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

Glen_Quagmire · 29-01-2019 10:06PM

awec wrote:

You might be able to do it now. But if you do it now, your offer will expire late July / early August, which doesn't give much leeway if your builder is running late.

Yeah that's true. I may wait until the end of Feb and do it then

myshirt · 29-01-2019 10:44PM

Glen, another option if you feel snookered is to draw down some of the mortgage next month. Do that and the 6 months falls away.

It's a loophole so to speak. Talk to your solicitor.

This sh't would make you really nervous wouldn't it.

awec · 29-01-2019 11:04PM

myshirt wrote: »

Glen, another option if you feel snookered is to draw down some of the mortgage next month. Do that and the 6 months falls away.

It's a loophole so to speak. Talk to your solicitor.

This sh't would make you really nervous wouldn't it.

Draw it down against what? The bank isn't going to release funds against a house that isn't ready.

He can renew again in 6 months if he has to, just means having to gather all his payslips etc again.

myshirt · 30-01-2019 08:42AM

awec wrote: »

Draw it down against what? The bank isn't going to release funds against a house that isn't ready.

He can renew again in 6 months if he has to, just means having to gather all his payslips etc again.

He can talk to his solicitor, those with the experience here will know the mechanism I'm referring to.

What happens if the risk appetite of the bank changes and they pull the loan? Always possible. I'd rank the risk as low, very low, but with Brexit and a number of issues now that risk increases a few notches. Still low, but I wouldn't take the chance if I had a mechanism to mitigate the risk today.

awec · 30-01-2019 01:54PM

myshirt wrote: »

He can talk to his solicitor, those with the experience here will know the mechanism I'm referring to.

What happens if the risk appetite of the bank changes and they pull the loan? Always possible. I'd rank the risk as low, very low, but with Brexit and a number of issues now that risk increases a few notches. Still low, but I wouldn't take the chance if I had a mechanism to mitigate the risk today.

But you end up with a mortgage and no house. You refer to Brexit, what if your builder goes tits up before they finish your house?

I am still skeptical this is possible in any way that is legal.

tailgunner · 30-01-2019 02:46PM

Even if you could, I don't see why you'd even want to draw down part of the mortgage (and start repayments) with no house.

Wait till the end of February, then re-apply. By the time it goes through, the offer should cover you till September. And if it came to it at that stage, you might be able to get the offer extended. AIB gave us a 30 day extension in similar circumstances.

Also, new builds aren't always late, particularly if it's a later phase in a development. When we signed contracts last summer, we were told our house would be ready in March/April 2019, but we actually got the keys three weeks ago.

30-01-2019 03:24PM

Have any of you used lion.ie for mortgage protection, are they trustworthy?

Frank Castle · 30-01-2019 03:54PM

Ayan Prickly Road wrote: »

Have any of you used lion.ie for mortgage protection, are they trustworthy?

Yes, found them great to work with tbh.
Very happy and would recommend them to anyone

machalla · 30-01-2019 04:00PM

Frank Castle wrote: »

Yes, found them great to work with tbh.
Very happy and would recommend them to anyone

Same here, Nick and his company are very easy to deal with and the online systems they use speed things up on the form filling side nicely.

chrismon · 30-01-2019 09:56PM

Picked up the keys today!

Went sale agreed 8 weeks ago today, everything went smoothly with the sale from start to finish.

Ebs were brilliant, so nice to be able to call the local branch and get straight through to our mortgage advisor with any queries we had.

Sherry Fitz were on the ball, compared to the other cowboys around the place they made the process so easy.

Used lion.ie for mortgage protection as recommended here, Nick and Hannah went above and beyond to find the best policy for us considering I have a minor health issue. An Post lost our original documents, Hannah had a brand new set at the house the next day, amazing service.

Started moving bits and pieces this evening, hiring a van on Friday to move all our furniture then spending our first night there, can't wait.

Thanks for all the advice here over the past two years. Best of luck to everyone saving and in the process of buying!

Chris.

Smashling7 · 30-01-2019 10:12PM

Hi - mainly looking for advice / opinions

With rising house prices in Dublin, my OH and I would need close to a 5 X salary mortgage plus our savings - we have also applied for HTB - how likely is this, or are we waiting our time applying!? We are both 34, and want to start a family etc, but finding it hard to find any exemption info.

Does anyone have any info, or any advice? Thanks

bri007 · 30-01-2019 10:17PM

5 x salary might be difficult to get, not sure if you can get that amount, I know of people getting 4 and 4.5 income but I stand to be corrected on 5?

