Saving/Applying for a mortgage 2020-22 Edition

IamTheWalrus95

Guys, a quick question. When going through a broker do they come back to you with all the option at once, ie if you have 2 or 3 different option? We submitted all our docs to broker 4 weeks ago, he came back two weeks ago looking for an updated version of one of the forms and to query a payment into one of our accounts. Apart from that we've heard nothing. Any ideas the general wait time at the moment. Seems to be very slow

Jasna1982

IamTheWalrus95 wrote: »

Guys, a quick question. When going through a broker do they come back to you with all the option at once, ie if you have 2 or 3 different option? We submitted all our docs to broker 4 weeks ago, he came back two weeks ago looking for an updated version of one of the forms and to query a payment into one of our accounts. Apart from that we've heard nothing. Any ideas the general wait time at the moment. Seems to be very slow

Went direct with BOI. AIP after 10 days.
Went through broker with PTSB for exemption. Already a month in and came back with questions twice so far.

I don’t think it’s the brokers fault though. I think some banks are just ridiculously slow

Antares35

Red Silurian wrote: »

We have mortgage approval in principle on the condition that we pay off a personal loan costing us €290 a month

We are saving €1500 a month and mortgage repayments on their current rate is less than €1000... I get that there's a stress test but are we really expecting a 1k a month mortgage to eventually rise to €1790?

Could it be to do with freeing up more cash for your living expenses maybe? We had to show repayability (stress tested), and living expenses on top of that. Could the 290 be affecting that?

IamTheWalrus95

the broker couldn't be more thorough, been excellent. Just the wait seems to be going on forever.

IamTheWalrus95

Hi Folks another question. Have applied for mortgage and waiting on approval. Is there such a thing as not being approved for the full 3.5 x combined salary? in other words, would the banks approve you but not lend you the 3.5 x salary? or is it a case of once you're approved you can borrow up to that? would appreciate some feedback on this!! cheers

topmanamillion

IamTheWalrus95 wrote: »

Hi Folks another question. Have applied for mortgage and waiting on approval. Is there such a thing as not being approved for the full 3.5 x combined salary? in other words, would the banks approve you but not lend you the 3.5 x salary? or is it a case of once you're approved you can borrow up to that? would appreciate some feedback on this!! cheers

Banks will approve you for 3.5 times your salary minus any other loans, commitments or dependents.
For example if you were a single parent of one child you would get less than a single person with no children.

IamTheWalrus95

how much are they liable to deduct per child?

BronsonTB

IamTheWalrus95 wrote: »

how much are they liable to deduct per child?

Depends on the child's age & each bank deducts different amounts.
Your age at time of applying also plays a part too.
Few variables do affect the actual amount the bank will give. The 3.5 x your wages is just the max limit on a normal application.

Creamy Goodness

IamTheWalrus95 wrote: »

how much are they liable to deduct per child?

usually €250 per child per month.

Dodge

IamTheWalrus95 wrote: »

Hi Folks another question. Have applied for mortgage and waiting on approval. Is there such a thing as not being approved for the full 3.5 x combined salary? in other words, would the banks approve you but not lend you the 3.5 x salary? or is it a case of once you're approved you can borrow up to that? would appreciate some feedback on this!! cheers

I know others have mentioned kids but there are lots of different factors at play. My friends got 40k less than their max allowed

Even after approval in principle, the amount can be reduced when it gets to the underwriters

IamTheWalrus95

So how common is it for someone to get AIP for an amount, go sale agreed on a property then go to draw down the loan only to be told well actually no we're not going to lend you that amount?

BronsonTB

IamTheWalrus95 wrote: »

So how common is it for someone to get AIP for an amount, go sale agreed on a property then go to draw down the loan only to be told well actually no we're not going to lend you that amount?

Fairly common these days esp where circumstances change between AIP & drawdown -e.g. being on Covid scheme now & not when AIP was originally granted.

brianc27

topmanamillion wrote: »

Banks will approve you for 3.5 times your salary minus any other loans, commitments or dependents.
For example if you were a single parent of one child you would get less than a single person with no children.

I don't think this is necessarily true, I got 3.5 times my salary plus portion of bonus and I was a single applicant with 1 dependent

Emma2019

They will still give you 3.5 times if the amount of excess income you have/repayability meets their stress tests.

You can have 9 kids but be on 700k and you'll still get your 3.5 times.

But if you're on 25k and have 3 kids it's less likely

Renjit

Emma2019 wrote: »

They will still give you 3.5 times if the amount of excess income you have/repayability meets their stress tests.

You can have 9 kids but be on 700k and you'll still get your 3.5 times.

