Saving/Applying for a mortgage 2015/16/17/18/19

The_Conductor wrote: »

If you apply for any type of a loan a record of a check against your ICB record is made, and any future checks reveal historical checks (I think for a period of 5 years).

I could be wrong, but I think only credit agreements remain for five years from the date the loan is cleared. I recently got a credit report and applications I made for credit more than a year ago no longer appeared. I think it could be 6 months.

What would be the best way for one to treat a gift sum from a family member that isnt to be shown as part of the deposit? Instead they would want to use it to clear an overdraft, increase savings and put current accounts into a healthier position over the next few months with a view to reapplying after receiving a decline?

5 grand

Yes it is taken into account.. I suspended mine until so it didn't shoe in 3 months salary certs.. The bank said it did reduce how much you can get as pension is deducted..

myshirt wrote: »

Is it not clear that you are artificially "circumventing the system" so to speak?

How can a lender (and you yourself) get a true view on your capacity to take on and service a loan if you are to do things like this? Just wondering how effective a strategy it is and how one gets on afterwards etc

I suppose it's because if the sh1t hits the fan he can stop paying the high % on the pension, so it still technically means the stress test passes.

Gael23 wrote: »

What is the minimum salary a Bank will entertain for a mortgage application? Regardless of your savings.

It is about €35k.

Hope it's ok to post this question here. We are hoping to get everything in order soon and start the process of applying for a mortgage. So what's the first step? Can I just go and meet a mortgage advisor in any bank? Or Is it better to fill out an application form and have relevant bank statements with me at the first meeting. Thank you.

First time poster, long time lurker.

We're hoping to submit an application this month. We're applying for a mortgage on a €320k new build house, and have the old €42k deposit requirement saved.

We've also got about €15k paid in PAYE, and will look to claim that refund this month too, in addition to the €42k deposit.

Working now on the "furniture fund" and this is where my questions comes in.

1. Should we increase the deposit being paid, will a 20% deposit be more favourable when applying, over a 15% deposit? Or should we pull it back to the new 10% requirement, and fit out the house?

2. With me having a base, and variable income. What figure is considered as my total income for the LTI calculation? E.g base of €40k, variable of €40k salary package?

3. We're saving since April, but not knowing how much we needed to save until August, we ramped up to way over required stress test amount. We had a wedding, and one off expenses paid for from savings in the last 6 months. Is this likely to be looked upon negatively?

Thanks for the help

it's 3.5 x their income for single,
and
3.5 x for their combined income for a couple.

Gman213 wrote: »

First time poster, long time lurker.

We're hoping to submit an application this month. We're applying for a mortgage on a €320k new build house, and have the old €42k deposit requirement saved.

We've also got about €15k paid in PAYE, and will look to claim that refund this month too, in addition to the €42k deposit.

Working now on the "furniture fund" and this is where my questions comes in.

1. Should we increase the deposit being paid, will a 20% deposit be more favourable when applying, over a 15% deposit? Or should we pull it back to the new 10% requirement, and fit out the house?

2. With me having a base, and variable income. What figure is considered as my total income for the LTI calculation? E.g base of €40k, variable of €40k salary package?

3. We're saving since April, but not knowing how much we needed to save until August, we ramped up to way over required stress test amount. We had a wedding, and one off expenses paid for from savings in the last 6 months. Is this likely to be looked upon negatively?

Thanks for the help

Well done on saving 20% deposit. My other half and I received mortgage approval today with EBS. The process was surprisingly smooth. We applied mid December. We also got approval from KBC however the principal they offered was €90k lower than what EBS offered.

We got married last summer and we were also worried that the costs of such would negatively impact against mortgage approval however thankfully it didnt. We explained all large payments out of our accounts when we were submitting our bank statements and EBS were fine with this.

Bonuses and overtime were not taken into consideration for LTI calculation in our case.

You potentially will be able to avail of better mortgage rates if LTV is 80% however it is likely that house prices will increase if you wait and continue to save for furniture fund. By all accounts the buying process is slow so you can always work on saving for fit out/furniture while your waiting for sale to be finalised.

hooch-85 wrote: »

What would be the best way for one to treat a gift sum from a family member that isnt to be shown as part of the deposit? Instead they would want to use it to clear an overdraft, increase savings and put current accounts into a healthier position over the next few months with a view to reapplying after receiving a decline?

We got a gift from family to help clear a loan and we had to get a gift letter signed by them. Any large chunks would need a gift letter so that the bank has it in writing that the family member will not come back later looking to cash-in on their investment :pac:

Gman213 wrote: »

1. Should we increase the deposit being paid, will a 20% deposit be more favourable when applying, over a 15% deposit? Or should we pull it back to the new 10% requirement, and fit out the house?

I'd be inclined to put as much as you can towards the deposit. An 80% LTV is a fair bit cheaper then 90%. I'd say you'd need to be in the house a while to really know what style/colours you want to go for.

tony1980 wrote: »

Our Mortgage was drawn down yesterday and we were expecting closing and keys this Friday, in time for the weekend to start getting some jobs done while off over the weekend but just received an email from my solicitor saying they received a bank draft from our Bank so it won't clear until at least Tuesday now, so closing some time next week now instead :-(

That's so frustrating. I thought banks just did electronic transfers!

Mink wrote: »

.... in other words, if all the planets align we won't have to do a rent and mortgage payment out of the same wages packet!

And so it was meant to be.... according to the prophecy.

Well done on your new home Mink!

we applied to EBS for a mortgage on the 29th of Dec, I was wondering how do you find out if you got approval is it letter in post or does the bank person contact you?

Gman213 wrote: »

First time poster, long time lurker.

We're hoping to submit an application this month. We're applying for a mortgage on a €320k new build house, and have the old €42k deposit requirement saved.

We've also got about €15k paid in PAYE, and will look to claim that refund this month too, in addition to the €42k deposit.

Working now on the "furniture fund" and this is where my questions comes in.

1. Should we increase the deposit being paid, will a 20% deposit be more favourable when applying, over a 15% deposit? Or should we pull it back to the new 10% requirement, and fit out the house?

2. With me having a base, and variable income. What figure is considered as my total income for the LTI calculation? E.g base of €40k, variable of €40k salary package?

3. We're saving since April, but not knowing how much we needed to save until August, we ramped up to way over required stress test amount. We had a wedding, and one off expenses paid for from savings in the last 6 months. Is this likely to be looked upon negatively?

Thanks for the help

Put as much of your deposit to the house as possible. You will be glad of it in years to come and borrowing rates get significantly cheaper as your ltv falls.

morrga wrote: »

lbyrne121 wrote: »

we applied to EBS for a mortgage on the 29th of Dec, I was wondering how do you find out if you got approval is it letter in post or does the bank person contact you?

By letter is how we found out.

How long did it take you to find out if you don't mind me asking?