Saving/Applying for a mortgage 2020-22 Edition

Pussyhands

K.Hawksworth wrote: »

I would disclose everything to them, to be on the safe side.

Get a solicitor involved when you're sale agreed.
Bet of luck!

Thanks. I'm just wondering about timelines and what the stages are.

When I submit these documents (payslips, bank statements etc) and I get AIP, do they do more in depth checks and ask for more documents? I would have thought that would all be done, including the term length, rate etc before I go sale agreed.

Pussyhands

cisk wrote: »

I’m going through the process with KBC too. I have an extended driving licence although there is one month left on it. I’d just explain to them if they query it, it’s not really out of date and not possible to renew it until close to the extended date.

Add in the Revolut statements, no harm.

Are you planning on using your shares in DeGiro towards the purchase? If not it’s fine to leave them in there but they won’t be counted as savings. You’d need to cash them out if that in that case and you’ll still need to show a savings track record, into a savings account or the likes.

Once you have AIP then yes you find your house and go sale agreed all going well. Then another review is done and it moves to Loan Offer, this is needed when you sign the contracts with your solicitor.

Thank you!

Is this the way just KBC does it? Other bank I believe gives AIP and then asks for more documents etc before any sale agreed.

Would this not add time to the mortgage application if I have to go sale agreed first before they formally make an offer?


I don't plan on using the shares for the purchase, no. I don't have a savings account but I have a large amount of money built up in my account. I plan on putting a deposit of roughly 20%, less if I can find a property with a lower price.

awec

Pussyhands wrote: »

Just made my first application. Exciting and scary at the same time. I have a couple of questions!

I am going with KBC because on mortgages.ie it came up as the cheapest rate, but then I went to bonkers and it's showing Avant as cheapest. I would be going for 79% LTV roughly. But then KBC give 1500 back so how do you work out what's cheapest?

KBC gave me a list of things I needed...I have a driving licence but it's now out of date but been extended by government for a few months due to Covid. Does this still count as form of valid ID? Any other IDs I could use?

I have a Revolut account but I've used it only literally twice. Should I get a statement for this?

I have 20k of shares in DeGiro, should I wait for them to request things from me regarding this or from experience what would they want here?

KBC seemed to tell me that once I get AIP the next step is to go sale agreed. Is this correct? Just want to be sure I don't waste money - at what stage do I get a solicitor involved?

Basically you are deciding if you'd find 1500 cash very useful when you buy the house or not.

It appeals to a lot of buyers as it can fund required furniture purchases in exchange for a slightly higher monthly repayment. On the other hand if you definitely don't need it then you can just go with the cheapest.

Pussyhands

awec wrote: »

Basically you are deciding if you'd find 1500 cash very useful when you buy the house or not.

It appeals to a lot of buyers as it can fund required furniture purchases in exchange for a slightly higher monthly repayment. On the other hand if you definitely don't need it then you can just go with the cheapest.

I think Avant will be 2.20%, KBC would be 2.30% so I think it amounts to 9 euro extra per month, which would be 110 per year, so I guess a 3 year fixed it would be better to go with KBC as you'd only save approx 360 euro over 3 years by going with Avant but you'd get the 1500 from KBC.

Another stupid question, apologies. When the fixed term ends, are you allowed access to the best fixed term rates at the time? i.e If the fixed term ends in 3 years and the best fixed term rate is 2.5%?

awec

Pussyhands wrote: »

I think Avant will be 2.20%, KBC would be 2.30% so I think it amounts to 9 euro extra per month, which would be 110 per year, so I guess a 3 year fixed it would be better to go with KBC as you'd only save approx 360 euro over 3 years by going with Avant but you'd get the 1500 from KBC.

Another stupid question, apologies. When the fixed term ends, are you allowed access to the best fixed term rates at the time? i.e If the fixed term ends in 3 years and the best fixed term rate is 2.5%?

When the fixed term ends you can either go on the variable or re-fix at whatever the rates are at that time.

If you fall into the LTV ratio eligible for the 2.5% then you can re-fix at 2.5%.

Personally if it were me I'd pick KBC over Avant as the 1500 would be useful.

DancingDaisy

Pussyhands wrote: »

Just made my first application. Exciting and scary at the same time. I have a couple of questions!

First off, congrats! It's definitely exciting but also nerve wracking for the next couple of weeks!

Pussyhands wrote: »

I am going with KBC because on mortgages.ie it came up as the cheapest rate, but then I went to bonkers and it's showing Avant as cheapest. I would be going for 79% LTV roughly. But then KBC give 1500 back so how do you work out what's cheapest?

