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

Naked Lepper · 05-03-2020 6:30pm

prob a stupid question but regarding mortgage, you can get 3.5 times your salary ok
so that means if you earn 100k you can get 350,000 and you need 35k deposit for ftb

does this mean the total value of the property you can buy is 350k + 35k so you can get a property for 385k (in theory)

or if you saved 50k and your salary is 100k that means you can buy a house for 400k if you get +3.5x your salary plus the 50k you saved?

thunderdog · 05-03-2020 6:34pm

Naked Lepper wrote: »

prob a stupid question but regarding mortgage, you can get 3.5 times your salary ok
so that means if you earn 100k you can get 350,000 and you need 35k deposit for ftb

does this mean the total value of the property you can buy is 350k + 35k so you can get a property for 385k (in theory)

or if you saved 50k and your salary is 100k that means you can buy a house for 400k if you get +3.5x your salary plus the 50k you saved?

Yes, that’s right

Naked Lepper · 05-03-2020 6:35pm

thanks for the confirmation

GingerLily · 05-03-2020 7:56pm

Naked Lepper wrote: »

prob a stupid question but regarding mortgage, you can get 3.5 times your salary ok
so that means if you earn 100k you can get 350,000 and you need 35k deposit for ftb

does this mean the total value of the property you can buy is 350k + 35k so you can get a property for 385k (in theory)

or if you saved 50k and your salary is 100k that means you can buy a house for 400k if you get +3.5x your salary plus the 50k you saved?

You still will need the 10% deposit if your a FTB, so10% of 385k is 38.5k, so you'd need a bigger deposit then 35k!

Uglysoik1 · 05-03-2020 9:23pm

GingerLily wrote: »

You still will need the 10% deposit if your a FTB, so10% of 385k is 38.5k, so you'd need a bigger deposit then 35k!

I'll add 5 - 7k for solicitors fee and stamp duty.

Summer2020 · 05-03-2020 10:52pm

Are people considering holding off to see what happens to the economy and property market due to the Coronavirus before buying?

Creamy Goodness · 05-03-2020 11:07pm

I wouldn’t. If you need a home, the time is right and you can afford the stress payments just go for it. If you put it off the next thing will be there to put you off.

Foot and mouth
Swine flu
Bird flu
Brexit
Corona virus
Etc. Etc.

Padre_Pio · 06-03-2020 12:47am

Creamy Goodness wrote: »

I wouldn’t. If you need a home, the time is right and you can afford the stress payments just go for it. If you put it off the next thing will be there to put you off.

Foot and mouth
Swine flu
Bird flu
Brexit
Corona virus
Etc. Etc.

Foot and mouth,
2012,
Y2K,
Boom and Bust etc.

There's no good or bad time really to buy a house (unless it was peak boom maybe)

Woshy · 09-03-2020 11:14am

Summer2020 wrote: »

Are people considering holding off to see what happens to the economy and property market due to the Coronavirus before buying?

We're sale agreed on somewhere and I do have the odd thought where I think will we regret it?

But we need somewhere to live, we have the 20% deposit and mortgage approval. We have a growing family and need a bigger house. We've purposely not gone as expensive/big as we could have and the mortgage repayments will be 18% of our monthly wages so can be paid if one of us loses our job (mine is pretty recession proof).

Flyonawall · 09-03-2020 8:21pm

I wonder what is the view on this. Will this effect house prices?
Thinking of buying here myself, mortgage approved and I am bidding and looking but this has the feel of 2008 alright. There is not the same issue with cheap credit and over supply though.

fifth · 09-03-2020 10:34pm

Have a booking deposit down on a property myself and mortgage approval but worried about how things are looking with the economy. Not signing anything just yet. Feel the house is overpriced but it's been that way for a long time with pretty much any property i've looked at, and so I just bit the bullet. But now certainly having second thoughts. Job security might be an issue as this drags on.

Padre_Pio · 09-03-2020 11:32pm

fifth wrote: »

Have a booking deposit down on a property myself and mortgage approval but worried about how things are looking with the economy. Not signing anything just yet. Feel the house is overpriced but it's been that way for a long time with pretty much any property i've looked at, and so I just bit the bullet. But now certainly having second thoughts. Job security might be an issue as this drags on.

