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

averagejoe123 · 29-03-2019 03:58PM

theemigrant wrote: »

Out of interest is it better to have a joint savings account as a couple or two savings accounts?

It doesn't really matter. Me and OH had 7 in total. Bank added total balances at 1 July 2018 and at 31 December 2018 and divided the difference by 6 to get average monthly savings. It may be stricter if you are looking for exemptions or have a non standard application.

TheShow · 01-04-2019 05:21PM

theemigrant wrote: »

Out of interest is it better to have a joint savings account as a couple or two savings accounts?

it doesn't matter, just as long as you can show evidence of regular saving. Obviously one account would be the easiest as only one set of bank statements to produce.

Charlie · 01-04-2019 07:42PM

Exchanged contracts on Friday and we’re set to get keys Friday week. We went from first viewing the house to contracts exchanged in about 9 weeks. Part of that is down to good fortune and keeping on top of things, but this thread has been an invaluable source of information and has genuinely helped guide us through the minefield that is buying a house. Thanks to all who have contributed.

One last question (hopefully

) In terms of getting utilities setup in our new home, is that something we can have lined up in advance for when we get keys, or will we physically need to be in the house before we can get he ball rolling on that? If it makes a difference, it’s a 2nd hand home that’s currentlh lived in/connected up.

el Fenomeno · 02-04-2019 09:51AM

I've asked similar before, what are people's opinions on the below 2 offers?

KBC's rates are best, both fixed and variable.

Loan amount: €382,500
Total cost: €634,367
Fixed for 5 years
5 years of €1,429.69/month (2.8% interest rate)
30 years @ variable rate (currently 3.3%)

PTSB's rates are higher.

Loan amount: €382,500
Total cost: €707,653
Fixed for 5 years
5 years of €1,515.08/month (3.2% interest rate)
30 years @ variable rate (currently 4.2%)

But TSB have the 2% cashback offer, which comes in at just shy of €8k which would be a big help for fees and furnishing.

My thoughts are - I want to go with TSB because we're not going to be flush with cash when we get the keys, and the cashback would really help out. On the other hand, the Total Cost is €70k more. But I don't know how important/relevant that figure is as we'd like plan on switching after the 5 year term.

My concern would be if we went with TSB to avail of the cashback offer, and then there was another recession in the next 5 terms and if we ended up in negative equity, we wouldn't be able to switch and would then be locked in to TSB's variable rate (which is almost 1% higher than KBC).

averagejoe123 · 02-04-2019 10:15AM

If you have decided to fix for 5 years I would go with TSB. You will be able to fix again at the end of the term. You will be receiving €8k up front and only paying back a little over 5k extra in the 5 years. You will also reducing your mortgage balance over the 5 years which will reduce the potential negative equity.

z0oT · 02-04-2019 10:39AM

After one draws down and fixes for an initial period of 1/3/5 years, is it possible to leave the mortgage run over onto the variable rate for 1/2/3 months after that fixed period has elapsed, pay off a big lump sum and re-fix again?

It's a sort of long term plan I have looking at the rates now. It's all dependent upon having low fixed rates though which might not be the case forever.

GingerLily · 02-04-2019 11:04AM

I went for ptsb because that 2% was needed upfront to furnish (new build so needed floors etc), even if it cost me slightly more in the short term (5 years), it would have still been better value to me to get the cash back.

averagejoe123 · 02-04-2019 11:05AM

z0oT wrote: »

After one draws down and fixes for an initial period of 1/3/5 years, is it possible to leave the mortgage run over onto the variable rate for 1/2/3 months after that fixed period has elapsed, pay off a big lump sum and re-fix again?

It's a sort of long term plan I have looking at the rates now. It's all dependent upon having low fixed rates though which might not be the case forever.

No problem doing this with any of the banks. Even 1 day is fine. Some banks let you overpay by a certain amount even when you fix.

pmb · 02-04-2019 11:54AM

Hi all,

Any thoughts on exemptions? Basically we will be looking for quite a large family home - probably around the 750k mark. Realistically we can only afford to pay a 10% deposit.

We have 30k now, in hand and there is about 55k in equity in our house. However being April 2nd (based on last year) do you think there is any value in us applying or should we wait until January?

I think as well you need to have a clear 6 months of ongoing savings, if I'm honest we only started saving in January so what are your thoughts?

mur223 · 02-04-2019 11:56AM

Has anyone found Ulster bank very slow to deal with? We decided to apply for KBC too as it is almost 4 weeks now for them to make their mind up, if we hear back from KBC before UB can we change to Ulster bank at a later date? We are in a bit of a rush as buying a new build off the plans and solicitor needs proof of approval soon enough to keep the builders happy.

hanaimai · 02-04-2019 12:03PM

mur223 wrote: »

Has anyone found Ulster bank very slow to deal with? We decided to apply for KBC too as it is almost 4 weeks now for them to make their mind up, if we hear back from KBC before UB can we change to Ulster bank at a later date? We are in a bit of a rush as buying a new build off the plans and solicitor needs proof of approval soon enough to keep the builders happy.

