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

Samuel T. Cogley · 05-02-2017 04:08PM

Buy a house with your budget now, as your salary increases pay it off, sell it and move into the forever home.

It always struck me as odd that people think they start off in the forever home, some are lucky enough to but needs change over time.

Jen Pigs Fly · 05-02-2017 04:28PM

Samuel T. Cogley wrote: »

Buy a house with your budget now, as your salary increases pay it off, sell it and move into the forever home.

It always struck me as odd that people think they start off in the forever home, some are lucky enough to but needs change over time.

It's the land I more so want, I'm not an apartment/housing estate person, need space for the horses! We were discussing it and said get the mortgage and pay next to nothing for 35 years and get a credit union loan

can get a few acres with old house refurb project for 120k in co. Meath so it's doable! Credit union loan will cover renovations and such.

I'm hoping as more people move into bigger houses more of what I want will come up!

youcancallmeal · 05-02-2017 05:04PM

Samuel T. Cogley wrote: »

Buy a house with your budget now, as your salary increases pay it off, sell it and move into the forever home.

It always struck me as odd that people think they start off in the forever home, some are lucky enough to but needs change over time.

Well in fairness buying houses in less than ideal locations and 1 bed apartments as 'starter homes' during the height of the bubble is where a lot of people got stung as they are stuck there now.

I think now, certainly for me anyway, it's a good idea to try and buy your forever home first time if you can. Or at the very least push your budget to the max and buy somewhere that while not necessarily a forever home could be one(extendable?) if there was some sort of huge crash again

Samuel T. Cogley · 05-02-2017 05:12PM

youcancallmeal wrote: »

Well in fairness buying houses in less than ideal locations and 1 bed apartments as 'starter homes' during the height of the bubble is where a lot of people got stung as they are stuck there now.

I think now, certainly for me anyway, it's a good idea to try and buy your forever home first time if you can. Or at the very least push your budget to the max and buy somewhere that while not necessarily a forever home could be one(extendable?) if there was some sort of huge crash again

I don't disagree on the one bed apartments and houses on the other side of Wexford point in fairness. (Referring to Dublin commuters.)

However it should be done within the CB mprtgage rules and with a robust saving regime in mind. It's getting on for ten years since the crash started we should be realising that as painful as it is we need to start saving as soon as we hit the workforce. The LTI rates are essential in minimising the boom/bust cycle in housing.

BTW, I'm not firing that at you, I only quoted you to agree with your point about unsuitable first homes.

Member16 · 06-02-2017 11:43PM

How are things? I just have a couple of questions in regards to applying for a mortgage. At what stage should myself and my partner start speaking to banks? At the minute we have €11,500 in savings, would the bank give us some sort of detailed plan to follow Or just tell us what we need to come back with? Or should we just wait until we have the full 10% in savings I.E €19500 before we start speaking to anybody? Basically when should we get the ball rolling cheers everyone.

johnnyskeleton · 06-02-2017 11:51PM

Member16 wrote: »

How are things? I just have a couple of questions in regards to applying for a mortgage. At what stage should myself and my partner start speaking to banks? At the minute we have €11,500 in savings, would the bank give us some sort of detailed plan to follow Or just tell us what we need to come back with? Or should we just wait until we have the full 10% in savings I.E €19500 before we start speaking to anybody? Basically when should we get the ball rolling cheers everyone.

No harm to go in to them for approval in principle, but they wont give you formal approval until you have the full deposit. Keep saving and make sure you have a record of it being regular savings.

Member16 · 07-02-2017 07:04AM

johnnyskeleton wrote: »

No harm to go in to them for approval in principle, but they wont give you formal approval until you have the full deposit. Keep saving and make sure you have a record of it being regular savings.

Appreciate the reply. Iv tried three different banks online using the mortgage calculator and have been approved in principle by all three, is this an accurate figure they give or would an actual meeting with a mortgage advisor come out with a whole new figure? Thanks again

athtrasna · 07-02-2017 07:13AM

Mod note

Member16 I've merged your thread in here. This thread is the appropriate place to discuss applying for a mortgage etc on this forum. Thanks

Bradz213 · 07-02-2017 12:19PM

Member16 wrote: »

Appreciate the reply. Iv tried three different banks online using the mortgage calculator and have been approved in principle by all three, is this an accurate figure they give or would an actual meeting with a mortgage advisor come out with a whole new figure? Thanks again

Those online calculators are a pile of ***** in particular KBC's. They offered me considerably less over the phone

Clazbeag · 08-02-2017 09:24PM

Hi,

Apologies in advance if this has been covered elsewhere but I was unable to find the answer.

