Saving/Applying for a mortgage 2020-22 Edition

awec

dodo87 wrote: »

Hi all, I wonder can anyone help with my dilemma. Myself and my partner are hoping to buy a house that we are viewing Friday. My partner has a rocky credit history from a loan that was taken out in 2008, he lost his job and missed some payments on his loan. We have been talking to a mortgage advisor who thinks she can make a case for him. However last Wednesday a house came up on the market that we love it is for €179,500 and I just applied with BOI on my own as we are really interested in this. Both our savings are in a savings account in my name. We have about 35k saved but the bank is asking me to clarify the source of the money. Do I be honest with them or should I just get my partner to complete a gift letter for me - I have saved about 24 of this myself which can be seen coming from current account. I would hate to think this would go against me if they thought it was a joint application under a single applicant.
Hope someone can help.
Thanks in advance

Bank doesn't care if you saved all of the deposit, or if your partner saved all of it, or if you saved half each.

Just tell them how you saved it.

Markitron

dodo87 wrote: »

Hi all, I wonder can anyone help with my dilemma. Myself and my partner are hoping to buy a house that we are viewing Friday. My partner has a rocky credit history from a loan that was taken out in 2008, he lost his job and missed some payments on his loan. We have been talking to a mortgage advisor who thinks she can make a case for him. However last Wednesday a house came up on the market that we love it is for €179,500 and I just applied with BOI on my own as we are really interested in this. Both our savings are in a savings account in my name. We have about 35k saved but the bank is asking me to clarify the source of the money. Do I be honest with them or should I just get my partner to complete a gift letter for me - I have saved about 24 of this myself which can be seen coming from current account. I would hate to think this would go against me if they thought it was a joint application under a single applicant.
Hope someone can help.
Thanks in advance

Did you actually get a credit check for your partner? I am not sure about this but I believe only the last 5 years are considered.

Edit: Assume this would have come up with the advisor you spoke to so nm.

dodo87

Panic over rang the bank and just need a gift letter! Thank you Awec for the advice!

dodo87

Markitron wrote: »

Did you actually get a credit check for your partner? I am not sure about this but I believe only the last 5 years are considered.

Edit: Assume this would have come up with the advisor you spoke to so nm.

Yes we have the credit report and there are a couple of discrepancies on it that the broker wants us to get amended before she proceeds with a joint application! This will take some time I'm presuming so I just proceeding with a single application as there is a lot of interest in the house that came up last week.

Luluk

Hey, looking for some advice if anyone can help. I bought a house off plans in March, paid deposit (with HTB) and signed contracts. I had approval with BOI (including an exemption). The house is due for completion in October. I was furloughed from my job and was on the pandemic unemployment payment for six weeks in April - May. I then changed jobs in June as I needed a full income. My new job is for the exact same salary as my old one. I will complete my probation in August.

I understand BOI will ask for up to date payslips before draw down and will question the new job. I suspect they may insist on starting my application afresh, in which case I could lose my exemption and the sale could fall through. They may not even consider my application until I have completed another six months in the new job. Does anyone have any advice for me? I have not yet spoken to the bank about my change in circumstances. I viewed the house today and loved it so would be very disappointed if I don't get it.

random_banter

Luluk wrote: »

Hey, looking for some advice if anyone can help. I bought a house off plans in March, paid deposit (with HTB) and signed contracts. I had approval with BOI (including an exemption). The house is due for completion in October. I was furloughed from my job and was on the pandemic unemployment payment for six weeks in April - May. I then changed jobs in June as I needed a full income. My new job is for the exact same salary as my old one. I will complete my probation in August.

I understand BOI will ask for up to date payslips before draw down and will question the new job. I suspect they may insist on starting my application afresh, in which case I could lose my exemption and the sale could fall through. They may not even consider my application until I have completed another six months in the new job. Does anyone have any advice for me? I have not yet spoken to the bank about my change in circumstances. I viewed the house today and loved it so would be very disappointed if I don't get it.

Just going to answer this as someone who is going through applications and has been glued to this forum and media coverage on the subject for some time, as well as having a good advisor in the bank.

I wish I could give you some positive advice but the only positive thing would be that I've seen other posters on here change job and still get the go ahead in that sense if they have a letter from the employer to say they see the employee being kept on (that's after like 2 months or so).

