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

myshirt · 26-02-2019 09:23AM

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.

What is the family take home pay and how much does the house cost?

Try manage your mortgage payment at 25% to 30%, preferably 25%. If you can do that over 15 years, great. If you can't, then go longer. Certainly don't fool yourself into thinking a 35 year mortgage is cheaper. It's not. By a long mile. The money you save, unless you invest it smartly (and the likelihood is you won't, you'll just spend it on discretionary items), is only going to end up back in the pocket of the bank along with more with it.

messy tessy · 26-02-2019 09:43AM

myshirt wrote: »

What is the family take home pay and how much does the house cost?

Try manage your mortgage payment at 25% to 30%, preferably 25%. If you can do that over 15 years, great. If you can't, then go longer. Certainly don't fool yourself into thinking a 35 year mortgage is cheaper. It's not. By a long mile. The money you save, unless you invest it smartly (and the likelihood is you won't, you'll just spend it on discretionary items), is only going to end up back in the pocket of the bank along with more with it.

Yes I have worked out the interest with the various terms on the mortgage calculators.

The family is just me, single, no kids and no plans to have any. I could get a mortgage of 200k at current salary but don't want to take this much debt on. Its a three bed house I am looking at. Have a (relatively) large deposit saved.

scheister · 26-02-2019 10:15AM

Hi Everyone,

I have been saving more a mortgage for the last year. Hope to start looking come next June 2020.

At that stage i should have 20k in deposit savings and 3k in other savings. Based on current wages i can get a mortgage of €133k.

I will be a FTB and single so wont be looking for much in the way housing a cheap 2 bed apartment in North Kildare is my aim.

I am trying to get a rough calculation on what other costs i will need. Thinking 5k would cover my for legal fees, SD and associated costs. Anyone have an idea if this is a fair estimate. Sorry if this is the wrong thread to ask.

ozbackineire · 26-02-2019 11:32AM

scheister wrote: »

Hi Everyone,

I have been saving more a mortgage for the last year. Hope to start looking come next June 2020.

At that stage i should have 20k in deposit savings and 3k in other savings. Based on current wages i can get a mortgage of €133k.

I will be a FTB and single so wont be looking for much in the way housing a cheap 2 bed apartment in North Kildare is my aim.

I am trying to get a rough calculation on what other costs i will need. Thinking 5k would cover my for legal fees, SD and associated costs. Anyone have an idea if this is a fair estimate. Sorry if this is the wrong thread to ask.

Our solicitor cost €5,200, this was a family friend rate. we had originally gotten a quote for €6,500. There was €500 on top of that at the end for property tax. the bank surveyor was €150, our surveyor was €350. i would say we spent close to €6.500-7000 on all the extra bits. we bought a house in Dublin though so it might be different on an apartment in Kildare.

gwakamoley · 26-02-2019 01:04PM

ozbackineire wrote: »

Our solicitor cost €5,200, this was a family friend rate. we had originally gotten a quote for €6,500. There was €500 on top of that at the end for property tax. the bank surveyor was €150, our surveyor was €350. i would say we spent close to €6.500-7000 on all the extra bits. we bought a house in Dublin though so it might be different on an apartment in Kildare.

That solicitor price is about double most estimates I'm seeing?

Prospector1989 · 26-02-2019 01:06PM

gwakamoley wrote: »

That solicitor price is about double most estimates I'm seeing?

Was thinking that myself. Maybe that's including stamp duty as I don't see it mentioned?

GingerLily · 26-02-2019 01:10PM

Prospector1989 wrote: »

gwakamoley wrote: »

That solicitor price is about double most estimates I'm seeing?

Was thinking that myself. Maybe that's including stamp duty as I don't see it mentioned?

Must be, otherwise its extortionate,

Fees were about 1k for me, but all other costs added, searches, stamp duty etc

26-02-2019 01:16PM

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.

It depends on your circumstances but I would take the longer term and over pay and save the difference to clear it earlier.
Circumstances can change and it is easier to go down to the repayment you agreed at the start rather than to as to extend your term.

