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

Mickiemcfist · 20-05-2019 4:05pm

Quick question re approval - I'm going to be looking for a house which will presumably take months to finalise & draw down. When you get loan approval in principle can you get away with using your post-payday bank balance to make up the 10%? I'll have the full deposit in 2/3 months but just looking to get the ball rolling early. Thanks in advance.

Creamy Goodness · 20-05-2019 5:15pm

Mickiemcfist wrote: »

Quick question re approval - I'm going to be looking for a house which will presumably take months to finalise & draw down. When you get loan approval in principle can you get away with using your post-payday bank balance to make up the 10%? I'll have the full deposit in 2/3 months but just looking to get the ball rolling early. Thanks in advance.

Banks will want to see the full deposit and at least the solicitors fees (if not some money to furnish the house) in your accounts before they give you an underwritten AIP. Every other type of AIP is not worth the paper it’s written on.

Mickiemcfist · 20-05-2019 8:17pm

Creamy Goodness wrote: »

Banks will want to see the full deposit and at least the solicitors fees (if not some money to furnish the house) in your accounts before they give you an underwritten AIP. Every other type of AIP is not worth the paper it’s written on.

Thanks, can you use your post payday bank balance to achieve this? If so I'm grand

FitzElla · 21-05-2019 9:57am

Another quick question on approval in principal - how long does it normally take to get back underwritten AIP? Have been waiting 6 weeks so far and not a work from the bank. Not sure if that is normal or not?

Creamy Goodness · 21-05-2019 10:05am

Mickiemcfist wrote: »

Thanks, can you use your post payday bank balance to achieve this? If so I'm grand

I wouldn't think so, however my bank said to me to get my parent to write a gift letter for the amount I was short by, that I'd make up in savings by the time the house was built. In the end my house was delayed anyways and I didn't need the letter before getting my underwritten AIP.

deisedude · 21-05-2019 10:05am

FitzElla wrote: »

Another quick question on approval in principal - how long does it normally take to get back underwritten AIP? Have been waiting 6 weeks so far and not a work from the bank. Not sure if that is normal or not?

Its normally up to 10 working days so i think you need to contact the bank and see whats going on

alwald · 21-05-2019 1:58pm

Haven have some good interest rates but there is a need to apply through an intermediary. I checked few intermediaries and the majority of them charge a fee. Can anybody recommend in Dublin an intermediary that doesn't charge a fee please. Thanks!

Dolbhad · 21-05-2019 2:29pm

Creamy Goodness wrote: »

I wouldn't think so, however my bank said to me to get my parent to write a gift letter for the amount I was short by, that I'd make up in savings by the time the house was built. In the end my house was delayed anyways and I didn't need the letter before getting my underwritten AIP.

I had to do this as we were short 5k with Ulster Bank so gave a gift letter. However it was then a term in our Loan offer that the person who gave the gift letter had to get independent legal advice and sign a deed of confirmation. Our options were pay another solicitor to do this or ask for a new loan offer to issue without the clause but resubmit all paperwork again and risk the loan offer. So beware of the gift letters. Solicitor said only Ulster Bank insist on independent legal advice but rest of banks would just advise it.

alwald wrote: »

Haven have some good interest rates but there is a need to apply through an intermediary. I checked few intermediaries and the majority of them charge a fee. Can anybody recommend in Dublin an intermediary that doesn't charge a fee please. Thanks!

We went through broker who took a deposit which would be refunded to us on drawdown - it was to cover any work done if we didn’t drawn down with them to cover the time they spent i.e go to another bank. In the end we didn’t go ahead with purchase so loss the deposit but that’s fair enough. I would say I was supposed to find out that if you switch banks with 3 years that the banks can seek their fee off the broker which in turn allows them seek the fee off you so beware of using a broker if you plan on moving banks within 3 years

Haven is the broker section of AIB so I would think you’d have the same rates with haven as AIB and also EBS is linked with AIB so you check with them also.

Mickiemcfist · 21-05-2019 3:14pm

Creamy Goodness wrote: »

I wouldn't think so, however my bank said to me to get my parent to write a gift letter for the amount I was short by, that I'd make up in savings by the time the house was built. In the end my house was delayed anyways and I didn't need the letter before getting my underwritten AIP.