I am single and applying for a mortgage soon. I have approximately 33% of the deposit required and will be staying within the thresholds for 3.5 times my salary as a loan & the loan to value ratio. However I want to buy soon- do I definitely have to have 6 months in my current role before a mortgage is given or do banks make exceptions for this?

I work as an accountant in a permanent role-I will be starting in a few weeks in a secure industry?

Thanks for any thoughts or general advice on the mortgage process!

kwat · 08-02-2017 09:35PM

Quick question.
Hoping by the end of March to have about 80% of required deposit for our budget and planning on talking to the banks at that stage.
Will banks give approval in principle at that stage, providing that the balance of the required deposit is saved up in the following months, or will they want to see the full deposit beforehand?

Thanks

Danbo! · 08-02-2017 09:44PM

Clazbeag wrote: »

Hi,

Apologies in advance if this has been covered elsewhere but I was unable to find the answer.

I am single and applying for a mortgage soon. I have approximately 33% of the deposit required and will be staying within the thresholds for 3.5 times my salary as a loan & the loan to value ratio. However I want to buy soon- do I definitely have to have 6 months in my current role before a mortgage is given or do banks make exceptions for this?

I work as an accountant in a permanent role-I will be starting in a few weeks in a secure industry?

Thanks for any thoughts or general advice on the mortgage process!

This is only anecdotal, but in my experience it depends on your situation. With 33% and not looking for 10x your salary, they may make an exception. I went to the bank in 2013, was in a permanent role for 3 years in same company, but was being hounded by recruiters. I asked the question. They said as soon as I get approval, I could do what I wanted, as long as the mortgage was drawn down within 6 months. After that, I'd need to provide payslips again to show I was still employed and work situation hadn't changed. If I was in a new company in same industry (IT) with same or more salary, the manager assumed it wouldn't be an issue. In the end we closed on the house 3 days before the 6 months was up so I don't know what would have happened. Best to ask the bank.

q85dw7osi4lebg · 08-02-2017 09:45PM

kwat wrote: »

Quick question.
Hoping by the end of March to have about 80% of required deposit for our budget and planning on talking to the banks at that stage.
Will banks give approval in principle at that stage, providing that the balance of the required deposit is saved up in the following months, or will they want to see the full deposit beforehand?

Thanks

They will want to see the full deposit, HOWEVER, tell them the remaining 20% will be a gift and they should give you approval in principle. Then just save the 20% and when going for the loan offer tell them you no longer need the gift and have saved the full amount (worked for us).

kwat · 08-02-2017 09:57PM

Reese Lively Cabinet wrote: »

They will want to see the full deposit, HOWEVER, tell them the remaining 20% will be a gift and they should give you approval in principle. Then just save the 20% and when going for the loan offer tell them you no longer need the gift and have saved the full amount (worked for us).

Thanks for that. Only thing is there will be a gift already included in the amount by the end of March so not sure that'll work!
Was hoping they'd give AIP providing the full deposit would be saved by the end of the six month expiry.
Or even AIP based on the amount at March and can start with that. I'm presuming we'd have to reapply for a higher mortgage then based on the higher deposit.

boris1234 · 08-02-2017 10:04PM

kwat wrote: »

Thanks for that. Only thing is there will be a gift already included in the amount by the end of March so not sure that'll work!
Was hoping they'd give AIP providing the full deposit would be saved by the end of the six month expiry.
Or even AIP based on the amount at March and can start with that. I'm presuming we'd have to reapply for a higher mortgage then based on the higher deposit.

Based on our experience you should just go and chat with the bank and see where you stand. We went to our bank for a chat about a mortgage with our savings made up of about 40% our own savings and 60% gift money from parents. We had AIP within a few weeks based on saving more to have a sufficient deposit for the maximum amount we want to borrow.