Things to consider. Spare cash, age, kids, income, illness, suitability.

scheister · 26-02-2019 01:21PM

GingerLily wrote: »

Must be, otherwise its extortionate,

Fees were about 1k for me, but all other costs added, searches, stamp duty etc

This is a sample i found on the money guide website. Stamp to be added on top of that

1. Purchase of house priced at €200,000

Typical Solicitor’s Fees €1250 plus VAT = €1537

Fees payable to Government Agencies

Land Registry fee €600
Land Registry fee (Certified Copy Folio) €40
Land Registry fee (mortgage) €175
Commissioner for Oaths €44
Search fees (estimate) €150
GRAND TOTAL including VAT €2546

GingerLily · 26-02-2019 01:28PM

Deleted User wrote: »

It depends on your circumstances but I would take the longer term and over pay and save the difference to clear it earlier.
Circumstances can change and it is easier to go down to the repayment you agreed at the start rather than to as to extend your term.

Things to consider. Spare cash, age, kids, income, illness, suitability.

Its particularly hard to extend your term if your having finance troubles, unless you want a treatment, that'll give you a black mark.

Longer term and overpay is the safer commitment!

sarahzxe · 26-02-2019 01:28PM

Hi all,

Im looking for some info on applying for mortgage we are currently aiming to apply early 2020.

We are a guard and nurse public sector earning €80,881 basic salary's and we both earn about 10k extra each for allowances, night and weekend work no overtime was just wondering if this is taking into consideration when working out how much we can borrow?

We pay rent €850 per month and save €1100 per month and no kids. Hoping to speak with banks in next few weeks. Thanks x

Prospector1989 · 26-02-2019 01:31PM

sarahzxe wrote: »

Hi all,

Im looking for some info on applying for mortgage we are currently aiming to apply early 2020.

We are a guard and nurse public sector earning €80,881 basic salary's and we both earn about 10k extra each for allowances, night and weekend work no overtime was just wondering if this is taking into consideration when working out how much we can borrow?

We pay rent €850 per month and save €1100 per month and no kids. Hoping to speak with banks in next few weeks. Thanks x

I get a bonus every year. This is being taken into account by the banks. They may not be taking the full amount into account but it definitely helped. They required proof of the bonus. I was able to show my bonus in my payslip two years running.

GingerLily · 26-02-2019 01:32PM

scheister wrote: »

GingerLily wrote: »

Must be, otherwise its extortionate,

Fees were about 1k for me, but all other costs added, searches, stamp duty etc

This is a sample i found on the money guide website. Stamp to be added on top of that

1. Purchase of house priced at €200,000

Typical Solicitor’s Fees €1250 plus VAT = €1537

Fees payable to Government Agencies

Land Registry fee €600
Land Registry fee (Certified Copy Folio) €40
Land Registry fee (mortgage) €175
Commissioner for Oaths €44
Search fees (estimate) €150
GRAND TOTAL including VAT €2546

So you agree that 5/6k likely include stamp duty?

averagejoe123 · 26-02-2019 01:33PM

Have you seen any properties/areas that you would like? How much are they?

You should have no issue getting 3.5 times your current combined salaries (including your allowances) if you have a clean ICB and no other debt.

ozbackineire · 26-02-2019 01:41PM

Prospector1989 wrote: »

Was thinking that myself. Maybe that's including stamp duty as I don't see it mentioned?

sorry yes included Stamp duty, should have clarified that!

sarahzxe · 26-02-2019 02:16PM

averagejoe123 wrote: »

Have you seen any properties/areas that you would like? How much are they?

You should have no issue getting 3.5 times your current combined salaries (including your allowances) if you have a clean ICB and no other debt.

Yes clear ICB ,we both have car loans 350 per month combined. We saw house we love for 340k but not sure if we would get approved that much. Bit early for us too look ðŸ˜²Any idea in what circumstances to banks approve 4 times salary?

bri007 · 26-02-2019 03:49PM

Garda and nurse is safe job and I wouldn’t see a problem getting an exemption, again every application is different but if your combined income is 80k plus I would imagine you would get one based on similar circumstances to ours.

sarahzxe wrote: »

Yes clear ICB ,we both have car loans 350 per month combined. We saw house we love for 340k but not sure if we would get approved that much. Bit early for us too look ðŸ˜²Any idea in what circumstances to banks approve 4 times salary?

averagejoe123 · 26-02-2019 05:11PM

sarahzxe wrote: »

Yes clear ICB ,we both have car loans 350 per month combined. We saw house we love for 340k but not sure if we would get approved that much. Bit early for us too look &#55357;&#56882;Any idea in what circumstances to banks approve 4 times salary?

No harm in having a chat with the banks now. All can be done over the phone in the preliminary stages before submitting a mortgage application.

