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

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    #5942
    Purple Sheep
    Registered Users Posts: 48 ✭Purple Sheep


    Mark1916 wrote: »
    Hi all,
    quick question, has anyone come across a request by a seller to sign an unconditional contract?
    We're sale agreed and have an offer letter from the Bank but the sellers are also buying a property and have requested that the conditionality around the "loan approval" clause.
    Is this common? I would have thought not.

    It was the same for me. So although I had the loan offer, that offer was conditional on getting mortgage protection and the lot so I made sure I had absolutely everything lined up before signing the contract... Really stressful. Solicitor didn't think we could negotiate on the clause in this market.


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    #5943
    Ag1994
    Registered Users Posts: 11 ✭Ag1994


    Wondering if anyone on here can give some advice regarding mortgage applications. We applied over 2 weeks ago as first time buyers both employed full time no dependents & saving regularly etc. the bank requested more paperwork from us to back up our application. Is this a good sign ? Does this mean central bank are considering us or is there still a high possibility of being refused ?


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    #5944
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    Ag1994 wrote: »
    Wondering if anyone on here can give some advice regarding mortgage applications. We applied over 2 weeks ago as first time buyers both employed full time no dependents & saving regularly etc. the bank requested more paperwork from us to back up our application. Is this a good sign ? Does this mean central bank are considering us or is there still a high possibility of being refused ?

    The central bank won't look at your application - are you looking for an exemption? Hopefully your application will be approved but very hard to tell you.


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    #5945
    Ag1994
    Registered Users Posts: 11 ✭Ag1994


    GingerLily wrote: »
    The central bank won't look at your application - are you looking for an exemption? Hopefully your application will be approved but very hard to tell you.


    Thank you for your reply , we haven’t applied for an exemption. we applied through PTSB, I assumed they sent it to central bank but that’s good to hear they don’t. I would hope that if they were going to refuse us they wouldn’t request further documentation ?


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    #5946
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    Ag1994 wrote: »
    Thank you for your reply , we haven’t applied for an exemption. we applied through PTSB, I assumed they sent it to central bank but that’s good to hear they don’t. I would hope that if they were going to refuse us they wouldn’t request further documentation ?

    No the central bank won't receive your individual application and they won't be involved in the direct approval of your loan.

    It may be a good sign, you need to wait and see, we don't know what queries the underwriters have over your application.


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    #5947
    Mark1916
    Registered Users Posts: 523 ✭✭✭Mark1916


    Ag1994 wrote: »
    Thank you for your reply , we haven’t applied for an exemption. we applied through PTSB, I assumed they sent it to central bank but that’s good to hear they don’t. I would hope that if they were going to refuse us they wouldn’t request further documentation ?

    The central bank don’t look at any applications, it’s the Banks money to lend! The central bank are the overloards they set the rules e.g. the 10% deposit requirement!

    They probably need further information to make an informed decision it’s completely normal to be asked! As long as you’ve no missed payments on any debt repayments or direct debits in the last 6 months you should be fine! I got mine through BOI and they queried some payments out of the account and requested P60s and payslips etc all of which is usually asked for!


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    #5948
    Ag1994
    Registered Users Posts: 11 ✭Ag1994


    Mark1916 wrote: »
    The central bank don’t look at any applications, it’s the Banks money to lend! The central bank are the overloards they set the rules e.g. the 10% deposit requirement!

    They probably need further information to make an informed decision it’s completely normal to be asked! As long as you’ve no missed payments on any debt repayments or direct debits in the last 6 months you should be fine! I got mine through BOI and they queried some payments out of the account and requested P60s and payslips etc all of which is usually asked for!

    Thanks for your reply, that’s great to hear !!
    It was a request for a solicitor letter and Payslip’s from my partner from last year as his p60 didn’t reflect & he’s employed by family. Mainly they wanted his salary cert to be backed up which we provided. Fingers crossed it’s good news, they said tomorow at the latest !!


