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

I searched and couldn’t find an answer to my query.

Me and my partner can currently borrow €210,000 based on our income.

We currently have €15,000 saved towards a deposit.

My partner owns a house worth €150,000 that we currently live in that is mortgage free.

My partner would like to keep the house and rent it out.

Could we keep the house and use it to increase the amount we can borrow?

Graham wrote: »

House would generally need to be habitable. Working kitchen/bathrooms/electrics etc.

How does that work if you're building a house?

Is there a different type of mortgage?

EDIT: Of course 5 mins of Googling gave the answer of yes, there is a special mortgage. :rolleyes: LMFGTFY

Yet another solicitation for free advice

I am in the market for a mortgage this year to buy a home with my partner. Thankfully we are in a good financial place for this, with good salaries, savings and no dependents (yet). We are both in our early 30s

I had until recently been quite steadfast in the idea that I did not want to go for a very long term mortgage (30 years +) as I didn't want that on my plate in my 60s. But are we better off going for a long term mortgage like this, to allow for a lower initial repayment, and then after the initial fixed period accelerate payments to cut the life span?

If I pay off a 30 year mortgage in 15-20, do I only pay the interest I have accrued?

Many thanks

D

mutley18 wrote: »

I am new to this whole mortgage world. Quick question please, I have been approved in principle for a small mortgage from AIB, I am now thinking I would like to borrow an extra 10k on top of what i originally asked for so that I dont leave myself short. Will this have to be a whole new application or would it be simple enough?

they will only lend you 90/80% of the house price depending on if you're a first time buyer or not, to get this extra 10k buffer you'll need to decrease your deposit or get a gift from someone.

KilOit wrote: »

We bumped ours by 10k was simple phone call and a form or 2

as long as it falls in under the LTV and bank's stress tests then yes. it's not a clear cut for every scenario

Looking for advice. Met with broker today and he went through his online calculators for a number of banks to try to figure out what mortgage we could get. First meeting, he got straight into the nitty gritty and seems very enthusiastic and driven (young guy). I'm unsure about him and wanted to see am I being overly nervous

He never discussed his fee structure with us so I'm clueless as to how he gets paid (am assuming its kickback from the bank but dunno).

Is it normal to be getting straight into the stage of 'send me over your documents' without clarifying his payment?

Dolbhad wrote: »

They should clarify the fee but generally the bank pay 1% of mortgage value to broker. If you don’t draw down usually there is a fee due to the broker you pay for the work done. Some take this upfront and may refund in drawdown.

Usually there is a clause that says if you pay off mortgage within 3 years the broker can claw their fee back from you if the bank close their fee back from the broker.

Thank you Dolbhad. Yes I figured thats how brokers get paid but I do indeed need to check with him what happens if we don't drawdown with bank we organised mortgage for us with. Sometimes I wonder if going to the banks directly would be better. However its appealing to only submit paperwork once and have someone else shop around. Plus we are both self employed so in no way are we straightforward applicants. Thanks for your response

DianeMc2018 wrote: »

One more piece of advice needed:

Met with solicitor today and he quoted us 2600-2800 inclusive VAT for conveyance. This includes 'everything' except stamp duty of course. Everything being land registry etc.

It seems slightly pricey and he said if anything unexpected arises in the contracts/deeds it may incur extra costs.

I'm scared it'll spiral however we both really clicked well with him and he seems to really know his stuff; familiar with the area we're buying in etc

What do you think?Go with him? Or seek out a lower quote?

I got quoted 3200 all inclusive apart from stamp duty, and was told by a solicitor friend in another county this is about average. You could probably find cheaper but I decided to go with this solicitor who seems responsive and organised as that will be worth it to me- I couldn't hack one who dilly-dallies!!

Also re: the broker, I spoke to a few before settling on one I really like, but with all of them I had to ask about fees- I guess they might think you've already done your research and know what's what but they'll tell you if asked? Some do charge you rather than the banks though so I would definitely ask right at the start.

I think because of how they're paid they tend to get straight to work for you once you chat to them so I wouldn't be too concerned about that, it's how he will make his money to get you a mortgage so makes sense he get things moving. You can always buy some time and tell him you need to have a think and will come back to him. Good luck

DianeMc2018 wrote: »

Thats v reassuring to hear Lir677. My gut with this solicitor was good so if those fees seem average we'll most likely go with him. And interesting about the broker getting to work straight away for those reasons. I will definitely ask him about how he gets paid before we ask him to process our application. What do you know about Mortgage broker qualifications? This guy we met with today is (only) QFA. He does have some previous experience working in a bank, afaik that was in mortgages. But should we be looking for any particular qualifications when settling on a broker? I know its not exactly rocket science but I want to make sure I don't engage someone who is underqualified.

Hm I've no idea about their qualifications tbh! I think mine is similar, qfa with background in mortgages (could be the same guy!) I chose him based on my gut really..I had initially been with a financial advisor who worked with an underwriter in a reputable mortgage brokers office. I gave them all my documentation and they weren't the quickest coming back to me; when they did it was without having directly approached any banks, just using the calculators brokers have access to, and the max amount they said they could apply for for me was 3.8 times my current salary. I was gutted as that wouldn't buy anything around here at the moment. I took it on myself and rang all the banks and realised these guys hadn't done much at all for me as some banks were able to offer me a lot more money. So I stopped working with those guys (didn't take much as they had left it basically as-it's this amount or nothing). I was still having trouble getting quite what I needed though and felt that, while I'm able to ring all the banks etc myself, I needed someone to make a case for me to them, so started looking for another broker. Came across one who felt a bit like a second-hand-car salesman but then wouldn't call me back for weeks at a time. Then happened across the guy I'm with now, who seemed to be on the ball and seemed to have relationships with the banks and was able to discuss my case with them in terms of future salary progression etc, things that weren't getting captured in the basic application process directly with the banks. We aren't applying for another few weeks due to a very long build period on the development I want to buy in so I can't say for sure the outcome of course. He seems confident but I know things could still go wrong- I've just gone with my gut and the person who was responsive, seemed really clued-in to potential issues that might come up, and saw my application in a broader way. Beyond that, I'm not too pushed what his qualifications are- but that might not be the right attitude! Fingers crossed it's the right call, and hopefully you'll have luck too!!

Sorry Katie 1 14 I have no info that might help your situation. Hope someone on here does.

Dolbhad thats interesting about your experience with brokers. i met a second guy today who promised less than the first guy but was more thorough in his assessment.

Actually I'm hoping someone on boards might have some knowledge about this. I'm self-assessed and PAYE (my husband is same). Broker today said because of this set up, banks may not take all our income into account. As in they might disregard some of the PAYE income. Argh! He can argue the case if the PAYE income is in the same field as self-assessed which mine is. But husband's PAYE (2 separate contracts) is questionable: one PAYE contract for services is in same field, and one is not. Its a minefield! I would've thought ALL taxable income would count towards the X 3.5.

In other news, we're also trying to get an exemption which I'm losing faith in now reading these posts (about banks having already reached their max limit on exemptions...its February FFS??)

Anyway, anyone else a nice confusing mix of PAYE and self-assessed who can advise on how the banks viewed their situation?

Katie1_14 wrote: »

Hi, would anyone have experience of raising a mortgage for renovations? House was left to me, I own it outright. Worth €520k and I would like to raise €150k for an extension.

Yes! I’ve PMd you.

Abbey127 wrote: »

Hi has anyone in here built there own house, myself and my partner are hoping to build on land my parents own ,

Also do you just need to be in employment for 6 months with 6 months bank statements from your job . I have 10k saved up and my partner has 20k

Thanks in advance

In general yes, best thing to is sit down with your bank or mortgage adviser and they'll let you know what's required in your circumstances.

bulmersgal wrote: »

Hey

I'm just at the start of saving for a mortgage, I have one credit union loan for 9k that I need to reduce. I'm a single mother with one child and earn 55k from speaking to a mortgage broker he said that I could keep the loan and still get approved. I would like to try get an exemption to x4 so that I can buy something close to 250k, as I want to buy in north kildare. My thinking at the moment is to save as much as possible and have my deposit for the summer and then if bank request it clear the loan before I draw down. What is peoples experiences of doing this?

You'll find it very difficult to get an exemption when you have other outstanding loans. The banks are much stricter on their affordability checks for exemptions. You'll need to have at a guess 2.5k - 3k per month after the mortgage stress tested at 5-6% and all other commitments. A mortgage of 200k at that rate could be over 1k per month depending on term so you'd have to have net income of 3.5k - 4k per month. To be honest I think you'll struggle if you don't remove all borrowings and show good savings history. It's still worth talking to the brokers and see what they can get for you.

tobsey wrote: »

You'll find it very difficult to get an exemption when you have other outstanding loans. The banks are much stricter on their affordability checks for exemptions. You'll need to have at a guess 2.5k - 3k per month after the mortgage stress tested at 5-6% and all other commitments. A mortgage of 200k at that rate could be over 1k per month depending on term so you'd have to have net income of 3.5k - 4k per month. To be honest I think you'll struggle if you don't remove all borrowings and show good savings history. It's still worth talking to the brokers and see what they can get for you.

Woshy wrote: »

I was going to say the same thing. Having a loan reduces what the bank thinks you can comfortable afford monthly and will therefore reduce the amount they are willing to lend you. I think you will struggle getting an exemption with an outstanding loan.

Thank you both for the advice, I think I will just try clear it before I go for the mortgage. I'm able to save 2.1k at the moment, so it would just set me back a few months which isn't the worst thing in the world. My net income is 3.4k excluding children allowance, I don't have any childcare expenses. So I should just about pass the stress test.

Another question I've signed up for a work pension so it will be getting reduced should I postpone this pension till I get the mortgage or what way does it work.

bulmersgal wrote: »

Thank you both for the advice, I think I will just try clear it before I go for the mortgage. I'm able to save 2.1k at the moment, so it would just set me back a few months which isn't the worst thing in the world. My net income is 3.4k excluding children allowance, I don't have any childcare expenses. So I should just about pass the stress test.

Another question I've signed up for a work pension so it will be getting reduced should I postpone this pension till I get the mortgage or what way does it work.

Hi bulmersgal,

Just on the pension piece - I literally went through this myself very recently when speaking to a broker. Was looking for an exemption also and on my first round was denied. Broker said pension (was paying 7% of my gross) was going against my affordability. He recommended that I either:

1) Get a letter from my employer stating that the pension is voluntary (i.e. I'm paying at my discretion) and I can opt out at any time or;
2) Reduce my pension payments for the time being to help with affordability

I ended up going with 2) even though it is the more costly option. I think the banks prefer to just see the extra income on the payslip rather than back and forth with letters etc.

Hope this helps.