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

Closing and getting keys tomorrow, exciting times. Just have to visit it tomorrow to give final orders for completion.

Mainly been a lurker here, but got some great info so thanks to all who contribute. Barely over 4 months from first open visit to now, quick turnaround. Now for the fun of moving everything, apartment is a mess with bags and boxes all over the place.

Has anyone experience with getting an exemption from the loan to value ratio rule for a second mortgage? I have read that banks can be more lenient with some candidates on this, at their discretion (for a certain percentage of applicants). Is this still the case? We've had meetings with two different mortgage advisors (from the same bank) and one suggested it is a possibility but another said it was 20% without question.

We got an exemption from 20% to 10% on a mortgage of €440,000. Our combined income at the time was around €135k, so we were well within the 3.5 times threshold. Having said that, we have three kids and the first mortgage relates to a house I bought with my brothers in 2006 which was just out of negative equity and did have an payment arrangement in place for about a year in 2012, so it wasn't at all a straightforward application. But we got there in the end. I think it helped that I had a public service job.

Our solicitor did mention something about ESB way leave at the contract signing stage, but she just double checked with the builder's solicitor about it. She got some guarantees around it and changed the contract slightly to reflect this. We had very little access to our house when it was being built and no contact with the builders. All we were able to do is request info/changes through the estate agent and then obviously during snagging get any issues addressed.

Do you have a probation period in the new job? Can you get them to write a letter stating that you are not on probation and cannot be let go in the first 3/6 months?

Butterface wrote: »

We have our loan offer from the bank and are hoping to sign contract this week for a new build.

Our solicitor advised that we engage an Engineer to check out the plans (few special conditions regarding way leave, and to check local drainage layout plans).

We rang two Engineers and both advised that there's not much they can do now at this stage, but once the build is complete they will be available for snagging.

Has anybody else had this suggestion from their solicitor at contract signing stage for a new build?

Yes I actually spoke about this in another thread recently. Our solicitor advised to have an engineer go out and inspect the property once or twice as it goes up and review plans with us if we could afford it.

But did say snagging and boundary check needs to be carried out at end. I used an engineer who actually was already on site checking it out for our neighbours. I’d quoted a few engineers who all advised the same thing. But others on boards said they just do snagging. I was clueless about new build so was nice to go through the plans with our engineer. He went on site once for us. Told us the estimated date by builder was off by three months (and our engineer was right looking at when the estate was done). He said they were insulating the house for noise when he visited and said they did a great job which was a comfort. He also could tell us about the builder and actually had given us the site foreman details before auctioneer. Yes the build will be fine but it’s the extra comfort for me. My partner had work colleagues who, at the same time, were buying a new build also and we’re having massive issues with their builder so we were very cautious.

Ultimately didn’t sign contracts for the house as we changed our mind. Nothing to do with the builder or quality. But felt it was money well spent and would do it again.

It is optional and seems most people here just do the snag.

moonlighting_1 wrote: »

Lads whats the story with putting in a offer on a house. I offered close to asking price but didn't give any deadline. Should I give a week/month for the offer. so far the estate agent just asked for my letter of mortgage approval in principle from the bank I guess just to see if my offer was serious? at what stage would I proceed with the bank mortgage. (Have approval in principle)

If you have not given the approval in principal letter, redact the amount you are approved for in it so auctioneer doesn’t know what you have. If auctioneer has a problem with it, say your solicitor will confirm the offer.

You move to the loan offer once you have gone sale agreed on the property so when your offer is accepted.

There was another thread on how long to wait for an offer to be accepted/declined. To be honest, there isn’t a set time. The seller will wait it out as long as they can to see if someone else comes along and offers more. So keep checking in with auctioneer on whether the offer is accepted but keep looking at other houses. You could put a deadline on the offer but that would only be worth doing if you aren’t prepared to offer anymore and can walk away if offer is not accepted.

We’ve got our mortage accepted and there sending the letter of offer to our solicitor. What rates are people choosing.
1 and 2 year fixed at 2.9%
3 and 5 year fixed at 3%
10 year rate at 3.5%
Variable rate at 4.5%

We’re thinking of 2 year

Yea going with the 3% fixed for 5yrs with €4.5k cash back, will cover the solicitor, surveyor and valuer free. Hopefully something left for a few beers. Couldn't see a better deal out there, some lower rates but cash back swung it.

Dolbhad wrote: »

Anybody good at maths work out is it better long term if the mortgage to focus on the cash back or the rate? I get with the cash back, it is money I am paying back and banks don’t give money for free. But weighing up a lower interest rate with lower cash back with Ulster Bank vs a bigger cash back and slightly bigger rate with BOI.

Just multiply the monthly difference in repayments by 12, then by the amount of years you're paying it off. Then you have the difference in overall cost of the mortgage.

Compak wrote: »

Sounds like you are going with Bank of Ireland. We are same rates with 0.2% reduction for new Green Initiative.

We also chose 2 year rates. Central banks around the worlds are in a process cutting interest rates with ECB also expected to drop. So the pressure is on now for further reductions from Irish Banks.
Denmark is even doing zero mortgage rates now!
Our expectation is Irish mortgage rates will drop so we want shortest term for changing at 2 years or even breaking the term in say one year if big enoigh drop and penalties not bad.

It does seem AIB and BOI’s penalties for breaking fixed rate are low and would be offset against a better rate of remortgage. Whereas Ulster Bank and KBC seem to be more punitive and may not be worth breaking.

Thanks for peoples advice on the cashback!

topmanamillion wrote:

It's €350,000

topmanamillion wrote:

The mortgage is given against 90% of the property price.

No its 390k. The house is 390k he puts down the 40k and borrows 3.5 times his salary of 350k. Leaving him with an 89% mortgage. Dont spread bad information

topmanamillion wrote: »

It's €350,000

The mortgage is given against 90% of the property price.

A mortgage for a house worth €350,000 would be €315,000 plus a €35000 deposit.

Worth remembering that a mortgage that size could cost around €80,000 in interest alone over 20 years. Obviously a very rough figure as term length, interest rates, tracker or variable rates over that time will effect it too.

Nope


Currently in the mortgage process again and both times the LTV % requirement was against the mortgage amount not the purchase amount