Saving/Applying for a mortgage 2020-22 Edition

akelly02

is 33/34 by the time you get a mortgage seen as late in the day?

im thinking to go with a repayment of 25 years which would still leave me in my late 50s when its paid.

as opposed to being 63/64 with a 30 year mortgage , that seems old to be still worrying about that sorta stuff!!


any opinions appreciated !

whatever76

akelly02 wrote: »

is 33/34 by the time you get a mortgage seen as late in the day?

im thinking to go with a repayment of 25 years which would still leave me in my late 50s when its paid.

as opposed to being 63/64 with a 30 year mortgage , that seems old to be still worrying about that sorta stuff!!


any opinions appreciated !

if its any consolation I was 43 ( 22 year mortgage!) which I was very weary of when I hit 40 but it took over 2 years for me to find house - i think its a great age to start mortgage.

akelly02

whatever76 wrote: »

if its any consolation I was 43 ( 22 year mortgage!) which I was very weary of when I hit 40 but it took over 2 years for me to find house - i think its a great age to start mortgage.

thanks for that .

different strokes for different folks i guess.

maybe finishing up a mortgage at 63-64 isnt so bad, ill definately still be working at that age if im alive please god.

ELM327

akelly02 wrote: »

is 33/34 by the time you get a mortgage seen as late in the day?

im thinking to go with a repayment of 25 years which would still leave me in my late 50s when its paid.

as opposed to being 63/64 with a 30 year mortgage , that seems old to be still worrying about that sorta stuff!!


any opinions appreciated !

Same age as myself and the mrs, we're looking to move out of my investment flat and to an actual house this year. Will probably be getting 25 years term. 30 max.

thegreatescape

akelly02 wrote: »

thanks for that .

different strokes for different folks i guess.

maybe finishing up a mortgage at 63-64 isnt so bad, ill definately still be working at that age if im alive please god.

Some lenders allow certain percentage overpayment per month without penalty which would reduce the mortgage length if done continuously

akelly02

thegreatescape wrote: »

Some lenders allow certain percentage overpayment per month without penalty which would reduce the mortgage length if done continuously

thats very interesting to know.

might be something to look into !

thanks!

Downloaded

We have been approved for a mortgage with UB and have paid our 10% deposit to the developer already, however the house is still under construction and is now delayed due to the Level 5 restrictions :rolleyes: so we have yet to 'draw down' any funds.

Does this mean that we will now need to reapply to another lender for a new mortgage or would the approved mortgage with UB be already considered 'on their loan book', despite not drawing down any funds?

brianc27

akelly02 wrote: »

is 33/34 by the time you get a mortgage seen as late in the day?

im thinking to go with a repayment of 25 years which would still leave me in my late 50s when its paid.

as opposed to being 63/64 with a 30 year mortgage , that seems old to be still worrying about that sorta stuff!!


any opinions appreciated !

39, almost 40, going for first mortgage, so 33/34 isn't late in the day, 40 might seem late in age to get a mortgage but I've a lot of savings so actual mortgage would have been alot bigger if I went at a younger age, so it all balances out in my case

Also I know of a fair few people that got their first mortgage in their late 30s early 40s

Antares35

akelly02 wrote: »

is 33/34 by the time you get a mortgage seen as late in the day?

im thinking to go with a repayment of 25 years which would still leave me in my late 50s when its paid.

as opposed to being 63/64 with a 30 year mortgage , that seems old to be still worrying about that sorta stuff!!


any opinions appreciated !

Hi, I'm 37 and partner is 38 so max we got was a 28 year term. Tbh we would think along the same lines as yourself in terms of not being "shackled" for that long, but we're advised to go with max term and just overpay as much as we can without penalty, as you never know when something unforeseen could happen. And it's better to have a safety net there and say ok worst case scenario, we only HAVE to pay X, even though we plan to pay Y.

Antares35

brianc27 wrote: »

39, almost 40, going for first mortgage, so 33/34 isn't late in the day, 40 might seem late in age to get a mortgage but I've a lot of savings so actual mortgage would have been alot bigger if I went at a younger age, so it all balances out in my case

Also I know of a fair few people that got their first mortgage in their late 30s early 40s

Yeah I think especially nowadays because many people start later, spend longer studying or working their way up etc. And with rents the way they've been, it's taken people longer to get to a buyer position.

akelly02

Antares35 wrote: »

Hi, I'm 37 and partner is 38 so max we got was a 28 year term. Tbh we would think along the same lines as yourself in terms of not being "shackled" for that long, but we're advised to go with max term and just overpay as much as we can without penalty, as you never know when something unforeseen could happen. And it's better to have a safety net there and say ok worst case scenario, we only HAVE to pay X, even though we plan to pay Y.

thanks for your help.

this overpay without penalty thing is very good if you can keep to it

we are still a bit away from having a full deposit, but i want to know what to expect when the time does come!