Ah thanks good idea.

Looly8726 · 21-05-2019 4:59pm

Quick question re approval in principle... just reading through here and see that you can have underwritten approval and not underwritten. How would I know which one we have??

awec · 21-05-2019 5:02pm

Looly8726 wrote: »

Quick question re approval in principle... just reading through here and see that you can have underwritten approval and not underwritten. How would I know which one we have??

Did you have to supply bank statements, pay slips, credit checks etc, and then wait for a number of days to hear back?

Looly8726 · 21-05-2019 5:11pm

awec wrote: »

Did you have to supply bank statements, pay slips, credit checks etc, and then wait for a number of days to hear back?

Yes provided all above and more. Took approx 3 weeks total.

awec · 21-05-2019 5:35pm

Looly8726 wrote: »

Yes provided all above and more. Took approx 3 weeks total.

That'll be underwritten so.

Looly8726 · 21-05-2019 5:47pm

awec wrote: »

That'll be underwritten so.

Great! Only thing we have to do now according the AIP letter is provide them details of the property and solicitors details. It hasn’t mentioned a valuation though. Does this come with the loan offer or when should we expect to be requested to do that?

awec · 21-05-2019 8:27pm

Looly8726 wrote: »

Great! Only thing we have to do now according the AIP letter is provide them details of the property and solicitors details. It hasn’t mentioned a valuation though. Does this come with the loan offer or when should we expect to be requested to do that?

Someone asked that recently.

It seems some banks require 2 valuations; one when you get the full loan offer and one when you draw down at completion. Other banks just require a valuation during completion.

Don't sweat it about the valuation(s), when the banks need them they'll ask you for them, and it's a very quick process.

Dolbhad · 22-05-2019 9:39am

Valuations only last for 4 months. So if you’ve get a valuation at the start and takes more than 4 months to close the sale you will need a new valuation with a second hand house. New builds are at the start and the end. It’s a dose if you’ve to pay for it yourself but some banks cover the cost.

Looly8726 · 22-05-2019 11:22am

Thanks for that!
How long does it take to get the letter of offer once all details are submitted usually?

awec · 22-05-2019 11:48am

Dolbhad wrote: »

Valuations only last for 4 months. So if you’ve get a valuation at the start and takes more than 4 months to close the sale you will need a new valuation with a second hand house. New builds are at the start and the end. It’s a dose if you’ve to pay for it yourself but some banks cover the cost.

Not always. It entirely depends on your bank.

awec · 22-05-2019 11:49am

Looly8726 wrote: »

Thanks for that!
How long does it take to get the letter of offer once all details are submitted usually?

Anything from a few days to a few weeks.

Looly8726 · 22-05-2019 11:50am

awec wrote: »

Anything from a few days to a few weeks.

Wonderful! It’s so stressful! Thanks for the info.

niamhzie · 22-05-2019 1:07pm

Our building contract specifies a deposit amount, say 25k, but the mortgage is based on 10% deposit of the house price, say 350k > 35k deposit. We previously paid a booking deposit of 5k to the estate agent. Our solicitor is deducting the HTB (say 17.5k) from this building deposit of 25k and we are to pay them 7.5k now, with the balance of the 10% deposit due at a later date.

Does that sound familiar to anyone? The whole buying process makes me feel like a bit of a thicko.

thepropertyguy · 22-05-2019 4:07pm

niamhzie wrote: »

Our building contract specifies a deposit amount, say 25k, but the mortgage is based on 10% deposit of the house price, say 350k > 35k deposit. We previously paid a booking deposit of 5k to the estate agent. Our solicitor is deducting the HTB (say 17.5k) from this building deposit of 25k and we are to pay them 7.5k now, with the balance of the 10% deposit due at a later date.

Does that sound familiar to anyone? The whole buying process makes me feel like a bit of a thicko.

Hi Niamhzie

The buying process can be very confusing. When you buy a newly built house there can be two contracts in play, 1. the building contract and 2. the sale contract (for the land the house sits on). It is typical to have the arrangement you have outlined above in new house builds, the reason for this is that the builder needs cash flow to finish construction so the balance of the deposit will be paid closer to the completion date.

