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

Lux23 · 26-09-2019 12:03PM

Paul_Mc1988 wrote: »

Well then your Ok. It's only the money that is currently vested in stocks that wont count. Selling the stocks and using them as savings is fine you will just need to show the bank where the money came from.

Ah ok! Panic over then.

KingCong · 26-09-2019 02:00PM

ChewBerecca wrote: »

This.

I work in funds, the price of your stock can be reduced to zero at the drop of a hat. Millions can be wiped out without warning. The banks wont care if it's been stable for x years, tomorrow it could be worthless.

The original question related to an ESPP, where people give X percent of their salary usually for 6 month periods then get a discount(usually 15%) on the stock price to buy at the end of the period. Most people do a quick sale which instantly sells the stock when you get it, locking in your gain, which is the same as the discount minus tax and trading fees. I've done this consistently for years and never had an issue with either BOI or PTSB who both counted it as savings. If you don't sell the stock when you get it though you're taking a gamble and they likely won't count it as savings, unless you sell and cash it in before applying for mortgage. Other people's mileage may vary though, sounds like other people have had different experiences.

awec · 26-09-2019 04:10PM

An ESPP is just a slightly different process for acquiring the stock.

But at the point the bank expect you to have the necessary savings, they will want to see it as cold, hard cash, because it's only at that point that it's actually guaranteed to be worth anything.

Padre_Pio · 26-09-2019 04:34PM

KingCong wrote: »

they likely won't count it as savings, unless you sell and cash it in before applying for mortgage. Other people's mileage may vary though, sounds like other people have had different experiences.

I have 20k but I can't touch it for 2 years.
Unless you can access your stock immediately UB doesn't count it.

ELM327 · 26-09-2019 04:42PM

KingCong wrote: »

The original question related to an ESPP, where people give X percent of their salary usually for 6 month periods then get a discount(usually 15%) on the stock price to buy at the end of the period. Most people do a quick sale which instantly sells the stock when you get it, locking in your gain, which is the same as the discount minus tax and trading fees. I've done this consistently for years and never had an issue with either BOI or PTSB who both counted it as savings. If you don't sell the stock when you get it though you're taking a gamble and they likely won't count it as savings, unless you sell and cash it in before applying for mortgage. Other people's mileage may vary though, sounds like other people have had different experiences.

They accepted the funds as part of the deposit but did not count the money deducted to the espp as savings. In my case anyway with both PTSB and BOI

ELM327 · 26-09-2019 04:42PM

Padre_Pio wrote: »

I have 20k but I can't touch it for 2 years.
Unless you can access your stock immediately UB doesn't count it.

That sounds more like PSU/RSU shares rather than ESPP where you contribute?

cefh17 · 26-09-2019 06:01PM

awec wrote: »

An ESPP is just a slightly different process for acquiring the stock.

But at the point the bank expect you to have the necessary savings, they will want to see it as cold, hard cash, because it's only at that point that it's actually guaranteed to be worth anything.

My question was more phrased as would it be considered part of the (rent you're paying)+(savings) equation when looking at ability to afford the mortgage. I appreciate your response and can understand why they can't take the trade account balance as part of your deposit savings

Padre_Pio · 26-09-2019 06:06PM

cefh17 wrote: »

My question was more phrased as would it be considered part of the (rent you're paying)+(savings) equation when looking at ability to afford the mortgage. I appreciate your response and can understand why they can't take the trade account balance as part of your deposit savings

I would say yes. My application looked at my pension AVCs as ability to save.

awec · 26-09-2019 06:09PM

Yes, so long as you cash out the stock when it's needed then it'll be counted as savings. Since ESPP is an entirely voluntary deduction from your salary, they'd also count the amount you're paying each month as income.

ESPP is a completely legitimate and reasonable way to save. It's riskier than just saving in a bank account, but also has the potential for much greater rewards.

Paul_Mc1988 · 26-09-2019 10:10PM

ELM327 wrote: »

That sounds more like PSU/RSU shares rather than ESPP where you contribute?

No RSUs mature yearly. Sounds more like APSS. You put away your quarterly and yearly bonus and avoid paying the PAYE. Catch is you have to wait 3 years. If the share price drops 40 % in the three years you break even. If it stays the same your up 40% and if it rises its party time

Stark · 26-09-2019 10:17PM

Is that scheme still going? I remember availing of it back in 2005/2006 but then hearing they got rid of it during the recession budgets.

