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

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    #6812
    Specialun
    Registered Users Posts: 3,068 ✭✭✭Specialun


    fanvil3000 wrote: »
    Hi all,

    A quick question for people based on their experiences with the banks. Hopeful of been able to buy a place with my partner in late 2019/ early 2020. Our salaries are currently 44k and 21k. Would we get a multiple of 3.5x on the total (65k * 3.5 = 227.5k). Is there any chance of getting more than 3.5x earnings? we are bth late 20s

    Have 20k in savings for a deposit and hopeful of having around 30k by the time of the mortgage. Our budget is 250k-270k. Is this realistic given those numbers? Would hope to have an increase in earnings by then of another 6k

    Cheers for any advice

    if you are going to look for an exception then make sure you’re smart with yout timing. banks have a certain number of exceptions which they can use, from jan to jan. if you ask for an exception late in the calendar year the banks exceptions might be used up.

    this info came from my bank


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    #6813
    Diemos
    Registered Users Posts: 1,417 ✭✭✭Diemos


    Diemos wrote: »
    Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.
    Good luck.
    TheShow wrote: »
    This is a common myth and it is untrue. It is perfectly acceptable to have loans and/or credit cards, they are not frowned upon. it does however impact on your ability to borrow as it reduces your repayment capacity.

    What is a common myth and untrue?


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    #6814
    GaGa21
    Registered Users Posts: 652 ✭✭✭GaGa21


    So, just been told this morning that our third application with 3rd bank has been approved but house we want to buy rejected....again....based on location.
    So 3 banks are happy to give us the mortgage but we have to live where they want us to live.
    I am absolutely raging and fed up now. The whole excitement and joy of buying our first home has been wiped out and replaced with frustration and disappointment.
    We can not buy where we grew up, where we have family and friends. No, we have to buy where some underwriters have deemed suitable for us to live our lives. And where we cannot afford on our budget.
    I am done with it all now.


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    #6815
    Kingp35
    Moderators, Society & Culture Moderators, Sports Moderators Posts: 12,255 Mod ✭✭✭✭Kingp35


    Which banks turned you down? Did they give a reason why they think the location doesn't suit, are the houses overvalued or something?


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    #6816
    Specialun
    Registered Users Posts: 3,068 ✭✭✭Specialun


    GaGa21 wrote: »
    So, just been told this morning that our third application with 3rd bank has been approved but house we want to buy rejected....again....based on location.
    So 3 banks are happy to give us the mortgage but we have to live where they want us to live.
    I am absolutely raging and fed up now. The whole excitement and joy of buying our first home has been wiped out and replaced with frustration and disappointment.
    We can not buy where we grew up, where we have family and friends. No, we have to buy where some underwriters have deemed suitable for us to live our lives. And where we cannot afford on our budget.
    I am done with it all now.

    Why so? What are the reasons?


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    #6817
    GaGa21
    Registered Users Posts: 652 ✭✭✭GaGa21


    Deemed the commute unsustainable. The house we want to buy is fine. Our finances are fine. Its purely based on the location of the house and a 1 and half hour commute to our work in Dublin.
    We are prepared to do it, people do that and longer! But what can we do?
    KBC, HAVEN, AIB...all the same.
    We thought going to our local bank instead of through our broker this time would work, but no.


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    #6818
    autumnbelle
    Registered Users Posts: 1,162 ✭✭✭autumnbelle


    How long is the commute?


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    #6819
    nim1bdeh38l2cw
    Closed Accounts Posts: 689 ✭✭✭nim1bdeh38l2cw


    GaGa21 wrote: »
    Deemed the commute unsustainable. The house we want to buy is fine. Our finances are fine. Its purely based on the location of the house and a 1 and half hour commute to our work in Dublin.
    We are prepared to do it, people do that and longer! But what can we do?
    KBC, HAVEN, AIB...all the same.
    We thought going to our local bank instead of through our broker this time would work, but no.

    You'd go insane within a year with a 3 hour round trip commute, personally I think the banks are right!


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    #6820
    Kingp35
    Moderators, Society & Culture Moderators, Sports Moderators Posts: 12,255 Mod ✭✭✭✭Kingp35


    Natalia Narrow Scrooge wrote: »
    You'd go insane within a year with a 3 hour round trip commute, personally I think the banks are right!

    This is clearly their reasoning, they think you won't be able to stick the commute. Maybe you can but I understand why they won't take that risk.


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    #6821
    autumnbelle
    Registered Users Posts: 1,162 ✭✭✭autumnbelle


    Surely 1.5 hours isnt way above what alot of people outside Dublin are already doing?


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    #6822
    GaGa21
    Registered Users Posts: 652 ✭✭✭GaGa21


    Natalia Narrow Scrooge wrote:
    You'd go insane within a year with a 3 hour round trip commute, personally I think they banks are right!


    That's your opinion. I know people who have been doing it over 10 years. We're happy to do it and if not we can always look at changing our jobs down the line. No job comes with a lifetime guarantee?
    Yes they can tell us to buy in Dublin but can't give us the finances to do so. So what do we do? Rent forever?
    Or let us buy in a "commutable" location, thats 45mins to 1hr, but where we know no one?
    We should be able to decide where we want to live.