ELM327

Watch out on the overpay without penalty thing. If you're not on a variable rate (which I would reccomend not being on!) banks sometimes don't allow it, or allow with restriction (ie max 10% overpayment and must be confirmed in writing is the condition of one bank)

Dwarf.Shortage

If you are on a 5yr fixed mortgage or whatever, when you are rolling it over in 5yrs can you add funds at that point and reduce the balance without penalty?

Say you’ve borrowed €300k and make all your payments as normal. 5 years later I owe €250k but I’ve €25k sitting there, can I borrow €225k over 5 years then? Or are you locked in tighter than that?

Green Mile

Dwarf.Shortage wrote: »

If you are on a 5yr fixed mortgage or whatever, when you are rolling it over in 5yrs can you add funds at that point and reduce the balance without penalty?

Say you’ve borrowed €300k and make all your payments as normal. 5 years later I owe €250k but I’ve €25k sitting there, can I borrow €225k over 5 years then? Or are you locked in tighter than that?

You automatically move to a variable mortgage rate after the 5 year term so you can dump as much of your savings into your loan as you can and then select another 5 year fixed if you wish.

r93kaey5p2izun

What would be the situation now if Ulster Bank leave Ireland? Apart from selling off existing loans, presumably they won't issue any new loans? So is AIP with them is pointless now?

DubLad69

I am actually getting sick to death with BOI. I first started applying to them early Jan. And they just keep coming back asking more questions or asking for additional or updated documents.

We are both public sector, with a 30% deposit, great savings history and perfect credit. Should be a straight forward case.

soc

DubLad69 wrote: »

I am actually getting sick to death with BOI. I first started applying to them early Jan. And they just keep coming back asking more questions or asking for additional or updated documents.

We are both public sector, with a 30% deposit, great savings history and perfect credit. Should be a straight forward case.

We were similar (but not public sector) and it was like pulling teeth. Boi and KBC. Went to PTSB, if they were wanting anything the rep we were dealing with was onto us quickly. Once they were happy with what we had given them it took 2 business days to get a decision. All in, it probably took 3-4 days to cover any additional document/information requests. We are currently having to renew our aip and we are dealing with same mortgage advisor and again she's on the ball to get things sorted quickly. We were quite impressed with ptsb

pleh

DubLad69 wrote: »

I am actually getting sick to death with BOI. I first started applying to them early Jan. And they just keep coming back asking more questions or asking for additional or updated documents.

We are both public sector, with a 30% deposit, great savings history and perfect credit. Should be a straight forward case.

Have you looked at ics mortgages, for public servants, with advantages such as they consider your basic pay as 2 points above the scale of where you actually are on the scale. They're a subsidiary of boi but the assessors are a different team so u might be lucky

DubLad69

pleh wrote: »

Have you looked at ics mortgages, for public servants, with advantages such as they consider your basic pay as 2 points above the scale of where you actually are on the scale. They're a subsidiary of boi but the assessors are a different team so u might be lucky

We actually went to PTSB yesterday and they said we should have a response by Monday.

stingz

Question
We have one mortgage but we want to buy another property and move there. How much deposit we need 20 % or 30%
Thanks

Bitconfused

Quick question

In the previous page so.eone mentioned over paying per month and it may or may not be possible depending on the bank.

I'm approved with boi and this might be something I would like. I had thought about paying more in bulk every so often ie I've save 5 k, I would pay that from the mortgage. Are there extra fees for doing this? I thought paying extra would be encouraged?

whatever76

Bitconfused wrote: »

Quick question

In the previous page so.eone mentioned over paying per month and it may or may not be possible depending on the bank.

I'm approved with boi and this might be something I would like. I had thought about paying more in bulk every so often ie I've save 5 k, I would pay that from the mortgage. Are there extra fees for doing this? I thought paying extra would be encouraged?

