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

bricky06 · 04-06-2019 12:06PM

OK thanks guys - insurance, mortgage protection and valuation all in place.

I might be being optimistic but hoping to finally close by the end of the week.

Creamy Goodness · 04-06-2019 12:17PM

Took one day for AIB to transfer to my solicitor and another day for the solicitor to transfer to builders solicitor. It’s totally possible to get keys by end of the week. Start pushing the relevant people.

awec · 04-06-2019 12:40PM

bricky06 wrote: »

OK thanks guys - insurance, mortgage protection and valuation all in place.

I might be being optimistic but hoping to finally close by the end of the week.

I'd ring your AIB mortgage advisor today to ensure they'll release funds today.

Then ring your solicitor tomorrow to get them to transfer to the developer.

At this stage it's all about the phone calls.

bricky06 · 04-06-2019 01:00PM

I have been calling everybody multiple times a day for the last two weeks trying to get this over the line. The number of mistakes and miscommunications between different departments in the bank and in the solicitors office has been ridiculous.

I'm a broken man at this stage

Edit: Rant over, thanks for the advice

gogo · 04-06-2019 01:23PM

bricky06 wrote: »

I have been calling everybody multiple times a day for the last two weeks trying to get this over the line. The number of mistakes and miscommunications between different departments in the bank and in the solicitors office has been ridiculous.

I'm a broken man at this stage

Edit: Rant over, thanks for the advice

It also depends on what bank your with and what banks your solicitor is with.. if it’s BOI transfer to AIB or vice versus that can add another few days to the process

Paul_Mc1988 · 04-06-2019 02:12PM

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.

thepropertyguy wrote:

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.

Just a follow up on this. We put in a bid on the 22nd and let couple of days go by and then emailed the estate agent on the 27th to see if any other bits went in. No reply from him. Emailed again this morning and he rang to inform us another bidder came in way over asking and the bid was accepted. Never contacted us to counter bid. Is this normal?

Brian201888 · 04-06-2019 02:36PM

Can see why he wouldn't bother if you've come in 10% below and they've had an offer way over asking

Jack_92 · 04-06-2019 02:39PM

Paul_Mc1988 wrote: »

Just a follow up on this. We put in a bid on the 22nd and let couple of days go by and then emailed the estate agent on the 27th to see if any other bits went in. No reply from him. Emailed again this morning and he rang to inform us another bidder came in way over asking and the bid was accepted. Never contacted us to counter bid. Is this normal?

Although I wouldn't say it's normal, it happens and it happened to me. I placed a bid, followed up a few days later and was informed that another bid came along and the vendor decided to accept it. I questioned why I wasn't notified and the EA responded that the vendor knew to other bidder and decided to go with him instead. Recently I checked on property price register and in fact it was sold for the same price we initially offered..

Lux23 · 04-06-2019 04:26PM

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

awec · 04-06-2019 04:30PM

Lux23 wrote: »

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

You pay the 10% when you sign the contracts.

If you're doing HTB you'll need to go full approval now. There's no harm really in getting approval now even though you know it will expire.

Lux23 · 04-06-2019 04:37PM

Ah, well that makes sense. We just have to reapply when the six month is up and I won't feel as worried once we get full approval in the first instance! Thanks for your help.

GingerLily · 04-06-2019 04:37PM

Lux23 wrote: »

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

My experience,
I paid 10k deposit to secure my new build.
After 2 weeks contracts were issued.
We received full loan approval with our bank including an initial valuation, our solicitor attempted to add the subject to loan clause into the contract, it was rejected.

We signed our contracts within 21 days of issue, paid the balance of 10% deposit and attached our loan offer from the bank. Before this stage the booking deposit is refundable, after it is not.

When the property is ready for snagging then you complete the rest - home insurance, mortgage protection and final valuation.

awec · 04-06-2019 04:42PM

Lux23 wrote: »

Ah, well that makes sense. We just have to reapply when the six month is up and I won't feel as worried once we get full approval in the first instance! Thanks for your help.

Our house took ~14 months from booking deposit to getting keys.

After the mortgage approval expired the first time we didn't bother renewing it as we knew it would expire again and the house wouldn't be ready. We waited 3 or 4 months then renewed it.

We had the subject to loan clause in our contract, and we didn't have an LTI exemption so it was fairly straightforward for us.

Creamy Goodness · 04-06-2019 04:42PM

GingerLily wrote: »

When the property is ready for snagging then you complete the rest - home insurance, mortgage protection and final valuation.

Just to note you can have these in place anytime once you have AIP/loan offer letter on a particular property.

