Saving/Applying for a mortgage 2020-22 Edition

Markitron · 28-05-2020 11:48am

Duke of Url wrote: »

No. Its about proof of saving . doesnt matter where your Savings are stored once you can provide Statements.

We have a Bank Of Ireland Mortgage Savers account as we will get cash back.

bulmersgal wrote: »

No I set mine up in BOI we they have a mortgage saver account and if I get my mortgage with them I get 2k back but after dirt it's 1,300 I think. I just picked them as I don't bank with them so I'm not tempted to access the funds

Ah grand, I went with the CU as it would make it much harder for me to access it.

Duke of Url · 28-05-2020 12:30pm

Markitron wrote: »

Ah grand, I went with the CU as it would make it much harder for me to access it.

What I like about the Mortgage Savers account with BOI is we have a direct Debit of 800 going into it each month which is proof of savings and also we will get cashback.

Maz2016 · 28-05-2020 2:25pm

Saving can be so disheartening. Saw a place I like (via virtual tour). The asking price is €185k. I rang the EA there to go see it. He said viewings are starting next week and someone has already put an offer in of 195k. So annoying!

Duke of Url · 28-05-2020 2:33pm

Maz2016 wrote: »

Saving can be so disheartening. Saw a place I like (via virtual tour). The asking price is €185k. I rang the EA there to go see it. He said viewings are starting next week and someone has already put an offer in of 195k. So annoying!

Dont believe everything you are told by EAs

View the house and if you like it then put in an offer below asking price.

EamoCork · 28-05-2020 9:47pm

Duke of Url wrote: »

Dont believe everything you are told by EAs

View the house and if you like it then put in an offer below asking price.

For those who have already experienced bidding on a house, would this be a very common scenario? Would Estate Agents usually try and hike up bids when first approached by a potential buyer?

I intend on bidding under the asking price if buying after the summer. But I'm not sure if estate agents would just plain ignore me if its a bid well below the price on the property.

Captainsatnav · 28-05-2020 9:50pm

EamoCork wrote: »

For those who have already experienced bidding on a house, would this be a very common scenario? Would Estate Agents usually try and hike up bids when first approached by a potential buyer?

I intend on bidding under the asking price if buying after the summer. But I'm not sure if estate agents would just plain ignore me if its a bid well below the price on the property.

They're trustworthy ppl. They don't lie.

EamoCork · 28-05-2020 9:54pm

Captainsatnav wrote: »

They're trustworthy ppl. They don't lie.

I'll get my haggling hat on in that case ðŸ˜…

guyfawkes5 · 28-05-2020 10:11pm

EamoCork wrote: »

For those who have already experienced bidding on a house, would this be a very common scenario? Would Estate Agents usually try and hike up bids when first approached by a potential buyer?

I intend on bidding under the asking price if buying after the summer. But I'm not sure if estate agents would just plain ignore me if its a bid well below the price on the property.

It will be very commonly said on here, but from experience and the fact estate agents are expected to keep records of bids for legal reasons (and could be audited at any time) I don't think this is common at all.

What I will say is that anything coming from an EA apart apart from verifiable facts (which bids ultimately are) should be taken with a grain of salt. By this, I don't mean that all EAs are liars - what I mean is that they have existed in a career where the past six or so years have rewarded volume of sales above else, and things like attention to detail or forthrightness are far less important in this kind of environment where honestly what makes the 'best' EA is probably the most amount of viewings you can show up to in an evening.

I've lost count of the amount of times where EAs said they'd get back on basic queries and didn't, basic details in ads like square footage being wrong (and always flatteringly wrong), or EAs being visibly confused or resentful at basic questions like requesting management company details. I don't think this is a symptom of them setting out to mislead people at the outset, I think it's that they've learned that when every house is under such demand, closing sales doesn't require following through on this non-legally binding stuff - so they don't.