It'll take 2 to 3 months to close the sale. You can pull out at any time. It's probably a bad tactic, but if you're really worried you could drag out the sale just to be sure.

ELM327 · 10-03-2020 11:11am

GingerLily wrote: »

You still will need the 10% deposit if your a FTB, so10% of 385k is 38.5k, so you'd need a bigger deposit then 35k!

It's 10% of the mortgaged amount, or it was when I was applying.
350k mortgage + 10% of 350k gives 385k.

un5byh7sqpd2x0 · 10-03-2020 11:13am

ELM327 wrote: »

It's 10% of the mortgaged amount, or it was when I was applying.
350k mortgage + 10% of 350k gives 385k.

You’re not correct.

90% of 385k is 346.5, the shortfall being the 10% deposit - 38.5k

ELM327 · 10-03-2020 11:23am

Remi Hundreds Salamander wrote: »

You’re not correct.

90% of 385k is 246.5, the shortfall being the 10% deposit - 38.5k

100% = 350k mortgage
10% = 350k * .1
110% = 350 + .1*350 = 385k
QED

Permanent TSB and BOI do it this way for sure.

Greyian · 10-03-2020 11:37am

ELM327 wrote: »

100% = 350k mortgage
10% = 350k * .1
110% = 350 + .1*350 = 385k
QED

Permanent TSB and BOI do it this way for sure.

Not according to the PTSB or BOI sites.

PTSB

BOI

In both cases, the deposit has to be at least 10% of the property value, not the mortgage. This is as per the Central Bank's rules.

un5byh7sqpd2x0 · 10-03-2020 11:40am

Greyian wrote: »

In both cases, the deposit has to be at least 10% of the property value, not the mortgage. This is as per the Central Bank's rules.

Exactly... And here's the exact numbers referenced in case he doesn't believe us...

BOI

PTSB

JohnnyChimpo · 10-03-2020 11:44am

ELM327 wrote: »

100% = 350k mortgage
10% = 350k * .1
110% = 350 + .1*350 = 385k
QED

Permanent TSB and BOI do it this way for sure.

No they definitely don't - you need 10% of the purchase price.

You’re not correct.

90% of 385k is 246.5, the shortfall being the 10% deposit - 38.5k

You probably meant 346.5 tho

sarahzxe · 10-03-2020 4:52pm

Hi guys anybody know how long to hear back after applying for mortgage with Bank of Ireland?
We applied over 3 weeks ago and have offer accepted on house we love. Our mortgage specialist has not been great keeping us updated doesn't respond to emails or calls. When we finally get through we are told they are short staffed. The application is with the underwriter as there has been a few queries but nothing at all since last thursday. I'm getting so impatient !!

lfen · 10-03-2020 4:53pm

sarahzxe wrote: »

Hi guys anybody know how long to hear back after applying for mortgage with Bank of Ireland?
We applied over 3 weeks ago and have offer accepted on house we love. Our mortgage specialist has not been great keeping us updated doesn't respond to emails or calls. When we finally get through we are told they are short staffed. The application is with the underwriter as there has been a few queries but nothing at all since last thursday. I'm getting so impatient !!

We are 6 weeks waiting....

sarahzxe · 10-03-2020 4:57pm

lfen wrote: »

We are 6 weeks waiting....

Are you with BOI aswel? 6 weeks is ridiculous?

fifth · 10-03-2020 5:11pm

sarahzxe wrote: »

Hi guys anybody know how long to hear back after applying for mortgage with Bank of Ireland?
We applied over 3 weeks ago and have offer accepted on house we love. Our mortgage specialist has not been great keeping us updated doesn't respond to emails or calls. When we finally get through we are told they are short staffed. The application is with the underwriter as there has been a few queries but nothing at all since last thursday. I'm getting so impatient !!

Applied and approved within a week with BOI. :eek:

(just in the last week!)

Woshy · 10-03-2020 5:14pm

Those are crazy waiting times. Our mortgage is with PTSB and we had an answer in less than 2 days

IvoryTower · 10-03-2020 5:19pm

can i ask, as someone whos applying now. Why would anyone go to BOI when other banks have better rates?

BOi is my bank it just seems expensive

Mickiemcfist · 10-03-2020 5:56pm

IvoryTower wrote: »

can i ask, as someone whos applying now. Why would anyone go to BOI when other banks have better rates?

