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

Rx713B · 10-12-2019 03:42PM

Hi All,

Myself and the girlfriend started saving for a mortgage 1 year ago - currently sitting at 16k its a 3 year plan. We have this money sitting in a joint savings account with AIB. Is this the right place for it ? or should we have it elsewhere is it right to have it all in 1 account

mycro2013 · 10-12-2019 03:45PM

Rx713B wrote: »

Hi All,

Myself and the girlfriend started saving for a mortgage 1 year ago - currently sitting at 16k its a 3 year plan. We have this money sitting in a joint savings account with AIB. Is this the right place for it ? or should we have it elsewhere is it right to have it all in 1 account

Bank of Ireland have a mortgage saver account and a bonus payment at draw down.

whatever76 · 10-12-2019 03:51PM

mycro2013 wrote: »

Bank of Ireland have a mortgage saver account and a bonus payment at draw down.

this * 2 !! Got advised this earlier in year and at draw down recently got a nice little 1300 k back ( its 2k but they take DIRT tax) . you are not tied in to taking mortgage with BOI either - just a criteria of having to save X amount for at least 6 months consecutively and have X amount of money saved at drawdown ( cant remember the figures but ur well on the way by sounds of it ) - its just a savings incentive worth thinking about for that return and proof of savings etc.

Dolbhad · 10-12-2019 05:01PM

whatever76 wrote: »

this * 2 !! Got advised this earlier in year and at draw down recently got a nice little 1300 k back ( its 2k but they take DIRT tax) . you are not tied in to taking mortgage with BOI either - just a criteria of having to save X amount for at least 6 months consecutively and have X amount of money saved at drawdown ( cant remember the figures but ur well on the way by sounds of it ) - its just a savings incentive worth thinking about for that return and proof of savings etc.

Did you take a mortgage with BOI? I always thought you had to take a mortgage with BOI to avail of this

whatever76 · 10-12-2019 05:48PM

Dolbhad wrote: »

Did you take a mortgage with BOI? I always thought you had to take a mortgage with BOI to avail of this

Crap you are correct - for some reason I thought you were not tied in to BOI mortgage ; could have sworn I was told that as I asked same question but reading the terms online now and its states bonus is received when you draw down you BOI mortgage - sorry for the mix up ( I did go with BOI) .

Dolbhad · 10-12-2019 06:45PM

whatever76 wrote: »

Crap you are correct - for some reason I thought you were not tied in to BOI mortgage ; could have sworn I was told that as I asked same question but reading the terms online now and its states bonus is received when you draw down you BOI mortgage - sorry for the mix up ( I did go with BOI) .

Wishful thinking on my part! ðŸ˜‚ We had looked for approval with BOI and they told us about it but getting more money elsewhere so not going with BOI - would have otherwise. But don’t see that offer advised much and it’s a really good offer

whatever76 · 10-12-2019 07:18PM

Dolbhad wrote: »

Wishful thinking on my part! &#55357;&#56834; We had looked for approval with BOI and they told us about it but getting more money elsewhere so not going with BOI - would have otherwise. But don’t see that offer advised much and it’s a really good offer

Yea I would not have heard about it only for an advisor saying it to me so I hopped on it and just got to 6 months and hit the criteria for my draw down - I know long term cost of mortgage is what is important and interest rate to go for but I just fixed at 2.9 for 2 years so will see then. I got that bonus along with the 2% cash back on draw down so was a nice short term fix considering I just put myself into a 20 year debt :eek:

Dolbhad · 10-12-2019 08:57PM

whatever76 wrote: »

Yea I would not have heard about it only for an advisor saying it to me so I hopped on it and just got to 6 months and hit the criteria for my draw down - I know long term cost of mortgage is what is important and interest rate to go for but I just fixed at 2.9 for 2 years so will see then. I got that bonus along with the 2% cash back on draw down so was a nice short term fix considering I just put myself into a 20 year debt :eek:

That’s a very good deal to get the €1300 and cashback with a interest rate less that 3%. I would could with BOI only to for the fact in getting a bigger exemption elsewhere. I was going through a broker but at the time BOI aren’t available through mortgage brokers (think their slowly re-entering market though). So would suggest to people have a look

Naos · 10-12-2019 09:09PM

EireinOZ wrote: »

I would worried I would lose cash but I recently got a revoult card to help me save! I have it 3 weeks and so far I find it so handy to keep control of ur spending! I top it with 25 Euro a week. The first week I literally used 25 Euro on coffee&#55356;&#56355; , let's just say the coffee spending has now be cut in more than half . And by the end of the second week I have money left on it! I would recommend the card for day to day spending!

If you're spending less than 25e a week, you should be the one giving tips!

Paul_Mc1988 · 11-12-2019 10:04PM

Rx713B wrote: »

Hi All,

Myself and the girlfriend started saving for a mortgage 1 year ago - currently sitting at 16k its a 3 year plan. We have this money sitting in a joint savings account with AIB. Is this the right place for it ? or should we have it elsewhere is it right to have it all in 1 account

Yes that is fine. What they will want to see is regular savings to the amount your monthly mortgage payment will be or preferably a bit over. 3 years of that and you should have no issues.

pmfcnl · 12-12-2019 10:45AM

Prospector1989 wrote: »

Think ours was about 2 weeks but as you can see from other posts, that can vary.

