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Saving/Applying for a mortgage 2020-22 Edition

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  • Moderators Posts: 12,130 ✭✭✭✭ Black_Knight


    Idjit wrote: »
    Does anyone know, does it matter to the bank if you have your savings in a joint account or can they be spread out over several accounts?

    Myself and my partner have a credit union account each, and a bank savings account each. Our savings are split over these four accounts.

    Do the banks have any preference over this, or does it matter as long as we can provide statements for them all?

    So long as you show them I the accounts it's grand. We had on my side 1 current account, 2 savings accounts, a joint account, then my wife had a current account and savings account.


  • Registered Users Posts: 31 EvoEvo


    ELM327 wrote: »
    probably wont look great but once it's 20 quid a month not a day you'd be grand I'd say.

    I'm thinking the same.....I have checked now and I have one Lotto transaction (around 20E) every 40-45 days....I'll be surprised that can affect a mortgage application:eek::eek:


  • Registered Users Posts: 3,825 ✭✭✭ IvoryTower


    They never looked at the much detail tor me. Just larger unexplained transactions like a few hundred in or out.


  • Registered Users Posts: 83 ✭✭ EireinOZ


    Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21


  • Registered Users Posts: 2,849 ✭✭✭ wally79


    EireinOZ wrote: »
    Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

    I don’t think you will get 5 times salary which is what you would need.


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  • Registered Users Posts: 561 ✭✭✭ Pivot Eoin


    EireinOZ wrote: »
    Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

    You dont have any chance unfortunately. Couples exceptions only begin to be considered now at €80k joint salary

    It's good that you're thinking about it, but tbh it sounds like you have time. If you really want to get on the ladder save and save and buy a good price 2 bed apartment in 12-18 months, this will be a good investment in the expected climate then and will set you up nicely to profit and get to your house sooner.


  • Moderators Posts: 12,130 ✭✭✭✭ Black_Knight


    EireinOZ wrote: »
    Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21
    wally79 wrote: »
    I don’t think you will get 5 times salary which is what you would need.

    Exactly.

    300k house, 30k deposit. You need to be able to borrow 270k. Ye need a combined salary of 77k for that, or 5 X 54k ye currently earn.
    I'm not saying there's no chance of ye getting a 5x exemption, but my unprofessional opinion is there's no chance ye will get it.

    On the brighter side, don't public servants have set salaries, so over the years you're guaranteed some pay bumps. Your partner being an engineer (possibly depends what type) should get decent bumps early in their career as they move from graduate to junior to mid.

    IMO, park the house idea. Ye just don't earn enough to buy a 300k house for the foreseeable future. If there wasn't an impending recession id suggest looking at cheaper options like an apartment, then trading up in a few years. Right now that's probably not a good idea though.

    Your rent is cheap, your savings are good. If ye can park the house idea, get rid of the car loan. Your deposit won't be going towards a house anymore, and it's earning <1% interest in the bank while you pay many multiples of that in interest on the car loan. Ye are doing really well with the deposit though. Seriously, if you keep that up, when your salaries increase enough, you'll be able to get a great LTV ratio, a great mortgage rate, and ideally a short mortgage.


  • Registered Users Posts: 8,105 ✭✭✭ RedXIV


    Worth pointing out that your partner in Engineering is likely to get more in terms of salary relatively quickly, wouldn't be unheard of to see an engineer almost double their salary in about 2 or three years which would solve your salary limitation.

    Not exactly what you're looking for but that may help?


  • Moderators Posts: 12,130 ✭✭✭✭ Black_Knight


    RedXIV wrote: »
    Worth pointing out that your partner in Engineering is likely to get more in terms of salary relatively quickly, wouldn't be unheard of to see an engineer almost double their salary in about 2 or three years which would solve your salary limitation.

    Not exactly what you're looking for but that may help?

    28 to 56 is a pretty big jump for a graduate who after 2 years would at best be a mid level engineer. Very much the exception, not the rule. That 28 should be mid 30s on promotion though. Moving company will likely accelerate the pay bumps once they stagnate. Basically, get a promotion, move company. Repeat (unless they pay you well to stay).


  • Registered Users Posts: 853 ✭✭✭ Plasandrunt


    How long in would you guys recommend to contact a broker to get some advice? I only have 3 months savings but I also own a property with no mortgage on it with plans of selling to buy. I wasn't going to contact the broker until i had 6 months savings in my savings a/c


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  • Registered Users Posts: 8,105 ✭✭✭ RedXIV


    How long in would you guys recommend to contact a broker to get some advice? I only have 3 months savings but I also own a property with no mortgage on it. I wasn't going to contact the broker until i had 6 months savings in my savings a/c

    No harm going earlier, Worst case is that you are told to return at a later date but likelihood is that most advice from a broker benefits from longer time periods


  • Banned (with Prison Access) Posts: 179 ✭✭ Dylan94


    How long in would you guys recommend to contact a broker to get some advice? I only have 3 months savings but I also own a property with no mortgage on it with plans of selling to buy. I wasn't going to contact the broker until i had 6 months savings in my savings a/c

    We went in from day one we started saving and then kept in contact with any questions we had along the way.


