Saving/Applying for a mortgage 2020-22 Edition

WeeCuppaCha

Dylan94 wrote: »

Please do post back about it. I'm planning on applying soon and was planning on their 2 point increase if I cant get an exemption.

I have since followed up with an email and been given confirmation that the 2 point increase is in operation.

I have read enough here and elsewhere to believe nothing until the money is in the bank so to speak, but I’m hopeful this is the case.

I will certainly let you know how I get on.

Pivot Eoin

LoonyLovegood wrote: »

Got AIP from three places, this is feeling incredibly real now. I'm organising viewings for places I'm interested in buying, but where do I go from here? Do I put the mortgage application through before I view and then tell them where I want to buy? Or wait until I find where I want and go sale agreed, and then put the application through?

My parents bought the first house they looked at, and I'm not sure where I'm at here. I'm not affected by COVID, work is as normal atm. Been approved for 3.5x my salary, and found a few houses where I want to live that are well in my budget.

Just start looking, VIEW HOUSES. Ive just begun the last few days, viewed 4 since Thursday. Already opening my eyes to things I just didn't see / know was important to me until I saw the spaces and the blind spots that arent in photos.

Some of the Photos are really skewed by the Wide Angle lenses EAs use for some photos. Some parts of houses look bigger, and some indeed look smaller depending on how far away from the camera the area you are looking at is.

Houses generally (I'm looking for close to turnkey) have been looking 10-20% better in the flesh, than in the photos. So that's worth factoring in also.

Best of luck, hope you find something great.

Duke of Url

So far with joint application as ftb

Got mortgage adviser....check

Applied for help to buy via revenue....check

Opened mortgage saver account....check

Saved deposit.....check

Applied for mortgage via application for 90% Mortgage.....check

Submitted required documents....check

Got mortgage approval in principle.....check

Found BER - A3 new build house........check

Got a solicitor.......check

Put booking deposit on house......check

Bank letter of offer.......waiting

Pivot Eoin

Duke of Url wrote: »

So far with joint application as ftb

Got mortgage adviser....check

Applied for help to buy via revenue....check

Opened mortgage saver account....check

Saved deposit.....check

Applied for mortgage via application for 90% Mortgage.....check

Submitted required documents....check

Got mortgage approval in principle.....check

Found BER - A3 new build house........check

Got a solicitor.......check

Put booking deposit on house......check

Bank letter of offer.......waiting

Good stuff! getting closer now! Hope it works out without any probs.

gmannix1000

Dylan94 wrote: »

Please do post back about it. I'm planning on applying soon and was planning on their 2 point increase if I cant get an exemption.

What is a two point increase? Interesting...

Pivot Eoin

gmannix1000 wrote: »

What is a two point increase? Interesting...

I think it refers to their Point in the Salary scale. All Public sectors are due incrimental raises yearly, pretty much set in stone. So it isnt too much risk for a lender to lend them at the rate they will be at in 2 years time for say a 30 year Mortgage, as their pretty much guaranteed to get those earnings.

podgeandrodge

LoonyLovegood wrote: »

Got AIP from three places, this is feeling incredibly real now. I'm organising viewings for places I'm interested in buying, but where do I go from here? Do I put the mortgage application through before I view and then tell them where I want to buy? Or wait until I find where I want and go sale agreed, and then put the application through?

My parents bought the first house they looked at, and I'm not sure where I'm at here. I'm not affected by COVID, work is as normal atm. Been approved for 3.5x my salary, and found a few houses where I want to live that are well in my budget.

You can put a mortgage application in naming a house and get the ball rolling. If you need to change the house and it's the same mortgage amount you need, you can get them to change the letter of offer when it comes around. I think that's better than starting things off when you find a house and perhaps don't want to risk losing it.

Gael23

I have actually paid very little income tax over the past 4 years so is help to buy worth it in that case?

bulmersgal

Hey quick question.

So I got approval in principle from finance Ireland last week. I went through broker and submitted payslips, bank statements etc. I no they have been reviewed as they had query on one transaction my mam paid me money for a holiday she was coming on with me. The credit approval is signed by the head underwriter.

My worry now is I've found a house I love but I'm worried that I paid off my credit union loan last week so my bank balance is smaller but my parents are giving me a gift (really a loan) of the difference I need. Is my AIP 100% will the bank start digging deeper and deny me a mortgage.