But if you're on 25k and have 3 kids it's less likely

Who would need mortgage when they are on 700k? :pac:

Creamy Goodness

Renjit wrote: »

Who would need mortgage when they are on 700k? :pac:

at that salary you're looking in certain areas as your tastes will be vastly different. Probably you'd self build so that you can have 9 bedrooms for the kids anyways :pac:

hanaimai

IamTheWalrus95 wrote: »

So how common is it for someone to get AIP for an amount, go sale agreed on a property then go to draw down the loan only to be told well actually no we're not going to lend you that amount?

Depends on whether your AIP is underwritten or not i.e. whether it's AIP based on basic/minimal/not supported by documentation information, or AIP based on a full submission of all documentation. If it's the former, it's quite possible the formal loan offer would differ, as once the bank gets into the detail of your documents/situation they may determine less affordability. If it's the latter, it's less likely the loan offer would differ, unless as another poster pointed out, you've had a change in circumstances since the AIP was issued.

Ulick_

Jasna1982 wrote: »

Went direct with BOI. AIP after 10 days.
Went through broker with PTSB for exemption. Already a month in and came back with questions twice so far.

I don’t think it’s the brokers fault though. I think some banks are just ridiculously slow

Submitted files to broker in the middle of March for PTSB mortgage and it has been with the underwriter for at least 4 weeks. Still waiting. They came back yesterday with more questions. Seems like every time they have a query the application goes to the bottom of the pile again with 8-9 working days before you hear anything else from them. Broker reckons the banks are being swamped with applications at the moment.

morrissey1307

Ulick_ wrote: »

Submitted files to broker in the middle of March for PTSB mortgage and it has been with the underwriter for at least 4 weeks. Still waiting. They came back yesterday with more questions. Seems like every time they have a query the application goes to the bottom of the pile again with 8-9 working days before you hear anything else from them. Broker reckons the banks are being swamped with applications at the moment.

Wasn't there something in the news recently that new mortgage applications (and approvals I think) have gone through the roof?

That's mad that you are waiting that long with PTSB. I went through my broker for an application with PTSB around mid February and had AIP in about 2 weeks. I must have just got ahead of you, must be a backlog from March that's slowing it down

Ulick_

In fairness we are going straight for the loan offer. Long story and a few complications but we actually signed contracts a long while back but the vendor was messing around with his lender and our previous offer lapsed.

Jasna1982

Ulick_ wrote: »

In fairness we are going straight for the loan offer. Long story and a few complications but we actually signed contracts a long while back but the vendor was messing around with his lender and our previous offer lapsed.

I’m just trying for AIP and I submitted early May and still waiting.
So either way they’re taking a very long time

niniboots

we got AIP from ICS via a broker in 10 days at the end of March, just one letter to confirm the company wasn't availing of any gov funds which they weren't. We resubmitted via Finance Ireland for a lower interest rate on same terms but slightly higher mortage (still 3.5), I'm really happy with our broker he is on the ball and great administrator who answers questions within minutes. I think it makes a difference to the whole process. We put a deposit down on a house few days ago (new build) so just waiting on Finance Ireland to approve

wicklowwonder

Company I work for is getting government covid support. Is there any point even trying to apply for a mortgage? We have a house we could buy but we would have to strike now. First time buyers and price would be with 3.5x and we have savings records etc. Thanks

Creamy Goodness

wicklowwonder wrote: »

Company I work for is getting government covid support. Is there any point even trying to apply for a mortgage? We have a house we could buy but we would have to strike now. First time buyers and price would be with 3.5x and we have savings records etc. Thanks

Apply, be up front if they ask about Covid supports etc. Worst case they’ll say no but you’ll know how short you are, best case they give you what you want. Basically it won’t be held against you trying multiple times, do it!

Folks, this may be a silly question but I was wondering does anyone know:

I'm self employed and I got PUP for a good while last year. I sent my bank statements/etc. to a broker and they came back looking for more documents, but they also clarified how long I was on the PUP.

What I'm wondering is, if my income for 2020 was 15k, and during that year i got 5k worth of PUP, do they then view my income as being 10k? (ie; do they remove PUP payments as qualifying income?)

Or is it still included in your income for working out the 3.5 times loan amount?

(makey-uppy numbers obviously)

Also, does anyone else think the whole mortgage system is just a bit fcuking stupid? I had a phone call with Bank of Ireland yesterday.

Income exceptions in particular are the dopiest possible way of doing things. You make 100k, so you'll get 350k handy enough, or 450k if you're entitled to an exception. But you won't find out if you're entitled to an exception until you go sale agree on a property.

So in other words, if you see a house for sale, you start making bids, and all the way through bidding going over 350k, you don't actually have anything to go on, but a bit of hope and a prayer, that you'll even be given the money in the first place.

So you bid a property up to 425k, go sale agreed, ring the bank, and they laugh you off the phone with the "we used all our exceptions, sorry". This must be going on all the time across the country.