Paul_Mc1988 · 22-05-2019 8:28pm

Anybody know if you put in an offer can the estate agent tell you he can not bring the offer to the vendor as its too low. We went in 10% under asking as we think the house is slightly over priced.

thepropertyguy · 22-05-2019 8:46pm

Paul_Mc1988 wrote: »

Anybody know if you put in an offer can the estate agent tell you he can not bring the offer to the vendor as its too low. We went in 10% under asking as we think the house is slightly over priced.

Hi Paul, yes the estate agent can say that. Remember to ensure your bid is sent by email that way the estate agent has to record it. In my experience the agent will tell the vendors about your bid, but they will advise them to hold out. If your correct with you're valuation then they will come back to you. The agent works for the vendors not the purchaser and they are tasked with getting the highest amount possible, so this is a negotiation technique.

Looly8726 · 22-05-2019 9:14pm

Paul_Mc1988 wrote: »

Anybody know if you put in an offer can the estate agent tell you he can not bring the offer to the vendor as its too low. We went in 10% under asking as we think the house is slightly over priced.

Our house is on the market at the moment and the agent came to us and said there was an offer way under asking price but but he hadn’t really entertained it. Our contract does say that he will pass on all bids to us though

Paul_Mc1988 · 22-05-2019 9:21pm

Thanks for the help all. I'm going to hold out to see if another offer goes in. If not they might come back and ask to meet us in the middle which i would be happy with.

Thargor · 23-05-2019 12:34pm

I got my first payslip after a significant raise today so its time to start getting myself in order for approval.

Problem is my finances are a bit messy. I have enough for about a 50% deposit saved, its split between shares, prize bonds, post office savings and cash in my current account.

The problem is last year my landlord gave me a couple of weeks free rent in exchange for a cash lump sum covering 6 months rent. Last week he called round and we did the same thing again so now I'm paid up until next November, but now I'm wondering if I've shot myself in the foot as there will be no regular outgoings for rent.

What should I do? Do I need to consolidate my savings now or will they accept statements from each account? Should I go straight to a broker? Should I start paying 50% of my wages into some kind of regular saver?

Sorry for all the questions but I'm a bit lost...

voluntary · 23-05-2019 2:07pm

Thargor wrote: »

I got...

They should accept your liquid assets (like shares and bonds) for the purpose of giving an approval in principle, but will require to have funds covering your own part of investment in a bank account before releasing a mortgage offer for a specific property.

chases0102 · 23-05-2019 2:51pm

Hi folks, a quick question here that someone may have the answer to.

Recently bought a new build, along with HTB.

When I check the PPR, it seems our house has a more expensive price next to it than literally every other house on the road. Would anyone know why that may be? In fact, all the houses on that road are all in the PPR at different rates - which I find odd seeing, as with new build, they had a flat cost.

Creamy Goodness · 23-05-2019 3:09pm

chases0102 wrote: »

Hi folks, a quick question here that someone may have the answer to.

Recently bought a new build, along with HTB.

When I check the PPR, it seems our house has a more expensive price next to it than literally every other house on the road. Would anyone know why that may be? In fact, all the houses on that road are all in the PPR at different rates - which I find odd seeing, as with new build, they had a flat cost.

different gardens, down a quiet end, bedroom count, square meterage, end or terrace, affordable housing etc. will all factor in. Not all houses are at the same price in a new development. Also PPR prices are excluding VAT at 13.5%.

It also doesn't matter a jot, if you paid what you were asked to and you paid it and can pay the repayments, what me worry?

Im_No_Superman · 23-05-2019 3:13pm

5 months and a week since going sale agreed and am picking up the keys to the house today.

Alot of blood sweat and tears dealing with revenue, banks, solicitors, etc, all worth while in the end!
This has been a very useful forum during that 5 months and helped a lot.
Best of luck to anyone going through the house buying ordeal!

Looly8726 · 23-05-2019 3:54pm

Thargor wrote: »

I got my first payslip after a significant raise today so its time to start getting myself in order for approval.

Problem is my finances are a bit messy. I have enough for about a 50% deposit saved, its split between shares, prize bonds, post office savings and cash in my current account.