Naid23 · 09-02-2017 10:55AM

Would any one have any recommendations for a reliable surveyor in Dublin? Could you please PM any suggestions. One we used last time is swamped so cant go with him.

thanks

youcancallmeal · 09-02-2017 11:34AM

Clazbeag wrote: »

Hi,

Apologies in advance if this has been covered elsewhere but I was unable to find the answer.

I am single and applying for a mortgage soon. I have approximately 33% of the deposit required and will be staying within the thresholds for 3.5 times my salary as a loan & the loan to value ratio. However I want to buy soon- do I definitely have to have 6 months in my current role before a mortgage is given or do banks make exceptions for this?

I work as an accountant in a permanent role-I will be starting in a few weeks in a secure industry?

Thanks for any thoughts or general advice on the mortgage process!

Had same situation myself recently. Some banks will give you AIP on the basis that you will be permanent by time you ask for full loan offer. In our case my wife was 2 weeks away from being permanent and we were waiting on bank to issue loan offer for house we were sale agreed on. They agreed to issue loan offer a week early so we could sign contracts but again drawdown is subject to them getting a letter from employer confirming permanency. So to answer your question some of them are somewhat flexible but you can be certain none would let you drawdown a mortgage until you complete probation.

howtolive · 12-02-2017 10:55AM

Hi All,

Two quick questions:
1) which banks at the moment are offering 12 month Approval In Principle?

2) we are getting closer to our wedding, but haven't applied for a mortgage as yet. We are putting 1500 or more consistently each month into savings, but will be spending large chunks of our current account for rings, reception, dresses, etc. Will the banks see that we are saving 1500+ a month, or will they see that as less as we will be spending a few hundred or several thousand from our current accounts in the same month? e.g we put 1500 into savings, but spend 5000 from current accounts, do the banks see that as 1500 savings, or -3500 savings deficit?

Thanks!

Samuel T. Cogley · 12-02-2017 01:06PM

You have annual salaries in excess of 150,000 (€6,500 net) and you're savings €1,500? That wouldn't look great tbh. Although as long as it's consistent it'll count towards affordability calculations for a lowish mortgage.

howtolive · 12-02-2017 01:19PM

Samuel T. Cogley wrote: »

You have annual salaries in excess of 150,000 (€6,500 net) and you're savings €1,500? That wouldn't look great tbh. Although as long as it's consistent it'll count towards affordability calculations for a lowish mortgage.

I wish! No, nowhere near that amount unfortunately. We have the money saved in our current accounts to be spent on wedding expenses.

So, for example, we have to spend 5k one month from our current accounts on our wedding, but save our usual 1.5k, will the banks see that as 1.5k saved or a deficit of -3.5k for that month, as we spent more than we earn in that particular month? (even though we had the money saved up for the expenditure in our current accounts).

Samuel T. Cogley · 12-02-2017 01:33PM

Ah sorry my apologies! While I want to say God love ya for doing both at the same time (and the very best of luck on both!), as long as you're consistently saving and not touching it you're grand. In fact it looks good because it shows you can manage your finances under a time of stress.

Just keep consistently saving and not touching it.

68 lost souls · 12-02-2017 01:53PM

howtolive wrote: »

I wish! No, nowhere near that amount unfortunately. We have the money saved in our current accounts to be spent on wedding expenses.

So, for example, we have to spend 5k one month from our current accounts on our wedding, but save our usual 1.5k, will the banks see that as 1.5k saved or a deficit of -3.5k for that month, as we spent more than we earn in that particular month? (even though we had the money saved up for the expenditure in our current accounts).

I would have thought it would be worth your while setting up a dedicated account for savings rather than using a current account, bette rinterest and easier to track savings as well as less risk if your card gets scammed and still easy to withdraw if needs be if you want to go to an online 7 day saver or similar.

howtolive · 12-02-2017 02:18PM

@Samuel T. Cogley: Ah no problem at all, thank you very much! It's a lot of juggling indeed but we have it all planned out

@68 lost souls: We do have savings accounts but the wedding expenses are from the current account - unless I've totally misinterpreted things, touching a savings account at all (even if the funds are earmarked for something other than a deposit/fees, etc) reduces your likelihood of being approved for a mortgage.

listermint · 12-02-2017 08:09PM

howtolive wrote: »

@Samuel T. Cogley: Ah no problem at all, thank you very much! It's a lot of juggling indeed but we have it all planned out

@68 lost souls: We do have savings accounts but the wedding expenses are from the current account - unless I've totally misinterpreted things, touching a savings account at all (even if the funds are earmarked for something other than a deposit/fees, etc) reduces your likelihood of being approved for a mortgage.