You mentioned an exemption (and wanting to keep the one you have) and this is where the worry would be for me. I have seen many posters here and in the media over the last couple of months with AIP like yourself who are told they still have the exemption, and then when it goes to getting the final letter of offer from the bank they are told the exemption is not available now due to covid.

We were told that ourselves when applying for AIP. But if you go back over the thread and look at some of the media reports you'll see that those who had the exemption already approved with their AIP are having it pulled at the final hurdle which has landed some people in difficult situations regarding their deposits.

I think it's ok to call the bank and be honest with the advisor about your two queries. The advisor is backing you in general, it's the underwriters who can end up pulling the plug at offer letter stage.

Luluk

random_banter wrote: »

I have seen many posters here and in the media over the last couple of months with AIP like yourself who are told they still have the exemption, and then when it goes to getting the final letter of offer from the bank they are told the exemption is not available now due to covid.

Thanks for your reply. I haven't seen any advice online around people in my situation who have changed jobs because of the pandemic before drawdown. Most of the cases I have seen are where people were on the subsidy scheme and were refused because of that (or told to put their application on hold). Just to be clear, I have full approval (rather than approval in principle). Not sure if that makes a difference here though. It seems wrong to me that I could lose my mortgage offer given I will be permanent at the time of drawdown and earning the same amount I was previously. Guess I will need to contact BoI and see what they say.

random_banter

Luluk wrote: »

Thanks for your reply. I haven't seen any advice online around people in my situation who have changed jobs because of the pandemic before drawdown. Most of the cases I have seen are where people were on the subsidy scheme and were refused because of that (or told to put their application on hold). Just to be clear, I have full approval (rather than approval in principle). Not sure if that makes a difference here though. It seems wrong to me that I could lose my mortgage offer given I will be permanent at the time of drawdown and earning the same amount I was previously. Guess I will need to contact BoI and see what they say.

Every situation has small technicalities which can influence your application one way or another.

As far as I know with BOI you do your initial application and get your AIP, then you're free to search around and make offers, should you agree sale then you can apply for final letter of offer (perhaps this is what you have) to prove that you have the funds. This is where the bank may ask for two months recent payslips to show consistent earnings and employment etc to keep their documentation on you up to date, and it's where some people have then lost their offer due to covid payments, or their exemptions through no fault of their own, just a change in bank policy.

Re changing employment, I definitely saw a poster on this forum who changed job in the last couple of months and the bank went ahead anyway when he was able to produce documentation. It was the exemption topic I was more concerned about when you mentioned it.

But perhaps you have your final letter of offer for the property you're buying... that's different altogether.

Luluk

random_banter wrote: »

Re changing employment, I definitely saw a poster on this forum who changed job in the last couple of months and the bank went ahead anyway when he was able to produce documentation. It was the exemption topic I was more concerned about when you mentioned it.

But perhaps you have your final letter of offer for the property you're buying... that's different altogether.

Thanks, yes, I have my letter of offer in place. I'm just trying to work out if I will be okay at drawdown given I have changed jobs, or if they will make me start from the beginning again.

Duke of Url

Luluk wrote: »

Thanks, yes, I have my letter of offer in place. I'm just trying to work out if I will be okay at drawdown given I have changed jobs, or if they will make me start from the beginning again.

This depends

I was told by my Adviser today that if I drawdown more then 6 weeks after my letter of offer was issued then the bank can request new payslips and/or a Salary Cert.

I dont know if they will recognise if that you switched Jobs in this process.

I guess 50/50

GarIT

dodo87 wrote: »

Hi all, I wonder can anyone help with my dilemma. Myself and my partner are hoping to buy a house that we are viewing Friday. My partner has a rocky credit history from a loan that was taken out in 2008, he lost his job and missed some payments on his loan. We have been talking to a mortgage advisor who thinks she can make a case for him. However last Wednesday a house came up on the market that we love it is for €179,500 and I just applied with BOI on my own as we are really interested in this. Both our savings are in a savings account in my name. We have about 35k saved but the bank is asking me to clarify the source of the money. Do I be honest with them or should I just get my partner to complete a gift letter for me - I have saved about 24 of this myself which can be seen coming from current account. I would hate to think this would go against me if they thought it was a joint application under a single applicant.
Hope someone can help.
Thanks in advance

If you are a couple and plan to live as a couple I'd strongly advise against this. It casues all sorts of difficulties in devorce or separation.