I have 2 year fixed currently with BOI and max over payment allowed is 10% of monthly payment per month. For variable rates I believe there is more flex - https://www.bankofireland.com/help-centre/faq/can-make-overpayments-mortgage/

DubLad69

Bitconfused wrote: »

Quick question

In the previous page so.eone mentioned over paying per month and it may or may not be possible depending on the bank.

I'm approved with boi and this might be something I would like. I had thought about paying more in bulk every so often ie I've save 5 k, I would pay that from the mortgage. Are there extra fees for doing this? I thought paying extra would be encouraged?

BOI allows you to pay up to 10% of your monthly payment extra each month. I don't think that they allow "bulk" over payments.

It is encouraged from a financial perspective to over pay, but the bank won't encourage it, because when you overpay they are losing out on interest that they would have earned on it.

Green Mile

There is a good argument to not overpay a mortgage. If you over pay, say €2500 for example, you’ll save on interest of whatever rate your mortgage is, about 2% to 4% over the long term. If you put that money into a pension instead, you could save 40% on tax instantly. That’s a big difference. Many financial advisors say if you want to create real wealth, invest in pensions as it’s seriously tax incentivised and any growth on the investment is also tax free.

If you do decide to invest the €2500 off of your mortgage, you’ll see the benefit at the end of your term, 20 or 30 years away when €2500 won’t be worth much.

That said, there is reasons to overpay a mortgage too, it’s really different folks/strokes.

newhouse87

Green Mile wrote: »

There is a good argument to not overpay a mortgage. If you over pay, say €2500 for example, you’ll save on interest of whatever rate your mortgage is, about 2% to 4% over the long term. If you put that money into a pension instead, you could save 40% on tax instantly. That’s a big difference. Many financial advisors say if you want to create real wealth, invest in pensions as it’s seriously tax incentivised and any growth on the investment is also tax free.

If you do decide to invest the €2500 off of your mortgage, you’ll see the benefit at the end of your term, 20 or 30 years away when €2500 won’t be worth much.

That said, there is reasons to overpay a mortgage too, it’s really different folks/strokes.

Yeah, im getting a 1 year fixed mortgage, had the cash to build straight but got the mortgage to avail of the help to buy. IM planning on paying it off after the year, i know its alot of my savings gone, but i just think of it as an investment in the interest savings. Think im doing the right thing as its s guaranteed savings from paying all that interest.

Snipp

newhouse87 wrote: »

Yeah, im getting a 1 year fixed mortgage, had the cash to build straight but got the mortgage to avail of the help to buy. IM planning on paying it off after the year, i know its alot of my savings gone, but i just think of it as an investment in the interest savings. Think im doing the right thing as its s guaranteed savings from paying all that interest.

Is this a joke? If not, you're an absolute parasite on society.
This is what is wrong with this country.

GingerLily

Snipp wrote: »

Is this a joke? If not, you're an absolute parasite on society.
This is what is wrong with this country.

I wish there was a rule around minimum length of mortgage for HTB. Bit of a cheeky move but at least they can only avail of it once.

bilbot79

Green Mile wrote: »

There is a good argument to not overpay a mortgage. If you over pay, say €2500 for example, you’ll save on interest of whatever rate your mortgage is, about 2% to 4% over the long term. If you put that money into a pension instead, you could save 40% on tax instantly. That’s a big difference. Many financial advisors say if you want to create real wealth, invest in pensions as it’s seriously tax incentivised and any growth on the investment is also tax free.

If you do decide to invest the €2500 off of your mortgage, you’ll see the benefit at the end of your term, 20 or 30 years away when €2500 won’t be worth much.

That said, there is reasons to overpay a mortgage too, it’s really different folks/strokes.

This is sage. Pensions are the ultimate get rich slowly scheme. Once maxed out on contributions you can think about overpaying mortgage.

I don't just think about the current rate to calculate what I'm saving though. Rates may go up and that really changes things. E.g. 2 increase on a 300k mortgage is twice as much money as same on a 150k mortgage.

Overpaying while rates are low is very very good because when rates go up, the impact will be less. At low rates you can really get into the principal

Markitron

GingerLily wrote: »

I wish there was a rule around minimum length of mortgage for HTB. Bit of a cheeky move but at least they can only avail of it once.

Is there a minimum amount of time required that you have to live in the house? I assume you can't rent out or sell a HTB house for a few years?

Markitron

Markitron wrote: »

Is there a minimum amount of time required that you have to live in the house? I assume you can't rent out or sell a HTB house for a few years?

I think it's five years.