When we were looking at which provider to go with, we used the CPCC tool to see which rate was the best for us. It said AVANT also, but when we looked into it there was some fairly stringent restrictions on who can avail of the AVANT mortgages. It needed to be via a SherryFitz broker, you needed to be within 30 miles of either Dublin, Cork, Limerick, or Galway city, and the LTV needed to be 70% or under. We didn't fall within the 30 miles of a city so we went with AIB who had the next best rate for our requirements (we're not FTB).

I did try a couple of the comparison tools, and definitely found the CPCC one to be the easiest to use, and the most reliable!

Pussyhands wrote: »

KBC gave me a list of things I needed...I have a driving licence but it's now out of date but been extended by government for a few months due to Covid. Does this still count as form of valid ID? Any other IDs I could use?

We used passports, if you've one handy and it's in date bring it along, otherwise I imagine the licence is fine.

Pussyhands wrote: »

KBC seemed to tell me that once I get AIP the next step is to go sale agreed. Is this correct? Just want to be sure I don't waste money - at what stage do I get a solicitor involved?

We went with AIB, and went sale agreed with just AIP. We were still in the process of sending off all our documentation when we went Sale Agreed. It took a total of 3 weeks for AIB to process everything and issue us with the Letter of Offer. We had a solicitor lined up before we went Sale Agreed. There's no harm in getting a couple of recommendations and touching base with them now. They need to be in place from when you go sale agreed, so that they can liaise with the Sellers solicitors and get that process moving.

Pussyhands

DancingDaisy wrote: »

First off, congrats! It's definitely exciting but also nerve wracking for the next couple of weeks!




When we were looking at which provider to go with, we used the CPCC tool to see which rate was the best for us. It said AVANT also, but when we looked into it there was some fairly stringent restrictions on who can avail of the AVANT mortgages. It needed to be via a SherryFitz broker, you needed to be within 30 miles of either Dublin, Cork, Limerick, or Galway city, and the LTV needed to be 70% or under. We didn't fall within the 30 miles of a city so we went with AIB who had the next best rate for our requirements (we're not FTB).

I did try a couple of the comparison tools, and definitely found the CPCC one to be the easiest to use, and the most reliable!



We used passports, if you've one handy and it's in date bring it along, otherwise I imagine the licence is fine.



We went with AIB, and went sale agreed with just AIP. We were still in the process of sending off all our documentation when we went Sale Agreed. It took a total of 3 weeks for AIB to process everything and issue us with the Letter of Offer. We had a solicitor lined up before we went Sale Agreed. There's no harm in getting a couple of recommendations and touching base with them now. They need to be in place from when you go sale agreed, so that they can liaise with the Sellers solicitors and get that process moving.

Thanks!!

And regarding the solicitor, how much would this cost? You see I would prefer not to have any fees before going sale agreed as I'm not sure if the amount I can get will buy me a property.

awec

Pussyhands wrote: »

Thanks!!

And regarding the solicitor, how much would this cost? You see I would prefer not to have any fees before going sale agreed as I'm not sure if the amount I can get will buy me a property.

You won't have fees before going sale agreed because the solicitor has nothing to do until then.

Getting a solicitor just means contacting one to see if they can take you on and to get their fee structure. You don't pay anything until they do something.

DancingDaisy

Pussyhands wrote: »

And regarding the solicitor, how much would this cost? You see I would prefer not to have any fees before going sale agreed as I'm not sure if the amount I can get will buy me a property.

We hadn't paid any fees before going sale agreed. The only thing we came up against was when we were looking at the Avant option, the broker noted that there was an upfront fee of 160e to apply via them. We just went directly to AIB ourselves.

The only fees we've paid to date are the booking deposit with the Auctioneer (which will be deducted from the deposit on signing of contracts for the house), the cost of the surveyor which worked out at around 360e and the cost of the valuation for the bank which is 150e. All of this was after going sale agreed.

Our solicitor's fees will be after the sale has been completed. We'll also transfer the deposit when we sign the contracts. That will hopefully be next week. The banks will expect to see those transactions on your statements if they request another copy, so don't worry too much.

And they take these costs into consideration when they are assessing the affordability of the mortgage. At least, they did for us!

Pussyhands

DancingDaisy wrote: »

We hadn't paid any fees before going sale agreed. The only thing we came up against was when we were looking at the Avant option, the broker noted that there was an upfront fee of 160e to apply via them. We just went directly to AIB ourselves.