Smashling7 wrote: »

Hi - mainly looking for advice / opinions

With rising house prices in Dublin, my OH and I would need close to a 5 X salary mortgage plus our savings - we have also applied for HTB - how likely is this, or are we waiting our time applying!? We are both 34, and want to start a family etc, but finding it hard to find any exemption info.

Does anyone have any info, or any advice? Thanks

chrismon · 31-01-2019 07:48AM

Ayan Prickly Road wrote: »

Have any of you used lion.ie for mortgage protection, are they trustworthy?

100%
So happy we went with them.

Prospector1989 · 31-01-2019 09:13AM

bri007 wrote: »

5 x salary might be difficult to get, not sure if you can get that amount, I know of people getting 4 and 4.5 income but I stand to be corrected on 5?

4.5 is the max we're being told by our broker.

ruaneg · 31-01-2019 09:54AM

Most brokers will say 4.5 is the max I found.

However, we got offered > 4.5 by a number of banks. Will depend on the individual case of course. Potential future salaries etc

31-01-2019 12:39PM

I dont want to start a new/duplicate thread, so thought this might be a good place to ask.

My wife and I are looking to purchase our first home this year, and we've been told by a Broker that we should no issue getting mortgage approval of 3.5 times our salaries.
We have a decent amount of savings (>10% of what we are hoping to pay), but my each time I try and get my wife to commit to an actual limit that we can go to, she brings up stuff like:
Mortgage Protection
Home Insurance
Life insurance
Solicitor

Basically, she wants us to still be comfortable after we buy.
Does anyone have a list of the basic extra costs involved when buying a house.

I know that the solicitor will be a once off cost of a few k, but generally, how much a year would an average couple be looking to spend annually on the additional expenses.

Thanks

31-01-2019 12:44PM

Mortgage protection and home insurance are the two you'll have to have and they should cost under 100 per month in total, assuming you're in good health.

Don't forget the stamp duty also.

31-01-2019 12:47PM

Ayan Prickly Road wrote: »

Mortgage protection and home insurance are the two you'll have to have and they should cost under 100 per month in total, assuming you're in good health.

Don't forget the stamp duty also.

Great, thanks. Need to stop smoking asap so. Otherwise, we're both in great shape.

ELM327 · 31-01-2019 12:48PM

House insurance is generally around 300-500 per year max.
Life insurance + mortgage protection depends on the level of cover and the amount of the mortgage. I'm on the cheapest cover and it's €15 per month , I have no health issues (except a neckbeard and the BMI that goes with it!).

Solicitor cost me approx 2k, + stamp duty of 1%.

The cashback I got (from BOI) covered the solicitor fees and a bit of stamp duty.

amcalester · 31-01-2019 12:50PM

Deleted User wrote: »

Great, thanks. Need to stop smoking asap so. Otherwise, we're both in great shape.

Any crowd I looked at you had to smoke free for 12 months to be considered a non-smoker, so in my case, those few smokes after a feed of pints cost me an extra €7 a month.

31-01-2019 12:53PM

amcalester wrote: »

Any crowd I looked at you had to smoke free for 12 months to be considered a non-smoker, so in my case, those few smokes after a feed of pints cost me an extra €7 a month.

Thanks, at least €7 a month isn't extortionate.
Still, I'd rather be able to say I quit before we go purchasing.

Thanks again.

Realistically, if we budget for our repayments + €200 a month, and if that's inside what we deem affordable, that should set our limit.
Suppose we just want to make sure that we can still save each month, and live a normal lifestyle.

Thanks all

Frank Castle · 31-01-2019 01:15PM

Deleted User wrote: »

I dont want to start a new/duplicate thread, so thought this might be a good place to ask.

My wife and I are looking to purchase our first home this year, and we've been told by a Broker that we should no issue getting mortgage approval of 3.5 times our salaries.
We have a decent amount of savings (>10% of what we are hoping to pay), but my each time I try and get my wife to commit to an actual limit that we can go to, she brings up stuff like:
Mortgage Protection
Home Insurance
Life insurance
Solicitor

Basically, she wants us to still be comfortable after we buy.
Does anyone have a list of the basic extra costs involved when buying a house.

I know that the solicitor will be a once off cost of a few k, but generally, how much a year would an average couple be looking to spend annually on the additional expenses.

