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

sheroman01 · 21-02-2019 01:18PM

el Fenomeno wrote: »

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.

Thanks! I had never even heard of this x3.5 salary limit before. Will meet with some banks and see how I get on. Cheers

NearlyForty · 22-02-2019 04:21AM

Thanks all..!! The feed back is much appreciated..
Even though I know your offer tends to be 3.5 your income, but some banks seem to be tighter with regards how much they’ll quote you when you have kids. I think that was the part that was worrying me more. When we multiply ours by 3.5 it comes out at 265k and take say 50k off that with 5 kids, that leaves us with roughly 215k.. So AIB and BOI came back with those quotes, yet PTSB and a few others came back with 105k or 150k, like that’s a huge chunk gone..crazy?!! Why do they differ so much

dudara · 22-02-2019 07:51AM

The bank will test your ability to meet the monthly repayments. They look at your monthly income, then deduct for any existing loans etc. They then deduct a fixed amount per child. With 5 children, that deduction is going to be large enough.

Once that’s done, they have a number that they are confident you can repay each month. The offer you receive will be asked on that number.

So while you may on paper qualify for €250k, if you have a lot of monthly putgoings (which impact your ability to repay), they may only offer €105k.

Obviously I don’t know what’s going on in your particular case, but this could be one explanation.

charlietheminxx · 22-02-2019 10:09AM

Myself and my partner saved our asses off for the last 3 years and got mortgage approved a couple of weeks ago, with an exception of up to 4.5 times our salaries. We don't need to borrow quite that much (we were looking for 4 times our salaries) but it was great news all the same.

Put a booking deposit down on a new build last week, exciting times!

prettyboy81 · 23-02-2019 09:09AM

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

Tipsy McSwagger · 23-02-2019 09:13AM

prettyboy81 wrote: »

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

Talking to a mortgage advisor during the week and he told me everyone is fixing nowadays. I will defo be fixing.

myshirt · 23-02-2019 11:16AM

Tipsy McSwagger wrote: »

Talking to a mortgage advisor during the week and he told me everyone is fixing nowadays. I will defo be fixing.

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

23-02-2019 02:20PM

prettyboy81 wrote: »

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

I'm fixing for 5 years, currently sale agreed.

awec · 23-02-2019 06:40PM

Also fixing for 5.

prettyboy81 · 23-02-2019 06:45PM

Cheers for replies, like I said 5 years seems to offer best value at moment.

charlietheminxx · 23-02-2019 11:01PM

I chose 3 years fixed.

myshirt · 23-02-2019 11:07PM

charlietheminxx wrote: »

I chose 3 years fixed.

Nothing wrong with that. But in my opinion it would be the minimum I'd fix for.

5 is a good number. 3 is not bad. Always take advice as it applies to your own situation.

Crunchy Friends · 23-02-2019 11:58PM

We also fixed for 5 with UB!

Tipsy McSwagger · 24-02-2019 08:11AM

myshirt wrote: »

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

No he didn’t say fix for 2 years just nearly everyone is fixing. I do like the idea of 5 years tbh, cheers.

charlietheminxx · 24-02-2019 05:41PM

myshirt wrote: »

Nothing wrong with that. But in my opinion it would be the minimum I'd fix for.

5 is a good number. 3 is not bad. Always take advice as it applies to your own situation.

Yeah that’s solid advice! I think the best option really varies from bank to bank. With AIB, the five year fixed rate was 3.5% and I didn’t think that was great.

GaGa21 · 24-02-2019 07:26PM

Sale closed and finally got our keys! I never want to have to do that again. This will be our forever home for sure. Best of luck to everyone here!

Charlie · 24-02-2019 10:14PM

Question for anyone who might know. We are sale agreed and have received our loan offer. Term on the loan offer is 35 years, as we agreed with the advisor at the time of meeting that we would apply for the maximum and could always reduce before drawdown.