The only fees we've paid to date are the booking deposit with the Auctioneer (which will be deducted from the deposit on signing of contracts for the house), the cost of the surveyor which worked out at around 360e and the cost of the valuation for the bank which is 150e. All of this was after going sale agreed.

Our solicitor's fees will be after the sale has been completed. We'll also transfer the deposit when we sign the contracts. That will hopefully be next week. The banks will expect to see those transactions on your statements if they request another copy, so don't worry too much.

And they take these costs into consideration when they are assessing the affordability of the mortgage. At least, they did for us!

Super! The booking deposit is just a deposit to go sale agreed right?

DancingDaisy

Pussyhands wrote: »

Super! The booking deposit is just a deposit to go sale agreed right?

Yup, it's generally a set percentage of the price of the house (something between 2 and 5%) depending on the Auctioneer. I think ours was only 1.5% which is quite low. It's also refundable if something were to happen and you pulled out of the sale.

Pussyhands

DancingDaisy wrote: »

Yup, it's generally a set percentage of the price of the house (something between 2 and 5%) depending on the Auctioneer. I think ours was only 1.5% which is quite low. It's also refundable if something were to happen and you pulled out of the sale.

Thank you once again

And just on fees etc. what kind of price would you expect to pay and does this generally include any fees like land registry etc.?

DancingDaisy

Pussyhands wrote: »

Thank you once again

And just on fees etc. what kind of price would you expect to pay and does this generally include any fees like land registry etc.?

In terms of the solicitor fees and costs you have
a. stamp duty which works out as 1% of the value of the house,
b. Land Registry fees which are about the 900e mark in total (Deeds, mortgage and folio and file plan), and then
c. miscellaneous searches which are looking at around 75e.

Then you have the actual fees for the solicitors which are going to depend on who you go with. I can't help on that matter as we've got mates rates for it, but definitely have a bit of a shop around and talk to friends who have gone through this. Costs will likely depend on the complexity of the sale and the amount of time it takes the solicitor to process everything. Ask a couple of different places for the fee structures.

CalisGirl

After requesting a letter of offer, how long does it take Haven to approve it? I applied last week and am jumping each time I receive an email in the hope that this will be the approval!

Green Mile

Does anyone know what a broker gets from Avant when signing people to Avant Mortgages? It’s probably a small percentage of the mortgage or a set amount?

Busi_Girl08

Just got out AIP with KBC! Have a few questions for our broker in the morning (2 months expiry date on Approval in Principle - we have an exception, I presume this is a normal thing? Was hoping we'd get longer), but so excited to be ready to properly get started!!!

voldejoie

Congrats Busi_Girl!

Also got AIP this morning, very exciting. I have a call with my broker in the morning to go through next steps which will be helpful. Would be aiming to buy by the end of summer ideally, but sure we'll see...

Yep, KBC do a 6 month AIP but only 2 months with exception. A use it or lose it type thing. You can re-apply for it at the end of the 2 months if they are still available and your circumstances haven’t changed.

Busi_Girl08

cisk wrote: »

Yep, KBC do a 6 month AIP but only 2 months with exception. A use it or lose it type thing. You can re-apply for it at the end of the 2 months if they are still available and your circumstances haven’t changed.

Ah ok. The broker said it would would be a few months alright but was hoping we'd get longer. Time to hit the ground running I guess!

Now the fun part starts!!

brianc27

Busi_Girl08 wrote: »

Just got out AIP with KBC! Have a few questions for our broker in the morning (2 months expiry date on Approval in Principle - we have an exception, I presume this is a normal thing? Was hoping we'd get longer), but so excited to be ready to properly get started!!!

How long did it take for the AIP to come through with KBC, I had to reapply as my previous AIP expired and its been over two weeks now and heard nothing

Busi_Girl08

brianc27 wrote: »

How long did it take for the AIP to come through with KBC, I had to reapply as my previous AIP expired and its been over two weeks now and heard nothing

Just shy of 3 weeks with us. Our broker chased them on Thursday and they said they were a bit short staffed and behind after Paddy's day. They said on Thurday afternoon we'd have an update in "a day or so" and our broker emailed us at about half 6 this evening with it.

You should have an update in the next couple of days hopefully.

diago3211

Our Broker sent over Application to BOI on March 18th

BOI came back on March 25th and they wanted proof of funds for HTB we sent across the Access Code and Pin for them to verify

We were told then it will be another 3-5 business days.