The problem is last year my landlord gave me a couple of weeks free rent in exchange for a cash lump sum covering 6 months rent. Last week he called round and we did the same thing again so now I'm paid up until next November, but now I'm wondering if I've shot myself in the foot as there will be no regular outgoings for rent.

What should I do? Do I need to consolidate my savings now or will they accept statements from each account? Should I go straight to a broker? Should I start paying 50% of my wages into some kind of regular saver?

Sorry for all the questions but I'm a bit lost...

They should accept statements from each of your savings accounts. If you can show regular savings going into your post office and also money building up in your current account it should cover you.
The rent situation isn’t ideal as it would be nicer for them to see the amounts going out each month. Did you physically withdraw the cash from your account to pay your landlord? I know someone who was paying rent in cash and the bank was less inclined to accept it but if they were able to show the exact amount being withdrawn from their account and match it to rent receipts they might have had some chance apparently. Of course if you can set up a regular savings account and transfer a nice chunk of your wages for 6 months then that would look great too!

Looly8726 · 23-05-2019 3:56pm

Im_No_Superman wrote: »

5 months and a week since going sale agreed and am picking up the keys to the house today.
Alot of blood sweat and tears dealing with revenue, banks, solicitors, etc, all worth while in the end!
This has been a very useful forum during that 5 months and helped a lot.
Best of luck to anyone going through the house buying ordeal!

Congrats and good luck with the move! We are sale agreed just over a month now and time is dragging!! What was the hold up if you don’t mind me asking?

DelBoy Trotter · 23-05-2019 4:00pm

Can somebody explain to me how the property price register works? Do the exact sale price of new homes get put on it? Or is the sale price without the 13.5% VAT? Is it the same for second hand houses?

TheShow · 23-05-2019 4:08pm

DelBoy Trotter wrote: »

Can somebody explain to me how the property price register works? Do the exact sale price of new homes get put on it? Or is the sale price without the 13.5% VAT? Is it the same for second hand houses?

New homes is the cost of the build less the site cost less VAT. You wont know the breakdown of the site cost/build cost.

Second hand homes is just the agreed sale price as there is no VAT or site involved.

colly10 · 23-05-2019 10:36pm

Hi, I'm filling out a help to buy claim at the moment. I'm planning on getting a place with my gf shorty.
It asks if I want to apply as an individual or group.

I assume I can apply as an individual, providing I've paid enough tax, I won't need her in the claim even though we're going for the mortgage together?

If I don't have to, i'd prefer not to cause she's been out of work for some parts of the last 4 years and it will be a mess working out what to put down on the form 12 for her i'd say.

Bigmac1euro · 23-05-2019 10:52pm

colly10 wrote: »

Hi, I'm filling out a help to buy claim at the moment. I'm planning on getting a place with my gf shorty.
It asks if I want to apply as an individual or group.

I assume I can apply as an individual, providing I've paid enough tax, I won't need her in the claim even though we're going for the mortgage together?

If I don't have to, i'd prefer not to cause she's been out of work for some parts of the last 4 years and it will be a mess working out what to put down on the form 12 for her i'd say.

Might be worth popping that into the help to buy thread.

Julez · 24-05-2019 9:36am

colly10 wrote: »

Hi, I'm filling out a help to buy claim at the moment. I'm planning on getting a place with my gf shorty.
It asks if I want to apply as an individual or group.

I assume I can apply as an individual, providing I've paid enough tax, I won't need her in the claim even though we're going for the mortgage together?

If I don't have to, i'd prefer not to cause she's been out of work for some parts of the last 4 years and it will be a mess working out what to put down on the form 12 for her i'd say.

I think you still need to apply as a group if the mortgage wil be in both your names. What I think you should do is apply as a group, but when you're submitting her part just don't select any years to claim tax back from. As long as you have enough tax to cover you should be fine.

Lux23 · 24-05-2019 10:16am

If you get a promotion in your workplace, but have to do a year's probation - would this affect your full application? If you somehow failed the probation period, you just get your old job back? The salary wouldn't be hugely different in the beginning.

Uncle_Joe · 27-05-2019 9:41am

Hi,

Quick question from those that's been through the ringer.

From experience, how long does the conveyancing take from the time your solicitor receives the contract to the point where contracts are signed and you get the keys?