Thanks a million for the reply. Did it automatically get transferred into your account or did you request this?

Natashaw88x · 14-12-2019 11:00AM

Finally collected my keys to my new build Thursday. Joined this thread nearly 3 years ago. Been a long journey! From getting declined due to my ICB (lesson learned there), or losing a house we thought was our dream home. To now 2.5 years after starting to save we have a beautiful new build. Can’t believe it. Best feeling ever. For anyone still on the journey or struggling, just
know it will happen. All the hard work makes you appreciate it so much more

paul-2008 · 14-12-2019 02:03PM

After a long process with AIB we finally got our approval in principle on the 8th November. We have found a house we wish to buy and have gone sale agreed - 20k under the approved mortgage value. I notified AIB of the property etc and the last message from them was

"I have reviewed this and have progressed your application to the next stage where we will complete a final check to ensure you are ready for Letter of Offer."

Anyone know what this final check is? It has me worried that they will change their mind as it took us about 6 weeks to get approval in principle. I would have assumed that since only about a month has passed that they would not have had to check anything else? Should I expect them to start requesting more documents etc from us?

wirelessdude01 · 14-12-2019 02:05PM

paul-2008 wrote: »

After a long process with AIB we finally got our approval in principle on the 8th November. We have found a house we wish to buy and have gone sale agreed - 20k under the approved mortgage value. I notified AIB of the property etc and the last message from them was

"I have reviewed this and have progressed your application to the next stage where we will complete a final check to ensure you are ready for Letter of Offer."

Anyone know what this final check is? It has me worried that they will change their mind as it took us about 6 weeks to get approval in principle. I would have assumed that since only about a month has passed that they would not have had to check anything else? Should I expect them to start requesting more documents etc from us?

AIP isn't worth anything at all. They will have to go through the formal process now.

auris00 · 14-12-2019 02:53PM

We have been trying to buy for a while now, but no luck yet. We had to renew our AIP, got it both times underwritten from KBC with no problem. Both have good salaries and we have more than 20% saved with something still being saved every month.
But we would like to go on a trip next year that will probably cost us around 5k euro. We heard banks don't like that, but I’m wondering if its only one of those things that everyone keeps saying? Anyone have an idea if we might have a problem getting the AIP again (or the mortgage if we find a house in the mean time) because of it?
Thanks!

EireinOZ · 14-12-2019 04:14PM

Hi guys . Does any bank give more than 3.5 times your annual salary?

Paul_Mc1988 · 14-12-2019 04:39PM

EireinOZ wrote: »

Hi guys . Does any bank give more than 3.5 times your annual salary?

Yeah they give exemptions up to 4.5 times. Most people that get them are highish earners I have heard, but there are exceptions to the rule. If you go through the last few pages there was a bit of talk about it. They have a limited amount of these exemptions and the apparently tend to use these at the start of the year.

Paul_Mc1988 · 14-12-2019 04:43PM

auris00 wrote: »

We have been trying to buy for a while now, but no luck yet. We had to renew our AIP, got it both times underwritten from KBC with no problem. Both have good salaries and we have more than 20% saved with something still being saved every month.
But we would like to go on a trip next year that will probably cost us around 5k euro. We heard banks don't like that, but I’m wondering if its only one of those things that everyone keeps saying? Anyone have an idea if we might have a problem getting the AIP again (or the mortgage if we find a house in the mean time) because of it?
Thanks!

We put down 110k on a 440k property so 25% down. Combined income of 117k so 2.9 times our salary. I had a dividend payment of 300 euro from an american stock account and they wouldn't issue full approval until I could get a statement. My advise is if you can simplify the process and have them ask less questions then take that option. Putting of a holiday for a few months wont kill you.

paul-2008 · 16-12-2019 12:18PM

wirelessdude01 wrote: »

AIP isn't worth anything at all. They will have to go through the formal process now.

Loan offer came in this morning - no extra checks needed.

auris00 · 16-12-2019 08:35PM

Paul_Mc1988 wrote: »

We put down 110k on a 440k property so 25% down. Combined income of 117k so 2.9 times our salary. I had a dividend payment of 300 euro from an american stock account and they wouldn't issue full approval until I could get a statement. My advise is if you can simplify the process and have them ask less questions then take that option. Putting of a holiday for a few months wont kill you.

Of course a few months wouldn’t kill us, but we have been actually putting it off for a while now, not wanting to spend on something big before the first AIP, then hoping we would find a house, then the AIP extension. Its just soul crushing, you keep putting your life on hold together with the state of the market and the prices and everything ...

Paul_Mc1988 · 16-12-2019 10:13PM

auris00 wrote: »

Of course a few months wouldn’t kill us, but we have been actually putting it off for a while now, not wanting to spend on something big before the first AIP, then hoping we would find a house, then the AIP extension. Its just soul crushing, you keep putting your life on hold together with the state of the market and the prices and everything ...