Why can't they just give you a basic AIP based on 'your word' that lasts for 6 months. Then give "full" AIP (based on actual documents provided) that lasts 12 months, and you can apply for an exception at the start of this AIP, and the exception also lasts 12 months, so you can actually make informed offers and decisions. At that point they've already checked everything they possibly can check about you, so you should have no worries or concerns. The money is as good as in your bank. You've got peace of mind, security and you can go into a bidding war knowing you're not wasting everyone's time.

They check all of your income for the last 2-3 years, your outgoings, bills, address, Revenue, tax clearance, make you put a 10-20% deposit down yourself, they get the house valued, they get a legal charge put on the house, and they'll charge you €150k on a €300k loan (at 3% over 30 years).. and on top of all that, they make it as difficult as they can to actually even look at houses to buy (unless you're on megabucks).

Mortgages are the most profitable loans they have, I'd imagine, and it's such a rigmarole.

DubLad69

Do Banks look at applications on a case by case basis? Or is it as simple as if you have bad credit it's a no?

I make a mistake on a loanwhen I was 18 (9 years ago), and never paid the loan off because I lost my job and other personal reasons. There was €1000 out of €4000 still owed. I tried paying it off when I was 20, but the bank I was with said that it was written off and I can't pay it.

Turns out the person I was talking to was wrong and it wasn't written off, it's being sitting there unpaid all these years. And I only paid it off today after the bank I applied for my mortgage with told me it was still due on my CCR (but not my ICB).

I've had many much higher loans, credit cards etc since then, and have never even had a late payment or missed direct debit. Extremely secure job, great savings etc.

The guy at the bank said that he will send it to the underwriters to ask if they will still approve the mortgage. Does anyone know if they will genuinely consider it, and the circumstances around why it wasn't paid at the time, and about the misinformation that led me to belive that I couldn't pay it off all these years? will it be thrown out because of this issue or is there a chance?

Ace2007

Deleted User wrote: »

Also, does anyone else think the whole mortgage system is just a bit fcuking stupid? I had a phone call with Bank of Ireland yesterday.

Income exceptions in particular are the dopiest possible way of doing things. You make 100k, so you'll get 350k handy enough, or 450k if you're entitled to an exception. But you won't find out if you're entitled to an exception until you go sale agree on a property.

So in other words, if you see a house for sale, you start making bids, and all the way through bidding going over 350k, you don't actually have anything to go on, but a bit of hope and a prayer, that you'll even be given the money in the first place.

So you bid a property up to 425k, go sale agreed, ring the bank, and they laugh you off the phone with the "we used all our exceptions, sorry". This must be going on all the time across the country.

Why can't they just give you a basic AIP based on 'your word' that lasts for 6 months. Then give "full" AIP (based on actual documents provided) that lasts 12 months, and you can apply for an exception at the start of this AIP, and the exception also lasts 12 months, so you can actually make informed offers and decisions. At that point they've already checked everything they possibly can check about you, so you should have no worries or concerns. The money is as good as in your bank. You've got peace of mind, security and you can go into a bidding war knowing you're not wasting everyone's time.

They check all of your income for the last 2-3 years, your outgoings, bills, address, Revenue, tax clearance, make you put a 10-20% deposit down yourself, they get the house valued, they get a legal charge put on the house, and they'll charge you €150k on a €300k loan (at 3% over 30 years).. and on top of all that, they make it as difficult as they can to actually even look at houses to buy (unless you're on megabucks).

Mortgages are the most profitable loans they have, I'd imagine, and it's such a rigmarole.

The reason is that they can only give an exception for a certain percentage of all mortgages, which i think is 20%. So lets say everyone in January asks for the exception and half get them, you might end up not using it or not finding a house etc. Now lets say i rock up in June and they say sorry all exemptions are gone, even though not all of them have been drawn down. That's not fair for me or any other buyer, that you could potential sitting on an exemption that you may not use.

Now maybe that should have a use it or lose it 6 month exemption - if you don't use it then you can't apply again for a year - that may or may not work.

Emma2019

Also some banks dont need a specific property to give you an exception for. I got exceptions with KBC and PTSB and I think I just sent a random house, similar to what I was looking for. I went sale agreed on a different house and it was no issue. From memory BOI is one of the only ones that make it house specific.

Emma2019

Emma2019 wrote: »

Also some banks dont need a specific property to give you an exception for. I got exceptions with KBC and PTSB and I think I just sent a random house, similar to what I was looking for. I went sale agreed on a different house and it was no issue. From memory BOI is one of the only ones that make it house specific.

I can't remember where I read it, but it was after I randomly googled about mortgage exceptions, but as far as I am lead to believe, somewhere along the way in the last year (during covid) the rules changed so exceptions can only be granted for specific properties.

It was a generic broker website if I recall, and not bank specific. So I'm not sure if they're wrong or not, but I assumed it'd be correct.