  • Registered Users Posts: 54 ✭✭ TM2015


    RedXIV wrote: »
    Worth pointing out that your partner in Engineering is likely to get more in terms of salary relatively quickly, wouldn't be unheard of to see an engineer almost double their salary in about 2 or three years which would solve your salary limitation.

    Not exactly what you're looking for but that may help?
    Your average civil engineer in general will not see 56k until they're in their 30s.


  • Registered Users Posts: 936 ✭✭✭ JohnnyChimpo


    IvoryTower wrote: »
    They never looked at the much detail tor me. Just larger unexplained transactions like a few hundred in or out.

    The only thing I had to explain was a €7000 transaction from a Portuguese ice-cream stand (a bank error which took fvcking months to fix). Once I showed them the refund and convinced them I didn't have a crippling gelato addiction they were grand.

    (jokes on them - i DO have a crippling gelato addiction)


  • Registered Users Posts: 1,174 ✭✭✭ bulmersgal


    Got mortgage approval today so happy 😊


  • Registered Users Posts: 127 ✭✭ ladystardust


    bulmersgal wrote: »
    Got mortgage approval today so happy 😊

    Congratulations ! Enjoy the buzz. We are signing contracts on Wednesday. Its along road but so worth it!


  • Closed Accounts Posts: 1,662 ✭✭✭ Duke of Url


    bulmersgal wrote: »
    Got mortgage approval today so happy &#55357;&#56842;

    Congrats :D

    Was it Mortgage Approval in Principle ?


  • Registered Users Posts: 1,174 ✭✭✭ bulmersgal


    Congrats :D

    Was it Mortgage Approval in Principle ?

    Yes few small conditions to send back to them before I can drawdown like my mam gave me 2k for flights and hotel we were booking back in Nov so have to get letter stating same hopefully hear back from few more banks in next week.

    Not sure difference in mortgage approval in principle and mortgage approval looked at letter and it's approved by head underwriter and they have looked through my bank statements, payslip etc


  • Closed Accounts Posts: 1,662 ✭✭✭ Duke of Url


    bulmersgal wrote: »
    Yes few small conditions to send back to them before I can drawdown like my mam gave me 2k for flights and hotel we were booking back in Nov so have to get letter stating same hopefully hear back from few more banks in next week.

    We only have the following conditions:
    Prior to letter of offer you need to provide documentary evidence confirming there has been no change to your income or employment situation as a result of Covid19 or other factors....

    So they could ask again for payslips, Statements, Salary Certs etc......

    Where they talk about Covid payments, This may be where people are getting effected on drawdown of Mortgages so now they are highlighting it in the Approvals section early.


  • Closed Accounts Posts: 1,662 ✭✭✭ Duke of Url


    bulmersgal wrote: »
    Yes few small conditions to send back to them before I can drawdown like my mam gave me 2k for flights and hotel we were booking back in Nov so have to get letter stating same hopefully hear back from few more banks in next week.

    Not sure difference in mortgage approval in principle and mortgage approval looked at letter and it's approved by head underwriter and they have looked through my bank statements, payslip etc

    Which bank?


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  • Registered Users Posts: 1,174 ✭✭✭ bulmersgal


    We only have the following conditions:



    Where they talk about Covid payments, This may be where people are getting effected on drawdown of Mortgages so now they are highlighting it in the Approvals section early.

    Yes I have that condition too which I was expecting.

    Finance Ireland is the mortgage company they a broker only company as far as I can see. Hopefully get a few more approvals and can compare. Happy to have one in the bag already.


  • Registered Users Posts: 186 ✭✭ ClaptonBay


    Question on new builds as i see in our area there is a new build for sale but in this situation the first time owners only lived in it id say 4/5 months and now looking to sell..we're not looking at it but what is the situation here for say first time buyers who would buy this house now? As they would be deemed second owners of the house, they wouldnt be entitled to the help to buy is that correct? Or is there a time limit eg if the first buyer sells the new build within x amount of months, a person deemed a first time buyer can still get the grant if they were to purchase?

    I think for the first owner of the property, assuming they were first time buyers and availed of the help to buy, there would be a clawback, correct?
    I know technically this is deemed a second hand property sale but curious if there are other conditions on this type of sale of a new build.


  • Registered Users Posts: 19,021 ✭✭✭✭ ELM327


    ClaptonBay wrote: »
    Question on new builds as i see in our area there is a new build for sale but in this situation the first time owners only lived in it id say 4/5 months and now looking to sell..we're not looking at it but what is the situation here for say first time buyers who would buy this house now? As they would be deemed second owners of the house, they wouldnt be entitled to the help to buy is that correct? Or is there a time limit eg if the first buyer sells the new build within x amount of months, a person deemed a first time buyer can still get the grant if they were to purchase?