Padre_Pio · 26-09-2019 10:26PM

Paul_Mc1988 wrote: »

No RSUs mature yearly. Sounds more like APSS. You put away your quarterly and yearly bonus and avoid paying the PAYE. Catch is you have to wait 3 years. If the share price drops 40 % in the three years you break even. If it stays the same your up 40% and if it rises its party time

That's the one.
I bought 2 years ago, putting in about 10k a year I can sell the first tranche next year, but the bank won't could any of it unless I can sell now.

Padre_Pio · 26-09-2019 10:30PM

Paul_Mc1988 wrote: »

No RSUs mature yearly. Sounds more like APSS. You put away your quarterly and yearly bonus and avoid paying the PAYE. Catch is you have to wait 3 years. If the share price drops 40 % in the three years you break even. If it stays the same your up 40% and if it rises its party time

That's the one.
I bought 2 years ago, putting in about 10k a year. I can sell the first tranche next year, but the bank won't count any of it unless I can sell now.

ChewBerecca · 27-09-2019 09:26AM

Just as a heads up for anyone submitting a drawdown with AIB in the coming days, we are now onto the 5th business day and the application was still stuck in a back log yesterday evening even with our mortgage advisor chasing and escalating.

The 2-3 days we originally expected has doubled.

Everything is in order, they are just overrun and understaffed apparently.

what_traffic · 27-09-2019 10:50AM

ChewBerecca wrote: »

Just as a heads up for anyone submitting a drawdown with AIB in the coming days, we are now onto the 5th business day and the application was still stuck in a back log yesterday evening even with our mortgage advisor chasing and escalating.

The 2-3 days we originally expected has doubled.

Everything is in order, they are just overrun and understaffed apparently.

Thats odd considering drawdowns are falling but approvals are up. Staffing been re-allocated from one to the other I wonder?
https://www.bpfi.ie/news/mortgage-approvals-august-showed-continued-year-year-growth/

ChewBerecca · 27-09-2019 03:46PM

what_traffic wrote: »

Thats odd considering drawdowns are falling but approvals are up. Staffing been re-allocated from one to the other I wonder?
https://www.bpfi.ie/news/mortgage-approvals-august-showed-continued-year-year-growth/

Could also be because of the holiday period, maybe a bunch of solicitors are submitting drawdowns now after being off for the last few months. We also had an exception so it might have needed more senior approval or something.

We got confirmation it hit their payments team this morning but still waiting for our solicitor to receive the funds.

colly10 · 27-09-2019 10:36PM

Hey, just wondering if it usually takes long from the time you put a booking deposit down to receive contracts?
I put down a deposit 3 weeks ago, would it be the norm to be waiting a while

tomister · 27-09-2019 11:44PM

cefh17 wrote: »

Would they take into account the likes of ESPS into it? My savings rate is quite low but I've been doing 10% gross (taken from net) since January

Was just in doing my mortgage application with BOI today. While I’m not using my ESPP as my deposit they do take it into consideration as regular savings and include the amount into the ability to repay calculation as you opted into it.
If you cash it out then they would take it as deposit once you have the statement from the broker.
I highlighted it on my payslips and included the ESPP info in the pack as it’s still available funds

tomister · 27-09-2019 11:46PM

colly10 wrote: »

Hey, just wondering if it usually takes long from the time you put a booking deposit down to receive contracts?
I put down a deposit 3 weeks ago, would it be the norm to be waiting a while

In the same boat here. Put down the booking deposit last week and was expecting them to appear next week. From reading here it’s 6-8 weeks on average so you’ve a few weeks yet I’m afraid

Corruptedmorals · 28-09-2019 12:04AM

I would say 6-8 weeks is the longest side of normal. It's out of solicitor annual leave season now which helps but getting deeds and some documents in order can delay it.

guppy · 28-09-2019 12:35AM

colly10 wrote: »

Hey, just wondering if it usually takes long from the time you put a booking deposit down to receive contracts?
I put down a deposit 3 weeks ago, would it be the norm to be waiting a while

I bought a house in probate, but the probate process was well advanced by the time we went sale agreed. Our solicitor had contracts within 2 weeks.

