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Mortgage Process

  • 14-07-2022 10:31am
    Registered Users Posts: 26 Arun Thomas

    Hi can someone explain the mortgage process .How long it takes and the documents that needed and whether they give just 3.5x of the Basic pay or will they take into consideration OT ,bonus or any other benefits


  • Registered Users Posts: 356 ✭✭ Kurooi

    How long it takes - if you're a first time buyer, have your deposit and the documents ready, and you're in capable hands (a broker) it can be just days. Failing any of those points, few weeks.

    Documents required - Bank statements, including savings accounts and revolut , that cover past 6 months. IDs, payslips, salary certs (bank will give you a template, your employer fills it out. I advise to do these first and ahead of everything else because some HR departments can take long!) Over covid banks have also started to request a form from employer stating that they are not in receipt of COVID funds. Normally they request that after your mortgage is approved in principle but prior to draw down. I'm not sure whether that is still practice but you can expect some extra document requests there.All of this for both you and second applicant if there is one. Ofc the bank/broker will run you through lots of questions regarding personal details, your job, salary, expenses.

    Also note, as you present your accounts you are expected to have the history of savings and a deposit saved up. First time buyer 10% of purchase price. Plus some spare for solicitors , tax and legal fees.

    3.5 times rule - yes correct, it's based on gross annual salary, 3.5 times is the ceiling. you can try applying for a central bank LTI exemption (to take it up to 4.5 times, this is not guaranteed and mostly depends on how secure your job situation is)

    And lastly bonus/OT - BIKs like healthcare are completely ignored. Cash like bonuses, OT, commission are also generally not taken into consideration, but you can try. The key is your salary cert, example below is Permanent TSB, if your employer ticks 'guaranteed' then that may get taken into consideration depending on the bank, but generally those are not guaranteed in which case they ignore the extra income. Bonuses likewise are usually at least somewhat tied to performance to employers don't like to state them as guaranteed

  • Registered Users Posts: 3 roger8900

    I used to top up my wife’s Revolut card frequently three months ago. She closed her account. Now mortgage lender asking to submit six month statements but I have only three statements.

    I have last three months statement without any Revolut activity.

    anyone been in this situation ? Will they accept three months statements ?