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

MacDanger wrote: »

Sound, thanks.

Any idea if this is something we'd need to do when applying for the initial mortgage (obviously that would be difficult since we wouldn't own the house)? Or can we do it as an add-on to the mortgage once we own it? I presume the latter......

Again I’m just speaking anecdotally and others will have more definite answers but I think you’d need to know in advance

Paul_Mc1988 wrote: »

Yes you can onky get a mortgage for the house. You will need 30k deposit (10%) if a fist time buyer or 60k deposit (20%) if this is not your first house leaving you with either a mortgage of 270k or 240k. The money to do the house up will need to come from you. How big is this house that it needs that amount of money?

Thanks. OP can ignore what I said so

Looly8726 wrote: »

Sale agreed on a second hand property 18th April, loan offer received 23rd May, contracts received 3rd June, hope to get keys this Friday 28th June.
It depends on the speed of the vendors solicitor in getting the contracts together and of course the speed of the bank in approving the mortgage.
We were selling at the same time and our solicitor had contracts done for our buyer within 2 weeks.

Curious how you plan to manage the timing between buying and selling at the same time? Are you going to try to co-ordinate then so you can move straight from old house to new? Or planning to spend a couple of weeks with family or ina hotel?

Got my keys yesterday, i say keys, it was one key!

Paul_Mc1988 wrote: »

Yes you can only get a mortgage for the house. You will need 30k deposit (10%) if a first time buyer or 60k deposit (20%) if this is not your first house leaving you with either a mortgage of 270k or 240k. The money to do the house up will need to come from you. How big is this house that it needs that amount of money?

Balls

It's a pretty big house (5 bed) and it's ~ 100 years old so I'm thinking it will cost a decent amount to get it properly insulated, etc.

Blanco100 wrote: »

hypothetical scenario and looking for some advice.

House price 214k, getting 90% mortgage (192,600). Mortgage 31 years.

Going on fixed rate (5 years) of 2.85%.

Can anyone break it down to me exactly how much we are paying back over next 5 years at that rate?

hypothetically, what would the monthly repayment be?

About €780/month or €46800 over 5 years.
Source

Bigmac1euro wrote: »

If you wanted to borrow 3.7 or 3.8 times would you need an exemption to cover this ? Or is it a case by case basis ? Hopefully won’t need an exemption but just wondering.

The rule is 3.5 times your salary. Anything over that is an LTI (Loan to Income) exemption.

SpaceRocket wrote: »

Self employed, sole trader. Is my 3.5x income multiplier used against my salary before tax just like PAYE workers, or is it 3.5x my salary after tax is taken out? Hope someone has some insight on this. Thanks!

Correct it’s Before tax for self employed ..
Like Gross for PAYE

Can someone advise is it possible to draw down and close on the same day or how does it work?

TheW1zard wrote: »

Got my keys yesterday, i say keys, it was one key!

We changed the locks yesterday. We've been living in the house a couple of years but bought out family. Finally closed on Monday!

Phileas Frog wrote: »

It'll also probably be 3.5x the average of your last 3 P60s and not your current salary, at least it was for me.

My partner and I both work in healthcare, I’m in the public system and earning €53k. Partner works in private system, and took in €56k last year. Hoping to buy a house in Dublin for €400k. Applied for approval in principle from one bank and they averaged my partners salary out to €44k, meaning we can’t qualify for a big enough mortgage. Currently paying rent of €1310 per month and saving €1800 per month.

Does anyone know if there are any particular banks who look more favorably on self employed applicants, and don’t necessarily average out your last 2-3 years salary when calculating what you qualify for?

Went for my first mortgage review with AIB. Was a bit surprised how strict they were on the 3.5 times my salary. After their "manual" amendments, it went to approx 3.6 times my salary. I've good income and savings, but applying alone, so perhaps that's the issue? I'm approx 40k off the property value I'd ideally like.

Paul_Mc1988 wrote: »

105k saved and combined income of 100k and they are only offering us a 352k mortgage. I'm happy the banks are sticking to the rules as it stops me from overstretching myself. If the other Half had her way we would take out a mortgage of 500k

It's not only your income they base this off. They base it off your discretionary income too.

You can have a salary of 500K but if you have a Ferrari in the garage with a car loan on it they ain't going to give you 3.5 * 500k (a ludicrous example but still...).

My advice is to go to a broker who will be able to apply to all the banks for you and get you the best deal, whilst you only have to supply one set of paperwork

colly10 wrote: »

Is there any reason why some people go directly to a bank rather than a broker?

If your application is straight forward and you are well within the criteria I'm not sure what else a broker can offer?

Paul_Mc1988 wrote: »

105k saved and combined income of 100k and they are only offering us a 352k mortgage. I'm happy the banks are sticking to the rules as it stops me from overstretching myself. If the other Half had her way we would take out a mortgage of 500k

They might be out of exemptions, when theyre gone theyre gone