eagle eye wrote: » My intent is to buy a house for life, my wife loves it and wants to go ahead. The sellers are both in their 70's and it looks to me like they want to ride out the lockdown before they move which is understandable. Things is, we have to agree to wait 8 weeks before we purchase. Things are going to change a lot in eight weeks I think. I'm not sure we should remain sale agreed.
The_Conductor wrote: I don't know what I'd do in your situation- because I don't know your or the seller's motivations. Either way- its an unprecedented time to be buying or selling property. Anyone who offers you definite advice on this- is talking out of their hat. No-one knows what is going to happen.
Dylan94 wrote: » The BOI website is giving 3.5 no matter what figure I put in, if its 200,000, 90,000 or as low as 50,000 per couple. While the Ulsterbank website is giving x4.0 for a couple on just 50,000. I'm not saying that banks aren't offering less or cutting exemptions. Just wondering where the info is coming from. I wouldn't imagine those online calculators are accurate anyway? (Or would they be?)
Dwarf.Shortage wrote: » So in the absence of further funds being available to top up the deposit and bridge the shortfall to the sale price, it essentially sinks the entire transaction? I assume most people are borrowing 90% because they need to and don't have €20k handy to supplement their deposit so this could be a big deal.
stinger31 wrote: » Have a look at their websites and do the mortgage calculator
eagle eye wrote: » So the general consensus seems to be that if you are in a position like me where the mortgage is only 20% of the price if the house I should pull out? I'm in the position where I can pull out. I got a letter from my solicitor telling they want want to push back the sale for eight weeks due to covid-19.
tastyt wrote: » The bank would now only lend you 252k instead of 270k , provided your looking for 90 LTV
Dwarf.Shortage wrote: » What happens if the bank valuer does go under the sale price? What do they use to determine the 10%? If I'm lined up to buy a 300k house 90% LTV and the bank come back with a value of 280k are they going to say the LTV is now (27/28) ~ 96.4% and hence they can't lend the money?
dor843088 wrote: » Banks are certainly not going to indulge stubborn sellers and naive buyers. Their value is what the loan will be based on.
stinger31 wrote: » Sorry Dwarf, i totally agree with you. there will be great opportunities for a small group
rosmoke wrote: » That's your problem in a health crisis. Viewings are not happening so you can inquire later.
Dwarf.Shortage wrote: » I said it will suit buyers, if Mary loses her job she's no longer a buyer unfortunately. My point is that the loss of exemptions accompanied by a drop in prices will be to the advantage of a lot of people. Namely those with secure relatively Covid proof incomes. Of course there are others who will see cuts in their income and job loses I don't dispute that. But for those who don't there is a big opportunity to end up in the same house with a materially lower mortgage over their heads.
stinger31 wrote: » Yeah but what about the pay cuts to john and mary? or the fact Mary has lost her job? or the fact that some banks aren't even offering anywhere near 3.5 times anymore(look up BOI and UB offering a fraction of the 3.5)? and other banks are only looking at people with huge deposits?
Dylan94 wrote: » Where are you getting this information from? I was only talking to a broker two days ago who said he could either get me a 95% mortgage or 4.25+ exemption
td2008 wrote: » Surely a mistake :eek: even Dublin doesn't have anything as overpriced that I've seen
stinger31 wrote: » the fact that some banks aren't even offering anywhere near 3.5 times anymore(look up BOI and UB offering a fraction of the 3.5)? and other banks are only looking at people with huge deposits?
Dwarf.Shortage wrote: » I don't know that the loss of exemptions is the end of the world for buyers in the face of a drop. If we take a stock example of someone with a well paid job or even a couple earning €75,000 who've managed to squirrel away €50,000. Pre Covid, bank gives exemption and agrees to lend 4.5x, gives a budget of €387,500 Post Covid bank says no, belts are being tightened you can have 3.5x, budget now €312,500 If we see a 15% decline the €387,500 house will only be €330,000, if the decline hits 20% the above notional buyer will still be able to afford the same house even having lost their exemption.
Pivot Eoin wrote: » It really depends. Maturing Families (With kids entering their teens) could easily be looking to upsize from say 3 beds to a big 4 bed, and with a market drop of say 15%, the gap in prices also drops by 15% so it makes it an excellent time to buy and open up a 3 bed onto the market for a FTB and the seller doesn't care about the drop in valuation. So many variables.
stinger31 wrote: » hahaha even you would have to agree that a big drop looks ominous
Mic 1972 wrote: » Nonsense Estate Agencies haven't shut down. You may have inquiries about a property before you decide to veiw it
Hubertj wrote: Devil will be in the detail to ensure it works and is fair to all people. It can’t just be done to pander to the lefty losers. Also how many people will vote for this in a referendum if it permanently impacts the value of their own house?
rosmoke wrote: » And how do you expect salaries to be paid if sales are not happening?
Mic 1972 wrote: » There are all kind of inquires about properties that need handling by the EA, not only viewings