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    #6823
    Honestfrank01
    Registered Users Posts: 59 ✭✭Honestfrank01


    GaGa21 wrote:
    So, just been told this morning that our third application with 3rd bank has been approved but house we want to buy rejected....again....based on location. So 3 banks are happy to give us the mortgage but we have to live where they want us to live. I am absolutely raging and fed up now. The whole excitement and joy of buying our first home has been wiped out and replaced with frustration and disappointment. We can not buy where we grew up, where we have family and friends. No, we have to buy where some underwriters have deemed suitable for us to live our lives. And where we cannot afford on our budget. I am done with it all now.

    That's such a weird and horrible situation to be in feel for you but keep the head high and keep fighting for it


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    #6824
    AppleBottle
    Registered Users Posts: 1,421 ✭✭✭AppleBottle


    GaGa21 wrote: »
    That's your opinion. I know people who have been doing it over 10 years. We're happy to do it and if not we can always look at changing our jobs down the line. No job comes with a lifetime guarantee?
    Yes they can tell us to buy in Dublin but can't give us the finances to do so. So what do we do? Rent forever?
    Or let us buy in a "commutable" location, thats 45mins to 1hr, but where we know no one?
    We should be able to decide where we want to live.


    What a ****ty situation to be in. The commuter towns which are considered a better commute are very expensive to buy in also as you noted!


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    #6825
    awec
    Administrators Posts: 53,487 Admin ✭✭✭✭✭awec


    GaGa21 wrote: »
    That's your opinion. I know people who have been doing it over 10 years. We're happy to do it and if not we can always look at changing our jobs down the line. No job comes with a lifetime guarantee?
    Yes they can tell us to buy in Dublin but can't give us the finances to do so. So what do we do? Rent forever?
    Or let us buy in a "commutable" location, thats 45mins to 1hr, but where we know no one?
    We should be able to decide where we want to live.
    You can, if you are paying for it yourself.

    If the bank is paying for it you have to play by their rules.

    The banks don't just imagine these policies up out of thin air and randomly decide one day it's a new rule. Clearly they have had problems with people with long commutes. Presumably people eventually get fed up with it and want to move to a job closer to home, end up taking lower paid jobs and struggling with repayments. I would guess they also factor in the cost of the commute.


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    #6826
    GaGa21
    Registered Users Posts: 652 ✭✭✭GaGa21


    Oh I didn't realise they were giving money that I didn't have to repay? With interest. That explains it then, Thanks!

    The bank factored in the cost of our commute before progressing the application obviously so there was no problem there. And because banks may have had issues with some commuters(which I would link Dubliners moving to the country was an issue due to house prices) that means we can't buy in our home county? That we're being punished for banks past mistakes?


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    #6827
    awec
    Administrators Posts: 53,487 Admin ✭✭✭✭✭awec


    GaGa21 wrote: »
    Oh I didn't realise they were giving money that I didn't have to repay? That explains it then, Thanks!
    They're the ones paying for it initially. You'll pay it all back eventually.

    They will take all necessary precautions to make sure you'll be able to pay them back. They learnt the hard way what happens when they don't do this.


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    #6828
    awec
    Administrators Posts: 53,487 Admin ✭✭✭✭✭awec


    GaGa21 wrote: »
    Oh I didn't realise they were giving money that I didn't have to repay? With interest. That explains it then, Thanks!

    The bank factored in the cost of our commute before progressing the application obviously so there was no problem there. And because banks may have had issues with some commuters(which I would link Dubliners moving to the country is the issue) that means we can't buy in our home county? That we're being punished for banks past mistakes?
    You mean when you filled the forms etc in in the bank with their mortgage person?

    That is irrelevant really, that person has no power to make any decisions. They are just there to inform you of their different mortgage options, give you rough guidance and make sure your paperwork is in order. They are basically sales people.

    Banks have obviously deemed very long commutes to be too risky.


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    #6829
    GaGa21
    Registered Users Posts: 652 ✭✭✭GaGa21


    awec wrote:
    That is irrelevant really, that person has no power to make any decisions. They are just there to inform you of their different mortgage options, give you rough guidance and make sure your paperwork is in order. They are basically sales people.

    No because we have not been refused a mortgage based on finance or figures. We are mortgage approved. We are just not allowed to buy where we want to buy.


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    #6830
    KERSPLAT!
    Closed Accounts Posts: 31,152 ✭✭✭✭KERSPLAT!


    Their money their rules unfortunately. Or maybe fortunately?


    I'm a bit off buying, saving as much as possible while trying to figure out if it's possible for me to buy on my own. Hopefully. Anyway, this thread is a fantastic source of information.


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    #6831
    GaGa21
    Registered Users Posts: 652 ✭✭✭GaGa21


    KERSPLAT! wrote:
    I'm a bit off buying, saving as much as possible while trying to figure out if it's possible for me to buy on my own. Hopefully. Anyway, this thread is a fantastic source of information.


