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

Prospector1989 · 18-01-2019 10:35AM

tailgunner wrote: »

Went with PTSB via a broker as well and found them very reasonable about things like this. As long as there's a genuine reason, you should be fine.

Yeah we're not worried about the ICB thing any more. I think it's just as we're gonig for an exemption, there's always another "query" or something else they need. Feel like it's never going to end.

We're in the fortunate position, that we're buying the house we're currently living in so at least that's one less stress (provided we actually get approved!).

Sureal · 18-01-2019 07:52PM

Hello. I have a few questions on getting a mortgage, I'm hoping someone can help.

Me and my partner are looking to buy a place. He is earning 44k per year but I've gone back to college to study in a different area because work in my area has dried up. That means I'm only in receipt of back to education allowance. Am I right in thinking that the back to education allowance won't be taken into account when the bank is evaluating our application?

If so then our limit is 3.5 times his salary which leaves us at 154k plus our deposit which is at 40k combined. So if approved we could get a place for 194k. We are looking to buy in the Dublin area and surroundings, there are a few but not many places available for that price. What is the best course of action for us to take? Just wait until I'm finished college (a few years), get a job and then try? Would me going in on the application make a difference at all? Maybe he'd be better off applying by himself?

Sorry, I'm not highly educated on this area. Any help would be appreciated. Thanks.

GingerLily · 18-01-2019 07:55PM

If your not married he'd be better off applying by himself, he'll be more likely to get an exemption or a higher LTI as his income won't be seen as supporting you.

Is the deposit from his savings or shared?

Sureal · 18-01-2019 08:01PM

GingerLily wrote: »

If your not married he'd be better off applying by himself, he'll be more likely to get an exemption or a higher LTI as his income won't be seen as supporting you.

Is the deposit from his savings or shared?

Thanks for your reply. We're not married. How much more can you get with an exemption?
It's shared, about 20k each.

GingerLily · 18-01-2019 08:32PM

Your probably best to sit down with a broker and discuss your options

Sureal · 18-01-2019 08:37PM

GingerLily wrote: »

Your probably best to sit down with a broker and discuss your options

Thanks. I'm just wondering does anyone reading this have experience of applying for a mortgage in similar circumstances or knows of someone who has? If I was to get a part-time job and drop back to education allowance would that help much?

august12 · 18-01-2019 08:39PM

Would have to be permanent part-time I would think and you would need to be there 6 to 12 months.

Sureal · 18-01-2019 08:43PM

august12 wrote: »

Would have to be permanent part-time I would think and you would need to be there 6 to 12 months.

A permanent part-time job would be hard to come by I think.

Samuel T. Cogley · 18-01-2019 08:54PM

We applied in similar circumstances but with a large deposit, it's possible to do - I wouldn't bother with a broker just go direct to the banks.

Sureal · 18-01-2019 09:02PM

Samuel T. Cogley wrote: »

We applied in similar circumstances but with a large deposit, it's possible to do - I wouldn't bother with a broker just go direct to the banks.

Thanks for your help. Was a government payment taken into account?

Samuel T. Cogley · 18-01-2019 09:04PM

Sureal wrote: »

Thanks for your help. Was a government payment taken into account?

I never really got an answer on that. At a guess not for LTI but for affordability I think it was.

Sureal · 18-01-2019 09:09PM

Samuel T. Cogley wrote: »

I never really got an answer on that. At a guess not for LTI but for affordability I think it was.

Oh ok. So you think we should go in together and not just have him apply? We don't have a huge deposit so maybe we should save some more also.

Samuel T. Cogley · 18-01-2019 09:14PM

Sureal wrote: »

Oh ok. So you think we should go in together and not just have him apply? We don't have a huge deposit so maybe we should save some more also.

No harm in going in and asking. The agents are there to help you. It's the underwriters (second stage) that will go into everything with a fine tooth comb. Take the agents (in the bank) advice, they're not trying to catch you out. We found KBC the best and BOI wouldn't touch us.

Be a bit careful though as 194K could lead you to a bad area or a one bed apartment, both of which are best avoided IMHO.

The very best of luck!

Graham · 18-01-2019 09:15PM

Mod Note

Threads merged.

Sureal · 18-01-2019 09:20PM

Samuel T. Cogley wrote: »

No harm in going in and asking. The agents are there to help you. It's the underwriters (second stage) that will go into everything with a fine tooth comb. Take the agents (in the bank) advice, they're not trying to catch you out. We found KBC the best and BOI wouldn't touch us.

Be a bit careful though as 194K could lead you to a bad area or a one bed apartment, both of which are best avoided IMHO.

The very best of luck!

Ok, thanks very much. Yeah, I was worried about going into a bank. Might as well go in and see.

iHungry · 19-01-2019 11:02AM

Hi, just a quick question if anybody can advise.

I'm with a company 5 years but I'm now thinking of applying to a new employer as the pay is better elsewhere

How long do I need to be employed in a company for to get a mortgage?

GingerLily · 19-01-2019 11:05AM

iHungry wrote: »

Hi, just a quick question if anybody can advise.

I'm with a company 5 years but I'm now thinking of applying to a new employer as the pay is better elsewhere

How long do I need to be employed in a company for to get a mortgage?

Usually you need to finish probation! This depends on the company you're working for.

myshirt · 19-01-2019 11:16AM

Sureal wrote: »

Hello. I have a few questions on getting a mortgage, I'm hoping someone can help.

Me and my partner are looking to buy a place. He is earning 44k per year but I've gone back to college to study in a different area because work in my area has dried up. That means I'm only in receipt of back to education allowance. Am I right in thinking that the back to education allowance won't be taken into account when the bank is evaluating our application?

If so then our limit is 3.5 times his salary which leaves us at 154k plus our deposit which is at 40k combined. So if approved we could get a place for 194k. We are looking to buy in the Dublin area and surroundings, there are a few but not many places available for that price. What is the best course of action for us to take? Just wait until I'm finished college (a few years), get a job and then try? Would me going in on the application make a difference at all? Maybe he'd be better off applying by himself?

Sorry, I'm not highly educated on this area. Any help would be appreciated. Thanks.

How are you getting BTEA if your partner is on that level of money? I have a friend (barrister) who reviews BTEA cases and is familiar with the scheme, and the above doesn't make sense unless you are getting it at a rate of zero euro so your stamps record is maintained and the department have a record you are at college.

In any event, the answer to your question is no, the bank won't take BTEA, but I'd have a double check on how you are getting it at all. When it comes to the summer you have to go onto Jobseekers Allowance (not benefit) and you can't reenter the BTEA for your next year unless you are on a qualifying payment. With a 44k salary you won't get it. Social welfare treat you as one unit though you are married, whereas Revenue don't unless you are actually married.

Samuel T. Cogley · 19-01-2019 11:29AM

myshirt wrote: »

How are you getting BTEA if your partner is on that level of money? I have a friend (barrister) who reviews BTEA cases and is familiar with the scheme, and the above doesn't make sense unless you are getting it at a rate of zero euro so your stamps record is maintained and the department have a record you are at college.

In any event, the answer to your question is no, the bank won't take BTEA, but I'd have a double check on how you are getting it at all. When it comes to the summer you have to go onto Jobseekers Allowance (not benefit) and you can't reenter the BTEA for your next year unless you are on a qualifying payment. With a 44k salary you won't get it. Social welfare treat you as one unit though you are married, whereas Revenue don't unless you are actually married.

I never had that issue with a spouse on a similar level of pay.

Creamy Goodness · 19-01-2019 12:34PM

Don’t forget to factor in stamp duty and solicitors fees. The bank will want to see that left over from the 194k.

GaGa21 · 19-01-2019 08:40PM

Sureal wrote:

Me and my partner are looking to buy a place. He is earning 44k per year but I've gone back to college to study in a different area because work in my area has dried up. That means I'm only in receipt of back to education allowance. Am I right in thinking that the back to education allowance won't be taken into account when the bank is evaluating our application?

Would you not try the Rebuilding Ireland Home Loan with Dublin Coco?
You may have a better chance and possibly get more funds than with the banks which will be better when trying to buy in Dublin?

IJS84 · 21-01-2019 12:08PM

Just an update on my last post about 2Wks back, we since closed and got our keys at the end of last week. Almost 9 months later since we went sale agreed.

Now the fun starts with moving, and tying up deliveries and the decorating...

Thankfully the issues were just to sign more stuff off given the initial delays from the vendors side early on, and we closed the week later.

Cuddlesworth · 21-01-2019 04:15PM

soc wrote: »

I'm not saying that. I'm saying that if they want to show repayment history to bank regarding a credit card then clearing the balance every month shows good repayment history and not making monthly payments to chip away at a balance. I don't know how good or not the person is with a credit card...

We are not Americans, we are not rewarded for piling on debt. If you want to show ability to repay and you don't need to spend it, save that amount instead.

Misssally wrote: »

I don’t use the card. It’s an old balance that I’ve reduced down. My question isn’t so much about the card, I’m aware it’s not a good thing to have so I’m trying to get rid of it. My concern is about reducing my savings. I have shown over 6 months that I can save over the expected repayments but if I take this 2k out it will reduce the average down. Obviously going forward I can save more as I won’t be paying the card but I’m not sure how it will look & if it will set me back another 6 months

If you have 10k of credit card debt and 10k of savings, you have no savings. And paying interest on the credit card debt when you don't have to, is just financially stupid.

Sureal · 21-01-2019 05:35PM

Thanks for all the advice I received earlier. I've set a meeting up with a broker. Will see how it goes but I've got a question arising from an earlier comment.

On an application for a mortgage, you obviously have to provide bank statements etc. Do the bank look into how some money is earned? For example and I'm not saying I'm going to do this. If someone is earning money on top of a social welfare payment. Do they look past that and take into consideration the money earned through employment? What happens here? Again, I'm not going to do this, I'm just wondering if anyone has heard what happens.

ELM327 · 21-01-2019 05:36PM

Social welfare payments are not counted towards the income affordability criteria.
So they are not counted for affordability "ability to repay", nor are they counted towards the 3.5 times rule.

They will look at, and only consider, non SW earnings.

Sureal · 21-01-2019 05:39PM

ELM327 wrote: »

Social welfare payments are not counted towards the income affordability criteria.
So they are not counted for affordability "ability to repay", nor are they counted towards the 3.5 times rule.

They will look at, and only consider, non SW earnings.

Ok, so if someone is working when technically they're not supposed to be, the bank doesn't mind if they're happy with the amount earned through employment?

Doop · 21-01-2019 05:41PM

While I wouldn't condone it I cant see how the bank would or wouldn't know if you are entitled to work while on certain SW payments nor could I see them asking.

Sureal · 21-01-2019 05:46PM

Doop wrote: »

While I wouldn't condone it I cant see how the bank would or wouldn't know if you are entitled to work while on certain SW payments nor could I see them asking.

Ok, thanks. I'm not going to do it, I was just going through every idea to attempt to get a mortgage and this thought came to me. I wonder do many people go down this route. Are banks allowed to give customer information to anyone anyway? What if they had someone who clearly is a tax fraud, can they report them? I know they'd be unlikely to give them a mortgage anyway.

KERSPLAT! · 21-01-2019 05:56PM

I presume you mean working for cash in hand while on SW? If so I don't know how a bank would take this into consideration, no one paying you cash in hand is going to confirm it in writing for the bank there by implicating themselves in fraud.

GingerLily · 21-01-2019 05:59PM

Sureal wrote: »

Ok, thanks. I'm not going to do it, I was just going through every idea to attempt to get a mortgage and this thought came to me. I wonder do many people go down this route. Are banks allowed to give customer information to anyone anyway? What if they had someone who clearly is a tax fraud, can they report them? I know they'd be unlikely to give them a mortgage anyway.

Banks don't take into account unvouched for income for mortgages, that will include nixers etc.

If it looks like your money has come from illegal avenues they are required to report you. I don't think they get involved with money that you haven't paid tax on, but they won't consider that income.

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

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