Even if your partner doesn't help pay the mortgage they could make a claim on their half of the hosue after a number of years, not saying it would be successful but it's awkward. On the other hand if they do contribute there is still a chance of them walking away with nothing in a separation.


If I was the partner in this situation it's not something I'd get involved in. and it's bound to cause fights.


If any kids are involved or become involved in the future owning a house will have some sway in custody arangements. If the partner that doesn't own the house has to rent a 1 bedroom apartment or worse hosue share after a separation they won't get custody as they don't have suitable accommodation.

Smouse156

Hi, myself and wife looking to go for mortgage approval in a few months. She was hoping to take a week unpaid Parental leave in Sept & Nov to mind our baby. She is a teacher that has been permanent for over 10 years. Would taking a single week unpaid leave effect mortgage application considering she has a permanent position? Any comments most welcome, we just don’t want to screw it up. Thanks

Smouse156

Smouse156 wrote: »

Hi, myself and wife looking to go for mortgage approval in a few months. She was hoping to take a week unpaid Parental leave in Sept & Nov to mind our baby. She is a teacher that has been permanent for over 10 years. Would taking a single week unpaid leave effect mortgage application considering she has a permanent position? Any comments most welcome, we just don’t want to screw it up. Thanks

Based on my experience of getting approval, I can't see it coming up at all. They'll ask if you can predict any future significant change in circumstances, but I wouldn't see short term unpaid leave as meeting that criteria.

I'm actually on a fixed term contract due to end next April, and that wasn't a problem as long as I could show that I was employable and in a stable industry. If your wife is a teacher with 10 years experience, a week of unpaid leave won't really affect your repayment capacity long term.

Black_Knight

Smouse156 wrote: »

Hi, myself and wife looking to go for mortgage approval in a few months. She was hoping to take a week unpaid Parental leave in Sept & Nov to mind our baby. She is a teacher that has been permanent for over 10 years. Would taking a single week unpaid leave effect mortgage application considering she has a permanent position? Any comments most welcome, we just don’t want to screw it up. Thanks

When my wife was on parental leave (for a few months) and we were switching mortgage, the bank just wanted previous months payslips, and a letter from her employer stating that she's in full time employment and when she returns she will be on her existing salary etc. For 1 week, they probably won't mention it at all, and if they do, they'll be ok if it's parental leave.

Smouse156

Black_Knight wrote: »

When my wife was on parental leave (for a few months) and we were switching mortgage, the bank just wanted previous months payslips, and a letter from her employer stating that she's in full time employment and when she returns she will be on her existing salary etc. For 1 week, they probably won't mention it at all, and if they do, they'll be ok if it's parental leave.

Thanks much appreciated

RedXIV

Trying to figure out something here. I've been asked to get statements, proper e-statements for all my accounts for the last 6 months. However, many of the accounts I have only issue a statement every 12 months. Do I need to request a special version from my bank or similar specifically for this case? If I wanted to show the last 3 months, I'd have to wait 9 months before the statement is issued.

Alternatively I can show the results of a year ago up until a few months ago. But I would have thought they wanted these to be up to date? Sorry, having trouble figuring this out!

awec

RedXIV wrote: »

Trying to figure out something here. I've been asked to get statements, proper e-statements for all my accounts for the last 6 months. However, many of the accounts I have only issue a statement every 12 months. Do I need to request a special version from my bank or similar specifically for this case? If I wanted to show the last 3 months, I'd have to wait 9 months before the statement is issued.

Alternatively I can show the results of a year ago up until a few months ago. But I would have thought they wanted these to be up to date? Sorry, having trouble figuring this out!

You request up to date statements. Usually this option is available in your online banking. You request then they'll appear around a day later.

dodo87

GarIT wrote: »

If you are a couple and plan to live as a couple I'd strongly advise against this. It casues all sorts of difficulties in devorce or separation.


Even if your partner doesn't help pay the mortgage they could make a claim on their half of the hosue after a number of years, not saying it would be successful but it's awkward. On the other hand if they do contribute there is still a chance of them walking away with nothing in a separation.


If I was the partner in this situation it's not something I'd get involved in. and it's bound to cause fights.