Our preference is for a 32 year term, however, due to multiple delays with paperwork already, i'm minded not to request the bank change from 35 to 32 if it requires the loan offer packs to reissue, as I think we can overpay the monthy amount ourselves to effect this change (need to confirm this with the bank though).

Does anyone know if we were to request the change, would the bank do it via a branch/advisor request without any need for re-issuing of loan offer packs?

dubrov · 24-02-2019 10:19PM

No need to request any reduction. Just overpay if you like and you'll be done in 32 years anyway

amcalester · 24-02-2019 10:46PM

No harm in leaving it as is and overpaying (assuming you can). Then if your circumstances ever change you can stop the overpayments without any difficulties.

Charlie · 24-02-2019 11:24PM

Cheers guys, this was the option that I was leaning towards.

dudara · 25-02-2019 07:48AM

If the change the term, the calculations will have to be redone and the loan pack re-issued. It’s probably easier for you to overpay, subject to whatever Ts&Cs are in your contract.

Abbey127 · 25-02-2019 10:08AM

Hi I'm just wondering myself and my partner are looking to buy are first house for around 200k or less if possible .we have also have land available to us to build on . I know how land is expensive but we are not sure if we should get a loan to build are own home on it or just buy a new build house to save the hassle of having to build one . I know I would be paying way over the price for a new build but my partner doesn't want the hassle of building are own home . I think we would be better to build as we would save alot more and out house would be are own designs and not be the same as every house. Any help would be much appreciated thanks.

Tipsy McSwagger · 25-02-2019 01:54PM

myshirt wrote: »

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

Just looking at UB. There 2 year fixed rate is by far the best option for me, savings of around €63 per month compared to 5 years fixed. I’m very tempted tbh but understand there is a risk in 2 years.

jbryc04 · 25-02-2019 02:39PM

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

Tipsy McSwagger · 25-02-2019 05:25PM

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

In fairness a savings account is for saving money not dipping into. I have a savings account that I do not touch, all bills and rent and disposable income come from my current account. No offense but the way you are going about things looks very unorganized.

ozbackineire · 25-02-2019 05:29PM

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

The bank advised us on several occasions that if you are dipping into your savings account they will not give mortgage approval. you have to show for 6 consecutive months that you can save and not dip into the savings. Maybe lessen the amount you are putting into your savings by €200 and put it in a credit union, then you have access to that money should you need it and you aren't dipping into your bank savings.

I was paying my parents rent from my account into their account on the 1st of every month, i did not need to show a letter to the bank, they accepted it as they could see it. we got our mortgage through BOI and got keys 2 weeks ago so it is do able if you are rigid for 6 months.

skywayavenue · 25-02-2019 07:59PM

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

KBC wouldn’t accept our rent to parents either, paid on the same day, every month for a year and a half but they were having none of it. Said they couldn’t be sure they weren’t handing it straight back to us in cash.

Ciarawera · 25-02-2019 09:06PM

I’ve been lurking here since mid January and couldn’t get a clear answer, so I thought I’d post in case someone was in the same situation.

Myself and my husband applied for mortgage approval last Wednesday with BOI and received mortgage approval today. My husband is on a fixed term contract. He has passed probation but is only there 7 months, contract end date is Jan 2020. This was causing me all sorts of stress, but it seems every application is different, and it didn’t hold us back.

Also, I have a car loan with the CU. We pay city centre rent and saved for over a year.

So, moral of the story...fixed term contracts aren’t the end of the line.

messy tessy · 26-02-2019 08:13AM

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

amcalester · 26-02-2019 09:12AM

messy tessy wrote: »

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

I would go for the longer term and overpay instead of the shorter term loan, not necessarily 35 years if you're aiming for 10-15 but whatever is comfortable for you.

Also worth considering is whether the bank allows over payments and how much. It might be worth your splitting your mortgage between fixed and a variable to allow you make larger payments off the capital.

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

Comments