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

Kiwi5449 · 27-07-2019 06:33PM

Ayan Prickly Road wrote: »

Yep 6 months. You can do everything, get full approval etc etc, just as long as drawdown comes after. Knowing it takes a long time to buy a house, we went sale agreed when I was about 4 months in my job knowing that drawdown would come after the 6 month mark.

Can I ask what bank you were with for mortgage? We have AIP with AIB but seems to be no leeway on full approval until I get probation signed off in Dec and with the property we are looking at (new build) we wouldn’t be drawing down until Feb 2020

27-07-2019 10:42PM

Kiwi5449 wrote: »

Can I ask what bank you were with for mortgage? We have AIP with AIB but seems to be no leeway on full approval until I get probation signed off in Dec and with the property we are looking at (new build) we wouldn’t be drawing down until Feb 2020

Was with BOI through a broker. Also had approval from KBC on similar terms.

swarmberg · 30-07-2019 11:56AM

Have an issue where my mortgage has been drawndown before the initial snag has been completed? Is this normal? The solicitor is also talking about transferring these funds to the builders solictor? Am I going mad or should it not be us who give authorisation for this? I don't want the builder getting any more funds until we are happy with the snag

TheShow · 30-07-2019 12:14PM

swarmberg wrote: »

Have an issue where my mortgage has been drawndown before the initial snag has been completed? Is this normal? The solicitor is also talking about transferring these funds to the builders solictor? Am I going mad or should it not be us who give authorisation for this? I don't want the builder getting any more funds until we are happy with the snag

tis normal, just make sure all the snag list is complete before the funds are transferred

Uglysoik1 · 02-08-2019 10:05PM

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

Star Lord · 02-08-2019 11:14PM

Uglysoik1 wrote: »

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

Yeah absolutely, that's a fairly reasonable time frame tbh.

wally79 · 02-08-2019 11:14PM

Uglysoik1 wrote: »

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

It’s holiday season too so that could add to it

Misssally · 03-08-2019 09:13AM

Uglysoik1 wrote: »

How long before you get letter of offer from the bank. I'm dealing with AIB was told last week to wait 6-7 working days. Haven't heard anything from them. Is this normal?

Ours took over 6 weeks from PTSB even though they had all the documentation! Blamed system issues/holidays.

Uglysoik1 · 03-08-2019 09:46AM

wally79 wrote: »

It’s holiday season too so that could add to it

Great stuff - thanks guys!

Papa_Lazarou · 03-08-2019 01:38PM

Have been following this thread for quite a while trying to gather as much info as possible. 29 and currently saving 825 a month plus rent of 475 which combined will hopefully be able to show the required ability for paying back.

Hoping to pull the trigger around April/May next year if the FTB gets extended. With savings/deposit, FTB, cashing in shares and a small loan from the parents I'm hoping to have upwards of 60k towards a new build.

What's people's experience with getting over the 3.5 as a single applicant. On about 63/64k PA with bonus included (can show annual bonus has been stable for years) would only need to stretch it a small bit to get what I think I'll need.

el Fenomeno · 03-08-2019 02:08PM

Papa_Lazarou wrote: »

Have been following this thread for quite a while trying to gather as much info as possible. 29 and currently saving 825 a month plus rent of 475 which combined will hopefully be able to show the required ability for paying back.

Hoping to pull the trigger around April/May next year if the FTB gets extended. With savings/deposit, FTB, cashing in shares and a small loan from the parents I'm hoping to have upwards of 60k towards a new build.

What's people's experience with getting over the 3.5 as a single applicant. On about 63/64k PA with bonus included (can show annual bonus has been stable for years) would only need to stretch it a small bit to get what I think I'll need.

€64,000 salary would leave you with approve €3,600 net salary per month.

If your savings + rent is €1,300 in total, where is the other €2,600 going? I would have thought you'd be able to save comfortably more than €1,000 per month on that salary, but I have no idea if you have other loans, children etc.

Regardless, not sure exactly how much you're looking for but when you say that you only need to stretch the 3.5x limit a small bit, I'm assuming around 3.75x would suffice. That's a mortgage of around €240,000 on your salary.

Over 30 years you'd be looking at about €1,000 monthly repayments, or around €900 if taking on a 35 year mortgage.