BOi is my bank it just seems expensive

3% Cashback offer is fairly appealing when you're fitting out a house, I went with BOI until the fixed rate is over, taking the cashback & going to go with the best long term option at that point.

tomister · 10-03-2020 5:57pm

sarahzxe wrote: »

Hi guys anybody know how long to hear back after applying for mortgage with Bank of Ireland?
We applied over 3 weeks ago and have offer accepted on house we love. Our mortgage specialist has not been great keeping us updated doesn't respond to emails or calls. When we finally get through we are told they are short staffed. The application is with the underwriter as there has been a few queries but nothing at all since last thursday. I'm getting so impatient !!

Thats crazy! If you have your application number ring the mortgage helpline. My approval was 3 days from completing the application with the Mortgage specialist to getting the call with the full approval

lfen · 10-03-2020 8:23pm

No sorry, we are applying to Ulster Bank. They just keep coming back looking for more documents. Strange requests. About 8 additional requests in addition to the original checklist but one of us is self employed.
They also said that they are out the door at the moment given their rates.

Micko99 · 11-03-2020 10:58am

Mickiemcfist wrote: »

3% Cashback offer is fairly appealing when you're fitting out a house, I went with BOI until the fixed rate is over, taking the cashback & going to go with the best long term option at that point.

Be warned the BOI cashback offer ends on June 30th 2020. For this reason alone I am drawing down my mortgage with KBC.

Knex* · 11-03-2020 11:34am

We're currently approved for Ulster Bank 4 year fixed at 2.6%.

However, I do think there's a decent chance the interest rates will come down again within the next year. Even though I'm happy with the mortgage repayments, I'm half thinking of cutting that fixed rate down to 2 years at 2.3%, and seeing where the rates are at in 2022.

I don't see rates rising in a recession, but I just can't remotely predict when the downturn ends and rates might rise again. My fear is in 4 years time we're back up to current rates or beyond, and we've basically missed our opportunity for lower rates.

Anyone else have thoughts around this?

Black_Knight · 11-03-2020 11:36am

Micko99 wrote: »

Be warned the BOI cashback offer ends on June 30th 2020. For this reason alone I am drawing down my mortgage with KBC.

I've heard that before. Think it was either EBS or BOI that spun that at me. And that was at least a year ago. It'll end eventually, but you can't believe them.

Why not drawdown with BOI, get the cashback and then move to KBC? It's what I did (though I went UB no KBC).

Black_Knight · 11-03-2020 11:39am

Knex. wrote: »

We're currently approved for Ulster Bank 4 year fixed at 2.6%.

However, I do think there's a decent chance the interest rates will come down again within the next year. Even though I'm happy with the mortgage repayments, I'm half thinking of cutting that fixed rate down to 2 years at 2.3%, and seeing where the rates are at in 2022.

I don't see rates rising in a recession, but I just can't remotely predict when the downturn ends and rates might rise again. My fear is in 4 years time we're back up to current rates or beyond, and we've basically missed our opportunity for lower rates.

Anyone else have thoughts around this?

What do you save in the 2 years of a difference? How much will switching cost you in fees?

UB also have a 5 year 2.6% rate. Saves you having to switch for an extra year (defers switching costs another year).

Black_Knight · 11-03-2020 11:45am

Mickiemcfist wrote: »

3% Cashback offer is fairly appealing when you're fitting out a house, I went with BOI until the fixed rate is over, taking the cashback & going to go with the best long term option at that point.

Check what it costs to break early. I went with a 1 year fixed with BOI. Got my ~5k cashback (2%) and set about switching. UB needed me to be with my current provider for 6 months, so around then I started the process. I switched with about 3 months left on my 1 year Fixed (I was a bit slow getting everything together). Cost about €250 to exit the term early. Between that and solicitors fees etc, UB covered everything with their €1500 payout for fees (no questions, they just lodged €1500 into my account).

The cashback was great and the rate was on par with what we were paying already, just get out and onto a better rate ASAP. Helped cover works we did to our driveway which we otherwise would had to have saved for the guts of a year for.

Knex* · 11-03-2020 11:49am

Black_Knight wrote: »

What do you save in the 2 years of a difference? How much will switching cost you in fees?

