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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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ladystardust

Tilikum17 wrote: »

We have no choice but to. Our last day to drawn down is next Friday.

My mate in the bank thinks it shouldn’t affect us at all?? I don’t understand.

Because the covid19 pay subsidy will not be on your pay slip by then.

Markitron

Duke of Url wrote: »

I think an overdraft is more of a risk then a gap in savings.

I closed my overdraft on my main account. but I havent need it for years.

OK thanks, again the overdraft will be gone the month after I have the deposit, that is what is confusing me.

Duke of Url

Markitron wrote: »

OK thanks, again the overdraft will be gone the month after I have the deposit, that is what is confusing me.

Which bank are you with?

Markitron

Duke of Url wrote: »

Which bank are you with?

AIB

Duke of Url

Markitron wrote: »

AIB

Would you be paying fees monthly being overdrawn?

Markitron

Duke of Url wrote: »

Would you be paying fees monthly being overdrawn?

Not that I have noticed. The overdraft is cleared every month when I am paid if if that makes a difference.

wally79

Markitron wrote: »

Not that I have noticed. The overdraft is cleared every month when I am paid if if that makes a difference.

Clear the overdraft now and don’t use again. Then by the time you get deposit together your records will show you haven’t been overdrawn for 10 months

Markitron

wally79 wrote: »

Clear the overdraft now and don’t use again. Then by the time you get deposit together your records will show you haven’t been overdrawn for 10 months

OK so having had an overdraft will 100% affect my mortgage application? I wasn't sure if they just treated it as a loan that I repaid every month

Tilikum17

ladystardust wrote: »

Because the covid19 pay subsidy will not be on your pay slip by then.

It’s already on it. I spoke to my solicitor this morning. He says we have nothing to worry about. We have been offered a mortgage by the bank which we’ve accepted. A signed contract.

Duke of Url

Markitron wrote: »

OK so having had an overdraft will 100% affect my mortgage application? I wasn't sure if they just treated it as a loan that I repaid every month

It will be taken into consideration that you are overdrawn on a monthly basis.

Markitron

Duke of Url wrote: »

It will be taken into consideration that you are overdrawn on a monthly basis.

Ah right, I will get rid of it. I applied for the overdraft too if that makes any difference?

Duke of Url

Tilikum17 wrote: »

It’s already on it. I spoke to my solicitor this morning. He says we have nothing to worry about. We have been offered a mortgage by the bank which we’ve accepted. A signed contract.

I dont think its going to matter currently. But if you go sale agreed on a house, the bank could ask for payslips before releasing funds.

Hopefully by that time Covid subsidies are no longer the case.

Duke of Url

Markitron wrote: »

Ah right, I will get rid of it. I applied for the overdraft too if that makes any difference?

I dont believe so.

I had one for 15 years and cancelled it when starting my Mortgage application. I didnt want an overdraft as a discussion topic.

We have a Joint Account where all our wages go. We have a mortgage savers account that our deposit saving go which now only excepts direct debit monthly as we maxed what we could add in lump sums.

We each have a current account that we add 50 euros each too so we keep them alive.

Sparky85

Markitron wrote: »

Quick question for you guys, if you don't mind. I am at the start of the saving process, I have put 2 months of savings away and am about 7-10 months away from having a deposit. My problem is that I have an overdraft on my account, I could clear it if I didn't save for a month.

My question is it worse to have this overdraft on my account or to have a gap in my savings record? The plan was to clear it as soon as I had the deposit, so it wouldn't be there when I actually go to apply for a mortgage.

Any advice would be much appreciated!

An overdraft is seen by banks as living beyond your financial means. Clear it ASAP and do not use it again until you have the house keys in your hand.

Markitron

Thanks for the advice guys, I'll prioritise getting rid of it so.

Tilikum17

Duke of Url wrote: »

I dont think its going to matter currently. But if you go sale agreed on a house, the bank could ask for payslips before releasing funds.

Hopefully by that time Covid subsidies are no longer the case.

They got payslips already. Suppose they could ask again.

What really sickens me is that we’re all working away full time & it’s only some people they’re claiming for. Because I earn more than Dave beside me - they claim for me. If this costs us our deposit and subsequently the house we’re trying to buy, we’ll actually be made homeless. Because we’ve just sold our own.

I won’t be a happy chappie

lomb

Pivot Eoin wrote: »

You may be lucky then pal, and I hope so.

If you get to drawdown over the next 10 days or so, then your most recent payslip will still be the April Payslip, which presumably has no COVID-19 Wage Subsidy on it. So in that scenario I reckon you'll be golden. My advice would be to do everything in your power to get this all sewn up in the next 2 weeks. Hassle the **** out of solicitors and any other 3rd parties.

Hope it works out for you.

