Saving/Applying for a mortgage 2020-22 Edition

Markitron

brianc27 wrote: »

My understanding is your offer is based on the previous years employment detail summary so I don't think you will get an increase until that's reflected on that

It isn't, you can get an increased AIP amount with a new salary cert from your employer and at least 1 payslip to reflect the increase. May vary by lender of course but I think this is standard with most of them.

brianc27

Markitron wrote: »

It isn't, you can get an increased AIP amount with a new salary cert from your employer and at least 1 payslip to reflect the increase. May vary by lender of course but I think this is standard with most of them.

Never knew that, that's good to know

Markitron

brianc27 wrote: »

Never knew that, that's good to know

Yea I was expecting it to be more complicated myself, but again this was with KBC and BOI. Perhaps the others will make you jump through more hoops.

GingerLily

[Deleted User] wrote: »

So I got the top aip a few months back but salary has increased. Have mentioned to broker by email but is it straightforward to increase amount? I'm at bidding phase in house I really like so the bump will help. I'm assuming getting slightly more based on new salary is fine, right?

You may have to reapply depending on the bank but you'll likely get the marginal increase without much issue. Broker should sort it out for you

Markitron

GingerLily wrote: »

You may have to reapply depending on the bank but you'll likely get the marginal increase without much issue. Broker should sort it out for you

Yea, if your salary jumps by 30K I imagine it would be a more involved process than a jump of 5K.

Markitron

Markitron wrote: »

Yea, if your salary jumps by 30K I imagine it would be a more involved process than a jump of 5K.

Ya it's a pretty tiny increase but has the potential to make a difference at this point. Ah fun.

CalisGirl

ec18 wrote: »

Are you direct app to bank and or broker? I changed the month before drawdown but the bank never asked for updated payslips. I've put it down to the relationship between broker and bank where as if we had gone direct to bank we probably would have had issues

I've applied via broker. The Issue is I'm not certain when drawdown will be as the property is at builders finish and drawdown will be when it's fully finished. My broker is telling me once I've 3 payslips from new employer, probation won't be an issue. I've seen this is the way in the UK with some banks. I'm just a bit skeptical tbh as the banks seem completely risk averse!

GingerLily

CalisGirl wrote: »

I've applied via broker. The Issue is I'm not certain when drawdown will be as the property is at builders finish and drawdown will be when it's fully finished. My broker is telling me once I've 3 payslips from new employer, probation won't be an issue. I've seen this is the way in the UK with some banks. I'm just a bit skeptical tbh as the banks seem completely risk averse!

That's not typically Bank policy, I would be concerned trusting this advice

ec18

The probation is probably the big issue, what check what bank the mortgage is from the irish ones are more risk averse than KBC/UB so it mightn't be a problem?

klose

How are banks viewing re applications with a view to people being on covid pay for a while last year? Partners p60 is down about 3 grand after being on PUP for a while, waiting on her salary cert too but assume that will show less too.

L1011

Generally if its over and done with most banks are OK working off current salary; possibly with a letter from the employer confirming no subsidy is being received.

pooch90

Markitron wrote: »

Yea I was expecting it to be more complicated myself, but again this was with KBC and BOI. Perhaps the others will make you jump through more hoops.

I did this with PTSB in October. Just needed two payslips showing new amount and they added the extra few grand to AIP.

arleitiss

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.


I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

briancarr82

Hi, will bank ask for statement of old a/c closed within the last 6 months? Also, have an old current ac no longer used. Should I close the ac now before application or wait

Kram_1

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.


I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

If you were to keep the credit card, you would need to clear it and have clean for 6 months for the bank, as they will want to see statements.

Your best bet would be to clear the credit card and close the account. If you're used to using the credit card, having it close to hand might be tempting to use in the case of an emergency. Don't think you would need to show statements in this scenario.

I'd put a buffer of €2500 aside into a local credit union, separate from your deposit incase you need for an emergency.

brianc27

Kram_1 wrote: »

If you were to keep the credit card, you would need to clear it and have clean for 6 months for the bank, as they will want to see statements.

Your best bet would be to clear the credit card and close the account. If you're used to using the credit card, having it close to hand might be tempting to use in the case of an emergency. Don't think you would need to show statements in this scenario.

I'd put a buffer of €2500 aside into a local credit union, separate from your deposit incase you need for an emergency.

I had 1500 on my credit and paid it off in full a week before handing up the statement, I don't think having a credit card clean for 6 months is necessary, aslong as your not missing monthly repayments and get it paid off before you apply then what it was like the previous six months shouldn't be an issue, that was my experience anyway (with kbc and boi)

G_R

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.


I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

The CCR will show the balance on the card each month as well as any excesses, so closing the card isn't going to help you here I'm afraid.

