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

18-02-2019 08:58PM

Eric Cartman wrote: »

Im looking to mortgage a property that is not liveable , its 160k asking so all works out without exemptions and craic and 105 is not hard to come by , but the building at present isnt technically a residential house and would need a fair whack of work. How would I be best to finance this.

EBS will mortgage a house like this.
Looked into it recently myself but unfortunately the figures didnt add up

AndreaSoly · 18-02-2019 10:42PM

Hi,
I am sorry, it's not going to be answer for your question but I would like to know what happens if we pay the 10% deposit on a new built house (expected to be completed in July) and once it's built the lender (bank) says that they won't lend the money for this house because they see issues with the structure etc. Can I reqquest back the 10% deposit I paid?
Thanks!
Andrea

Graham · 18-02-2019 10:49PM

Mod Note

AndreaSoly,welcome to Boards. I have moved your post to a more relevant thread.

wally79 · 18-02-2019 11:08PM

AndreaSoly wrote: »

Hi,
I am sorry, it's not going to be answer for your question but I would like to know what happens if we pay the 10% deposit on a new built house (expected to be completed in July) and once it's built the lender (bank) says that they won't lend the money for this house because they see issues with the structure etc. Can I reqquest back the 10% deposit I paid?
Thanks!
Andrea

You need to make sure you have a “subject to loan” clause in the contract

If you have a good solicitor they can spot things like this

A lot of developers are not including this clause and it would mean your deposit would be at risk if the bank would not give you the mortgage

Glen_Quagmire · 18-02-2019 11:24PM

Do people typically take on the snagging themselves if they know a bit about building or is it wise to pay someone to do it?

awec · 18-02-2019 11:40PM

Glen_Quagmire wrote: »

Do people typically take on the snagging themselves if they know a bit about building or is it wise to pay someone to do it?

I would pay someone to do it. Knowing "a bit" about building doesn't sound like someone qualified to identify all potential issues in all areas of a newly built property.

Glenbhoy · 19-02-2019 09:46AM

Glen_Quagmire wrote: »

Brilliant, I didn't know it was extended. My mortgage is for 90% so I am in the bracket for cashback

Yes, no difference there, loan to value only impacts mortgage rates offered, typically lower rates for up to 80% etc to reflect the lower exposure the bank has.

Frank Castle · 19-02-2019 09:51AM

Glen_Quagmire wrote: »

Do people typically take on the snagging themselves if they know a bit about building or is it wise to pay someone to do it?

Depends on what you define as a 'bit'. I did my own, but then I knew what to look out for and how to snagg.

There is plenty of advice out there on how to snagg yourself, but if you are unsure at all then get someone else to do it.
Especially if it is not a new build house, there is a lot more to be wary of when buying an older house.

lillycakes2 · 19-02-2019 12:38PM

We have got a quote for a self build 225,000. we can borrow up to 275,000. how much do ye recommend we borrow with this quote, kitchen not included or furniture obviously ? anyone any advice ?

GingerLily · 19-02-2019 01:04PM

The bank will factor in an overspend anyway of 10-20%, so you're probably going to need the full mortgage amount!

Monife · 19-02-2019 01:08PM

lillycakes2 wrote: »

We have got a quote for a self build 225,000. we can borrow up to 275,000. how much do ye recommend we borrow with this quote, kitchen not included or furniture obviously ? anyone any advice ?

I'm looking to self-build too. If you have any tips or advice on the process, it would be much appreciated.

Prospector1989 · 19-02-2019 09:58PM

Question guys, we've been approved for a mortgage with PTSB to buy the place we're living in. The bank have a valuer coming out on Thursday.
I'm just wondering what's the next step. I'm assuming they will be in touch with regards house insurance, mortgage protection etc? Should we be looking into this now? Is there anything people can recommend we do to expedite the process after this.

I understand these things will obviously take time, I just don't want any delays to be on our heads.

Cheers
P

amcalester · 19-02-2019 10:08PM

Prospector1989 wrote: »

Question guys, we've been approved for a mortgage with PTSB to buy the place we're living in. The bank have a valuer coming out on Thursday.
I'm just wondering what's the next step. I'm assuming they will be in touch with regards house insurance, mortgage protection etc? Should we be looking into this now? Is there anything people can recommend we do to expedite the process after this.

I understand these things will obviously take time, I just don't want any delays to be on our heads.

Cheers
P

Sort out your mortgage protection, as this is could be an issue if you have any medical issues.

House insurance can be sorted with a phone call.

Other than that keep on top of the bank and make sure that they have everything they need. Get PTSB to list everything that’s outstanding in an email so you can cross them off.

But remember, doesn’t matter what you do something will delay things.

Prospector1989 · 19-02-2019 10:44PM

amcalester wrote: »

Sort out your mortgage protection, as this is could be an issue if you have any medical issues.

House insurance can be sorted with a phone call.

Other than that keep on top of the bank and make sure that they have everything they need. Get PTSB to list everything that’s outstanding in an email so you can cross them off.

But remember, doesn’t matter what you do something will delay things.

Thanks amcalester.
Yeah we know there will inevitably be some delays just want to minimise any delays from our side.
Appreciate the advice!
P

Phillip k · 20-02-2019 03:54AM

Hi I'm just wondering would I be better to get a loan from credit union as myself and partner are going to build or own home in kildare on a part of land my family own .

