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

Corruptedmorals · 13-08-2019 05:41PM

Finally after 7 weeks contracts have issued! Such a relief. Signing in 2 weeks. It's such a relief to finally have a timeline and tangible proof of the sale going ahead. Can't wait to have it binding now.

Dolbhad · 13-08-2019 10:14PM

Sunrise_Sunset wrote: »

Yes, you've a good memory, I have 2 solicitors.
The solicitor of the buyer that's purchasing our property is waiting on one further document from their mortgage provider.
Our solicitor for selling this property is also the solicitor for the people that are selling the other property to us. I don't always feel that he's working with our best interests.
I have tried calling our other solicitor dealing with our purchase for his advice but he was unavailable and I'm waiting on a call back.

Ah I was curious why you had two solicitors. I would chat to the purchasing solicitor and check with them that there is no issue if you had to buy first. See if they can push the put as much as they can to try for it closer together. But you would need a firm date from the person buying your house.

At least the selling solicitor gets two fees so in their best interest to have both go through. If you don’t sell your house, you can’t buy that house. I would expect that solicitor to be more involved smoothing things over. You often hear that with auctioneers when people are selling and buying. If they found the house first they wanted to buy, they use that auctioneer to sell as with two sales, it’s in auctioneers interest to manage both so it all goes ahead.

Also I would try find out what mortgage document is missing. Is it something small or something that could be an issue like life insurance. As it may be a subject to loan clause it in both set of contracts so that’s the only way the purchaser could back out.

Sunrise_Sunset · 13-08-2019 10:33PM

Dolbhad wrote: »

Ah I was curious why you had two solicitors. I would chat to the purchasing solicitor and check with them that there is no issue if you had to buy first. See if they can push the put as much as they can to try for it closer together. But you would need a firm date from the person buying your house.

At least the selling solicitor gets two fees so in their best interest to have both go through. If you don’t sell your house, you can’t buy that house. I would expect that solicitor to be more involved smoothing things over. You often hear that with auctioneers when people are selling and buying. If they found the house first they wanted to buy, they use that auctioneer to sell as with two sales, it’s in auctioneers interest to manage both so it all goes ahead.

Also I would try find out what mortgage document is missing. Is it something small or something that could be an issue like life insurance. As it may be a subject to loan clause it in both set of contracts so that’s the only way the purchaser could back out.

We hired solicitor #1 before we put our property up for sale. He got the title deeds from the bank. Then when we found the property we were buying and notified him, he said he couldn't do the purchase because he was acting as solicitor for the vendors of the house we're buying. As he already had the deeds, and we didn't want to delay things by 3 weeks by having to send them back and have solicitor #2 request them again, we decided to stick with him for the sale and hire another solicitor for the purchase. Tbh I still feel like there is a conflict of interest with solicitor #1 though, and that maybe he has the best interests of his other clients, that we're buying from, more than ours.

I received a call back from our purchasing solicitor this evening and he said he wasn't sure if this was possible anyway, as we need the funds from our sale in order to make our purchase. He'll discuss with our selling solicitor and revert back. The document that's missing is something that was agreed by the bank and the solicitor just wants to get it in writing, which is fair enough. We were told it should only be a day or two after we close the purchase, but I still feel concerned about it. I will speak with my purchasing solicitor again tomorrow for further information. I just really feel that our selling solicitor wants the sale to go through on X date more so to satisfy his other clients, who we are buying from. We want to close asap too, but as long as everything is a-ok and nothing to worry about.

Apologies for the long winded reply.

Dolbhad · 14-08-2019 07:20AM

Sunrise_Sunset wrote: »

We hired solicitor #1 before we put our property up for sale. He got the title deeds from the bank. Then when we found the property we were buying and notified him, he said he couldn't do the purchase because he was acting as solicitor for the vendors of the house we're buying. As he already had the deeds, and we didn't want to delay things by 3 weeks by having to send them back and have solicitor #2 request them again, we decided to stick with him for the sale and hire another solicitor for the purchase. Tbh I still feel like there is a conflict of interest with solicitor #1 though, and that maybe he has the best interests of his other clients, that we're buying from, more than ours.

