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Saving/Applying for a mortgage 2020-22 Edition

Graham

Continued from here: https://www.boards.ie/vbulletin/showthread.php?t=2057501206

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Maz2016

Thanks guys. I think I’ll go through a broker as well just to make things that bit easier

random_banter

We were due to apply in June after saving and getting our ducks in a row the last number of years, and had hoped to secure our first home by the end of the year. There's a possibility my company will introduce temporary wage cuts - the situation isn't as bad for my company as in other industries but they will need to do that while things are quiet. And when this is over, I see the company getting back up to speed over the next 6 months. But even then, I'm guessing it's very wishful thinking that the banks will show some lenience if theres a 3 month wage reduction? The loan amount would probably be calculated off the newer, lower wage, right?

I know it's a first world problem but guess I'm trying to maintain some hope that we may still get to purchase our first home before the year is out after such a long wait/prep period.

IvoryTower

I'd say just wait until you have another 6 months of normal wages. They wont go on your word that it's only temporary imo

I'd wait until house prices drop as well...

sarahzxe

Hey could anyone give me an idea of how much are the extra costs when buying a house for 300k? Legal fees, stamp duty, valuation, structural survey's etc. Based outside of dublin. Thanks ðŸ‘

Starlord_01

IvoryTower wrote: »

I'd say just wait until you have another 6 months of normal wages. They wont go on your word that it's only temporary imo

I'd wait until house prices drop as well...

Any idea on when the prices will begin to fall?

IvoryTower

Starlord_01 wrote: »

Any idea on when the prices will begin to fall?

If you look at the property 2020 thread you will see they're arguing about this constantly. Nobody knows really. I'd say they've already dropped a bit but how far will they go, how long will it take to get there, anyone's guess from what I can see.

accensi0n

sarahzxe wrote: »

Hey could anyone give me an idea of how much are the extra costs when buying a house for 300k? Legal fees, stamp duty, valuation, structural survey's etc. Based outside of dublin. Thanks ðŸ‘

Here's a start:
https://www.ccpc.ie/consumers/housing/buying-home-step-by-step-guide/#link2

Starlord_01

IvoryTower wrote: »

If you look at the property 2020 thread you will see they're arguing about this constantly. Nobody knows really. I'd say they've already dropped a bit but how far will they go, how long will it take to get there, anyone's guess from what I can see.

There will also probably be a drop in the amount available on the market also. Had planned to buy early 2021, but will just wait it out.

antimatterx

Work aren't doing appraisals for the next year, which ****s me in terms of buying a apartment.

I need to look for a new job once the economy bounces back!

fifth

Got a pay increase. Broker is asking the bank for an increase in my mortgage approved amount (as am already approved and ready to move to loan offer.. looking at a slightly nicer property now) let's see how that goes. Anyone had any luck with that? With BOI.

guyfawkes5

sarahzxe wrote: »

Hey could anyone give me an idea of how much are the extra costs when buying a house for 300k? Legal fees, stamp duty, valuation, structural survey's etc. Based outside of dublin. Thanks ðŸ‘

Legal fees will be €1,500 - €2,500 depending on the solicitor. Be aware cheaper fees may mean they are treating your case as part of a backlog and that may entail delays, but this is not always the case.

Stamp duty is simply 1% of the purchase price, so €3,000 in this case.

Valuation I've heard of being around €100, and there's not much wiggle room here as you will have to pick a valuer from the list the bank gives you.

Structural surveys are around €100-400 and there is a degree of you get what you pay for here in terms of detail. There is also probably a price variation in terms of what kind of property you want surveyed.

Don't forget land registry fees, I haven't paid this myself yet but believe it's in the range of €500. Someone can correct here if needed.

guyfawkes5

fifth wrote: »

Got a pay increase. Broker is asking the bank for an increase in my mortgage approved amount (as am already approved and ready to move to loan offer.. looking at a slightly nicer property now) let's see how that goes. Anyone had any luck with that? With BOI.

I'm with the exact same bank and have done the same thing. They said a new salary cert filled out by your employer and at least one payslip showing your new salary in effect is all it took.

Dolbhad

guyfawkes5 wrote: »

Legal fees will be €1,500 - €2,500 depending on the solicitor. Be aware cheaper fees may mean they are treating your case as part of a backlog and that may entail delays, but this is not always the case.

Stamp duty is simply 1% of the purchase price, so €3,000 in this case.

Valuation I've heard of being around €100, and there's not much wiggle room here as you will have to pick a valuer from the list the bank gives you.

Structural surveys are around €100-400 and there is a degree of you get what you pay for here in terms of detail. There is also probably a price variation in terms of what kind of property you want surveyed.

Don't forget land registry fees, I haven't paid this myself yet but believe it's in the range of €500. Someone can correct here if needed.

The above is spot on with the legal fees I found.

PRA charge €700 to register a house with a value of €200-400k. Register mortgage is €175. Will also have outlay like searches, commissioner for oaths. I’d add another €200 for that then.

CIP4

When applying for a mortgage would it be normal for the bank to look for your employment contract. I have a permanent job and get paid a certain amount overtime which is mentioned in my contract but now the bank want to see my contract as proof. I wouldn't of thought this is something they typically look for.

TheSheriff

CIP4 wrote: »

When applying for a mortgage would it be normal for the bank to look for your employment contract. I have a permanent job and get paid a certain amount overtime which is mentioned in my contract but now the bank want to see my contract as proof. I wouldn't of thought this is something they typically look for.

Yes, I had to provide my employment contract.

I changed jobs within the company during the approval and they wanted my new contract also.