Mortgage protection can be a lengthy process depending on your health. If you're medically sound it can be sorted in a day, but it's not always the case.

TheShow · 04-06-2019 04:50PM

Lux23 wrote: »

We are hoping to put down a booking deposit on a new house this weekend, but I am just a little confused about the process given how long it will take for the house to be completed.

We pay a €7k deposit and we get a copy of the contract, our solicitor reviews it and includes a subject to loan clause. We notify the bank, but the house won't be available until early next year so at what point do we go to full application? Next year or now, and when do we pay the full 10%. Is it when we move in or do we get full mortgage approvel, pay the 10% and then drawdown when the house is ready?

I have asked the Estate Agent but they keep saying you can get the deposit back at any time before you sign the contract, but they only give you 21 days and what if the bank turns around and says no in six months time? Do we lose the €7k?

Sorry, lots of questions but I'm finding the process unclear since the house isn't ready for ages.

Get your full approval now, estate agent might require proof of same to accept the booking deposit.

Balance of 10% deposit (less the 7k already paid) to be paid upon signing contracts, best to get your mortgage approval before then as any solicitor in their right mind should not let you sign contracts if mortgage is not approved.

If the mortgage approval expires before the house is ready then you can just get reapproval, which should be a straight forward process as long as your financial position/employment status has not deteriorated.

Paul_Mc1988 · 04-06-2019 04:52PM

Jack_92 wrote:

Although I wouldn't say it's normal, it happens and it happened to me. I placed a bid, followed up a few days later and was informed that another bid came along and the vendor decided to accept it. I questioned why I wasn't notified and the EA responded that the vendor knew to other bidder and decided to go with him instead. Recently I checked on property price register and in fact it was sold for the same price we initially offered..

Yeah I have a feeling this may be the case also. It's the second property we have been bidding on with this estate agent. On the other property we bid 50k more than we did on our initial bid on this property so he knew we had plenty to go. Anyway on to the next one.

august12 · 04-06-2019 05:06PM

Jack_92 wrote: »

Although I wouldn't say it's normal, it happens and it happened to me. I placed a bid, followed up a few days later and was informed that another bid came along and the vendor decided to accept it. I questioned why I wasn't notified and the EA responded that the vendor knew to other bidder and decided to go with him instead. Recently I checked on property price register and in fact it was sold for the same price we initially offered..

Does that mean some connection to EA got the winning bid!!!!

GingerLily · 04-06-2019 05:10PM

awec wrote: »

Our house took ~14 months from booking deposit to getting keys.

After the mortgage approval expired the first time we didn't bother renewing it as we knew it would expire again and the house wouldn't be ready. We waited 3 or 4 months then renewed it.

Might be worth mentioning - we could not get a subject to loan clause, but our house was meant to be 12 weeks from completion when contracts were issued, it was closer to 20 weeks but still within the 6months mortgage approval!

Paul_Mc1988 · 04-06-2019 06:20PM

august12 wrote:

Does that mean some connection to EA got the winning bid!!!!

You would never know unless you went to the seller and told them the EA never came back to you to see if you wanted to put in another bid.

Although if I see on property price register that it went for way under and the EA lied id try contact the seller and inform them something fishy was up

Calltocall · 04-06-2019 07:58PM

Hi Folks

How does one get approval for 4.5 times salary when applying for a mortgage? Do you have to be earning in excess of a certain amount to be considered? Are certain banks more likely than others to offer this mortgage amount? is there anything one can do to increase chances of getting 4.5 times salary rather than the standard 3.5?

Any feedback be most appreciated

Musefan · 04-06-2019 08:33PM

Hey everyone. Since I last posted here my partner and I have changed some of our ideas about where we want to live.

We will be looking for a mortgage for max 320k but most likely around 290k and this is below 3.5 times our income 390k. We started properly saving in March and now have 11K and will be halfway to 30k next month. Our rent is +++above the mortgage repayments we would be making.

I am looking to move jobs from a permanent role to another permanent role in a similar organization. There would be a pay-cut if circa 2k but I’m would be on salary increments as I am on now. I would hope to move in September and probation would be 6 months (March) while if I stayed in my current role, probation is one year and ends in February. I’m in a stable career but my current job is very under resourced and stressful and I am looking to move to a role closer to where I want to buy.

Is this going to mess up mortgage approval in a huge way? Ulster bank mentioned something about needing to see 3+ years working for somewhere.

Creamy Goodness · 05-06-2019 07:19AM

Musefan wrote: »

Hey everyone. Since I last posted here my partner and I have changed some of our ideas about where we want to live.