In your case if you were concerned about being misled, I would just figure out the maximum of what you're willing to bid on the property and mention in front of the EA that it's a shame the bid was in as you're only willing to go to €x, and to maybe contact you if the bid falls through. If it really is a case of a phantom bid, he should attempt to bring you along. If he ignores your underbid, then it's either a case of being a real bid or the seller isn't willing to take any less, but in either case it's time to move on.

antimatterx · 28-05-2020 10:58pm

I recommend the podcast 'The Home Stretch' to people. It's a 6 part series on buying your first house in Ireland.

jenno86 · 28-05-2020 11:21pm

antimatterx wrote: »

I recommend the podcast 'The Home Stretch' to people. It's a 6 part series on buying your first house in Ireland.

+1!

Dylan94 · 29-05-2020 1:34am

I know that exceptions aren't readily avaliable at the moment, but does anyone know at what intrest rate they stress test you at?

Or does anyone know how much they want a couple to have left over after mortgage and loans each month?

Pivot Eoin · 29-05-2020 8:49am

Dylan94 wrote: »

I know that exceptions aren't readily avaliable at the moment, but does anyone know at what intrest rate they stress test you at?

Or does anyone know how much they want a couple to have left over after mortgage and loans each month?

I have seen it reported that stressed payments are tested at 6% higher, but I'm fairly sure AIB stress tested mine by 20% when I went to them a few years ago.

Maz2016 · 29-05-2020 9:22am

Dylan94 wrote: »

I know that exceptions aren't readily avaliable at the moment, but does anyone know at what intrest rate they stress test you at?

Or does anyone know how much they want a couple to have left over after mortgage and loans each month?

Don’t know if it’s any help but I went to PTSB. They wanted mortgage repayments to be under 35% of your salary

Creamy Goodness · 29-05-2020 9:59am

Dylan94 wrote: »

I know that exceptions aren't readily avaliable at the moment, but does anyone know at what intrest rate they stress test you at?

Or does anyone know how much they want a couple to have left over after mortgage and loans each month?

when I went for a mortgage with AIB in 2018 they stress tested the rate I was getting 2.95% and added 3% onto it so it was stressed tested at 5.95%.

Can't speak for the couple aspect - as I was a single applicant - but they wanted me to have €1700 left over after mortgage paid for and all loans (which I had none at the time).

lir6777 · 29-05-2020 10:13am

Dylan94 wrote: »

I know that exceptions aren't readily avaliable at the moment, but does anyone know at what intrest rate they stress test you at?

Or does anyone know how much they want a couple to have left over after mortgage and loans each month?

As I understand it banks will stress test you at their variable rate- which I never understood as most people opt for fixed but apparently this is their policy!

Amount left over varies for each bank I think, for a single person no dependents it's often around 1800 but I've heard as high as 2400 (AIB)

Markitron · 29-05-2020 10:33am

While we are talking about exemptions, as a single applicant I will probably need one. Lets say hypothetically they will be giving them out again next year, would I be better off clearing my car loan as soon as I have my deposit or should I keep saving? There will be about 7k left on it by then which I could probably get rid of in a few months.

Creamy Goodness · 29-05-2020 10:44am

Markitron wrote: »

While we are talking about exemptions, as a single applicant I will probably need one. Lets say hypothetically they will be giving them out again next year, would I be better off clearing my car loan as soon as I have my deposit or should I keep saving? There will be about 7k left on it by then which I could probably get rid of in a few months.

What's the repayment on the car loan? Generally the mortgage advisors will take the repayment off your discretionary income, so if it's quite low say under 200, it might not have a big affect on your ability to repay.

if it's slightly higher try to get rid of it and build 6months of (regular) savings after it's cleared then do this, even better if you can add the monthly repayment of the car loan into your savings further boosting your deposit.

TM2015 · 29-05-2020 10:47am

Dylan94 wrote: »

I know that exceptions aren't readily avaliable at the moment, but does anyone know at what intrest rate they stress test you at?