Thanks

For me personally it was (New build home using HTB for 5% deposit):

Mortgage Protection: €24 (minor chronic health issue - used lion.ie highly recommend)
Home Insurance: €270
Life insurance: not required as we went with mortgage protection.
Solicitor: €1100 fee plus €50 for misc.
Stamp duty: 1% of house cost minus vat if new build
Property registration: €700
Property registration mortgage fee: €175
Folio Fee: €75
Searches: €50
Bank property Valuation: €160

Then misc fees like folio copy and swearing is about €20.
On top of this we had additional costs for options we chose for the house which amounted to €2000 extra at the end (PC sums rarely cover what they are supposed to).

You then have fees for a survey and snagging (we did these ourselves so I don't know what the cost would be here, assuming €500?)

amcalester · 31-01-2019 01:21PM

Frank Castle wrote: »

Stamp duty: 1% of house cost minus vat if new build

Are you sure about this? I bought a new build and was paid my solicitor 1% of the purchase price including VAT.

Am I due a refund?

GingerLily · 31-01-2019 01:27PM

amcalester wrote: »

Frank Castle wrote: »

Stamp duty: 1% of house cost minus vat if new build

Are you sure about this? I bought a new build and was paid my solicitor 1% of the purchase price including VAT.

Am I due a refund?

Yes!

SD = 1% of Purchase price/1.135

31-01-2019 01:33PM

Frank Castle wrote: »

For me personally it was (New build home using HTB for 5% deposit):

Mortgage Protection: €24 (minor chronic health issue - used lion.ie highly recommend)
Home Insurance: €270
Life insurance: not required as we went with mortgage protection.
Solicitor: €1100 fee plus €50 for misc.
Stamp duty: 1% of house cost minus vat if new build
Property registration: €700
Property registration mortgage fee: €175
Folio Fee: €75
Searches: €50
Bank property Valuation: €160

Then misc fees like folio copy and swearing is about €20.
On top of this we had additional costs for options we chose for the house which amounted to €2000 extra at the end (PC sums rarely cover what they are supposed to).

You then have fees for a survey and snagging (we did these ourselves so I don't know what the cost would be here, assuming €500?)

So realistically, you want to have ~€10k available to cover all of the other one off expenses. Appreciate the feedback.

amcalester · 31-01-2019 01:35PM

GingerLily wrote: »

Yes!

SD = 1% of Purchase price/1.135

Thats brilliant thanks.

I was going to see the solicitor tomorrow anyway to sign some paperwork, I'll have an extra spring in my step tomorrow.

Ballingarry · 31-01-2019 01:37PM

Frank Castle wrote: »

For me personally it was (New build home using HTB for 5% deposit):

Mortgage Protection: €24 (minor chronic health issue - used lion.ie highly recommend)
Home Insurance: €270
Life insurance: not required as we went with mortgage protection.
Solicitor: €1100 fee plus €50 for misc.
Stamp duty: 1% of house cost minus vat if new build
Property registration: €700
Property registration mortgage fee: €175
Folio Fee: €75
Searches: €50
Bank property Valuation: €160

Then misc fees like folio copy and swearing is about €20.
On top of this we had additional costs for options we chose for the house which amounted to €2000 extra at the end (PC sums rarely cover what they are supposed to).

You then have fees for a survey and snagging (we did these ourselves so I don't know what the cost would be here, assuming €500?)

How is the solicitors fee calculated. I have a relation buying a 2nd hand house which is costing approx. €300,000 and the solicitors fees are in the region of €4,000 - they have received a bill to that effect. Is this normal or does it sound excessive.

Frank Castle · 31-01-2019 01:39PM

amcalester wrote: »

Are you sure about this? I bought a new build and was paid my solicitor 1% of the purchase price including VAT.

Am I due a refund?

you are. Mine refunded me the difference as it was afterwards she informed me that new builds do not include the VAT for stamp duty

Frank Castle · 31-01-2019 01:42PM

Ballingarry wrote: »

How is the solicitors fee calculated. I have a relation buying a 2nd hand house which is costing approx. €300,000 and the solicitors fees are in the region of €4,000 - they have received a bill to that effect. Is this normal or does it sound excessive.

Is this for the solicitors fees alone? not including stamp duty etc? Sounds excessive to me, but my solicitor worked on a fixed fee bases (cost of house is irrelevant).
I did get quotes from solicitors who charge hourly but avoid them like the plague.

Your location will affect the cost too as solicitors in Dublin are going to charge more with larger overheads. mine is in the west of Ireland

Frank Castle · 31-01-2019 01:44PM

Deleted User wrote: »

So realistically, you want to have ~€10k available to cover all of the other one off expenses. Appreciate the feedback.

10K should be more than enough, depending on the cost of your house and the stamp duty entailing from that. (also depending on how many extras you ask your developer for, assuming its a new build).

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

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