I know just how you feel. Have not had a holiday since November last year and wont be going on one until September next year. Was bidding from March till september until we finally won a bidding war. Collect the keys on Wednesday/Thursday this week. It was one of the most stressful things I've ever done. Keep plugging away and you'll get there

.

17-12-2019 06:21PM

auris00 wrote: »

Of course a few months wouldn’t kill us, but we have been actually putting it off for a while now, not wanting to spend on something big before the first AIP, then hoping we would find a house, then the AIP extension. Its just soul crushing, you keep putting your life on hold together with the state of the market and the prices and everything ...

Could an argument be made that the bank don't want someone who is scrimping and saving and putting their life on hold to get a mortgage, but more someone who can save the required amount and still has a life. That way if theres a downturn, or interest rates go up or one partner gets sick/loses job, there is still comfortable wiggle room for the (presumably) couple to repay the mortgage.

Padre_Pio · 17-12-2019 09:05PM

[Deleted User] wrote: »

Could an argument be made that the bank don't want someone who is scrimping and saving and putting their life on hold to get a mortgage, but more someone who can save the required amount and still has a life. That way if theres a downturn, or interest rates go up or one partner gets sick/loses job, there is still comfortable wiggle room for the (presumably) couple to repay the mortgage.

No.

The bank will stress test your mortgage. If you pass that you should be fine.

scheister · 18-12-2019 09:57AM

Long time lurker rare poster. I am currently savings for my first house I have about 13k put away so far with a 1,200pm being saved. I was looking at buying in Autumn 2020 but due to a swap in jobs it will be now be 2021 before i can draw down due to 1yr probation. As interest rates are crap at the moment i was thinking of putting my savings to date into prize bonds for the year. My main question is if i transfer all the money from savings to prize bonds will the bank/ Rebuilding Ireland see that as my money being touched and the savings clock going back to zero. Savings not touched since August so 5 months.

what_traffic · 18-12-2019 10:11AM

scheister wrote: »

My main question is if i transfer all the money from savings to prize bonds will the bank/ Rebuilding Ireland see that as my money being touched and the savings clock going back to zero. Savings not touched since August so 5 months.

Would be treated the same as the lump sum of savings. Prize bonds are liquid, can convert back into Cash quickly. As long as you are not rolling back on the amount you are saving weekly/monthly then Bank would not care.

Tipsy McSwagger · 18-12-2019 06:18PM

Got the keys today to my new build. Been a long process but well worth it. The Help to Buy scheme is a massive help. Never thought I would be able to buy a house but here we are, Happy Christmas everyone!!!

lir6777 · 19-12-2019 03:09PM

Hi all, I'm interested to read this thread and am very curious to know what people's experiences have been with getting mortgage exceptions? I'm going through a broker in January but just keen for a sense of others experiences.
I'm a single first time buyer, earning just over 60,000, with a deposit of 5% and planning to use HTB for the other 5%. I'm in permanent public service employment, no dependents. I have only 1 year left on my car loan, under €200 per month, no other debts ever. I've seen a new build I'm very interested in but buying new is not cheap right now so it would require a 4.5 mortgage exception. I'm told this is unlikely to get but not impossible. Have any other single buyers without massive deposits managed to succeed in this?? Would love to know

thanks!

Glenbhoy · 20-12-2019 02:42AM

lir6777 wrote: »

Hi all, I'm interested to read this thread and am very curious to know what people's experiences have been with getting mortgage exceptions? I'm going through a broker in January but just keen for a sense of others experiences.
I'm a single first time buyer, earning just over 60,000, with a deposit of 5% and planning to use HTB for the other 5%. I'm in permanent public service employment, no dependents. I have only 1 year left on my car loan, under €200 per month, no other debts ever. I've seen a new build I'm very interested in but buying new is not cheap right now so it would require a 4.5 mortgage exception. I'm told this is unlikely to get but not impossible. Have any other single buyers without massive deposits managed to succeed in this?? Would love to know thanks!

I think it's very, very unlikely. The only thing in your favour could be where u currently are on your salary scale, if you're near the bottom and you've annual increments which will substantially increase your gross you might have a chance, otherwise, you can try, but I wouldn't be getting too attached to the house in question, sorry.

lir6777 · 20-12-2019 08:54AM

Glenbhoy wrote: »

I think it's very, very unlikely. The only thing in your favour could be where u currently are on your salary scale, if you're near the bottom and you've annual increments which will substantially increase your gross you might have a chance, otherwise, you can try, but I wouldn't be getting too attached to the house in question, sorry.

Thanks for your thoughts; can I ask are they based on your own experience or just a general sense of the market as it is?

Creamy Goodness · 20-12-2019 11:45AM

To get an exemption you have to have squeaky clean record, your current loan for your car will stand against you when they do their calculations. I got a 4.4x exemption on a similar salary but there were no outstanding loans and I got AIP in January. It's not impossible but you just got to play it right.

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

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