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

Ayan Prickly Road wrote: »

Question for anyone who has switched mortgage.

I am on the 5 year fixed with BOI that came with the cashback, rate is 3.2%. There are definitely better rates on the market, such as KBC are 2.8% I think. We only took the mortgage recently enough, is there anything stopping us just going and switching to KBC (for example) very soon?

We went through a broker, there was a provision in the contract that the broker would be informed if we switched within 36 months of drawdown, would it impact the broker fee? Could they come looking for it from us or something?

There will be a fee for breaking your fixed rate anyway. And then I think it costs a substantial enough sum of money to switch mortgage providers with solicitor fees etc..

Ayan Prickly Road wrote: »

Question for anyone who has switched mortgage.

I am on the 5 year fixed with BOI that came with the cashback, rate is 3.2%. There are definitely better rates on the market, such as KBC are 2.8% I think. We only took the mortgage recently enough, is there anything stopping us just going and switching to KBC (for example) very soon?

We broke with BoI after 18 months (of a 3 year fixed rate). Breakage fee costed us 2/3rds of a monthly payment.
The breakage fee changes by the day (interbank rate or something) so you get get screwed or lucky.

Dolbhad wrote: »

We had this with our broker. I asked why and she said it’s the claw back. The bank paid her fee which was 1% of the mortgage amount but if we switch within 3 years the bank could claw back their fee from the broker, and broker would claw back their fee from me.

So on top of the mortgage breakage clause, you can get caught for broker fee.

It never occurred to me to ask but the week we got our loan offer, the Irish times had an article about switching and highlight this with those who went with a broker.

I'd love to see any form that gives them jurisdiction to do so?

ELM327 wrote: »

Nope


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

not correct;/

LTV is loan to value. Loan amount vs the value of the property.

LTV is of the purchase price.
Say a house costs 350,000
If you borrow 350k thats 100%, if you borrow 315k thats 90% if you borrow 280k thats 80% and so on.

Losty Dublin wrote: »

Something of a quandary here.

I went sale agreed on an apartment a few months ago. I had a pre approval from the bank, and upon valuation they issued me with a loan pack. So far so good.

Now here comes the snag; after kicking their heels my solicitor eventually received the MUD info etc from the seller. The common areas weren't signed over to the management company before the developer was liquidated. Upon a few enquires from the bank's legal team in the Completion's section, their take is that they will forward the loan once we are satisfied that all is in order. The management company itself is grand; today I've just found out that the local council have taken on the common areas.

With this in mind, how does one got about getting a formal confirmation from a CoCo to confirm same? And if so, how long are we talking?

The sellers solicitor can get a letter from council confirming the road and services abutting the apartment building are in charge by the council. Every council is different in how long it takes but the council charge for that latter so shouldn’t take long.

That was a very lucky outcome!

Losty Dublin wrote: »

Sounds easier that I thought. Will this include their confirming charge on the common areas in the building itself?

Although I bought a house, I had the same issue - the estate was management company run for a few years before Dublin city council took it over, and the previous owner bought off plans. We also had to wait for the confirmation letter, even though I knew DCC look after the estate. The sellers solicitors requested it and took about 5 weeks to get. Don't know the content, just that our solicitor was satisfied with it.

DelBoy Trotter wrote: »

If I was to apply for a mortgage this week without a specific property in mind, how does it work? Is it only approval in principle? I can then put in offers on houses based on the approval in principal. When I go sale agreed on the house, the full application is submitted and signed off. Is that the way things work?

From my recent experience, yep that's pretty much it.

Our solicitor told us the property we're buying is ready to close in a few days, but the property we're selling won't be ready to close until a few days later. Should we wait until they are both ready to close or go for it when the one we're buying is ready. It'll give us a few days to move things. The solicitor said we'll be paying more interest though during these days, and I'm worried it could go on longer than anticipated.

Stamp duty question - Is this 1% of the property purchase price less VAT for a new build? Or 1% of the property price?

drunkmonkey wrote: »

Personally I'd wait until the one your selling closes. Does the whole thing go pear shaped if the one your selling doesn't close for some reason. If so sight tight before closing the one your buying just in case.

I think so too. Obviously we want to move as soon as we can. But the idea of not closing on the same say makes me feel nervous. What if there were further delays that the solicitors hadn't anticipated? He said we'd be paying interest, I have no idea how much this would be either.

Sunrise_Sunset wrote: »

Our solicitor told us the property we're buying is ready to close in a few days, but the property we're selling won't be ready to close until a few days later. Should we wait until they are both ready to close or go for it when the one we're buying is ready. It'll give us a few days to move things. The solicitor said we'll be paying more interest though during these days, and I'm worried it could go on longer than anticipated.

It’s near impossible to close on the same day. For you to have funds for your bank that morning to be transferred to the seller solicitors, then funds in that day from your purchaser solicitors to your solicitor and have it all cleared and closed is a fine balancing act. And also, I think you’ve sent it’s two different solicitors so I don’t think they can coordinate that either??

What does your solicitor say acting for you in the purchase. Does your loan offer to purchase say you just had to have contracts in place to request funds? Or do they want you to have sold the house and paid off that mortgage before funds issued? That might be the determining factor.

Interest would be minimal I would expect if it’s a only a few days. It would be easier to buy first and then sell but how is your seller about pushing it back a few days?

drunkmonkey wrote: »

What if they pull out, 1 in 4 sales collapse. You don't want to get caught out. The interest can't be much, I presume there on about mortgage interest.
I assume you still only have the initial deposit from the buyer at this stage.

I don't believe that statistic is correct once contracts have been signed.