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Mortgage Exemptions

  • 25-05-2021 11:06pm
    #1
    Registered Users Posts: 149 ✭✭ fondue


    A few questions for people who have obtained mortgage exemptions i.e. greater than 3.5 times their salary/combined salaries. What type of jobs have you been in when you secured the exemption? Are you more likely to get an exemption if you are public sector? Are exemptions generally offered to those on salaries above a certain threshold?
    I know there’s no guarantee of getting one, I’m just wondering if I would have a chance.


Comments

  • Registered Users Posts: 2,546 ✭✭✭ C14N


    fondue wrote: »
    A few questions for people who have obtained mortgage exemptions i.e. greater than 3.5 times their salary/combined salaries. What type of jobs have you been in when you secured the exemption? Are you more likely to get an exemption if you are public sector? Are exemptions generally offered to those on salaries above a certain threshold?
    I know there’s no guarantee of getting one, I’m just wondering if I would have a chance.

    I got one. I'm a tech worker and my partner is in the public sector. We've both been in in our current jobs a few years too. Not sure salary is really relevant, but afaik, they do a check on what you currently spend on a monthly basis. The idea is that if rates were to go up, you should still be able to make the monthly mortgage payments on the higher amount. Our current spending on rent plus what we each save monthly is enough that we could afford the payments even with an increase, which I think was the main factor in granting an exception.


  • Moderators, Sports Moderators Posts: 8,647 Mod ✭✭✭✭ Rew


    We got one for the deposit 10% instead of 20%. In cash we had less than 20% but more than 10% and we didn't max out our 3.5x salary either. Our rent was higher than the mortgage payments. Part of the reasoning we put forward was we wanted to do renovations with the cash. We had the exemption verbally approved form multiple banks when shopping around (went to full approval with 2). Im a tech worker my wife is a civil servant.


  • Registered Users Posts: 130 ✭✭ deise121


    from my understanding you need to be on mega money to get an exemption. basically so you can buy a mansion rather than a mcmansion. the entire system is broken


  • Registered Users Posts: 8,843 ✭✭✭ Caranica


    PTSB and KBC have both abolished exemptions for FTB this week

    https://www.rte.ie/news/business/2021/0525/1223774-mortgage-borrowing-rules/


  • Registered Users Posts: 17,540 ✭✭✭✭ Ace2007


    Caranica wrote: »
    PTSB and KBC have both abolished exemptions for FTB this week

    https://www.rte.ie/news/business/2021/0525/1223774-mortgage-borrowing-rules/

    It actually doesn't say that at all....
    Permanent TSB said its decision "does not mean that we will be closed for first-time buyer LTI (loan-to-income) exceptions for the remainder of the year".


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  • Registered Users Posts: 2,634 ✭✭✭ ec18


    fondue wrote: »
    A few questions for people who have obtained mortgage exemptions i.e. greater than 3.5 times their salary/combined salaries. What type of jobs have you been in when you secured the exemption? Are you more likely to get an exemption if you are public sector? Are exemptions generally offered to those on salaries above a certain threshold?
    I know there’s no guarantee of getting one, I’m just wondering if I would have a chance.

    Yes banks have different criteria. Really whether a bank has one is very dependent on your circumstances but generally. You need to be able to afford the stress tested re payments for the increased amount with whatever the banks have decided is living costs. Salary, occupation etc all play apart but what you're trying to buy as well will be a factor

    Generally it's for people on higher incomes or with large deposits as be definition they are the exception.


  • Registered Users Posts: 6,186 ✭✭✭ Aisling(",)


    We got one in March.Civil servant and retail worker not effected by covid.
    We got 4.2 times our salaries and we earn approx 75k.

    This was with KBC though I think they've announced they're done with them for the year.
    We had strong savings and no dependents so that definitely helped. We had over the 10% deposit saved on the property we submitted on the application.

    They're definitely not just for the mad money I know other who got them on similar salaries and were told its because of the savings and lack of financial commitments.


  • Registered Users Posts: 220 ✭✭ voldejoie


    Is there any chance of getting an exemption as a single applicant?


  • Registered Users Posts: 43 ✭✭✭ Molina


    We got one in April. Combined basic salaries c€120k, plus bonus of c€20k (not fully included in calculation.) We were approved for 4x. We have two children. One tech industry, one teacher.


  • Registered Users Posts: 2,710 ✭✭✭ kev_s88


    we got one earlier this month for 4 times salary. I'm early 30s (Financial Services industry) and partner is late 20s (Dental Nurse) earning less than €80k combined. Salary really doesn't make too much of a difference. As others here have said a lot of it comes down to your stress test. Our current rent was about €400 a month more than our mortgage repayments would be, and we were able to go about €300 over our rent per the stress test calculations. They take everything into account (spending, existing repayment commitments etc) in the calculations


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  • Registered Users Posts: 2,546 ✭✭✭ C14N


    deise121 wrote: »
    from my understanding you need to be on mega money to get an exemption. basically so you can buy a mansion rather than a mcmansion. the entire system is broken

    This is definitely not true. I'm not struggling to get by but I'm certainly not looking to buy any kind of mansion.
    voldejoie wrote: »
    Is there any chance of getting an exemption as a single applicant?

    I don't see any reason why you wouldn't assuming you look good on paper (good pattern of savings, stable employment, making enough money to pass stress tests etc.)


  • Registered Users Posts: 130 ✭✭ deise121


    C14N wrote: »
    This is definitely not true. I'm not struggling to get by but I'm certainly not looking to buy any kind of mansion.

    okay mate


  • Registered Users Posts: 220 ✭✭ voldejoie


    C14N wrote: »
    This is definitely not true. I'm not struggling to get by but I'm certainly not looking to buy any kind of mansion.



    I don't see any reason why you wouldn't assuming you look good on paper (good pattern of savings, stable employment, making enough money to pass stress tests etc.)

    Thanks a mill! I had AIP but I'm now moving jobs for a big pay increase which means I won't be able to buy until next year now. Luckily looking outside of Dublin which certainly helps!!


  • Registered Users Posts: 17,540 ✭✭✭✭ Ace2007


    voldejoie wrote: »
    Thanks a mill! I had AIP but I'm now moving jobs for a big pay increase which means I won't be able to buy until next year now. Luckily looking outside of Dublin which certainly helps!!

    If you asked your new company to waiver the probation period it may be OK though. There are always ways around it, especially if your moving for a big pay increase. If you have already accepted the job, might be a little harder, but it's not harm in asking.


  • Registered Users Posts: 590 ✭✭✭ you2008


    voldejoie wrote: »
    Is there any chance of getting an exemption as a single applicant?

    yes - Did myself


  • Registered Users Posts: 50 ✭✭ Matqo


    Apologies for the necropost, I currently have an UB loan offer which is due to expire soon due to the sale being dragged out for too long. Therefore it seems that I will have to find myself a new mortgage altogether (with UB leaving the market), can anyone recommend a reputable broker, particularly one that would know where a single applicant can maximise their LTI exception?

    Thanks in advance folks



  • Registered Users Posts: 405 ✭✭ Emma2019


    I got an exception as a single applicant with PTSB. Just under 4 times salary.

    70k salary, working in the civil service.

    I dont think the broker really has much to do with it tbh. It's based on saving patterns. Mine was plugging my info into the calculator while on the phone to me. I do love my broker though so happy to recommend her.



  • Registered Users Posts: 144 ✭✭ Kurooi


    If you want to DM me I have a PTSB broker who got me an LTI exception.

    But if they don't do First time buyer exemptions as a policy, Idk if you can get one. Unless you're trading up or have enough deposit to cover 20%?



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