    I think for the first owner of the property, assuming they were first time buyers and availed of the help to buy, there would be a clawback, correct?
    I know technically this is deemed a second hand property sale but curious if there are other conditions on this type of sale of a new build.
    Help to buy clawback is 5 years
    You can't get help to buy on a non new house.


  • Closed Accounts Posts: 120 ✭✭ Jsmac67


    Hi all,

    Hoping to apply to get approval in principal soon. We can afford to borrow roughly 350k, assuming 3.5x income, however would like to borrow closer to 375/400k.

    Having factored in various items such as stability of employment/lack of financial commitments/no dependents etc I'd be satisfied we could obtain some for of exemption.

    My question is, when do you apply for said exemption? Part of the approval in principle application, or completely separate process?

    Thanks!


  • Registered Users Posts: 96 ✭✭ WeeCuppaCha


    From reading here and elsewhere, it seems all exemptions have been now been suspended. Lenders are strictly adhering to the 3.5 rule and mortgages are only being approved where Covid subsidies are not being used to top up wages. When or if they’ll be reintroduced is anyone’s guess.


  • Registered Users Posts: 26,449 ✭✭✭✭ Creamy Goodness


    Jsmac67 wrote: »
    Hi all,

    Hoping to apply to get approval in principal soon. We can afford to borrow roughly 350k, assuming 3.5x income, however would like to borrow closer to 375/400k.

    Having factored in various items such as stability of employment/lack of financial commitments/no dependents etc I'd be satisfied we could obtain some for of exemption.

    My question is, when do you apply for said exemption? Part of the approval in principle application, or completely separate process?

    Thanks!

    Mention it as soon as you can to the bank. It’s much easier for them if you know what you need up front. They’ll crunch the numbers and come back to you. However I doubt they’ll open up exemptions until 2021 at this point (but this is pure speculation on my point).


  • Registered Users Posts: 214 ✭✭ lir6777


    Mention it as soon as you can to the bank. It’s much easier for them if you know what you need up front. They’ll crunch the numbers and come back to you. However I doubt they’ll open up exemptions until 2021 at this point (but this is pure speculation on my point).

    My broker guesses the same, end of the year at best but he said he can only speculate. I understand the caution on the banks' part,makes sense right now given we're waiting for the country to fall to pieces, but it's gutting. I'm a single FTB with a permanent job in the health service so my ability to repay hasn't changed (yet-i know levies may be coming) but 3.5 isn't enough so was reliant on an exemption. I now can't proceed with the new build I'd reserved and am stuck renting for however long things will take to straighten out. Which wouldn't be so bad if renting wasn't more expensive than a mortgage repayment, unless you want a bunch of flatmates (way less fun the older I get). Excuse the self-pity :) I know things could be so much worse, just seems there are others on here who will relate to the situation. Really hope those on here who are having trouble at drawdown stage get sorted, can't imagine getting that close and for it to not work out.


  • Registered Users Posts: 1,068 ✭✭✭ Maz2016


    lir6777 wrote: »
    My broker guesses the same, end of the year at best but he said he can only speculate. I understand the caution on the banks' part,makes sense right now given we're waiting for the country to fall to pieces, but it's gutting. I'm a single FTB with a permanent job in the health service so my ability to repay hasn't changed (yet-i know levies may be coming) but 3.5 isn't enough so was reliant on an exemption. I now can't proceed with the new build I'd reserved and am stuck renting for however long things will take to straighten out. Which wouldn't be so bad if renting wasn't more expensive than a mortgage repayment, unless you want a bunch of flatmates (way less fun the older I get). Excuse the self-pity :) I know things could be so much worse, just seems there are others on here who will relate to the situation. Really hope those on here who are having trouble at drawdown stage get sorted, can't imagine getting that close and for it to not work out.

    http://rebuildingirelandhomeloan.ie/calculator/

    Would this be of any help to you? It’s the route I’m going down as I’m on a similar situation


  • Registered Users Posts: 214 ✭✭ lir6777


    Maz2016 wrote: »
    http://rebuildingirelandhomeloan.ie/calculator/

    Would this be of any help to you? It’s the route I’m going down as I’m on a similar situation

    Thanks for that, I don't qualify though. Good luck with it! :)


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  • Registered Users Posts: 577 ✭✭✭ cant26


    Just wondering if anyone has any experience with this...I’m expecting my third child. Due in November. We will be applying for our first mortgage in September. I have absolutely no intention of telling the bank about my pregnancy as I know legally I am not obliged to. However, my obstetrician consultant fees come out of my current account. So far only one payment of €900. I’ve another payment of €1600 due in around four weeks time. And another payment after the birth. Will the bank question what these are for? It will clearly say my doctors name, can they press what the consultation is for? This literally just came to mind now and just wondering has anyone else been in a similar situation? Thanks!


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