I received a call back from our purchasing solicitor this evening and he said he wasn't sure if this was possible anyway, as we need the funds from our sale in order to make our purchase. He'll discuss with our selling solicitor and revert back. The document that's missing is something that was agreed by the bank and the solicitor just wants to get it in writing, which is fair enough. We were told it should only be a day or two after we close the purchase, but I still feel concerned about it. I will speak with my purchasing solicitor again tomorrow for further information. I just really feel that our selling solicitor wants the sale to go through on X date more so to satisfy his other clients, who we are buying from. We want to close asap too, but as long as everything is a-ok and nothing to worry about.

Apologies for the long winded reply.

I think the sale of your house has to come first then if you need that money for the purchase. It seems like it’s only a few days you need so I would expect no issues with other parties. There is no need for people to be unreasonable and it’s not like the people you are buying from don’t know you need to sell a house to buy theirs. Your in a chain and sometimes things beyond your control happen.

Mickiemcfist · 14-08-2019 09:01AM

Slightly odd one here, I'm looking at a house (regular 3 bed semi) which is being sold by receivers, their insurance means the water & electricity is disconnected - is that as simple as turning it off at the stopcock or will it involve significant costs to Irish water or the council etc to reconnect?

drunkmonkey · 14-08-2019 09:56AM

Hardly disconnected, I'd assume just turn it back on outside or inside. In the same boat with a receiever, was told to have a plumber with me when turning it back on just in case.

Mickiemcfist · 14-08-2019 11:16AM

drunkmonkey wrote: »

Hardly disconnected, I'd assume just turn it back on outside or inside. In the same boat with a receiever, was told to have a plumber with me when turning it back on just in case.

Great thanks for that. I read an article online saying buying from a receiver could have substantial costs reconnecting water & elec.

voluntary · 14-08-2019 11:26AM

ESB website says they charge €70 to reconnect.

ELM327 · 14-08-2019 11:45AM

Having previously worked in both electricity and gas supply industry, there is no/minimal charge to reconnect.

A caveat to the above is, after a few weeks/months of inactivity, networks will disconnect in a more permanent manner, and this incurs significant 4 figure sums to reconnect from.

I'm not sure how to determine what needs to be done to reconnect - Networks or the supply company is unlikely to give you any info as you aren't named on the account

drunkmonkey · 14-08-2019 11:55AM

I called them about that 4 figure sum they said I wouldn't be charged to turn it back on I've a few accounts with them, maybe it's because I'm an existing customer...
I can say for definite in a couple of weeks I should have the keys.

Sunrise_Sunset · 14-08-2019 12:38PM

Dolbhad wrote: »

I think the sale of your house has to come first then if you need that money for the purchase. It seems like it’s only a few days you need so I would expect no issues with other parties. There is no need for people to be unreasonable and it’s not like the people you are buying from don’t know you need to sell a house to buy theirs. Your in a chain and sometimes things beyond your control happen.

I agree. Let's see what the solicitors have to say today.
As long as we're in before the kids schools starts back we're happy. Even the end of next week is fine.

mrincredible · 14-08-2019 01:57PM

Mods, please move if this is in the wrong thread..

We're currently talking to banks about different mortgage options and are very tempted by the cashback offers. The Boi site is telling me on a €200k mortgage is €4k cash back (and an extra €2k after five years.) Is the cashback taxed or would we get the full amount? I've heard contrasting answers to the same question among friends

TheShow · 14-08-2019 02:29PM

tax free

srsly78 · 14-08-2019 02:56PM

mrincredible wrote: »

Mods, please move if this is in the wrong thread..

We're currently talking to banks about different mortgage options and are very tempted by the cashback offers. The Boi site is telling me on a €200k mortgage is €4k cash back (and an extra €2k after five years.) Is the cashback taxed or would we get the full amount? I've heard contrasting answers to the same question among friends

The cashback is basically a scam to cover up for the bad interest rate.

drunkmonkey · 14-08-2019 03:05PM

srsly78 wrote: »

The cashback is basically a scam to cover up for the bad interest rate.

How do you make that out....people paying bad interest rates with no cashback.

Star Lord · 14-08-2019 03:13PM

srsly78 wrote: »

The cashback is basically a scam to cover up for the bad interest rate.

We're getting 3% APR fixed for 5 years, with 3% cashback, 2% in the first year, and 1% at year 5.

3% isn't a bad rate here.

drunkmonkey · 14-08-2019 03:20PM

That's exactly what were going for. Can't find a better deal.

mrincredible · 14-08-2019 03:27PM

Star Lord wrote: »

We're getting 3% APR fixed for 5 years, with 3% cashback, 2% in the first year, and 1% at year 5.