I would consider drawing the loan early. If the mortgage is with ptsb and there's covid on payslip they won't allow drawdown. With other banks it's all up in the air. Each bank is doing covid checks prior to releasing funds

[Deleted User]

What do people think are chances of exemptions being granted again this year? I was on to BOI today and they said no exemptions at the moment.

Also what lender is best for including all income from bonuses? I have some bonuses that my employer won't put down on a salary cert but I have received these bonuses the last three years. Do lost lenders want this stamped on the cert?

Pivot Eoin

tolow wrote: »

What do people think are chances of exemptions being granted again this year? I was on to BOI today and they said no exemptions at the moment.

Also what lender is best for including all income from bonuses? I have some bonuses that my employer won't put down on a salary cert but I have received these bonuses the last three years. Do lost lenders want this stamped on the cert?

Get them to put it down on a salary cert as Not Guaranteed. Then Show evidence of them being paid the last 3 years. In normal circumstances they would factor 50% of the average of that Bonus over last 3 years.

Captainsatnav

Got BoI approval in principle today, PTSB 2 weeks ago...no houses to look at though

Techn0

tolow wrote: »

What do people think are chances of exemptions being granted again this year? I was on to BOI today and they said no exemptions at the moment.

Also what lender is best for including all income from bonuses? I have some bonuses that my employer won't put down on a salary cert but I have received these bonuses the last three years. Do lost lenders want this stamped on the cert?

Had this exact conversion with my broker recently. He told me PTSB are best when considering variable pay. Apparently they'll take 100% of bonuses that can be supported by a payslip (probably averaged out if over a number of years).

Take that with a grain of salt as others may have evidence to say otherwise. My application went in yesterday so will let you know how it goes.

Best of luck.

Techn0

Captainsatnav wrote: »

Got BoI approval in principle today, PTSB 2 weeks ago...no houses to look at though

How long did PTSB take to respond? I have my application in since Wednesday. Was it relatively quick?

Captainsatnav

Techn0 wrote: »

How long did PTSB take to respond? I have my application in since Wednesday. Was it relatively quick?

We went through a broker but maybe 4 days after the last docs were submitted.

Prezatch

Does anyone know is it possible to get a mortgage at 3.5x salary to secure a house, and then re-mortgage later with exemptions in order to 'do up' the house?

[Deleted User]

Techn0 wrote: »

Had this exact conversion with my broker recently. He told me PTSB are best when considering variable pay. Apparently they'll take 100% of bonuses that can be supported by a payslip (probably averaged out if over a number of years).

Take that with a grain of salt as others may have evidence to say otherwise. My application went in yesterday so will let you know how it goes.

Best of luck.

Let me know how you get on would be interested to hear ðŸ‘

Pivot Eoin

Prezatch wrote: »

Does anyone know is it possible to get a mortgage at 3.5x salary to secure a house, and then re-mortgage later with exemptions in order to 'do up' the house?

There's always room to re-mortgage but it depends on the equity levels that already exist in your house.

For example, if you had a 40% Downpayment and we're borrowing the 60% for the Mortgage, it makes it a lot easier then to Re-Mortgage, vs. a scenario where you have only paid off 10% as a FTB deposit.

ECO_Mental

Approved for my mortgage in Feb and looking to draw down in the next few weeks (building a house). Anyway just emailed the bank to make sure everything was in order and I have everything in place and BOI emailed me back asking for more pay slips and a bank statement to make sure we havent been affected Financially by COVID-19...

This shocked me even though both of us have not been affected, but this could be a real sticky point for many people who are litterly about to drawn down...dreams crushed.

Creamy Goodness

ECO_Mental wrote: »

This shocked me even though both of us have not been affected, but this could be a real sticky point for many people who are litterly about to drawn down...dreams crushed.

Most banks will do a final due diligence check right before drawdown even in the before times, it's part of their standard process.

cailin.

tolow wrote: »

What do people think are chances of exemptions being granted again this year? I was on to BOI today and they said no exemptions at the moment.

From my very recent engagements with lenders it seems AIB are offering exemptions on a case by case basis, as are ICS if you are a public sector worker they will take your base salary two points up the scale.

ismisecraic

I have a mortgage at the moment, no arrears, flying along, 14 years into 25.

Steady employment the last 18 years. Have a side job that would be considered black-market labour get a couple hundred quid a week.
Pay my mortgage with LA by Direct Debit every month without fail. Am thinking of going into the offices to pay it with the cash i earn from secondary job and cancel direct debit.

My question.
If i go to sell and buy another property and go to a bank, how will they view the side earnings i have? Am i better off having a paper trail from my bank of mortgage payments by DD or will a mortgage statement from the LA lender suffice to say i have paid my mortgage and X is the balance on the account.