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    #5949
    Mark1916
    Registered Users Posts: 523 ✭✭✭Mark1916


    Ag1994 wrote: »
    Thanks for your reply, that’s great to hear !!
    It was a request for a solicitor letter and Payslip’s from my partner from last year as his p60 didn’t reflect & he’s employed by family. Mainly they wanted his salary cert to be backed up which we provided. Fingers crossed it’s good news, they said tomorow at the latest !!

    Fingers crossed for you, exciting times!


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    #5950
    podgemonster
    Registered Users Posts: 2,228 ✭✭✭podgemonster


    Just wondering has anyone been in my current situation. We've gone sale agreed on a new build. Have mortgage approval a few months ago, just recently gotten the letter of offer and paid 10%. Mortgage is a 80% LTV and 2.7 times our combined salary.

    The build is a good bit off completion probably a good 4-5 months away except one small factor....the missus is now pregnant. My concern is now that on drawdown somewhere along the lines it will occur during her maternity leave and the bank will seek new payslips and turn around and tell us to where to go. Does this happen?


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    #5951
    wally79
    Registered Users Posts: 2,933 ✭✭✭wally79


    podgemonster wrote: »
    Just wondering has anyone been in my current situation. We've gone sale agreed on a new build. Have mortgage approval a few months ago, just recently gotten the letter of offer and paid 10%. Mortgage is a 80% LTV and 2.7 times our combined salary.

    The build is a good bit off completion probably a good 4-5 months away except one small factor....the missus is now pregnant. My concern is now that on drawdown somewhere along the lines it will occur during her maternity leave and the bank will seek new payslips and turn around and tell us to where to go. Does this happen?

    We just went through this

    We told them she was pregnant and the advisor said if baby was born before we drew down to let them know

    We did and it has made no difference in our case but may in others.

    We just went sale agreed and the bank wanted 2 extra items

    A quote for childcare costs
    A letter from employer showing return to work date


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    #5952
    podgemonster
    Registered Users Posts: 2,228 ✭✭✭podgemonster


    Glad to hear it (Congrats on the baby)

    Can I ask what Bank you dealt with?


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    #5953
    wally79
    Registered Users Posts: 2,933 ✭✭✭wally79


    podgemonster wrote: »
    Glad to hear it (Congrats on the baby)

    Can I ask what Bank you dealt with?

    AIB

    We decided best thing to do was ask them.

    We were worried it would impact but better to know in advance

    You aren’t the first or last to be in this situation


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    #5954
    wally79
    Registered Users Posts: 2,933 ✭✭✭wally79


    While I am here

    Any advice on variable v fixed

    We are looking at

    Variable 3.15%
    Fixed 3yr 3.2%
    Fixed 5yr 3.3%
    Fixed 7yr 3.5%


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    #5955
    purpleisafruit
    Registered Users Posts: 508 ✭✭✭purpleisafruit


    wally79 wrote: »
    While I am here

    Any advice on variable v fixed

    We are looking at

    Variable 3.15%
    Fixed 3yr 3.2%
    Fixed 5yr 3.3%
    Fixed 7yr 3.5%
    Bank of Ireland doing 3% on 3 yr and 5 yr fixed


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    #5956
    detoxkid
    Registered Users Posts: 621 ✭✭✭detoxkid


    podgemonster wrote: »
    Just wondering has anyone been in my current situation. We've gone sale agreed on a new build. Have mortgage approval a few months ago, just recently gotten the letter of offer and paid 10%. Mortgage is a 80% LTV and 2.7 times our combined salary.

    The build is a good bit off completion probably a good 4-5 months away except one small factor....the missus is now pregnant. My concern is now that on drawdown somewhere along the lines it will occur during her maternity leave and the bank will seek new payslips and turn around and tell us to where to go. Does this happen?