Or does anyone know how much they want a couple to have left over after mortgage and loans each month?

With KBC it's variable rate plus 2%.

Markitron · 29-05-2020 10:54am

Creamy Goodness wrote: »

What's the repayment on the car loan? Generally the mortgage advisors will take the repayment off your discretionary income, so if it's quite low say under 200, it might not have a big affect on your ability to repay.

if it's slightly higher try to get rid of it and build 6months of (regular) savings after it's cleared then do this, even better if you can add the monthly repayment of the car loan into your savings further boosting your deposit.

Its closer to 300 tbh. Although I have no dependents or other outgoings, after an average mortgage and the car loan I would still have well over 2000 a month leftover so I should be fine for any stress tests.

Pivot Eoin · 29-05-2020 11:07am

Very frustrating, Been denied/deferred by KBC for AIP this morning. EBS last week.

Saving 4.5k per month since October, 20% Deposit Saved, Combined Income of 115k.

My business is Travel, but is domestic Travel and we've actually seen business increase in last few weeks vs. Business last year. Employer is availing of Wage Subsidy but I am on full take home pay. Not even an option of AIP subject to returning to normal pay without Subsidy, which will be ending soon.

Markitron · 29-05-2020 11:48am

Pivot Eoin wrote: »

Very frustrating, Been denied/deferred by KBC for AIP this morning. EBS last week.

Saving 4.5k per month since October, 20% Deposit Saved, Combined Income of 115k.

My business is Travel, but is domestic Travel and we've actually seen business increase in last few weeks vs. Business last year. Employer is availing of Wage Subsidy but I am on full take home pay. Not even an option of AIP subject to returning to normal pay without Subsidy, which will be ending soon.

IF prices do go down this delay may end up doing you a huge favour. Well, those are the mental gymnastics I would be using if I were in your shoes.

Marius34 · 29-05-2020 12:05pm

Pivot Eoin wrote: »

Very frustrating, Been denied/deferred by KBC for AIP this morning. EBS last week.

Saving 4.5k per month since October, 20% Deposit Saved, Combined Income of 115k.

My business is Travel, but is domestic Travel and we've actually seen business increase in last few weeks vs. Business last year. Employer is availing of Wage Subsidy but I am on full take home pay. Not even an option of AIP subject to returning to normal pay without Subsidy, which will be ending soon.

Just for curiosity, I thought there is no subsidy for High Income? Are you saying someone on over 50K Annual is on Covid wage subsidy?

Pivot Eoin · 29-05-2020 12:24pm

Marius34 wrote: »

Just for curiosity, I thought there is no subsidy for High Income? Are you saying someone on over 50K Annual is on Covid wage subsidy?

The Wage Subsidy Scheme is different to the COVID-19 enhanced Social Welfare Payment.

The Subsidy scheme applies to any worker earning up to 75k per year. Neither of us earn over 75k Basic.

anplaya27 · 29-05-2020 12:58pm

We were about to complete buying of house. Solicitor etc involved. Surveyor paid. Waiting on house owner to sign contracts as we signed everything on our side. Was denied by bank today as partner was on wage subsidy even though now back in work since last week. We had continued with application at their say so even though the banks knew partner was out of work. Some joke.

Duke of Url · 29-05-2020 1:29pm

anplaya27 wrote: »

We were about to complete buying of house. Solicitor etc involved. Surveyor paid. Waiting on house owner to sign contracts as we signed everything on our side. Was denied by bank today as partner was on wage subsidy even though now back in work since last week. We had continued with application at their say so even though the banks knew partner was out of work. Some joke.

Were you Mortgage Approved or Mortgage Approved in Principal?

anplaya27 · 29-05-2020 1:44pm

Duke of Url wrote: »

Were you Mortgage Approved or Mortgage Approved in Principal?

Approved, hence us doing all those things. