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

charlietheminxx · 13-03-2019 12:50PM

Bargain_Hound wrote: »

This subject has been mentioned a few times in this thread now; by my experience of it - we got the clause written into our contract and agreed by the developer. This is at their discretion though. Not sure I would have been comfortable handing over my deposit with no plan b should the bank refuse to release the funds when you are due to close sale. Our new build was due to be ready within 6 months but took 10 months so we had to re-apply for the mortgage as the original offer expired after 6 months. I was on shaky ground in work as there was redundancies happening at the time so I was very glad I had the condition written into the purchase contract. Worth noting it appears a lot of developers flat out refuse to write the condition into contracts as the demand is quite high for new builds.

That must have been so stressful! Delighted you got sorted anyway. Mine is also a new build but the mortgage approval is with AIB so the offer is valid for 12 months. I have an exception on the LTI rules though so my primary concern is if the bank won't stand over that later on in the process.

Bargain_Hound · 13-03-2019 02:16PM

charlietheminxx wrote: »

That must have been so stressful! Delighted you got sorted anyway. Mine is also a new build but the mortgage approval is with AIB so the offer is valid for 12 months. I have an exception on the LTI rules though so my primary concern is if the bank won't stand over that later on in the process.

I did too. Wasn't an issue getting the LTI re-approved but this was not definite and required LTI re-approval when reapplying after the initial 6 months. Was stressful indeed.

I should mention this was with BOI.

TheShow · 13-03-2019 06:05PM

mur223 wrote: »

Apologies if this has been asked before.
We are in the process of buying a house off the plans, our contracts and remaining 10% deposit are to be signed/paid next week.

I am wondering for whatever reason when we go to draw down the mortgage in a couple of months the bank refuses to offer us the money they agreed to. Does this mean we would loose our whole deposit? Anxious to meet the solicitor now face to face to discuss the contract but I am just wondering has anyone been in the same position?

thanks in advance

If you have an offer letter from the bank in your hand and all the conditions are satisfied, then the bank cannot refuse to pay out as it would be breach of contract and you could sue. The only reason they would not pay out is if the conditions of the loan offer have not been fully satisfied.

If the house is not completed and your offer expires, then you will need to get reapproved which should not be a major issue, unless there are material changes to your circumstances that impact affordability etc.

Also, your solicitor will normally insert a "subject to loan" clause on the contract which effectively covers this off.

GingerLily · 13-03-2019 06:36PM

TheShow wrote: »

Also, your solicitor will normally insert a "subject to loan" clause on the contract which effectively covers this off.

Everyone should ask their solicitor to add in this clause, every good solicitor should be trying to add it in anyway, but a lot of developers are not allowing this clause in for new builds.

bush · 13-03-2019 11:52PM

I'm coming up on a year in my first house which I plan to stay in for about 5 to 7 years. What the best course of action when upgrading? Overpay the mortgage or just save for a large deposit for the second house?

bush · 13-03-2019 11:52PM

I'm coming up on a year in my first house which I plan to stay in for about 5 to 7 years. What the best course of action when upgrading? Overpay the mortgage or just save for a large deposit for the second house?

Radsky · 14-03-2019 12:18AM

charlietheminxx wrote: »

That must have been so stressful! Delighted you got sorted anyway. Mine is also a new build but the mortgage approval is with AIB so the offer is valid for 12 months. I have an exception on the LTI rules though so my primary concern is if the bank won't stand over that later on in the process.

Is the offer letter from AIB valid for 12 months? Or is it just the underwritten AIP that is valid for 12 months?

Abbey127 · 14-03-2019 12:18AM

Hi what is the market rate to rent a room out in an apartment on the north side of Dublin. 20 mins away from the city centre.

myshirt · 14-03-2019 07:41AM

Abbey127 wrote: »

Hi what is the market rate to rent a room out in an apartment on the north side of Dublin. 20 mins away from the city centre.

Entry point is about 550e for a single room, with most decent rooms costing 650+. Put it on the market and see how you get on.