3% isn't a bad rate here.

That's what we're planing on.. but trying to decide if we should fix for 3 or 5. 3% is a low rate for a BOI product, and with all the doom and gloom coming down the track I'm thinking there's a bit of certainty in it.

srsly78 · 14-08-2019 03:30PM

drunkmonkey wrote: »

That's exactly what were going for. Can't find a better deal.

Bonkers.ie shows several options with less than 3% APR fixed for 5 years. 2.6% is best.

There was talk of banning this cash-back stuff because it makes it difficult to compare the actual cost of borrowing. Why can't they just factor it into the APR?

Star Lord · 14-08-2019 03:33PM

srsly78 wrote: »

Bonkers.ie shows several options with less than 3% APR fixed for 5 years. 2.6% is best.

There was talk of banning this cash-back stuff because it makes it difficult to compare the actual cost of borrowing. Why can't they just factor it into the APR?

When we'd calculated how much a lower rate would save us over the 5 years, the cashback was worth more.

srsly78 · 14-08-2019 03:36PM

Star Lord wrote: »

When we'd calculated how much a lower rate would save us over the 5 years, the cashback was worth more.

The calculation changes depending on the term etc, it's not easy to compare. In some cases it may be worth not, but not for others. Another point is they now add a claw-back policy to stop people moving.

TheShow · 14-08-2019 04:22PM

srsly78 wrote: »

Bonkers.ie shows several options with less than 3% APR fixed for 5 years. 2.6% is best.

There was talk of banning this cash-back stuff because it makes it difficult to compare the actual cost of borrowing. Why can't they just factor it into the APR?

what LTV do those rates relate to?

voluntary · 14-08-2019 04:33PM

Don't lock yourself at 3% for 5 years. The ECB rates are negative, irish mortgage rates will be going down. Banks give you fat cash back to lock you in because you're basically a cash cow to them.

ELM327 · 14-08-2019 04:39PM

Can't see them going much lower than ~2.5%
If you can use this to your advantage and fix for 10 years at or below 3% I think that would be a good move.

voluntary · 14-08-2019 04:42PM

ELM327 wrote: »

Can't see them going much lower than ~2.5%

If I'd be to speculate I'd say we'll see some banks offering 1.5% mortgages in a year from now.

drunkmonkey · 14-08-2019 04:42PM

voluntary wrote: »

Don't lock yourself at 3% for 5 years. The ECB rates are negative, irish mortgage rates will be going down. Banks give you fat cash back to lock you in because you're basically a cash cow to them.

Why is AIB advertising a 10yr Fixed at 2.75% as if it's a good deal, if you look at fixed rates on BTL there all pointing upwards going fixed.

ELM327 · 14-08-2019 04:50PM

voluntary wrote: »

If I'd be to speculate I'd say we'll see some banks offering 1.5% mortgages in a year from now.

Quoted for posterity.

I can't see that happening. I'm a credit risk analyst by trade with a penchant for macro economics.

Will return here in 12 months and see what has transpired. I don't think there will be any mainstream Irish bank offering below 2.5% fixed

ELM327 · 14-08-2019 04:52PM

drunkmonkey wrote: »

Why is AIB advertising a 10yr Fixed at 2.75% as if it's a good deal, if you look at fixed rates on BTL there all pointing upwards going fixed.

10 year fixed at 2.75% is a great deal I would have expected. Certainly in the short and long term. Medium term you might find slightly lower rates available for variables but not too much lower.

In other news my application with PTSB is gone to the underwriters and we hope to have an answer tomorrow.

gibgodsman · 14-08-2019 04:57PM

It really is hard trying to save for a Wedding, knowing you will then begin saving for a mortgage, while both on fairly bad salary's....

We hope to have 20k by the end of next year to use for the wedding, don't really expect much left over, but honestly I have no idea how much a wedding costs

Sunrise_Sunset · 14-08-2019 05:00PM

gibgodsman wrote: »

It really is hard trying to save for a Wedding, knowing you will then begin saving for a mortgage, while both on fairly bad salary's....

We hope to have 20k by the end of next year to use for the wedding, don't really expect much left over, but honestly I have no idea how much a wedding costs

Depends on the type of wedding you want. We spent about 5k on ours. Some couples might spend 30k.
I'd say you'll be gifted in cash by most wedding guests, so can start saving that towards your deposit.

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

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