Trying to work a notice-date to give my landlord and figure out rents etc :-/

Im_No_Superman · 27-05-2019 10:03am

Looly8726 wrote: »

Congrats and good luck with the move! We are sale agreed just over a month now and time is dragging!! What was the hold up if you don’t mind me asking?

Ah loads of little things really that just all add up -

Took awhile for contracts to be sent to my solicitor Took more time back and forth with solicitors over structural reports, etc.. Contractor had to be set up as HTB approved contractor. Banks first loan offer wasn't right so had to get a second one sent in and resigned. Had to wait for HTB money to be in builders account before closing.
Feels great this morning not having to be chasing up with solicitors, banks, etc!:D

Phileas Frog · 27-05-2019 11:17am

Im_No_Superman wrote: »

Contractor had to be set up as HTB approved contractor.

Any idea how long that took once they applied?

Im_No_Superman · 27-05-2019 11:27am

Phileas Frog wrote: »

Any idea how long that took once they applied?

From a quick glance of my mails from when I was told they had everything read to go to apply, to when they actually did get on the approved list it took 5 weeks. Again not sure if that's typical or not.

awec · 27-05-2019 1:25pm

colly10 wrote: »

Hi, I'm filling out a help to buy claim at the moment. I'm planning on getting a place with my gf shorty.
It asks if I want to apply as an individual or group.

I assume I can apply as an individual, providing I've paid enough tax, I won't need her in the claim even though we're going for the mortgage together?

If I don't have to, i'd prefer not to cause she's been out of work for some parts of the last 4 years and it will be a mess working out what to put down on the form 12 for her i'd say.

Everyone on the mortgage must be in the help to buy application. This is how they ensure that both of you are first time buyers.

But you don't have to claim anything from the second person at all.

niamhzie · 28-05-2019 1:54pm

Builders have told us that the house is ready for snagging this week or next, but it's proving really hard to find someone at such short notice! I'm getting stressed thinking that this will delay us

lilywhitearmy · 28-05-2019 2:31pm

Hi all

Can anyone tell me the typical duration from request of drawdown of funds to getting the keys. Snag is signed off.

With Ulster Bank

charlietheminxx · 28-05-2019 2:44pm

niamhzie wrote: »

Builders have told us that the house is ready for snagging this week or next, but it's proving really hard to find someone at such short notice! I'm getting stressed thinking that this will delay us

It's not ideal but I believe you can print off a detailed snag checklist yourself and go through it item by item, but I suppose that's only helpful if you know what you're looking for!

loriexxx · 28-05-2019 6:54pm

lilywhitearmy wrote: »

Hi all

Can anyone tell me the typical duration from request of drawdown of funds to getting the keys. Snag is signed off.

With Ulster Bank

Two days for us a few weeks ago but our solicitor was very on top of things

niamhzie · 29-05-2019 12:08pm

charlietheminxx wrote: »

It's not ideal but I believe you can print off a detailed snag checklist yourself and go through it item by item, but I suppose that's only helpful if you know what you're looking for!

Got sorted! I know in theory we could do it ourselves but we're not the most handy so for peace of mind and 200 quid I'd rather get someone! Thanks though

thepropertyguy · 29-05-2019 3:44pm

lilywhitearmy wrote: »

Hi all

Can anyone tell me the typical duration from request of drawdown of funds to getting the keys. Snag is signed off.

With Ulster Bank

Hi Lilywhitearmy

I would always allow 10 work days for drawdown from Ulster Bank. To give you an idea of the process and why the drawdown length can vary I have outlined some of the items that need to be addressed before drawdown can take place.

Typically your solicitor will need to have:

Certified Title to the bank
Given an undertaking to the bank
Signed and sent your loan pack back to the bank
Provided copies of your home and life insurance
Provided a copy of their professional indemnity insurance to the bank

You as the client will usually need to have:

Put in place mortgage protection insurance
Put in place home insurance
Provided a copy of both to the bank or your solicitor
Filled in your direct debit instruction

Delays can occur if any of the above remain outstanding also if your solicitors client bank account is not Ulster Bank it can take up to 3 days for funds to clear, so this must be accounted for.

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

Comments