Saving/Applying for a mortgage 2020-22 Edition

Bluefoam

https://www.boards.ie/discussion/comment/121171325#Comment_121171325

Unlikely, their calculations are based on your ongoing ability to make the payments

crisco10

It depends what your salary cert would refer to it as. If its just in your base, the bank might change the amount. But would you want to misrepresent it like that?

jazz_jazz

Thanks for the replies Bluefoam and crisco10.

dkRulez

I have gone sale agreed on a house. My wife's foreign credit report show a property loan against her name. For context this loan was taken against a property owned by her father to support the refurbish of family home. The bank at that time issues a Equitable Property loan for renovation while in theory it was loan against a property owned by her father. We have closed the loan and now BOI have comeback to say we are not HTB eligible. We have a tight deadline to sign the contract, I am collecting documents from foreign country to prove house belongs to father.

What should we do in this case? how to convince BOI we don't own the house. Also we have a broker in the middle engaging with the bank and are not marked in any communication. Do we engage with revenue hoping they would be quick to resolve this issue?

This could seriously have a huge impact on future going forward.

dkRulez

We have gone sale agreed on a new built and have a short deadline to sign contract. We are in a situation where my wife's foreign credit report shows a loan against property. For context, my wife 5 years ago took a loan to refurbish the family home. The bank issued her a loan as a Equitable Property Mortgage against fathers property. The bank just classified the loan as property loan instead as a loan against property for improvements. BOI has come back to us stating we are not HTB eligible. The loan is closed now, how do we prove to BOI that the house is not owned by my wife and the loan is not a property loan. Do we directly engage with Revenue to sort this out, which may delay us significantly? I am collecting documents from foreign country but worry if it would be ignored.

We are worried we may miss out on the house. We also have a broker in between and have no direct communication with BOI.

Bluefoam

https://www.boards.ie/discussion/comment/121195630#Comment_121195630

The type of loan is important... It would describe the legal requirement in how repayments are made, the terms of the loan, the period of repayment and importantly the interest rate and how that is calculated...

I'd guess that the terms were more favorable for a mortgage rather than a regular loan, so that is what she chose to take. It's a mortage... so that would disqualify her from HTB, the bank are right. Luckily, you can take out a mortage in you're own name if you qualify for HTB, but your wifes earnings can't be used to fund it and she can't go on the deeds. Otherwise you can proceed with the mortgage without using the HTB.

If however, the bank were mistaken in in labeling the loan, and it was in fact a regular home improvements loan rather than a mortgage, they would be able to provide you a simple letter to clarify to the new mortgage provider... They would also probably have to change the records relating to the loan.

dkRulez

https://www.boards.ie/discussion/comment/121196316#Comment_121196316

While taking the loan it was always mentioned as an home improvement loan but keeping the house ( her father's) as equity. However, in documents it appears as home loan with father as co-applicant. We are trying to prove ownership has always been with her father and would remain like that in future, not sure how much we could convince. She was never in ownership of the property and never would be.

Buying without her salary is almost impossible, a small technical issue is derailing everything for us. Also, since the loan is now closed very difficult to get bank to state otherwise on the type of loan, its a case wherein banks offer loan to kids but ask parents home as security or co-applicant.

luisgarciaisgod

I bought an apartment with some inheritence i recieved a few years ago, I sold it recently because I want to buy a house but I'll need a mortgage to buy a decent house.

Would I be considered a first time buyer because I've never had a mortgage? Could i get 4x my salary?

herbalplants

https://www.boards.ie/discussion/comment/121215333#Comment_121215333

Yes you will be considered first time buyer. Not much difference anyhow. You will have good deposit by selling your apartment.

Bluefox556

Does anyone have any idea how long it takes for AIB to check final documents before drawdown?

They just confirmed receipt of all solicitor documents including the request for funds for tomorrow 24th

It is possible for them to review docs today and release money tomorrow?

theboringfox

https://www.boards.ie/discussion/comment/121273631#Comment_121273631

They reviewed all mine within day of submission. Mortgage protection assignment was longest. I would ask via mortgage person or broker that it is prioritized. I found them to be efficient

Mr lebowski

Hi could anyone advise on the best tools online or anywhere that supplies advice on the best banks to supply a mortgage or the best rates.I am just starting the process and am at a loss on what way to go about it. Are the credit union mortgages any good or worth looking into?. A mortgage broker is 4 figures but are they worth it in the long run? I am normally good at arranging and organising stuff like this. I'm just struggling to get started.Thanks in advance.

theboringfox

https://www.boards.ie/discussion/comment/121275959#Comment_121275959

Ccpc site has mortgage comparison tool

herbalplants

https://www.boards.ie/discussion/comment/121275959#Comment_121275959

Get a broker. You don't pay the broker, bank pays them when you get the mortgage of your choice.