    We may potentially go through this so I've looked into it. We already have 2 kids and it does count against you when it comes to a mortgage - they stress test your ability to repay the mortgage with the cost of childcare and taking care of a child in general. If you need to reapply for the mortgage if the build isn't ready before your approval runs out they will ask for bank statements etc again and the baby will be taken into consideration but as the other poster said it's not necessarily a deal breaker


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    #5957
    djan
    Registered Users Posts: 1,760 ✭✭✭djan


    Does anybody have any experience with applying for a change in interest rate or going to a fixed from a variable?

    Issue I have that I have been approved for an exemption but the bank have but in the wrong rate option by accident; 2yr @ 3%. I queried them about changing it to either the 5yr 3% or 10yr 3.3% got passed around as nobody was sure, but then was told that apparently it would need to go through underwriters again and no exemption would be given this time around as they've all been used up.

    I understand that things would need to be reapproved for the 10yr option with monthly repayments increase but the 5yr one which stays at current 3% should be fine?


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    #5958
    Mark1916
    Registered Users Posts: 523 ✭✭✭Mark1916


    djan wrote: »
    Does anybody have any experience with applying for a change in interest rate or going to a fixed from a variable?

    Issue I have that I have been approved for an exemption but the bank have but in the wrong rate option by accident; 2yr @ 3%. I queried them about changing it to either the 5yr 3% or 10yr 3.3% got passed around as nobody was sure, but then was told that apparently it would need to go through underwriters again and no exemption would be given this time around as they've all been used up.

    I understand that things would need to be reapproved for the 10yr option with monthly repayments increase but the 5yr one which stays at current 3% should be fine?
    I had the same issue recently in that I wanted to reduce the term from 35 years to 30 years (was approved for 35 years) and it needed to go through the underwriters. I don't know why but that's the way it was and thankfully we did get re-approval.


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    #5959
    Liam McPoyle
    Closed Accounts Posts: 14,846 ✭✭✭✭Liam McPoyle


    We have the option of getting a gift from my folks to go towards purchasing a house, sum is in the region of €25k.

    What are the implications for this?

    Will we or my parents have any tax liability or face any other penalties or charges or is it simply a case of them doing a bank transfer / writing a cheque and that being that?


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    #5960
    wally79
    Registered Users Posts: 2,933 ✭✭✭wally79


    Business Cat wrote: »
    We have the option of getting a gift from my folks to go towards purchasing a house, sum is in the region of €25k.

    What are the implications for this?

    Will we or my parents have any tax liability or face any other penalties or charges or is it simply a case of them doing a bank transfer / writing a cheque and that being that?

    You need to get a gift letter filled out and signed by them. Basically says it is a gift and not a loan and they have no stake in the property

    There are gift and inheritance laws that I am not qualified enough to explain. My layman understanding is that there is no issue now but may be in future if you receive further gifts/inheritance which bring total received above x amount


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    #5961
    celtic_oz
    Registered Users Posts: 1,554 ✭✭✭celtic_oz


    https://www.irishtimes.com/life-and-style/homes-and-property/what-s-the-tax-when-donating-cash-to-kids-1.2115221


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    #5962
    cruizer101
    Registered Users Posts: 3,205 ✭✭✭cruizer101


    Business Cat wrote: »
    We have the option of getting a gift from my folks to go towards purchasing a house, sum is in the region of €25k.

    What are the implications for this?

    Will we or my parents have any tax liability or face any other penalties or charges or is it simply a case of them doing a bank transfer / writing a cheque and that being that?

    The bank will look for a gift letter stating they have no interest in the property as part of the application. They may also look for something at contract signing time.

    In terms of tax the 25k will come off the 225k that you can inherit from parents tax free. So you won't pay tax now, but it may have an effect down the line.


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    #5963
    wally79
    Registered Users Posts: 2,933 ✭✭✭wally79


    celtic_oz wrote: »
    https://www.irishtimes.com/life-and-style/homes-and-property/what-s-the-tax-when-donating-cash-to-kids-1.2115221

    That was the article I was looking for


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    #5964
    djan
    Registered Users Posts: 1,760 ✭✭✭djan


    Mark1916 wrote: »
    I had the same issue recently in that I wanted to reduce the term from 35 years to 30 years (was approved for 35 years) and it needed to go through the underwriters. I don't know why but that's the way it was and thankfully we did get re-approval.