Does anyone know would they have done any assesment of the application before asking for proof of HTB? Just wondering if this was a final check or if they didnt even start the process yet...

The anxiety/waiting process is the worst part of the application :-)

Benny122

Ok I need advise please. I have applied for a mortgage and I am approved for 101,500. The property is €175000 but it will go for more and maybe around the €200k mark. I have €80k in savings but I have a shortfall. I was going to apply to credit union for about €30k over 25 years for like €170 per month and my mortgage is €380 both are quiet manageable - however I can’t draw down the credit union loan before the mortgage cause it will show up on my ICB. If I apply for the loan will APPLYING show up on my ICB.

Could I apply and get approval and draw it down after my mortgage is drawn down? I know the credit union must do ICB aswell but their more lighter on restrictions than banks

Need advise

G_R

Benny122 wrote: »

Ok I need advise please. I have applied for a mortgage and I am approved for 101,500. The property is €175000 but it will go for more and maybe around the €200k mark. I have €80k in savings but I have a shortfall. I was going to apply to credit union for about €30k over 25 years for like €170 per month and my mortgage is €380 both are quiet manageable - however I can’t draw down the credit union loan before the mortgage cause it will show up on my ICB. If I apply for the loan will APPLYING show up on my ICB.

Could I apply and get approval and draw it down after my mortgage is drawn down? I know the credit union must do ICB aswell but their more lighter on restrictions than banks

Need advise

Applying won't show up on your ICB (it may leave a trace that the CU accessed your report, but the lender likely won't see that) but it will leave an application footprint on your CCR report - lenders are required to report applications for credit amouts of €2k or higher.

If the bank find out that you have drawn/applied for a €25k personal loan it's incredibly unlikely you will be allowed to draw the mortgage.

Benny122

Benny122 wrote: »

I was going to apply to credit union for about €30k over 25 years for like €170 per month and my mortgage is €380 both are quiet manageable - however I can’t draw down the credit union loan before the mortgage cause it will show up on my ICB. If I apply for the loan will APPLYING show up on my ICB.

I would strongly advise against trying to hide information from your mortgage provider.

As far as I know, the ICB doesn't show your applications, but it does show any recent requests for your data. So they'd see that the credit union has accessed your credit report, but it wont say exactly why. The CCR, if referenced, will show more detail I think.

It's in the bank's interest to loan you as much money as you can pay back. They put limits on the approval amount for plenty of good reasons, most of which are more so to protect you than to protect them. It sounds like you'll be seriously stretching yourself even with the €30k.

In my experience buying, we had to give the bank the value of the house, and they wanted to know how we were paying for it. I don't think it will go unnoticed if you buy a place but don't have proof of funds.

Lastly, I'd also note that I'd be shocked if the credit union are willing to give you a personal loan over 25 years. Unless you're going for a mortgage with the credit union (which you can't as you wont be able to provide the property as security), most credit union loans are 5 years, maybe 10 years max.

Benny122

Thanks so much for your prompt reply.

If I only apply for the loan in the credit union and not draw it down until
After my mortgage is drawn down would that work

Lexio7

Benny122 wrote: »

Thanks so much for your prompt reply.

If I only apply for the loan in the credit union and not draw it down until
After my mortgage is drawn down would that work

You might find yourself in a legal mess doing something like this.

Generally when the sale closes your solicitor receives the funds from the bank and will request the balance from you. This is then payed to the sellers solicitor to close the deal.

What happens if the CU reject your loan and you cannot cover the full loan amount?

You would be seriously F’d and risk loosing your booking deposit as well plus explaining to the bank why the deal fell through after funds were issued.

Graham

Benny122 wrote: »

Thanks so much for your prompt reply.

If I only apply for the loan in the credit union and not draw it down until
After my mortgage is drawn down would that work

Your CU loan application is very likely to appear on the central credit register regardless of drawdown status.

wally79

Lexio7 wrote: »

You might find yourself in a legal mess doing something like this.

Generally when the sale closes your solicitor receives the funds from the bank and will request the balance from you. This is then payed to the sellers solicitor to close the deal.

What happens if the CU reject your loan and you cannot cover the full loan amount?

You would be seriously F’d and risk loosing your booking deposit as well plus explaining to the bank why the deal fell through after funds were issued.

Also the banks will require a valuation.

They will look at your deposit + your mortgage amount and ask where the rest is coming from

Kevhog1988

Got an update that my mortgage is gone for underwriting this morning. I assume that if there were any issues EBS would have showed them by now?. Ive checked my ICB report etc so hopefully all ok.