How long did it take for PTSB to process drawdown request?

Cameron326

Hi all. Question regarding 2nd time buyer mortgage, re, the 20% deposit rule. Is it the case that the deposit has to be cash - ie. it can't come out of the value of the home you will be selling/moving out of? So, if you wish to purchase a property thats costs say, 600k EUR, you would need to have 120k EUR cash saved up for the deposit?

Blaa.boy

https://www.boards.ie/discussion/comment/117812135#Comment_117812135

That's great news. Do you mind me asking do you need to get a new build valued or can go straight to loan offer. Our application was just sent into ptsb this week and also buying a new build.

Spooch

https://www.boards.ie/discussion/comment/117818136#Comment_117818136

We ordered the valuation straight away and they told us they'll do an initial valuation on the site/current state of the build in order to issue the loan offer, then on drawdown they will do a second valuation on the completed house. Cost us e150

G_R

https://www.boards.ie/discussion/comment/117815433#Comment_117815433

Of course it can, that's how the majority of people fund their deposit for their 2nd property.

The rule is the mortgage cannot be more than 80%, not that you have to have 20% in cash.

elzibar

Finally got AIP from AIB! Took almost 2 months as they had some queries and there seems to be a backlog at the moment, nearly 10 working days for them to get back to me about anything. Annoyingly they don't change the expiry date, so only 4 months to look for somewhere to buy now. Was a bit surprised they approved me for the mortgage they did, being a single buyer. Feeling like this is doable now after thinking I'd never be able to afford anything!

tobsey

https://www.boards.ie/discussion/comment/117815433#Comment_117815433

You can use the equity released from the sale to fund the 20%, but you will be expected to have 10% in cash to pay as a deposit when you return signed contracts. If you intend to sell and buy at the same time then you will need this 10% in cash.

You would normally pay around 2% as a booking deposit to the estate agent when you go sale agreed. Then another 8% when you do the contracts. Your solicitor then takes the proceeds of your sale, clears that mortgage, draws down new mortgage and puts it all together to complete the purchase. Then they’ll refund any balance to you.

We didn’t have the full 10% in cash so had lined up family for a loan to cover us, but we ended up selling and then moving in with family before completing the purchase so it wasn’t an issue for us any more. The solicitor kept our equity in his client account and will be sending the 8% to the purchaser when we return contracts this week. He’ll then draw down the mortgage in 2 weeks when we’re closing and then give us a closing statement and return any monies we’re owed.

antimatterx

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