    We are starting to think the same. Might have been a lucky escape for us.
    But the main reason I'm sharing here is to let people know it's a reason for refusal. So I would check banks criteria first before paying out for house survey and solicitors because they don't let you know till the last hurdle and you're out of pocket.

    SO F***KING ANNOYING!!!!

    Rant over :-)


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    #6832
    awec
    Administrators Posts: 53,487 Admin ✭✭✭✭✭awec


    GaGa21 wrote: »
    No because we have not been refused a mortgage based on finance or figures. We are mortgage approved. We are just not allowed to buy where we want to buy.
    You're approved in principal for a certain value, but full mortgage approval is done against a specific property and the bank are unwilling to approve your mortgage against the property you want (because they deem the risk of something going wrong that affects your ability to pay them back their money is too great).


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    #6833
    GaGa21
    Registered Users Posts: 652 ✭✭✭GaGa21


    awec wrote:
    You're approved in principal for a certain value, but full mortgage approval is done against a specific property and the bank are unwilling to approve your mortgage against the property you want (because they deem the risk of something going wrong that affects your ability to pay them back their money is too great).


    Oh my god....I know all this!

    Still doesn't mean they are right in doing so. I could still buy in Dublin and have a change in circumstances where I was unable to pay my mortgage in the future. Or I could buy the house I want, commute and pay my mortgage in full and live happily ever after.
    But their decision is based on past history, not individually so we'll never know will we.


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    #6834
    loriexxx
    Registered Users Posts: 101 ✭✭loriexxx


    We went to sale agreed on a house however it is 19000 more than we were originally approved for. It is a new build house and we have been approved for 12000 HTB. Before we placed the offer we spoke to our mortgage broker who spoke to the bank and he confirmed there will be no issue with us going for this house. The house won’t be ready until early summer so we will have more time to save.
    However reading this thread I am starting to get worried as it seems mortgages can fall through at the last minute. Does anyone think we will face an issue


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    #6835
    ILikeBoats
    Registered Users Posts: 2,452 ✭✭✭ILikeBoats


    loriexxx wrote: »
    We went to sale agreed on a house however it is 19000 more than we were originally approved for.

    Is the approval amount + 19k over 3.5 times your income?


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    #6836
    loriexxx
    Registered Users Posts: 101 ✭✭loriexxx


    ILikeBoats wrote: »
    Is the approval amount + 19k over 3.5 times your income?

    The value of the house is over our 3.5 limit however the value of the mortgage we are looking for is under the 3.5 limit as we can make up the difference with savings and HTB


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    #6837
    nim1bdeh38l2cw
    Closed Accounts Posts: 689 ✭✭✭nim1bdeh38l2cw


    loriexxx wrote: »
    The value of the house is over our 3.5 limit however the value of the mortgage we are looking for is under the 3.5 limit as we can make up the difference with savings and HTB

    You're ok so. The 3.5 limit refers to the amount you want to borrow, not the value of the house.


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    #6838
    wersal gummage
    Registered Users Posts: 1,643 ✭✭✭wersal gummage


    Sorry to hear your trouble GaGGa.

    Mind me asking where the house is? From my own limited experience, when people tell me they are only an hour or whatever commute when buying, I think they are talking about a Sunday night at 11pm rather than a Tuesday morning in December for example. It takes me an hour and a half some mornings from a popular Dublin Suburb which is within 10kms of Dublin City Centre, but that's on a poor bus route.

    So a 90 min commute doesn't sound off the wall to me. Is your commute really 90 mins? Or only 90 mins if you leave at 6am sort of stuff?


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    #6839
    Honestfrank01
    Registered Users Posts: 59 ✭✭Honestfrank01


    So our solicitor has recieved signed contracts for seller and is requesting our mortgage funds from bank early next week (Tuesday) when should I receive keys? Considering I was told by the bank it could be processed in 24 to 48 hours via bank transfer.


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    #6840
    kippy
    Registered Users Posts: 18,465 ✭✭✭✭kippy


    Honestfrank01 wrote: »
    So our solicitor has recieved signed contracts for seller and is requesting our mortgage funds from bank early next week (Tuesday) when should I receive keys? Considering I was told by the bank it could be processed in 24 to 48 hours via bank transfer.

    The bank holiday Monday may push things out a bit but assuming all else is in order Thursday or Friday of next week but it would be more beneficial to ask your solicitor for their opinion.


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    #6841
    Frank Castle
    Banned (with Prison Access) Posts: 134 ✭✭Frank Castle


    Diemos wrote: »
    Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.

    TBH I wouldn't agree with this. It comes down to affordability. You can have as much debt as you want and the bank will be fine with it provided you can afford it.

    I personally just got a mortgage, even though I currently have a personal loan, new car pcp and credit card debt, All taken out within the last 10 months.
    None of this was an issue as I can afford it.

    Key is to keep your finances in order and not get in over your head on debt. Keep it affordable and show the bank you can pay the debt plus save/meet rent payments.


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