That said, just clear it off and you should be fine. You're application won't be declined on the basis that you were at/slightly over your limit (assuming you have no missed payments like you say) unless the overall case is borderline, then it might tip it over the edge. If everything else is in order you'll be fine.

Manofthewest

Deleted User wrote: »

So potentially have a property that I'm gonna bid on. There's a strong likelihood I'll need to request an exemption but not for a lot. I'm earning just under 80k, high saver so what are the odds of getting it atm? Have noticed a fair few seem to have them falling through atm so wondering if it's a lost cause atm.

I am also wondering the same thing. I have got AIP which is the standard 3.5 time my salary with KBC and BOI. They both were open to looking at an exception. As its only for a specific property, do I need to put a deposit down and go sale agreed on the property before they will look at granting the exception?

GingerLily

Manofthewest wrote: »

I am also wondering the same thing. I have got AIP which is the standard 3.5 time my salary with KBC and BOI. They both were open to looking at an exception. As its only for a specific property, do I need to put a deposit down and go sale agreed on the property before they will look at granting the exception?

No, talk to your bank before you put the deposit down, after your initial bid I suggest.

ec18

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.


I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

The bank will count that as a loan and they don't like CC's not being fully cleared every month. Pay it off and cancel it.

You can always get a new one if you need after you have moved in

ec18

Manofthewest wrote: »

I am also wondering the same thing. I have got AIP which is the standard 3.5 time my salary with KBC and BOI. They both were open to looking at an exception. As its only for a specific property, do I need to put a deposit down and go sale agreed on the property before they will look at granting the exception?

They won't confirm an exemption until you are sale agreed. You need to be sale agreed and have paid the refundable booking deposit before you can be sure that the exemption will be granted.

IamTheWalrus95

Just starting our mortgage application, gathering documents etc. We have deposit saved, and also have en existing mortgage on house we hope to sell. 6 months ago changed bank current accounts to a joint account. I kept the old account as there were still some direct debits etc coming out of it and a car loan from credit union. i usually transfer money in every week for car loan. There's an overdraft that's been dipped into over the last couple of months on this account 100 here and there. Overdraft was approved. Will this effect me in application? it's paid off now.

random_banter

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.


I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

I had a similar habit of letting debt sit on my credit card. Last year when I was starting to look at buying I knew I needed to get my act together, so I looked at my deposit savings and used some of that to clear it off.

I then changed my habits to paying off the card right after using it. And when I get paid each month I ensure it's clear as well.

Credit cards can still be useful to have for an emergency or when you are buying online, traveling etc because you get a certain amount of extra protection from fraud etc. The one I have also accrues Avios for me.

If it's clear and not costing you anything, just ensure you keep the good habits up and don't let purchases rack up.

The bank will not care as long as you've cleared off your card and in the next couple of months show that you're being responsible with it. As long as you haven't missed a payment, that is. If you miss minimum payments that's a different story.

Antares35

Can anyone advise. My understanding is that credit card debt is included on CCR as and from 2017. Does this mean that only credit card debt accrued from 2017 is included in report, or if there was o/s debt before 2017 that this would also be included? Thanks

ec18

Antares35 wrote: »

Can anyone advise. My understanding is that credit card debt is included on CCR as and from 2017. Does this mean that only credit card debt accrued from 2017 is included in report, or if there was o/s debt before 2017 that this would also be included? Thanks

you can request your own ccr to see what it has for 6e or something like that

Hatman16

Hi all,

If you're approved in principle with both AIB and BOI is there any downside to trying to get a letter of offer from both once you've gone sale agreed? Is this frowned upon or anything? Cheers

Currently experiencing longest day ever to see how much house goes up by...

Renjit

random_banter wrote: »

I had a similar habit of letting debt sit on my credit card. Last year when I was starting to look at buying I knew I needed to get my act together, so I looked at my deposit savings and used some of that to clear it off.

You do know that your credit rating gets affected by this. And credit ratings are checked by various institutions before providing services. Always good to maintain a good credit rating.

Marshall987

Have I just ruined my chance of our family getting a mortgage in next 5 years.?
Just received my CCR yesterday, stupidly didn’t check it earlier, I used the ICB check in 2019 getting a hire purchase loan from aib, which was all clear.


The CCR, is showing a credit union loan from 2007 that I took out for my parents, and looks like there is just short of 2k owed on it. I haven’t got any correspondence in years for this and I knew it was being paid off by them so assumed it was cleared at this stage but obviously not.

Me and my partner have 45 k in savings combined.

Combined income of approx 60k

We have a hire purchase Loan for a car from Aib- 15 k left over 3 years. (Never missed a payment etc),
Well able to pay it and save combined 2k a month minimum. No other missed payment etc on any other previous finance I had.


I am in the position to cover the credit union loan and pay it off in full now once and for all, but is it to late for us, has the damage been done?

I would say pay it off and explain situation to bank. It's pretty small in scheme of things so hopefully it's okay.