If any kids are involved or become involved in the future owning a house will have some sway in custody arangements. If the partner that doesn't own the house has to rent a 1 bedroom apartment or worse hosue share after a separation they won't get custody as they don't have suitable accommodation.

Thanks for the concern we are aware of all of these implications and have thought all of this through. We are engaged and together 12 years and I am very aware of the fact that means nothing and could still separate down the line. Due to my partners credit history he may not get the mortgage if we applied together and the financial advisor advised I may need to go on my own if this happens. Everything will be shared amongst us and when we do get married he will be entitled to half the house if anything should happen down the line.

Edit: We are in our mid to late 30s and may need to wait up to 5 years for him to be able to get a mortgage if he does not get it this time and I do not want to be wasting money on rent for another 5 years when we could be paying our own mortgage.

The Wordress

We are in the process of applying for a mortgage through a broker. I work in the public sector and my husband is a mechanic. We have found our absolute dream house but my husband is still on the Covid payment but we are still going to bull on with the mortgage process as a single income family.

My broker is going with ICS. Does anyone know if they allow for overpayments?

As we are going as a single income family, the broker has to extend the term and I would like to reduce this asap. Thank you!

Creamy Goodness

The Wordress wrote: »

We are in the process of applying for a mortgage through a broker. I work in the public sector and my husband is a mechanic. We have found our absolute dream house but my husband is still on the Covid payment but we are still going to bull on with the mortgage process as a single income family.

My broker is going with ICS. Does anyone know if they allow for overpayments?

As we are going as a single income family, the broker has to extend the term and I would like to reduce this asap. Thank you!

Their website mentions overpayment of 20% overpayment allowed. Assuming this is the mortgage your broker will get you.

http://www.icsmortgages.ie/first-time-buyer


Generally if you’re on a variable rate mortgage you can overpay to your hearts content, fixed mortgage rates some banks allow a portion of overpayment and some don’t allow any overpayment without penalty.

8-10

Creamy Goodness wrote: »

Generally if you’re on a variable rate mortgage you can overpay to your hearts content, fixed mortgage rates some banks allow a portion of overpayment and some don’t allow any overpayment without penalty.

Fixed rates are always for a fixed period anyway right? So even if you were in a position to overpay you could just take that lump sum or extra monthly amount and save or invest it until the fixed period is up and then pay it in lump right?

Luluk

Quick update on my situation in case anyone else finds themselves in similar circumstances. Basically I had changed jobs after obtaining a mortgage offer from BoI, but before drawing down. I spoke to them today and was told that if my salary hasn't reduced and I have passed my probation, then the offer will not be withdrawn. I'm hugely relieved. Will finish my probation in September and house will be finished in late October, so barring any unforeseen circumstances I should be fine. I have to say BoI have been terrific to deal with at every stage.

Renjit

Luluk wrote: »

Hey, looking for some advice if anyone can help. I bought a house off plans in March, paid deposit (with HTB) and signed contracts. I had approval with BOI (including an exemption). The house is due for completion in October. I was furloughed from my job and was on the pandemic unemployment payment for six weeks in April - May. I then changed jobs in June as I needed a full income. My new job is for the exact same salary as my old one. I will complete my probation in August.

I understand BOI will ask for up to date payslips before draw down and will question the new job. I suspect they may insist on starting my application afresh, in which case I could lose my exemption and the sale could fall through. They may not even consider my application until I have completed another six months in the new job. Does anyone have any advice for me? I have not yet spoken to the bank about my change in circumstances. I viewed the house today and loved it so would be very disappointed if I don't get it.

The bank will definitely be asking for payslips after 6 weeks or so and when they deem it necessary.

Is the approval in principle? Then exemption may be renegotiated.

For probation, could you tell your employer to reduce it? Because banks are fine as long as the salary cert doesn't show you are on probation.

Renjit

Luluk wrote: »

Quick update on my situation in case anyone else finds themselves in similar circumstances. Basically I had changed jobs after obtaining a mortgage offer from BoI, but before drawing down. I spoke to them today and was told that if my salary hasn't reduced and I have passed my probation, then the offer will not be withdrawn. I'm hugely relieved. Will finish my probation in September and house will be finished in late October, so barring any unforeseen circumstances I should be fine. I have to say BoI have been terrific to deal with at every stage.

The banks have to adjust due to current pandemic induced circumstances. Good to know the update on this.