Each banks have different criteria for how they deal with non standard earnings. I found Ulster Bank the most flexible in my process but others may be willing to consider the extra 10k each p/a as earnings provided you have proof from previous years. The mortgage market is competitive at the moment which is good for borrowers so there is no need at all to be reluctant to talk to them.

A 340k mortgage over 30 years will cost you roughly €1,450 a month. You are showing repayment capacity of €1,950 via rent and savings so even when stress tested you should be fine.

Ghetofarmulous · 26-02-2019 09:08PM

averagejoe123 wrote: »

Fair play on doing up the table. What term are you looking at for these calculations?

I did these calculations on a 23 year term if I remember. But my calculator can be changed to suit.

Monife wrote: »

This is extremely helpful. Have you got the Excel file?

I do have the excel File. How do I share a file on Boards?

Monife · 26-02-2019 09:19PM

Ghetofarmulous wrote: »

I do have the excel File. How do I share a file on Boards?

There is a button to attach files when you post, that might work, or possibly PM? Thanks

Ghetofarmulous · 26-02-2019 09:22PM

Monife wrote: »

There is a button to attach files when you post, that might work, or possibly PM? Thanks

Thats sound. give me a day as I am not on my personal computer which has the file. The only thing is you might have to check for the latest interest rates however, this doesn't take that long and I might just update the spreadsheet myself before I send it too you.

Thargor · 27-02-2019 01:42PM

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

AlmightyCushion · 27-02-2019 01:57PM

Thargor wrote: »

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

You could certainly do it better. You're better off having a set amount leave your account every month and into a separate savings account. The amount shouldn't change and you should never dip into this savings account. You want to make it as easy as possible for the bank to give you a mortgage and your savings history and affordability is a big part of that. Having a set amount going in to a savings account at the same time every month and leaving it there makes that a lot easier for them.

bored_newbie · 27-02-2019 02:15PM

Thargor wrote: »

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

I was the same as you. It didn't factor into the discussion because it was obvious I was saving. But as the previous poster says, best practise would to have a regular savings account.

elizunia87 · 27-02-2019 07:04PM

sarahzxe wrote: »

Hi all,

Im looking for some info on applying for mortgage we are currently aiming to apply early 2020.

We are a guard and nurse public sector earning €80,881 basic salary's and we both earn about 10k extra each for allowances, night and weekend work no overtime was just wondering if this is taking into consideration when working out how much we can borrow?

We pay rent €850 per month and save €1100 per month and no kids. Hoping to speak with banks in next few weeks. Thanks x

My Husband and I are working both and making 56k /month, rent 650€ and we save 2500€

You could save much more with your money

gwakamoley · 27-02-2019 07:06PM

A house I'm interested in is being sold after the owner passed away. There is an executor appointed so it looks like a will was left but it will still have to go through the Probate process. This link (which is a year and a half old) says this could take up to a year?! Is this true??

dudara · 27-02-2019 07:14PM

Thargor wrote: »

I have been letting my wages pile up in my current account for years, when it gets to a figure like 20k I take it out and dump it into prize bonds (I know how bad they are) and occasionally my share portfolio. All my other spending and expenses come from this account on my debit card, food, rent etc.

Am I doing this badly? Will the bank refuse to look at this when the time comes to apply for the mortgage even though I save 60-70% of my income? Should I have a separate savings account going aswell?

The good news is that 6 months of good saving history will do most banks once they can see your serious. So start now

Samuel T. Cogley · 27-02-2019 07:22PM

elizunia87 wrote: »

My Husband and I are working both and making 56k /month, rent 650€ and we save 2500€
You could save much more with your money

So would you on 56K a month

Glenbhoy · 28-02-2019 09:27AM

AlmightyCushion wrote: »

You could certainly do it better. You're better off having a set amount leave your account every month and into a separate savings account. The amount shouldn't change and you should never dip into this savings account. You want to make it as easy as possible for the bank to give you a mortgage and your savings history and affordability is a big part of that. Having a set amount going in to a savings account at the same time every month and leaving it there makes that a lot easier for them.

I did similar, bank had no issues with it, as long as it's obvious that salary is being used to finance savings they're fine. Whilst regular savings may be more transparent, they were happy to look at the uplift in savings over a period and work out a monthly.
As for prize bonds being bad value, with current interest rates and dirt, may as well take the chance and do the state a service at the same time!

An Ri rua · 28-02-2019 12:04PM

Silly question maybe but do all banks require 6 months bank statements or will anyone accept 3?

Anyone know which banks are better for accepting a long rental history and a quickly built-up deposit?

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

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