Banks have to let you know their decision within 10 business days of applying. Have they been in touch at all in that timeframe? The clock does pause if they require extra information etc.

I went with Ulster Bank last year and I don't recall any delays myself. I'd make a complaint if they're going over the timeframe requirements.

Prospector1989 · 02-04-2019 12:04PM

pmb wrote: »

Hi all,

Any thoughts on exemptions? Basically we will be looking for quite a large family home - probably around the 750k mark. Realistically we can only afford to pay a 10% deposit.

We have 30k now, in hand and there is about 55k in equity in our house. However being April 2nd (based on last year) do you think there is any value in us applying or should we wait until January?

I think as well you need to have a clear 6 months of ongoing savings, if I'm honest we only started saving in January so what are your thoughts?

We've been approved for an exemption (4.2 times our combined salaries). Waiting for letter of offer as we speak. We're currently living in the house we're buying so once we get the letter of offer everything should move quickly.

Speaking from experience.
We started the application process in August....
We had over a year of consistent savings back then.
With an exemption, the bank will scrutinise everything.

At a guess, I'd say you'd need at least 6 months consistent savings (AFAIK the banks do consider mortgage/rent repayments when looking into your ability to repay).
I don't know how the banks are managing their exemptions this year. Our broker told us in September that one bank he knew were still giving them but the rest had "run out".

It probably wouldn't hurt to talk to a bank/broker just to see where you stand?

Prospector1989 · 02-04-2019 12:06PM

mur223 wrote: »

Has anyone found Ulster bank very slow to deal with? We decided to apply for KBC too as it is almost 4 weeks now for them to make their mind up, if we hear back from KBC before UB can we change to Ulster bank at a later date? We are in a bit of a rush as buying a new build off the plans and solicitor needs proof of approval soon enough to keep the builders happy.

Very slow to deal with for us currently. We're going through a broker which is potentially adding to it but he's never delayed getting back to us. We're sticking with them as they're the only ones offering us the exemption we need.

GingerLily · 02-04-2019 12:37PM

pmb wrote: »

Hi all,

Any thoughts on exemptions? Basically we will be looking for quite a large family home - probably around the 750k mark. Realistically we can only afford to pay a 10% deposit.

We have 30k now, in hand and there is about 55k in equity in our house. However being April 2nd (based on last year) do you think there is any value in us applying or should we wait until January?

I think as well you need to have a clear 6 months of ongoing savings, if I'm honest we only started saving in January so what are your thoughts?

Are you only looking for a LTV exemption or are you looking for an LTI exemption too?

drinkingwater · 02-04-2019 01:09PM

mur223 wrote: »

Has anyone found Ulster bank very slow to deal with? We decided to apply for KBC too as it is almost 4 weeks now for them to make their mind up, if we hear back from KBC before UB can we change to Ulster bank at a later date? We are in a bit of a rush as buying a new build off the plans and solicitor needs proof of approval soon enough to keep the builders happy.

Less than a week (last October) to receive the offer letter from Ulster Bank.
And yes you can change it at a later date, we changed from boi to ub, an extra trip to the solicitor but that's all.

tobsey · 02-04-2019 01:26PM

pmb wrote: »

Hi all,

Any thoughts on exemptions? Basically we will be looking for quite a large family home - probably around the 750k mark. Realistically we can only afford to pay a 10% deposit.

We have 30k now, in hand and there is about 55k in equity in our house. However being April 2nd (based on last year) do you think there is any value in us applying or should we wait until January?

I think as well you need to have a clear 6 months of ongoing savings, if I'm honest we only started saving in January so what are your thoughts?

Assuming a 30 year mortgage for €675k, your stress tested repayments will be about €4k per month. Then depending on the bank you'll need an additional 2800-3300 per month. If you have kids you also need 250 per child plus the cost of childcare. So with no children you need a net take home pay of around €7k if you have no children, rising about €1k per child per month if you have to pay childcare, roughly.

You'll need a combined gross income over 190k too because you can't get both LTI and LTV exemptions at the same time.

If you're already paying a mortgage every month then the banks might be flexible with the figures because you're already paying life insurance, buildings insurance etc. that are all new costs for first-time buyers. But the above are rough figures you'd need to have in mind when you start. Different banks will have different rules for how they handle exemptions. If you are in the ballpark of being able to show the figures above then you're high-income clients from the banks point of view so they'd be interested in doing a deal if you can.

