Savings After Paying Deposit

misterreginald96 · 07-04-2022 10:58am #1

Hi,

I was wondering if anyone knows if banks require you to have money left over in your savings after you pay deposit on a house? The house itself needs a small bit of work..furnishing, it is a bit dated, but nothing major. Could the bank reject the mortgage if you don't have say 10k left over to do bits and pieces of cosmetic work to the house (no structural work)? As in I am happy to live in it as is for a while, while I build back up my savings after paying the deposit.

Thank you

RINO87 · 07-04-2022 11:42am

They may look for deposit + around 10k to cover stamp duty, solicitors, surveys etc, after that what you do with the house with regards cosmetic work is up to you.

misterreginald96 · 07-04-2022 10:31pm

https://www.boards.ie/discussion/comment/118893578#Comment_118893578

Thanks, yes I meant to say I had included solicitor stamp duty etc. in my costs, so I'd basically have nothng left over ! People have been saying to me that banks still want you to have 10k left to buy couches new carpets ..paint etc.

RINO87 · 08-04-2022 10:32am

Got ya! I have not heard of banks asking for proof of that (I'm no expert tho!) Some even used to offer cashback at drawdown for this purpose, some still do I think

o1s1n · 08-04-2022 11:39am

Not at all. Any time I've bought property, every last cent I had went into the purchase & additional costs and pretty much was living pay cheque to pay cheque for a couple of months after.

Not ideal and pretty scary to be honest but had to do it to secure the property I wanted.

misterreginald96 · 19-04-2022 9:58pm

Thanks All, what would be your opinions on purchasing a property that is liveable but definitely needs some renovation (insulation some rewiring etc)? I'm considering purchasing a property where I would have about 10k left to tip away at some work initially and saving for work as I go. Has any one done this? Is it foolish not having all the money to do the renovation immediately?

Thank you

ArtyC · 19-04-2022 10:10pm

Not a problem for me in 2018. It was “ livable “but stank of pee, holes kicked in doors , filthy . You get the idea.

banks don’t check that, only that it’s livable & valuation done

Alkers · 19-04-2022 10:19pm

https://www.boards.ie/discussion/comment/118949349#Comment_118949349

Not at all, it can even be better to live somewhere for a while to get a better feel for the flow of the house before doing any major work, or even ordering a sofa!

I've also cleaned myself out when buying a property, one thing to factor in is it will likely be at least a month between going sale agreed and getting keys so if you're saving each month, you'll have a small buffer at least

SunnySundays · 19-04-2022 10:45pm

The bank will want it to be habitable, insurance and no warnings in their valuation, I.e. doesn't call out an asbestos issue or something major like a fire hazard.

If memory serves me correct if it's a very old property, they might require a structural survey in addition to a valuation.

If it's cosmetic and non essential, they don't care. If they ask (which they may do of the valuation indicates it needs work) advice it's all non essential and you plan to do it over time as spare finances allow.

Icantthinkof1 · 20-04-2022 10:19am

You’d have to factor in heating costs as well going forward if the house needs insulating etc given the recent hikes in electricity and gas prices and the increases in the price of materials. The house we’re renting at the moment needs insulating and our electricity and gas bills were nearly 1k and that was us being mindful of not using the heating as much

Might not be too much of an issue if you’re living on your own though