Any advice appreciated

bulmersgal

Gael23 wrote: »

I have actually paid very little income tax over the past 4 years so is help to buy worth it in that case?

You can apply for free on revenue. I did just to see what I would get but it's not worth my while buying new house. I would have to buy down country and I want to stay in Dublin

guyfawkes5

LoonyLovegood wrote: »

Got AIP from three places, this is feeling incredibly real now. I'm organising viewings for places I'm interested in buying, but where do I go from here? Do I put the mortgage application through before I view and then tell them where I want to buy? Or wait until I find where I want and go sale agreed, and then put the application through?

My parents bought the first house they looked at, and I'm not sure where I'm at here. I'm not affected by COVID, work is as normal atm. Been approved for 3.5x my salary, and found a few houses where I want to live that are well in my budget.

Once you have AIP, the next time you contact the bank is to let them know you are sale agreed and want to move to the offer letter stage - they'll ask for a link to the property and a sale agreed price.

Fitz*

bulmersgal wrote: »

You can apply for free on revenue. I did just to see what I would get but it's not worth my while buying new house. I would have to buy down country and I want to stay in Dublin

If you apply, do you have to go with the offer or can you reapply again? And within the same calendar year? Afaik, thanks to a poster here, the offer lasts until the end of the calender year.

bulmersgal

FitzShane wrote: »

If you apply, do you have to go with the offer or can you reapply again? And within the same calendar year? Afaik, thanks to a poster here, the offer lasts until the end of the calender year.

I applied earlier this year and it told me how much and it gave me a number to give to builder/bank and they can check to confirm it. To do the next step you need to have signed contracts.

You only need to do it once and it last for calender year

guyfawkes5

bulmersgal wrote: »

Hey quick question.

So I got approval in principle from finance Ireland last week. I went through broker and submitted payslips, bank statements etc. I no they have been reviewed as they had query on one transaction my mam paid me money for a holiday she was coming on with me. The credit approval is signed by the head underwriter.

My worry now is I've found a house I love but I'm worried that I paid off my credit union loan last week so my bank balance is smaller but my parents are giving me a gift (really a loan) of the difference I need. Is my AIP 100% will the bank start digging deeper and deny me a mortgage.

Any advice appreciated

Did the bank know about the original loan? If so, it mightn't make a major difference to them as loans are typically factored into your repayment capacity.

It might be a problem for the bank if your parents explicitly expect repayment. If this was a gift and they were willing to sign a letter to that effect, it almost certainly wouldn't be a problem in my experience.

It's also worth considering that since you have submitted your current account statements so recently, if you proceed to offer letter quickly they may not ask for updated statements. If the loan doesn't affect your capacity to pay the deposit and the expenses of closing on the property (e.g. solicitor's fees, stamp duty), then the bank may never find out.

However, given the risk, I would prepare for the worst and ask if your folks are willing to sign something to the effect that the money was a gift just in case.

bulmersgal

guyfawkes5 wrote: »

Did the bank know about the original loan? If so, it mightn't make a major difference to them as loans are typically factored into your repayment capacity.

It might be a problem for the bank if your parents explicitly expect repayment. If this was a gift and they were willing to sign a letter to that effect, it almost certainly wouldn't be a problem in my experience.

It's also worth considering that since you have submitted your current account statements so recently, if you proceed to offer letter quickly and this doesn't affect your capacity to pay the deposit and the expenses of closing on the property (e.g. solicitor's fees, stamp duty), then the bank may never find out.

However, given the risk, I would prepare for the worst and ask if your folks are willing to sign something to the effect that the money was a gift just in case.

My parents have already signed a gift letter for 25k which is more than needed. They are going to give me 15k this week and I have 7k but have the capacity to save another 6k by the time the sale goes through. If they need to give me 20k and I save the 6k I will just give them that when I move in. The 20k would be if I had to have money to pay solicitors today in bank.

It's so confusing as I thought it would take months and I would have more time to save

guyfawkes5

bulmersgal wrote: »

My parents have already signed a gift letter for 25k which is more than needed. They are going to give me 15k this week and I have 7k but have the capacity to save another 6k by the time the sale goes through. If they need to give me 20k and I save the 6k I will just give them that when I move in.