You easily have the capacity to repay it on your current salary if there's no other factors you haven't mentioned, and I imagine you'd have no problem with their stressed repayment forecasts either.

The figures are all fine for you IMO, so it really just comes down to credit history, clean statements, employment status etc. and obviously whether the LTI exceptions are still available from the bank you're applying with.

Papa_Lazarou · 03-08-2019 02:21PM

el Fenomeno wrote: »

€64,000 salary would leave you with approve €3,600 net salary per month.

If your savings + rent is €1,300 in total, where is the other €2,600 going? I would have thought you'd be able to save comfortably more than €1,000 per month on that salary, but I have no idea if you have other loans, children etc.

Regardless, not sure exactly how much you're looking for but when you say that you only need to stretch the 3.5x limit a small bit, I'm assuming around 3.75x would suffice. That's a mortgage of around €240,000 on your salary.

Over 30 years you'd be looking at about €1,000 monthly repayments, or around €900 if taking on a 35 year mortgage.

You easily have the capacity to repay it on your current salary if there's no other factors you haven't mentioned, and I imagine you'd have no problem with their stressed repayment forecasts either.

Hey EL Fenomeno
Thanks for the breakdown. Part of that 64k is end of year bonus (6-7k) which I drop into company shares each year and can show that for the last 4-5 years so in theory I guess that's an extra 500 euro saving per month if you averaged it out. Can cash out at any time but has the tax benefit after 3 years. Only repayment I have is a €250 per month car loan which has 2 years left on it. Might start reaching out to brokers to see how I'd fair out with them.

Atomic Pineapple · 03-08-2019 04:06PM

Get advice from mortgage suppliers as soon as you can if you plan to start looking next year. A €250 a month car loan could put a big dent in what you will be offered, and it's better know that now rather than later. If it has too big an impact you will have time to sell the car and clear the loan before applying properly.

ronoc4 · 04-08-2019 12:42PM

Hello,

I'm looking for any help in regards to getting a mortgage. I moved away and have been back in the country about 8 months. I found out last week that I had a loan written off (worth about 1000 euro) about 3 years ago. My own stupid fault for moving and not changing address and over time forgetting about the loan. How bad can this effect me getting a mortgage? and has anyone gotten a mortgage with with Finance Ireland? they seem to openly say that they don't judge you too much on past mistakes.

Has anyone else been in this position?

Tokyo · 04-08-2019 12:44PM

Mod: Moved to Accommodation & Property.

Graham · 04-08-2019 12:46PM

Mod Note

Threads merged

Paul_Mc1988 · 04-08-2019 12:49PM

ronoc4 wrote:

I'm looking for any help in regards to getting a mortgage. I moved away and have been back in the country about 8 months. I found out last week that I had a loan written off (worth about 1000 euro) about 3 years ago. My own stupid fault for moving and not changing address and over time forgetting about the loan. How bad can this effect me getting a mortgage? and has anyone gotten a mortgage with with Finance Ireland? they seem to openly say that they don't judge you too much on past mistakes.

Get a credit check done it only costs a couple of euro. If its showing on there you can pretty much kiss your chances of getting a mortgage goodbye.

Creamy Goodness · 04-08-2019 12:55PM

Also avoid asking the bank where you defaulted on the loan for a mortgage. It’ll be a flat no, in their eyes if you can’t handle a small loan of 1000 theres no way they’ll give you many multiples of that.

My advice is go to a broker and explain your situation.

el Fenomeno · 04-08-2019 12:59PM

ronoc4 wrote: »

Hello,

I'm looking for any help in regards to getting a mortgage. I moved away and have been back in the country about 8 months. I found out last week that I had a loan written off (worth about 1000 euro) about 3 years ago. My own stupid fault for moving and not changing address and over time forgetting about the loan. How bad can this effect me getting a mortgage? and has anyone gotten a mortgage with with Finance Ireland? they seem to openly say that they don't judge you too much on past mistakes.

Has anyone else been in this position?

It's not the end of the world, but it will make things trickier for you and you might have to bide your time.

You're very unlikely (some would say there's zero chance) to get a mortgage from the same institution with which the loan was written off. The best thing you can do is cross them off your list completely and never apply for any loan with them again.