JJJackal · 14-03-2019 09:55AM

bush wrote: »

I'm coming up on a year in my first house which I plan to stay in for about 5 to 7 years. What the best course of action when upgrading? Overpay the mortgage or just save for a large deposit for the second house?

Do you plan to sell House A when buying House B? If you are not selling House A you will need a 20% deposit to buy House B. If you are selling House A, every euro extra you pay down on year one saves you about 1 euro interest at year 30 (as an example)

charlietheminxx · 14-03-2019 10:59AM

Radsky wrote: »

Is the offer letter from AIB valid for 12 months? Or is it just the underwritten AIP that is valid for 12 months?

Sorry, you're quite right. The loan offer itself is for 6 months.... hadn't copped that! Wow I hope my house is finished by then!

el Fenomeno · 14-03-2019 11:39AM

Can you apply for a mortgage with multiple institutions at the same time, to see which one of them gives you the best offer (and also to save time in case your first preference rejects you)?

I don't want a scenario where it's

1. Apply Bank 1
2. Wait 7-10 Days.
3. Get rejected.
4. Apply Bank 2
5. Wait another 7-10 days...

etc.

Does applying with multiple institutions disadvantage you in any way (i.e. do the second bank who check your credit rating get worried/annoyed when they see it's recently been checked by another institution too, or would they assume we were rejected by someone else before coming to them, even if it's really the case that we applied for both at the same time and haven't been rejected/approved by anyone yet)?

JJJackal · 14-03-2019 12:03PM

el Fenomeno wrote: »

Can you apply for a mortgage with multiple institutions at the same time, to see which one of them gives you the best offer (and also to save time in case your first preference rejects you)?

I don't want a scenario where it's

1. Apply Bank 1
2. Wait 7-10 Days.
3. Get rejected.
4. Apply Bank 2
5. Wait another 7-10 days...

etc.

Does applying with multiple institutions disadvantage you in any way (i.e. do the second bank who check your credit rating get worried/annoyed when they see it's recently been checked by another institution too, or would they assume we were rejected by someone else before coming to them, even if it's really the case that we applied for both at the same time and haven't been rejected/approved by anyone yet)?

Get a mortgage broker?

BadSanta · 14-03-2019 12:24PM

JJJackal wrote: »

Get a mortgage broker?

Some broker get commission from the bank.

Creamy Goodness · 14-03-2019 12:35PM

BadSanta wrote: »

Some broker get commission from the bank.

of course they do, they bring the bank custom? You expect them to work for free?

awec · 14-03-2019 12:37PM

el Fenomeno wrote: »

Can you apply for a mortgage with multiple institutions at the same time, to see which one of them gives you the best offer (and also to save time in case your first preference rejects you)?

I don't want a scenario where it's

1. Apply Bank 1
2. Wait 7-10 Days.
3. Get rejected.
4. Apply Bank 2
5. Wait another 7-10 days...

etc.

Does applying with multiple institutions disadvantage you in any way (i.e. do the second bank who check your credit rating get worried/annoyed when they see it's recently been checked by another institution too, or would they assume we were rejected by someone else before coming to them, even if it's really the case that we applied for both at the same time and haven't been rejected/approved by anyone yet)?

You can apply at as many banks as you want at the same time. It makes no difference at all.

Phileas Frog · 14-03-2019 12:55PM

Creamy Goodness wrote: »

of course they do, they bring the bank custom? You expect them to work for free?

Some brokers are paid for by the client.

Creamy Goodness · 14-03-2019 01:08PM

Phileas Frog wrote: »

Some brokers are paid for by the client.

the person above suggested a broker, which was then responded to "some get commission". it's like anything... shop around.

TheShow · 14-03-2019 04:02PM

Personally I would not pay a broker.
They get paid handsomely by the banks for introducing the business. There are plenty of good brokers out there that will not charge you for the service.

A broker can, or you can submit multiple applications to all the different lenders for a mortgage. Do be aware though that each ICB search leaves a foot print and if there are multiple recent footprints, this can raise an eyebrow with the underwriters.