Would have thought this was fairly standard being honest.....

houghton88

Hi everyone, I went through the mortgage application on my own during the crash. It was a nightmare. Incredibly time consuming and stressful. In the end, we pulled out of the purchase late on due to the volatility of the market at the time.

We went on to buy our first house 3 years ago. I used a broker. I CANNOT stress strongly enough how much easier life was going through a broker. I know how difficult the process is and I went through it alone during the last crash. Don't make the same mistake I did. <SNIP A BROKER>. I highly recommend.

Best of luck to you all going forward. I wish you well.

lomb

Heres hsbc approach in UK. Seems reasonable https://www.mortgagestrategy.co.uk/news/hsbc-makes-changes-to-income-assessment/

fifth

houghton88 wrote: »

Hi everyone, I went through the mortgage application on my own during the crash. It was a nightmare. Incredibly time consuming and stressful. In the end, we pulled out of the purchase late on due to the volatility of the market at the time.

We went on to buy our first house 3 years ago. I used a broker. I CANNOT stress strongly enough how much easier life was going through a broker. I know how difficult the process is and I went through it alone during the last crash. Don't make the same mistake I did. <SNIP A BROKER>. I highly recommend.

Best of luck to you all going forward. I wish you well.

+1 on using a broker. The broker I am using came highly recommended and has been amazing through all of this. Super quick to get responses from the bank and very patient with me as I changed my mind on houses, changed jobs etc etc.

iQuestion

Are banks such as BOI, PTSB accepting mortgages applications at this time or they have stopped doing so because of covid?

Is it legal to take mortgage at this time since we are in a lock down?

Creamy Goodness

iQuestion wrote: »

Is it legal to take mortgage at this time since we are in a lock down?

Banks are deemed an essential service. As long as they’re happy to give you the money and you’re happy with the loan terms then I don’t see anything illegal.

The only real snag will be signing contracts but we’ll hopefully be out of lockdown by the time it comes to that.

Pivot Eoin

Wonder if somebody could give some tips as to Applying for a Mortgage without knowing the exact house you want yet?

- We know roughly what area we want.
- We know we're generally open to anything from 380k-500k depending on the house/area (predominately looking in South Dublin)
- Looking for a relatively turn key 3Bed with a Big Attic or a 4bed (our budget prob wont get us turnkey)
- We'll have 100k saved up by time we're buying (Potentially going to hang onto 20-30k of this incase of loss of earnings)

zuhuraswa

Pivot Eoin wrote:

Wonder if somebody could give some tips as to Applying for a Mortgage without knowing the exact house you want yet?

Just apply for the maximum amount you can get. You don't have to drawdown that amount in the end.
That's what I did and know my maximum limit based on the amount I was approved by a couple of banks.
Also if you can get a broker, the better. They'll apply to different banks, all which usually have different approval criteria e.g. some add bonuses to salary, some don't etc

IanVW

Can anyone give me some advice on the following. Me and my partner applied for a mortage in january and got approval and paid a deposit on a house in a new development. The house was due to be ready in May so that would have been within bank of Irelands 6 month from the approval date of Januaey this year. Now with construction sites closed its unlikely to be finnished before the June cut off so we wont get the valuation done in time as its not finnished. Is this something they would extend for another 6 months?

lomb

IanVW wrote: »

Can anyone give me some advice on the following. Me and my partner applied for a mortage in january and got approval and paid a deposit on a house in a new development. The house was due to be ready in May so that would have been within bank of Irelands 6 month from the approval date of Januaey this year. Now with construction sites closed its unlikely to be finnished before the June cut off so we wont get the valuation done in time as its not finnished. Is this something they would extend for another 6 months?

Likely but they will probablyask for proof of current earnings.

guyfawkes5

IanVW wrote: »

Can anyone give me some advice on the following. Me and my partner applied for a mortage in january and got approval and paid a deposit on a house in a new development. The house was due to be ready in May so that would have been within bank of Irelands 6 month from the approval date of Januaey this year. Now with construction sites closed its unlikely to be finnished before the June cut off so we wont get the valuation done in time as its not finnished. Is this something they would extend for another 6 months?

I'm going through something similar at the moment. You will have to resubmit some fresh account statements and documentation, but it's not a problem to do this.

IanVW

guyfawkes5 wrote: »

I'm going through something similar at the moment. You will have to resubmit some fresh account statements and documentation, but it's not a problem to do this.

Ok thanks ill get onto them next week and resubmit them

The Phantom Jipper

This query has probably been done to death, but I was curious if anyone has any insights into what a bank's tolerance is of applicants having betting accounts?

I have years of evidence of regular, decent savings, but my bank statements would have a lot of online bookie transactions going through them. The bets are profitable, and in a niche area of interest. Does any of that matter or is the existence of betting accounts an automatic red flag?

PCeeeee

The Phantom Jipper wrote: »

This query has probably been done to death, but I was curious if anyone has any insights into what a bank's tolerance is of applicants having betting accounts?

I have years of evidence of regular, decent savings, but my bank statements would have a lot of online bookie transactions going through them. The bets are profitable, and in a niche area of interest. Does any of that matter or is the existence of betting accounts an automatic red flag?

Im not sure how I would quantify their tolerance. 'A lot' of transactions is going to be an issue. Also anecdotally, whether you're in profit or not is immaterial.

iQuestion

I am slightly confused, I am a first time buyer - do I need 20% deposit for 2 bed apartment or 10% or what is the story with this.

lir6777

iQuestion wrote: »

I am slightly confused, I am a first time buyer - do I need 20% deposit for 2 bed apartment or 10% or what is the story with this.

10% for first time buyer