Blanco100 · 30-09-2019 01:25PM

Finally getting to sign our contracts and letter of offer with our solicitor this coming Friday. Its been a long wait.

Any idea of a timeline until we get our keys? no chain either side

ChewBerecca · 30-09-2019 02:02PM

Blanco100 wrote: »

Finally getting to sign our contracts and letter of offer with our solicitor this coming Friday. Its been a long wait.

Any idea of a timeline until we get our keys? no chain either side

Ours was two weeks post vendor signing. Today is meant to be the day (drawdown went in a week ago and got stuck in a queue). Still waiting for the call, our solicitor confirmed receipt of the mortgage funds but no news yet.

colly10 · 30-09-2019 08:54PM

Hey, just wondering if you have to have received your letter of offer pack before you sign your contracts?

I’ve just heard (very late) that contracts were sent out. I have approval from 2 banks but still haven’t got the letter of offer from either and am worried about timing

ChewBerecca · 30-09-2019 09:03PM

colly10 wrote: »

Hey, just wondering if you have to have received your letter of offer pack before you sign your contracts?

I’ve just heard (very late) that contracts were sent out. I have approval from 2 banks but still haven’t got the letter of offer from either and am worried about timing

Solicitor wont call you to sign until you have your full loan pack

It's a waste of your time, theirs and the vendor to sign now as nothing can proceed until you have some promise from the bank of funding.

tomister · 30-09-2019 09:39PM

colly10 wrote: »

Hey, just wondering if you have to have received your letter of offer pack before you sign your contracts?

I’ve just heard (very late) that contracts were sent out. I have approval from 2 banks but still haven’t got the letter of offer from either and am worried about timing

You’ll have a few weeks when the contracts arrive at the solicitors before you need to send them back and if needed your solicitor can delay it getting them back.

Have you decided on which bank you’re going with and submitted your application? You’ll need the full loan pack so before you get there you’ll need the letter of offer, valuation and life assurance in place.

colly10 · 30-09-2019 09:48PM

tomister wrote: »

You’ll have a few weeks when the contracts arrive at the solicitors before you need to send them back and if needed your solicitor can delay it getting them back.

Have you decided on which bank you’re going with and submitted your application? You’ll need the full loan pack so before you get there you’ll need the letter of offer, valuation and life assurance in place.

The contracts were sent 2 weeks ago and I just heard that today from the agent. They’re expecting it back early next week at the latest. I heard nothing from the solicitor about them receiving the contracts and now i’m at risk.
I was told the solicitor was away for a week, getting very worried at this stage

tomister · 30-09-2019 10:00PM

colly10 wrote: »

The contracts were sent 2 weeks ago and I just heard that today from the agent. They’re expecting it back early next week at the latest. I heard nothing from the solicitor about them receiving the contracts and now i’m at risk.
I was told the solicitor was away for a week, getting very worried at this stage

Well the solicitor away for the week can be used there to claw a week back. Have you any sign of the letter of offer? Are your approvals underwritten as that should speed it up. I know BOI have a bit of a backlog at the moment

colly10 · 30-09-2019 10:08PM

tomister wrote: »

Well the solicitor away for the week can be used there to claw a week back. Have you any sign of the letter of offer? Are your approvals underwritten as that should speed it up. I know BOI have a bit of a backlog at the moment

We got approval in principle from both BOI and AIB about a month ago.
I stopped the process with AIB cause BOI we’re giving a better offer but I found BOI are taking an age to get anything done.
I submitted the final docs in BOI a week and a half ago and heard nothing. Chased them on Friday and today cause I got no acknowledgement of receipt to find they need one more thing, wouldn’t have heard only I called them.

I finalised the last of what I need with AIB after that

tomister · 30-09-2019 10:45PM

colly10 wrote: »

We got approval in principle from both BOI and AIB about a month ago.
I stopped the process with AIB cause BOI we’re giving a better offer but I found BOI are taking an age to get anything done.
I submitted the final docs in BOI a week and a half ago and heard nothing. Chased them on Friday and today cause I got no acknowledgement of receipt to find they need one more thing, wouldn’t have heard only I called them.

I finalised the last of what I need with AIB after that

I’ve heard similar stories with BOI and hoping I don’t have the same problem. I had my mortgage specialist in the branch mark it that I was signing this week to try get it through quickly.
With AIB at least you can track it via the app and see if anything is delaying it.

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

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