UB also have a 5 year 2.6% rate. Saves you having to switch for an extra year (defers switching costs another year).

Difference in the two years is about 1.5k. Not a massive amount, but its more the difference from year 2-4, if lower rates are indeed available, that has me thinking about this.

Will look into the switching costs and weigh up the trades offs though, thanks.

Woshy · 12-03-2020 10:55am

We're going in to sign contracts on Monday and will need to bring the deposit check made out to the vendors solicitor with us. I can't remember what we did last time we bought a house. Do you just pop into the bank and ask them to draw up a cheque? I can't get through on the phone.

Techn0 · 19-03-2020 1:05pm

Hi all,

With everything going on currently - any thoughts on how this may affect applying for a mortgage?

I'm applying for a mortgage in the next 8 weeks and going to be looking for a slight exemption (circa. 3.8x LTI). My concern is, given the push on the banks to help with providing working capital to businesses and relaxing payments on existing customers, they (banks) would be very unlikely to be taking on extra risk by way of mortgages and exemptions.

Anyone currently going through the process now and can share their thoughts?

tomister · 19-03-2020 1:24pm

Woshy wrote: »

We're going in to sign contracts on Monday and will need to bring the deposit check made out to the vendors solicitor with us. I can't remember what we did last time we bought a house. Do you just pop into the bank and ask them to draw up a cheque? I can't get through on the phone.

I'd check with your solicitor what the vendor's solicitor has requested. For mine it was bank transfer only so had to make sure I'd transferred it to my solicitor before I went in to sign the contracts and then he transferred it across to the vendor's solicitor on the day.

FutureGuy · 19-03-2020 6:30pm

Our solicitor has sent over our bill, and while it contains everything we expected, it contains one unusual amount...

“Balance Purchase Monies”
“Balance 90% due per contract less mortgage funds”
€1,800

I have no idea what this is. Now normally you would simply ask the solicitor. However, 10 days ago, our solicitor last contacted us and he did not return any call, e-mail or text since then until today, when we were told our behaviour to contract him was outrageous (he gave no notice he was out of office) and we answering nothing, even just a courtesy call to say what was going on). So he will won’t contact us until the bill is paid in full. So we are being asked to settle a bill that have no idea what it is.

randoplh134 · 19-03-2020 6:44pm

FutureGuy wrote: »

Our solicitor has sent over our bill, and while it contains everything we expected, it contains one unusual amount...

“Balance Purchase Monies”
“Balance 90% due per contract less mortgage funds”
€1,800

I have no idea what this is. Now normally you would simply ask the solicitor. However, 10 days ago, our solicitor last contacted us and he did not return any call, e-mail or text since then until today, when we were told our behaviour to contract him was outrageous (he gave no notice he was out of office) and we answering nothing, even just a courtesy call to say what was going on). So he will won’t contact us until the bill is paid in full. So we are being asked to settle a bill that have no idea what it is.

Honestly, if i were in your situation i would run for the hills.

FutureGuy · 19-03-2020 6:57pm

randoplh134 wrote: »

Honestly, if i were in your situation i would run for the hills.

We are sale agreed. Contract signed. He has contracts.

TheSheriff · 19-03-2020 7:59pm

FutureGuy wrote: »

Our solicitor has sent over our bill, and while it contains everything we expected, it contains one unusual amount...

“Balance Purchase Monies”
“Balance 90% due per contract less mortgage funds”
€1,800

I have no idea what this is. Now normally you would simply ask the solicitor. However, 10 days ago, our solicitor last contacted us and he did not return any call, e-mail or text since then until today, when we were told our behaviour to contract him was outrageous (he gave no notice he was out of office) and we answering nothing, even just a courtesy call to say what was going on). So he will won’t contact us until the bill is paid in full. So we are being asked to settle a bill that have no idea what it is.

I would equally refuse to pay this until you get confirmation of what it is, as a breakdown.

awec · 19-03-2020 8:21pm

FutureGuy wrote: »

We are sale agreed. Contract signed. He has contracts.

Get him to clarify that cost. I don’t know what that is.

Mitch Connor · 19-03-2020 8:50pm

FutureGuy wrote: »

Our solicitor has sent over our bill, and while it contains everything we expected, it contains one unusual amount...