We will be looking for a mortgage for max 320k but most likely around 290k and this is below 3.5 times our income 390k. We started properly saving in March and now have 11K and will be halfway to 30k next month. Our rent is +++above the mortgage repayments we would be making.

I am looking to move jobs from a permanent role to another permanent role in a similar organization. There would be a pay-cut if circa 2k but I’m would be on salary increments as I am on now. I would hope to move in September and probation would be 6 months (March) while if I stayed in my current role, probation is one year and ends in February. I’m in a stable career but my current job is very under resourced and stressful and I am looking to move to a role closer to where I want to buy.

Is this going to mess up mortgage approval in a huge way? Ulster bank mentioned something about needing to see 3+ years working for somewhere.

It’s difficult to get approval on probation doesn’t matter the bank.

The bank will not care that your salary will improve over time they do the check based on your current salary and previous account activity.

Creamy Goodness · 05-06-2019 07:23AM

Calltocall wrote: »

Hi Folks

How does one get approval for 4.5 times salary when applying for a mortgage? Do you have to be earning in excess of a certain amount to be considered? Are certain banks more likely than others to offer this mortgage amount? is there anything one can do to increase chances of getting 4.5 times salary rather than the standard 3.5?

Any feedback be most appreciated

It’s pretty much a black box but you need to be in the top 20% of that banks potential mortgage customers. You’d also need a squeaky clean bank account (no existing loans etc.).

el Fenomeno · 05-06-2019 07:54AM

I would imagine (and our broker told us too) that it's harder to get the 4.5 exemption later in the calendar year too.

Creamy Goodness · 05-06-2019 08:55AM

el Fenomeno wrote: »

I would imagine (and our broker told us too) that it's harder to get the 4.5 exemption later in the calendar year too.

It depends I was told by a BOI advisor that they just give them out and when there gone there gone. When I went to AIB they said they limited them so that there's exemptions available throughout the year.

05-06-2019 09:33AM

Calltocall wrote: »

Hi Folks

How does one get approval for 4.5 times salary when applying for a mortgage? Do you have to be earning in excess of a certain amount to be considered? Are certain banks more likely than others to offer this mortgage amount? is there anything one can do to increase chances of getting 4.5 times salary rather than the standard 3.5?

Any feedback be most appreciated

Even if you have the capacity to repay and it seems unfair, to save yourself from disappointment I would take the mindset that it is unlikely you'll get a 4.5x exception. But if you want to go for it a good broker will give you the best shot imo. Ours got the bank to take my wife's overtime into account so we didn't need one in the end, but when we'd previously asked the bank about this ourselves we got a flat no.

stdidit · 05-06-2019 11:06AM

What stage of the buying process do you have to reach to ensure you won't have to renew your mortgage approval? Is it drawdown?
Just wondering because my wife is thinking of changing jobs but obviously we don't want to do anything that could affect a potential renewal. We have just paid the booking deposit and hope to get full loan offer and sign initial contracts in the next few weeks, but Q4 is the estimated completion date we have been given for the house.

Creamy Goodness · 05-06-2019 11:23AM

stdidit wrote: »

What stage of the buying process do you have to reach to ensure you won't have to renew your mortgage approval? Is it drawdown?
Just wondering because my wife is thinking of changing jobs but obviously we don't want to do anything that could affect a potential renewal. We have just paid the booking deposit and hope to get full loan offer and sign initial contracts in the next few weeks, but Q4 is the estimated completion date we have been given for the house.

Drawdown, once the money is in your solicitors account the only thing the bank want is your monthly mortgage payment. They won't release the funds otherwise.

Lux23 · 05-06-2019 04:18PM

I'm gutted - PTSB just refused us because of my arrears in a loan from over four years ago. We have approval from Ulster Bank but there is feck all to buy for the amount we got and I am worried they might refuse us at the other end. The broker says she's really surprised and that it is harsh decision, but you just don't know how truthful they are being.

TheShow · 05-06-2019 05:26PM

Lux23 wrote: »

I'm gutted - PTSB just refused us because of my arrears in a loan from over four years ago. We have approval from Ulster Bank but there is feck all to buy for the amount we got and I am worried they might refuse us at the other end. The broker says she's really surprised and that it is harsh decision, but you just don't know how truthful they are being.

Go on the ICB website and request a copy of your history so you know exactly whats on it.
Did you have arrears a few years ago, was it a lot in arrears or just 1 missed payment?
Sometimes the ICB results that the banks get back can be incorrect.
Either ways its always worthwhile to know what is on your credit history.

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

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