TedsRevengeP · 20-02-2019 10:09AM

Hi guys,

We're using the Help to Buy scheme and have our mortgage paperwork together. We were about to proceed with a broker but somebody has told us if we use a broker there are disadvantages. For instance, with EBS if you go through a broker you lose access to the 3% cashback.

Does anybody know if this is true? We thought there was no disadvantage to using a broker.

Thanks

ILikeBoats · 20-02-2019 10:10AM

We used a broker and PTSB gave us our 2% cashback, sorry can't comment on EBS

Prospector1989 · 20-02-2019 10:58AM

ILikeBoats wrote: »

We used a broker and PTSB gave us our 2% cashback, sorry can't comment on EBS

We're going through a broker at the moment as well and he confirmed we'll be receiving 2% from PTSB provided our offer doesn't fall through. Would be surprised if any banks excluded such an offer for going through a broker.

NearlyForty · 20-02-2019 09:12PM

Can I ask.. On approval of your mortgage by a bank, what type of income are ye on in general? Are many of ye (as couples) earning over the 80k mark? We earn around the 75k a year between us (with kids but no childcare or loans) and I’m worried that no bank will look at us

Samuel T. Cogley · 20-02-2019 09:24PM

NearlyForty wrote: »

Can I ask.. On approval of your mortgage by a bank, what type of income are ye on in general? Are many of ye (as couples) earning over the 80k mark? We earn around the 75k a year between us (with kids but no childcare or loans) and I’m worried that no bank will look at us

Why wouldn't they? The only issue you'll have is the 3.5 rule but depending on where you are that may not be an issue. And the deposit of course.

Prospector1989 · 20-02-2019 10:01PM

NearlyForty wrote: »

Can I ask.. On approval of your mortgage by a bank, what type of income are ye on in general? Are many of ye (as couples) earning over the 80k mark? We earn around the 75k a year between us (with kids but no childcare or loans) and I’m worried that no bank will look at us

Up until last week (I just got a promotion), we were on less than that, and were being offered an exemption of 4 times our salary
No kids but the salary wasn't an issue for the bank anyway.

Samuel T. Cogley · 20-02-2019 10:02PM

Prospector1989 wrote: »

Up until last week (I just got a promotion), we were on less than that, and were being offered an exemption of 4 times our salary
No kids but the salary wasn't an issue for the bank anyway.

Congrats.

spoonerhead · 20-02-2019 10:03PM

Prospector1989 wrote: »

We're going through a broker at the moment as well and he confirmed we'll be receiving 2% from PTSB provided our offer doesn't fall through. Would be surprised if any banks excluded such an offer for going through a broker.

If you also open a permanent tsb explore account, you’ll receive 2% cash back on each Repayment up until 2027

NearlyForty · 21-02-2019 02:27AM

Samuel T. Cogley wrote: »

Why wouldn't they? The only issue you'll have is the 3.5 rule but depending on where you are that may not be an issue. And the deposit of course.

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

GaGa21 · 21-02-2019 11:10AM

NearlyForty wrote:

Because Iâ€™ve been hearing from people that the bank wonâ€™t look at you unless youâ€™re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess! AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

We dont earn 75k but were approved by 3 banks. But like previously said, we could only borrow 3.5 times salary and had to have deposit and proof of savings.

optogirl · 21-02-2019 11:14AM

My husband has 2 jobs - BOI have told us they can only take 3.5 x (my salary + 1 of his salaries) & 3.5 times x ( half the salary of his second salary). Is this the case with all lenders or is this a BOI specific rule?

ELM327 · 21-02-2019 11:45AM

NearlyForty wrote: »

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

Generally it's €250 income disregard per child, after daycare etc, per month.

Just apply, the banks will tell you what they need you to change if they give you a no initially.

sheroman01 · 21-02-2019 12:32PM

I'm gonna ask a very basic question here, but would just like clarification on how mortgages work exactly! (Have never even considered buying until recently). Lets say there's a house for sale for 300k and gross salary is 50k. So for a first time buyer, you'd need 10% deposit, so 30k. Then a loan of 270k over x number of years. However I've heard that the loan minus deposit is usually 3.5 times your salary. So in this case you'd only be able to get a loan of 175k. Have I got this right? If so, what if I wanted a loan of more than 3.5 times my salary, is that possible?

el Fenomeno · 21-02-2019 12:46PM

sheroman01 wrote: »

I'm gonna ask a very basic question here, but would just like clarification on how mortgages work exactly! (Have never even considered buying until recently). Lets say there's a house for sale for 300k and gross salary is 50k. So for a first time buyer, you'd need 10% deposit, so 30k. Then a loan of 270k over x number of years. However I've heard that the loan minus deposit is usually 3.5 times your salary. So in this case you'd only be able to get a loan of 175k. Have I got this right? If so, what if I wanted a loan of more than 3.5 times my salary, is that possible?

The limit is 3.5 times your salary.

Banks are allowed make exceptions on this up to 4.5x your salary, but it's on a case-by-case basis and obviously your ability to repay the larger mortgage is taken into account. The higher your salary (or joint salaries) and the lower your other commitments, the better chance you have. The banks have a limit on how much of their loan book can be made up of these "exception" based mortgages, and the consensus is that they are more liberal giving them out early in the year and then come April/May, they need to start balancing their loan book and are less likely to give them out.

Julez · 21-02-2019 12:57PM

NearlyForty wrote: »

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

Myself and my partner applied and are earning around the same as you, though we have no children. We used a broker, he brought our details to a few banks and came back with what they were willing to offer. We can now purchase up to 350k which isn't terrible.

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

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