“Balance Purchase Monies”
“Balance 90% due per contract less mortgage funds”
€1,800

I have no idea what this is. Now normally you would simply ask the solicitor. However, 10 days ago, our solicitor last contacted us and he did not return any call, e-mail or text since then until today, when we were told our behaviour to contract him was outrageous (he gave no notice he was out of office) and we answering nothing, even just a courtesy call to say what was going on). So he will won’t contact us until the bill is paid in full. So we are being asked to settle a bill that have no idea what it is.

Is it a first time buyer purchase and is there a shortfall between the mortgage amount, the 10% deposit and the purchase price?

Its the only thing that makes sense, but i would think that would have been known.

We had a 2k difference between our 10%, mortgage and purchase price.

G_R · 19-03-2020 10:49pm

Have you paid a 10pc deposit and gotten a mortgage amount for 1800 less than 90%?

Is this the balance of funds required complete the purchase (assuming S/Duty and legal fees have been paid/have provision made for them)?

Padre_Pio · 20-03-2020 2:50am

TheSheriff wrote: »

I would equally refuse to pay this until you get confirmation of what it is, as a breakdown.

You're paying his wages and be works for you. You're perfectly entitled to call him up, or even drop into his offices.

JohnnyChimpo · 20-03-2020 11:39am

Padre_Pio wrote: »

You're paying his wages and be works for you. You're perfectly entitled to call him up, or even drop into his offices.

Dropping into his office is probably a more debatable proposition atm

sarahzxe · 20-03-2020 9:01pm

Hi all we got our mortgage approval yesterday after a month waiting to hear back. We have the house picked out and price agreed.
However with the uncertainty of economy we are wondering if we should hold off? It's the dream house but looks like we might be heading into another recession?

fifth · 20-03-2020 9:05pm

sarahzxe wrote: »

Hi all we got our mortgage approval yesterday after a month waiting to hear back. We have the house picked out and price agreed.
However with the uncertainty of economy we are wondering if we should hold off? It's the dream house but looks like we might be heading into another recession?

In the same boat here but as a single applicant. Mortgage approved, but the house was priced quite high. Thinking I'm gonna pull back my booking deposit from the process now and see how the rest of the year goes.

Other people I know in the same boat. Could be a major crash on the cards. (Just my speculative opinion)

lir6777 · 21-03-2020 1:08am

fifth wrote: »

In the same boat here but as a single applicant. Mortgage approved, but the house was priced quite high. Thinking I'm gonna pull back my booking deposit from the process now and see how the rest of the year goes.

Other people I know in the same boat. Could be a major crash on the cards. (Just my speculative opinion)

I'm in a similar position, can I ask what you're specifically concerned about? I don't mean that sarcastically in case it sounds it! I know prices could drop etc but are you thinking of holding off for fear of rates increasing or ending up in negative equity or that? Just wondering what I should be considering! Thanks!

fifth · 21-03-2020 1:11am

lir6777 wrote: »

I'm in a similar position, can I ask what you're specifically concerned about? I don't mean that sarcastically in case it sounds it! I know prices could drop etc but are you thinking of holding off for fear of rates increasing or ending up in negative equity or that? Just wondering what I should be considering! Thanks!

Don't mind you asking. I suppose I remember the 2008 crash and friends of mine snapped up houses for massive discounts. And I am kind of loathed to pay peak property prices right now when there is likely to be a bigger crash heading our way now.

Yes I'd be in negative equity if I bought at the price right now..and who knows if things will ever 'recover' after this or get to these kinds of prices again.

If anyone has any ideas to the contrary let me know. I'm just reading the situation as I see it..

lir6777 · 21-03-2020 1:13am

fifth wrote: »

Don't mind you asking. I suppose I remember the 2008 crash and friends of mine snapped up houses for massive discounts. And I am kind of loathed to pay peak property prices right now when there is likely to be a bigger crash heading our way now.

Yes I'd be in negative equity if I bought at the price right now..and who knows if things will ever 'recover' after this or get to these kinds of prices again.

If anyone has any ideas to the contrary let me know. I'm just reading the situation as I see it..

Thanks, yeah that makes sense. I'm half afraid if the crash comes (as seems likely) I will struggle even more to get a mortgage as a single applicant. It's a really tough call!

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

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