An ICB credit check goes back 5 years if I'm correct. This is where you need to bide your time - do not apply for a mortgage with any institution until the bad loan drops off your credit history. You can request your own credit history here: http://www.icb.ie/cr_options.php

The reason being, let's just say 4 years and 11 months have passed since the loan was written off and you apply for a mortgage with Ulster Bank. They run a credit check, and they see that 4 years and 11 months ago you defaulted on a loan and had it written off. Even though that will drop off your credit report in 1 month's time, Ulster Bank now have it on their internal records which they may retain a lot longer (5 years, 7 years etc). This pretty much rules them out for you for the duration they have a loan write-off on file under your name.

You can consult a broker, but bear in mind the last paragraph - if they encourage you to apply as a "no harm trying" tactic, this isn't true. There's lots of harm in trying - so just be aware that if you try apply for a mortgage with Bank XYZ now, there's a good chance that they might refuse and you might scupper any chance of a mortgage with them for another 5,6,7 years etc. Be aware that this impacts not just your initial mortgage aplication, but any prospects at switching mortgage down the line too.

ronoc4 · 04-08-2019 01:58PM

Seems pretty harsh for something that happened so long ago. My broker is trying where the loan happened. I thought it was a bad idea. Has anybody tried with Finance Ireland or heard of anyone trying with Finance Ireland. Thanks for the replies.

Corruptedmorals · 04-08-2019 03:20PM

Well a mortgage is a huge risk for a bank considering the size of the loan so it would be natural for them to be at the very least hesitant if they see a defaulted loan. Definitely apply for your credit history while you wait for feedback from the broker.

Just about to go 6 weeks now with no contracts yet post sale agreed. Our solicitor has written to the vendor's solicitor and the estate agent is also checking into it. The only thing left to be done is the contracts so at least once they are finally through there will be nothing that we should have done earlier in the way. The deeds are EBS who seem to have a reputation as being slow to release them so with that and the time of year, no panicking. Just eager to sign really.

Paul_Mc1988 · 04-08-2019 04:24PM

ronoc4 wrote:

Seems pretty harsh for something that happened so long ago. My broker is trying where the loan happened. I thought it was a bad idea. Has anybody tried with Finance Ireland or heard of anyone trying with Finance Ireland. Thanks for the replies.

Seems harsh that banks wont want to give you a big loan when you couldn't even pay back a small one. Yeah that makes sense

Dolbhad · 04-08-2019 04:28PM

ronoc4 wrote: »

Seems pretty harsh for something that happened so long ago. My broker is trying where the loan happened. I thought it was a bad idea. Has anybody tried with Finance Ireland or heard of anyone trying with Finance Ireland. Thanks for the replies.

I’ve heard of them. My broker had said steer clear unless you couldn’t get a mortgage elsewhere. Someone in work recently got their loan offer with them. That being said they got a 3% fixed interest rate which was good but they said Finance Ireland don’t seem to know what their doing. They were about a month waiting for loan offer to issue and said the mortgage team can’t answer any questions. However it seems to be only through a broker so least your broker can help move things along.

skippy123! · 04-08-2019 07:50PM

Hey guys, buying a new build in North Dublin area and looking for a solicitor if you can recommend someone in PM you have worked with?

Hollybeg · 04-08-2019 11:28PM

ronoc4 wrote: »

Seems pretty harsh for something that happened so long ago. My broker is trying where the loan happened. I thought it was a bad idea. Has anybody tried with Finance Ireland or heard of anyone trying with Finance Ireland. Thanks for the replies.

Pepper Finance used to lend to people in situations like yourself (probably still do). They will charge you a higher interest rate. The loan will eventually fall off the Credit register but for the moment it could cause you some issues.

myshirt · 05-08-2019 01:35AM

ronoc4 wrote: »

Hello,

I'm looking for any help in regards to getting a mortgage. I moved away and have been back in the country about 8 months. I found out last week that I had a loan written off (worth about 1000 euro) about 3 years ago. My own stupid fault for moving and not changing address and over time forgetting about the loan. How bad can this effect me getting a mortgage? and has anyone gotten a mortgage with with Finance Ireland? they seem to openly say that they don't judge you too much on past mistakes.

Has anyone else been in this position?