D.Q · 02-04-2019 01:53PM

Hey guys,

Literally just starting down the savings route, back living with the parents since christmas, saving 1k direct debit each month.

Will be a single applicant, earning aprox 45k per year. Doing some preliminary mortgage calculators on the main bank's sites. Is there any reason that permanent tsb seem to offer way more than the other banks? PTSB offering 240k, AIB,BOI offering 180k. This obviously translates to huge differences in the quality of houses I could realistically be thinking about buying.

I know it isn't a binding offer, and also aware things could be hugely different down the line, but just curious. Is it a sales ploy? Hidden charges? Trying to be as relaistic as possible in my planning/expectation.

GingerLily · 02-04-2019 02:16PM

D.Q wrote: »

Hey guys,

Literally just starting down the savings route, back living with the parents since christmas, saving 1k direct debit each month.

Will be a single applicant, earning aprox 45k per year. Doing some preliminary mortgage calculators on the main bank's sites. Is there any reason that permanent tsb seem to offer way more than the other banks? PTSB offering 240k, AIB,BOI offering 180k. This obviously translates to huge differences in the quality of houses I could realistically be thinking about buying.

I know it isn't a binding offer, and also aware things could be hugely different down the line, but just curious. Is it a sales ploy? Hidden charges? Trying to be as relaistic as possible in my planning/expectation.

PTSB are including an LTI exemption, BOI aren't. You may not get an exemption, even if the initial calculators suggest you will.

You won't know until you apply, best talk to someone in a bank to get an idea if you would be eligible.

Your not saving enough at the moment to qualify for a 240k mortgage, if it not paying rent.

pmb · 02-04-2019 02:22PM

tobsey wrote: »

Assuming a 30 year mortgage for €675k, your stress tested repayments will be about €4k per month. Then depending on the bank you'll need an additional 2800-3300 per month. If you have kids you also need 250 per child plus the cost of childcare. So with no children you need a net take home pay of around €7k if you have no children, rising about €1k per child per month if you have to pay childcare, roughly.

You'll need a combined gross income over 190k too because you can't get both LTI and LTV exemptions at the same time.

If you're already paying a mortgage every month then the banks might be flexible with the figures because you're already paying life insurance, buildings insurance etc. that are all new costs for first-time buyers. But the above are rough figures you'd need to have in mind when you start. Different banks will have different rules for how they handle exemptions. If you are in the ballpark of being able to show the figures above then you're high-income clients from the banks point of view so they'd be interested in doing a deal if you can.

This is fantastic information thank you for all your help.

Our combined income is €201,000 plus bonuses so we kind of thought that this would be enough which seems right. What I'm currently in the process of is cleaning the accounts. Since January I have been focusing on reducing outgoings and ensuring there is consistent savings to demonstrate the propensity to manage a 4k a month.

I suppose what is standing out is that an exemption won't necessarily work. There seems to be NO information of their availability. Last year I understand they were fully exhausted by May but this year there doesn't seem to be any information on when they would be used. Does it look likely to be the same?

Thanks
Paul

D.Q · 02-04-2019 02:30PM

GingerLily wrote: »

PTSB are including an LTI exemption, BOI aren't. You may not get an exemption, even if the initial calculators suggest you will.

You won't know until you apply, best talk to someone in a bank to get an idea if you would be eligible.

Your not saving enough at the moment to qualify for a 240k mortgage, if it not paying rent.

Thanks for the response.

The idea was to have the 10% saved in 2 years.

I am paying rent in cash of 350 a month as well, don't know if this makes any difference.

How much should I be saving do you think?

GingerLily · 02-04-2019 02:35PM

D.Q wrote: »

GingerLily wrote: »

PTSB are including an LTI exemption, BOI aren't. You may not get an exemption, even if the initial calculators suggest you will.

You won't know until you apply, best talk to someone in a bank to get an idea if you would be eligible.

Your not saving enough at the moment to qualify for a 240k mortgage, if it not paying rent.

Thanks for the response.

The idea was to have the 10% saved in 2 years.

I am paying rent in cash of 350 a month as well, don't know if this makes any difference.

How much should I be saving do you think?

You want to aim for 1.5k between savings and rent to get your max exemption.
It depends on what the stressed rate will be when you apply and what term your going for,if your going for an exemption though you need to be doing more than the bare minimum.

Paying rent to your parents in cash is a big problem.

Amirani · 02-04-2019 02:43PM

D.Q wrote: »

I am paying rent in cash of 350 a month as well, don't know if this makes any difference.

You should pay this by bank transfer, on a regular basis, with an indicative name to the transaction. If you do this then the bank will consider it as part of your demonstrated repayment capacity. You need to have been doing it for a minimum of 6 months, same with your savings direct debit.