A broker, will however normally just go the the bank that pays the most commission.

Try and do a bit of research yourself on the different lenders and what rates they offer etc. Use their online calculators to get an idea of what amount is realistic given your circumstances.

BadSanta · 14-03-2019 09:39PM

Creamy Goodness wrote: »

the person above suggested a broker, which was then responded to "some get commission". it's like anything... shop around.

Read below comments, that's what I mean. so be careful choosing broker. even paid broker some do get commision lol

TheShow wrote: »

Personally I would not pay a broker.
They get paid handsomely by the banks for introducing the business. There are plenty of good brokers out there that will not charge you for the service.

A broker can, or you can submit multiple applications to all the different lenders for a mortgage. Do be aware though that each ICB search leaves a foot print and if there are multiple recent footprints, this can raise an eyebrow with the underwriters.

A broker, will however normally just go the the bank that pays the most commission.

Try and do a bit of research yourself on the different lenders and what rates they offer etc. Use their online calculators to get an idea of what amount is realistic given your circumstances.

Creamy Goodness · 14-03-2019 09:43PM

BadSanta wrote: »

Read below comments, that's what I mean. so be careful choosing broker. even paid broker some do get commision lol

It's hard to get all that from your original comment

"Some broker get commission from the bank."

bush · 14-03-2019 11:22PM

JJJackal wrote:

Do you plan to sell House A when buying House B? If you are not selling House A you will need a 20% deposit to buy House B. If you are selling House A, every euro extra you pay down on year one saves you about 1 euro interest at year 30 (as an example)

Ye I will be selling the first house. I'm on a 3 year fixed mortgage and was thinking of saving up and paying off a lump sum at the end. Shop around for a good variable rate and switch mortgage and overpay it a little bit every month while saving over the next 3 or 4 years towards the new house. Is this the best way to do this?

Glen_Quagmire · 19-03-2019 04:46PM

5 year fixed at 3.2% or 3 year fixed at 3%

Overall difference of about 30 euro per month

What would you go with?

Glen_Quagmire · 19-03-2019 04:46PM

5 year fixed at 3.2% or 3 year fixed at 3%

Overall difference of about 30 euro per month

What would you go with?

Benny Biscotti · 19-03-2019 05:14PM

Is there any benefit to submitting mortgage applications or applying to rebuilding ireland / HAP schemes even if you are a couple of years away from saving for deposit?

Is there a time limit and you would just end up having to reapply?

awec · 19-03-2019 07:48PM

Glen_Quagmire wrote: »

5 year fixed at 3.2% or 3 year fixed at 3%

Overall difference of about 30 euro per month

What would you go with?

5 years personally.

awec · 19-03-2019 07:50PM

Benny Biscotti wrote: »

Is there any benefit to submitting mortgage applications or applying to rebuilding ireland / HAP schemes even if you are a couple of years away from saving for deposit?

Is there a time limit and you would just end up having to reapply?

No benefit and a total waste of time. You'll just be refused, or more likely the bank won't even bother with your application when you reveal you've no deposit at all.

Glen_Quagmire · 19-03-2019 08:14PM

awec wrote:

5 years personally.

Can I ask your reasons as a matter of interest?

awec · 19-03-2019 08:21PM

Glen_Quagmire wrote: »

Can I ask your reasons as a matter of interest?

Just for peace of mind and easier financial planning. While there seems no rate changes on the horizon, my personal view is they are more likely to go up than down.

Also, after 5 years of mortgage payments we would fall into the lower LTV bracket, so would qualify for better rates at that point.

19-03-2019 09:09PM

awec wrote: »

Just for peace of mind and easier financial planning. While there seems no rate changes on the horizon, my personal view is they are more likely to go up than down.

Also, after 5 years of mortgage payments we would fall into the lower LTV bracket, so would qualify for better rates at that point.

I am doing this exact thing and my reasons are the same, just purely to fix my costs for the time being, no surprises and will reassess at the end of the term and possibly switch bank.

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

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