Generally speaking the banks will look for past 6 months of payslips and savings figures. So if you are going in talking to the banks 6 months after wedding then it wont mather either way. The 1500 should turn into more savings as no longer putting money into wedding.

If going straight in to talk to banks after wedding the 1500 Will look very favourable providing its above the monthly payment for mortgage AND you have enough overheard for stress payment (and living expenses) Also be able to explain all of the transactions from the Current accounts in complete detail if asked.

howtolive · 12-02-2017 08:28PM

listermint wrote: »

Generally speaking the banks will look for past 6 months of payslips and savings figures. So if you are going in talking to the banks 6 months after wedding then it wont mather either way. The 1500 should turn into more savings as no longer putting money into wedding.

If going straight in to talk to banks after wedding the 1500 Will look very favourable providing its above the monthly payment for mortgage AND you have enough overheard for stress payment (and living expenses) Also be able to explain all of the transactions from the Current accounts in complete detail if asked.

Thank you - we aim to go to the banks in 5/6 weeks, with the wedding later in the year. So if we get approval in the next couple months, we may have married by the time we draw down, so will have to explain all the expenditure to the banks if/when they seek updated documents for the months between approval in principle and the actual loan offer.

listermint · 12-02-2017 08:55PM

howtolive wrote: »

Thank you - we aim to go to the banks in 5/6 weeks, with the wedding later in the year. So if we get approval in the next couple months, we may have married by the time we draw down, so will have to explain all the expenditure to the banks if/when they seek updated documents for the months between approval in principle and the actual loan offer.

Do you have 10% currently or are you aiming for that after the wedding ? If you dont have it now or are not close to it now. That meeting may be premature.

howtolive · 12-02-2017 10:46PM

listermint wrote: »

Do you have 10% currently or are you aiming for that after the wedding ? If you dont have it now or are not close to it now. That meeting may be premature.

We have approximately 25% saved for a deposit so are a bit beyond the 10% (however finding a home in Dublin for a 25% deposit + 75% mortgage is a different thing entirely)!

sabinalee · 13-02-2017 06:25AM

Hello again

We finally got AIP.
After two weeks of emaili to EA advertising properties, we didnt even had a chance to see any yet

Instead we got few replies from EA: - sorry, AIP is worthless here, we have cash buyers and full mortgage approval customers...
My natural positiveness got ruined

We are 40 and 50 years of age, and bank will (?) let us only to buy some property for aprrox 180000. There is not such a place near where we live ( Maynooth) which makes me mad or maybe sad.... We have 2 kids, so we at least need 2 bed apartment, house.
We are looking up to 40km from our work places, where we could have a bit of activities for kids, good schools.
Is there any place? 8-)

Would you tell me if the six month given for AIP is the time for finding the property only and sale agreed, or within that time I have to sign all contract and get a keys? ( apologies, but Im not good yet with it)

Thank you in advance for your replies.

Iang87 · 13-02-2017 06:52AM

Hi Lads,

First time venturing in here, getting married in August but saving steadily for the past year for it and will continue on for deposit after that. Hoping to get approx 30k of a deposit saved. Can someone tell me what is it the banks look at and will be looking for regarding the mortgage application
Thanks

Samuel T. Cogley · 13-02-2017 01:09PM

Iang87 wrote: »

Hi Lads,

First time venturing in here, getting married in August but saving steadily for the past year for it and will continue on for deposit after that. Hoping to get approx 30k of a deposit saved. Can someone tell me what is it the banks look at and will be looking for regarding the mortgage application
Thanks

They have their restrictions 90% Loan to Value of the property and 3.5x your combined salaries. They're then looking at your income and outgoings. Childcare is a killer so on the honeymoon... :pac:

They're looking for no debt and as much, consistent saving as possible. Put money in a deposit account and never touch it. Any negatives in your current account are a big no-no so never go overdrawn.

Other than that if you're both in permanent jobs over a year, it's pretty straight forward.

The very best of luck!

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

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