Paying cash won't cut it.

bigslick · 02-04-2019 02:43PM

big syke wrote: »

Anyone have a surveyor recommendation in South Dublin? Have a few names but all are busy for the next 2-3 weeks !

averagejoe123 wrote: »

PM sent

Would appreciate PM as well please

D.Q · 02-04-2019 02:54PM

GingerLily wrote: »

You want to aim for 1.5k between savings and rent to get your max exemption.
It depends on what the stressed rate will be when you apply and what term your going for,if your going for an exemption though you need to be doing more than the bare minimum.

Paying rent to your parents in cash is a big problem.

Amirani wrote: »

You should pay this by bank transfer, on a regular basis, with an indicative name to the transaction. If you do this then the bank will consider it as part of your demonstrated repayment capacity. You need to have been doing it for a minimum of 6 months, same with your savings direct debit.

Paying cash won't cut it.

Ok thanks for the advice, happy I asked now. Again, I know down the line it could all be different, but, for now, change cash to regular bank transfers, and increase the savings to 1.2k a month-ish.

fungie · 02-04-2019 03:26PM

We put down a booking deposit on a new build at the weekend (woop). It won't be ready for about 6 months (currently only has a foundation). We are told that contracts will be issued in the next 2 weeks.

Do we contact banks now saying buying this house in anticipation of the contracts or what is the procedure?

My partner is also out of the country and won't be able to sign anything until mid May. Has anybody had to deal with anything like this, not sure what to do.

swarmberg · 02-04-2019 03:35PM

D.Q wrote: »

Hey guys,

Will be a single applicant, earning aprox 45k per year. Doing some preliminary mortgage calculators on the main bank's sites. Is there any reason that permanent tsb seem to offer way more than the other banks? PTSB offering 240k, AIB,BOI offering 180k. This obviously translates to huge differences in the quality of houses I could realistically be thinking about buying.

I was in touch with PTSB recently and told for a joint application you would need a combined income of a minimum of 70k to qualify for an LTI exemption. For a single applicant I'd imagine its in and around 50k to qualify so no harm in getting in contact with them to check exactly.

scheister · 02-04-2019 03:57PM

swarmberg wrote: »

I was in touch with PTSB recently and told for a joint application you would need a combined income of a minimum of 70k to qualify for an LTI exemption. For a single applicant I'd imagine its in and around 50k to qualify so no harm in getting in contact with them to check exactly.

for no other reason then i am bored i decided to plug my figures into the PTSB calculator. it giving me 4 times my salary for a 25 year plus mortgage. I am a single applicant on 38k per year. But I have no commitments no dependents so that could help as well

averagejoe123 · 02-04-2019 04:39PM

bigslick wrote: »

Would appreciate PM as well please

sent

mur223 · 02-04-2019 11:18PM

hanaimai wrote: »

Banks have to let you know their decision within 10 business days of applying. Have they been in touch at all in that timeframe? The clock does pause if they require extra information etc.

I went with Ulster Bank last year and I don't recall any delays myself. I'd make a complaint if they're going over the timeframe requirements.

They did get back to us about 2 weeks ago regarding one week of my other halfs current account was left out! but our broker keeps saying they are trying to push our application through as we should be accepted no bother! very frustrating as we are in limbo now waiting to sign contracts and our solicitor has to keep pushing the builders off! but I have heard KBC get back to you pretty quickly so fingers crossed we will hear from both banks by the start of next week!

mur223 · 02-04-2019 11:36PM

fungie wrote: »

We put down a booking deposit on a new build at the weekend (woop). It won't be ready for about 6 months (currently only has a foundation). We are told that contracts will be issued in the next 2 weeks.

Do we contact banks now saying buying this house in anticipation of the contracts or what is the procedure?

My partner is also out of the country and won't be able to sign anything until mid May. Has anybody had to deal with anything like this, not sure what to do.

We are in the middle of this process of buying a house off the plans also. The estate agents will require solicitors info etc and once your solicitor receives the contract you will have to sign within 21 days or unfortunately they will put the house back up for sale. I would advise getting in touch with a mortgage broker and they can get all the info you need and push your mortgage application through they know how to deal with the banks better than most! and try get approval asap. we were told by our broker we were an easy case but we hit a few bumps in the road through the application process and now our solicitor is trying to delay the builders solicitor saying we should have proof of mortgage approval shortly!
In the meantime when the final day of signing your contracts is up they will also request you transfer the remaining of the deposit over to your solicitor and your solicitor will transfer it to the builders. And if you havnt done so get your help to buy scheme asap so the builders can use that as part of your deposit! i hope i covered everything. maybe a solicitor could advise you more on the fact your partner wont be available to sign anything until mid may! might be able to delay with the builders solicitors for a few weeks!

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

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