    I understand the bank checking with the underwriters if monthly repayments are increasing as in your case by shortening the loan period. However, I really fail to see why the bank should re-evaluate when staying on the same interest rate but merely increasing fixation from 2 to 5 years, subsequently increasing the chance of the customer staying with said bank. Seems like a lack of common sense from the them...


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    #5965
    Liam McPoyle
    Closed Accounts Posts: 14,846 ✭✭✭✭Liam McPoyle


    cruizer101 wrote: »
    The bank will look for a gift letter stating they have no interest in the property as part of the application. They may also look for something at contract signing time.

    In terms of tax the 25k will come off the 225k that you can inherit from parents tax free. So you won't pay tax now, but it may have an effect down the line.

    Thanks dudes. No worries about getting a few hundred k down the line so it looks to be fairly straight forward.


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    #5966
    djan
    Registered Users Posts: 1,760 ✭✭✭djan


    cruizer101 wrote: »
    The bank will look for a gift letter stating they have no interest in the property as part of the application. They may also look for something at contract signing time.

    In terms of tax the 25k will come off the 225k that you can inherit from parents tax free. So you won't pay tax now, but it may have an effect down the line.

    Just to note as per the most recent CAT thresholds, the tax free sum is 310,000 EUR, which is expected to be raised to previous values eg. 542,000 EUR in 2009.

    More info here: http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html


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    #5967
    Ag1994
    Registered Users Posts: 11 ✭Ag1994


    Thanks all for the advice , we were approved today !!


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    #5968
    levi
    Registered Users Posts: 366 ✭✭levi


    levi wrote: »
    Anyone applied to Ulster Bank recently? They don’t seem that efficient in getting things done. We have approval in principle from AIB but UB is offering a better rate. They said it would take 1.5 weeks with the lenders... it’s 2 weeks now but we’re sale agreed so I’m keen to get things moving. It took them ages to get a complete application to the lenders - loads of back and forth. Should I expect more of this if we decide to draw down with them?

    Got approval today... patience is a virtue and all that.

    Thanks for all the feedback though... you boardsies are great!


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    #5969
    icanmunch
    Registered Users Posts: 156 ✭✭icanmunch


    We currently have our deposit saved in multiple places. What way is everyone managing their savings for when it comes closer to paying the deposit? There is a 30 day withdraw condition on our savings account so thats the concern. Thinking of opening a separate current account with the bank we are getting the mortgage from and then we can transfer the cash from there?


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    #5970
    awec
    Administrators Posts: 53,483 Admin ✭✭✭✭✭awec


    icanmunch wrote: »
    We currently have our deposit saved in multiple places. What way is everyone managing their savings for when it comes closer to paying the deposit? There is a 30 day withdraw condition on our savings account so thats the concern. Thinking of opening a separate current account with the bank we are getting the mortgage from and then we can transfer the cash from there?
    Firstly, you will need access to your full deposit when it comes to signing contracts. You will need access to your booking deposit much sooner than this.

    In our case, I opened a normal instant access but low interest savings account and put in enough to cover a booking deposit. The rest I kept in our 7 day savings account.

    If you think you are going to buy soon then maybe move from a 30 day account to a 7 day account.


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    #5971
    chases0102
    Registered Users Posts: 1,036 ✭✭✭chases0102


    Hi all,

    Someone may be able to give a bit of guidance.

    We are close to drawdown - snagging is this Thursday, so we envisage that closing will be anything between 4 - 8 weeks after.

    Of course, we need to have Home Insurance and Mortgage Protection in place and sent to the bank before drawdown.

    Typically, when do people do this? Do they take it out a couple of weeks before they anticipate drawdown? As in, you'd be paying for Home Insurance and Mortgage Protection before you have the keys?

    Thanks folks


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