It's so confusing as I thought it would take months and I would have more time to save

I think all the bank will care about is that on paper you have enough money for the deposit, legal fees (usually estimated to be €2,000), and stamp duty right now, and that you haven't promised to pay anyone any money back in the future (as this might interfere with your capacity to pay the mortgage). So long as you can produce something to back this up to them if they ask, you should be golden.

Searching and even going through the purchase of a property is all fits and starts in my experience, you'll probably still be surprised by the end.

Gael23

Do revenue already know how much DIRT you paid on your savings?

guyfawkes5

Gael23 wrote: »

Do revenue already know how much DIRT you paid on your savings?

I think you have to request a specific amount from them. When I looked into this a few years ago, I think the process described to me was requesting an interest certificate from each bank you saved with showing what DIRT you paid and then using this to make an application to Revenue.

gmannix1000

My partner works in the HSE, she'll be there three years in September. Then she will be classified as permanent.

Anyone know if this will affect our maximum mortgage amount if we were to apply now for a mortgage?

Creamy Goodness

gmannix1000 wrote: »

My partner works in the HSE, she'll be there three years in September.

Anyone know if this will affect our maximum mortgage amount?

The only thing that affect the amount is guaranteed income and whether the position is permanent or contract. The banks salary certs will have spaces for overtime and bonuses if these are guaranteed they’ll take the full amount if they aren’t they’ll take a portion of it.

gmannix1000

gmannix1000 wrote: »

My partner works in the HSE, she'll be there three years in September. Then she will be classified as permanent.

Anyone know if this will affect our maximum mortgage amount if we were to apply now for a mortgage?

Contract type shouldn't affect the max mortgage amount, but you might have to supply additional documentation to demonstrate that her earnings are unlikely to change.

I'm currently on a fixed term contract and I had to supply a copy of the contract, along with my CV, to demonstrate my earnings potential. The mortgage advisor also asked questions around the industry I work in just to confirm that I'm unlikely to find myself unemployed or on a lower pay bracket when my contract terminates.

Markitron

Wrex wrote: »

Bit of a worrier, looking for reassurance as to application chances for a mortgage

Joint Mortgage application

I will be a first time buyer, but my wife owned a house previously with her sister, but, sister bought my wife out, so my wife has no responsibility legally with that property, and came out with 60k

I think you both have to be FTBs to qualify for the 10% deposit and HTB schemes. Sounds like that isn't really going to be a problem for you though.

Creamy Goodness

Markitron wrote: »

I think you both have to be FTBs to qualify for the 10% deposit and HTB schemes. Sounds like that isn't really going to be a problem for you though.

Yup but he stated he’ll have 50% deposit which is over the max allowed for help to buy. Only thing he’ll miss is help to buy but it was unclear if he was looking at new/self-build so might be moot.

Wrex

Creamy Goodness wrote: »

Yup but he stated he’ll have 50% deposit which is over the max allowed for help to buy. Only thing he’ll miss is help to buy but it was unclear if he was looking at new/self-build so might be moot.

Thanks for reply Not looking at new/self build.

Duke of Url

Markitron wrote: »

I think you both have to be FTBs to qualify for the 10% deposit and HTB schemes. Sounds like that isn't really going to be a problem for you though.

Joint Application with HTB requires both people to be first time buyers

Markitron

Duke of Url wrote: »

Joint Application with HTB requires both people to be first time buyers

Yea that's what I meant, left out the word 'both'.

Kevhog1988

Saw a house we like and cant get any sort of response from the Auctioneers. He wont answer the phone or respond to emails

Aurelian

I had full approval and was just drawing down my first stage on my self build/ renovation a few weeks ago with BOI. I decide to scale back my build a bit and reduce the cost. Because of that I had to resubmit documents, they told me all should be ok as I wanted to borrow less.

Today they tell me they basically wont give me a mortgage because my salary is Covid subsidised. Despite only wanting to borrow 2.3 times my salary, being in a secure fulltime job and wanting to borrow less. The Covid bit on my pay slip has just killed it.

I'm really stuck now having spent years getting it together and having started some work..

Sonrisa

Would you put in a complaint/appeal to put them under pressure?

The banks claimed in a journal.ie article today that they were looking at every thing on a case by case basis.

soc

Kevhog1988 wrote: »

Saw a house we like and cant get any sort of response from the Auctioneers. He wont answer the phone or respond to emails

Yes we're finding the same. Seen a few houses that we'd be interested to view but nothing back from real estate agents. Doesn't seem like they're interested...