Cork2021

What are the final documents you need before drawdown?

Ive house insurance and mortgage protection sorted with EBS who I’m going with for the mortgage. So I assume that’ll be grand once I’ve a date for when it starts etc.

do they look for statements, payslip etc

blowintothewest

Has anyone heard of AIB offering Fx mortgages for residents? We were told last year by our broker that only Haven do them but now someone told us then confirmed that AIB also offers them. I know they're largely the same company but the ability to apply directly to AIB would be useful given how thoroughly useless our broker has been so far.

Bluefox556

Does anyone know how long it takes for AIB to confirm a qualification on title?

It seems the lending team need their management to sign off on this before they will approve the solicitors undertaking and move to sending the funds.

It's been at this stage since Monday this week.

I've rang AIB and been told multiple times they are just waiting for management to confirm but no one can tell me how long a wait..

Any insight would be great.

Tipp4Liam

Just wondering if they looked for the statements and payslips etc - in the same position now

dazzday

Min vs max deposit for new house?

Recently separated with two you kids. Looking to purchase a house near the kids mother in a relatively rural village in West of Ireland.

Mortgage AIP around 280k and looking at a house in the 310-330k bracket. Have about 50k liquid savings. House is livable but would need some work done over time (C2 rating currently, 20years old ex rental etc)

Full 280k comes in around 1.3k a month which is about 30% of my net (after pension etc)

Now in theory I could liquidate another up to 50k if I cash in my stocks etc, which I could obviously put towards a deposit and would drop my monthly repayment or should I use that more for the refurb in the future etc?

Would expect to upgrade jobs in the future so I think I could expect about 15-20% bump within the next 3 years

In summary

More deposit = less monthly repayments vs less deposit = more money to play around with? 

Thoughts?

Q&A

https://www.boards.ie/discussion/comment/121718715#Comment_121718715

Aim of the game is to have the lowest monthly repayment in the nicest possible house. But how you get there is worth considering.

Min deposit you'll need to start is 10% of purchaser price so about €31k.

I'd max or mortgage to start and save my money for potential issues that arise in the early months - houses can hide a multitude of issues you only really see when in. The logic being it's easier/cheaper to ask for the money up front then have to go back shortly after draw down looking for a home improvement loan (at possibly a higher rate). Which they may or may not agree too.

If nothing negative crops up then I'd plough money into either the mortgage or upgrades.

Regardless of what you do if be inclined to sell shares. You're effectively borrowing extra money (at mortgage rate) to invest. Paying your mortgage offers a guaranteed tax free return. To be better off with the shares you need to make an annual return well in excess of your mortgage rate when you factor in CGT.

Bluefoam

Yeh, owning more of your house is a great thing... It gives you security against the banks and it reduces your monthly, which should allow you more to spend on life and your kids... If your stocks are an investment in your future, then this seems a good way to use them, it's also an investment in your future.

reactadabtc

Has anybody made use of the first home scheme? If so any issues in using it?

Bikerguy

Eroro

Midlife crisis man

How long did everyone's HTB take to process? I applied in January and it just says "under review" and shows my application code and nothing more. I tried contacting through my enquiries but i haven't received a response

antimatterx

https://www.boards.ie/discussion/comment/121912163#Comment_121912163

I applied last week and was approved in a ed seconds. I haven't claimed it let, but I imagine that will take a bit longer.

Nigel Fairservice

https://www.boards.ie/discussion/comment/121912163#Comment_121912163

HTB was very quick. Initial application was approved straight away and when I made the formal application a few days before Christmas when the sale was going ahead it only took 24 hours to approve. I gave the code to our solicitor who gave it to the developer's solicitor. I think the developer had the funds before Christmas. I don't know for sure as Revenue didn't make any notice to us about the funds issuing but it was all quick enough.

suitcasepink

I’m sure this is like asking how long is a piece of string.. Does anyone have a rough idea how long it takes to get AIP from a broker after submitting all the docs?

Sausages14

If one were to receive a mortgage loan offer, and then after that but before drawing down the mortgage, they set up a revolut account that wasn't in any way connected to their bank account - could the lender find out about that account?

ArthurDayne

Bit of a possibly stupid question here but have been stressing a bit over the mortgage application process. I paid €100 recently for a check up with a private clinic for a non-physical illness related issue. One off payment, no need for follow up or anything or prescriptions etc, no issues at all really. Is this the kind of thing they will pull in the underwriter review or is it not enough? Also wondering if they would look at it and demand more information in the event that the mortgage bank is also providing the mortgage protection insurance or would they only be doing this where you declare any medical issues?

herbalplants

https://www.boards.ie/discussion/comment/121948703#Comment_121948703

You are totally overthinking it. Don't worry. It is a one off.