You will never get a loan with the bank you stung. Ever. And if another bank gets a sniff of a default anywhere, you are goosed there too. Literally forever. It's actually that serious when people have loans written off and they are always shocked to find that out.

The lenders are not concerned about the amount or how long ago it was, it's the credit risk that they are worried about. Even if you were a saint in the last 3 years, recent credit behavior great, you are looking for less than 3 times income, you have 24 months of savings showing you can pay the mortgage payment with an extra 500 to spare, etc etc, i.e ticking all the boxes, a dream for the mortgage sales provider with his lovely QFA qualification and you even supplied a picture of you with the pope, What will happen is it will get to the real decision makers, and they don't have a Mickey mouse qualification like a QFA, and when it does collections will clash with underwriting. And collections win. A marker is put on you and that's it. No mortgage ever. And no way back.

So what do you do?

1. Don't apply for any secured credit with any bank you want to target until everything is gone off your credit report. If you do they have that report on file for 7 years. Wait until it's gone off your credit report.

2. Improve your credit behavior (clear no brainer)

3. Go to a good broker

4. Plan your house search in the 2.5 to 3 times income multiple, and 3 to 3.5% interest rate bucket.

5. And target Finance Ireland as people said. They are more forgiving if you've only that one incident of default.

There's a question on every application that will also ask you if you ever defaulted which is a way they try get info even if it's not on your credit report. You can be snookered by that too.

TLDR: If you default on a loan, ever, then you are in the wing and a prayer category and are very unlikely to ever get a mortgage, ever, but it is possible with the right plan over a couple of years.

The Mig · 06-08-2019 02:06PM

myshirt wrote: »

You will never get a loan with the bank you stung. Ever. And if another bank gets a sniff of a default anywhere, you are goosed there too. Literally forever. It's actually that serious when people have loans written off and they are always shocked to find that out.

The lenders are not concerned about the amount or how long ago it was, it's the credit risk that they are worried about. Even if you were a saint in the last 3 years, recent credit behavior great, you are looking for less than 3 times income, you have 24 months of savings showing you can pay the mortgage payment with an extra 500 to spare, etc etc, i.e ticking all the boxes, a dream for the mortgage sales provider with his lovely QFA qualification and you even supplied a picture of you with the pope, What will happen is it will get to the real decision makers, and they don't have a Mickey mouse qualification like a QFA, and when it does collections will clash with underwriting. And collections win. A marker is put on you and that's it. No mortgage ever. And no way back.

I defaulted on a student loan with AIB 11 years ago from my local branch. Guess where I drew down my mortgage from at the end of May?

duffman13 · 06-08-2019 02:12PM

The Mig wrote: »

I defaulted on a student loan with AIB 11 years ago from my local branch. Guess where I drew down my mortgage from at the end of May?

Most banks will literally check your ICB report and your statements etc. I'm pretty sure going back 11 years would be somewhat dodgy ground based on GDPR and retention periods.

3 years though, yeah you've been away which means it'll be front and centre on your ICB report for the foreseeable future OP.

The Mig · 06-08-2019 02:15PM

duffman13 wrote: »

Most banks will literally check your ICB report and your statements etc. I'm pretty sure going back 11 years would be somewhat dodgy ground based on GDPR and retention periods.

3 years though, yeah you've been away which means it'll be front and centre on your ICB report for the foreseeable future OP.

Yeah I was more making the point about the never ever ever ever bit. Total boll*x!

el Fenomeno · 06-08-2019 02:19PM

The Mig wrote: »

I defaulted on a student loan with AIB 11 years ago from my local branch. Guess where I drew down my mortgage from at the end of May?

There's a big difference between a student of 11 years ago versus the OPs situation.

Though I will admit the post you quoted is overkill. There's great information on Boards, but the difficulty in getting a mortgage is really overhyped here.

I had many of the red flags that get mentioned here - missed CC payment on my recent history, probationary period at work, inconsistent savings, dipping into savings for living expenses etc. Got a mortgage first time of asking with zero hassle.

I would go as far as to say that your capacity to repay the stressed monthly repayment is by far and away the number one criteria. As long as you're not defaulting on loans all over the place or unemployed, the rest is easily explainable and any broker worth their salt will take care of it for you if you don't do it yourself.

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

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