Luluk

Renjit wrote: »

The bank will definitely be asking for payslips after 6 weeks or so and when they deem it necessary.

Is the approval in principle? Then exemption may be renegotiated.

For probation, could you tell your employer to reduce it? Because banks are fine as long as the salary cert doesn't show you are on probation.

I have full approval and the official offer was signed and returned to the bank back in March. I'm okay with the probation period as I'll be finished probation on 1st September and the house will not be finished until October.

IvoryTower

If you have 6 months good saving now 2 months later, no overdraft in that time , I'd say you would be fine

Otherwise you will have the same problem as getting the loan

Dylan94

Does anyone know if it is possible to pay a deposit on a new build without having the full funds in place?

Say a new build development is releasing a new phase now, but it won't be ready until Feburary. They cost €400,000 but right now I only have €385,000 and know that I will be able to get up €410,000 by Januray. Would it be possible to pay the booking deposit and sign contracts?

Or would I likely run into problems with the developer or mortgage?

Renjit

Dylan94 wrote: »

Does anyone know if it is possible to pay a deposit on a new build without having the full funds in place?

Say a new build development is releasing a new phase now, but it won't be ready until Feburary. They cost €400,000 but right now I only have €385,000 and know that I will be able to get up €410,000 by Januray. Would it be possible to pay the booking deposit and sign contracts?

Or would I likely run into problems with the developer or mortgage?

You can certainly book the house with initial deposit. This is completely refundable until you sign the final contract.

However, developer may ask you if you have approval in principle. Probably get a AIP letter from the bank for whatever amount the bank is read to give.

Try to delay signing the contracts until January. But I would say it will be difficult since it will be much closer to February. Talk with your solicitor on this. Developer may also be a bit more lenient here because of Covid 19 situation.

Meanwhile, I would advise that you get some gift from your parents, friends or relatives so that you will be ready much earlier.

Turkish1

Black_Knight wrote: »

When my wife was on parental leave (for a few months) and we were switching mortgage, the bank just wanted previous months payslips, and a letter from her employer stating that she's in full time employment and when she returns she will be on her existing salary etc. For 1 week, they probably won't mention it at all, and if they do, they'll be ok if it's parental leave.

Somewhat similar question but said I would ask (and also some other questions - hopefully not rehashing only ground but couldn't see them asked very recently on the thread)

Looking at moving houses, initially thinking early next year, however one house has appeared just recently which I want to go for. Wife is currently on maternity leave and will be taking unpaid 16weeks (from about October)

Few small questions:
Will question be asked about if she intends taking unpaid leave?
If so, will any of her income be taken into account for mortgage multiple?
Not sure if still done, there used to be an assumption around costs per month for children when looking at repayment capacity? Any ideas what those assumptions are?
Would wife's net income be taken into account for repayment capacity calcs?
Vast majority of my deposit will come from equity in current house, will it be looked at negatively that we only started saving in reality about 6months ago (bought family car about 9months ago)

Black_Knight

Turkish1 wrote: »

Somewhat similar question but said I would ask (and also some other questions - hopefully not rehashing only ground but couldn't see them asked very recently on the thread)

Looking at moving houses, initially thinking early next year, however one house has appeared just recently which I want to go for. Wife is currently on maternity leave and will be taking unpaid 16weeks (from about October)

Few small questions:
Will question be asked about if she intends taking unpaid leave?
If so, will any of her income be taken into account for mortgage multiple?
Not sure if still done, there used to be an assumption around costs per month for children when looking at repayment capacity? Any ideas what those assumptions are?
Would wife's net income be taken into account for repayment capacity calcs?
Vast majority of my deposit will come from equity in current house, will it be looked at negatively that we only started saving in reality about 6months ago (bought family car about 9months ago)

Doubtful about being asked if she's taking unpaid leave. Even if they do ask, just say no. That's all assuming you get full approval before her unpaid leave starts showing up in payslips.

Her and your full salary should be taken into account for the mortgage.

Our bank said, iirc, that a child was equivalent to 250 extra a month in repayments.

I'd assume regular and consistent savings would be all they want to see, but perhaps consider how the new mortgage repayments would affect your ability to save. They'll also stress test you (add 2% to your interest rate and see if your repayments are feasible - with the extra bit for kids).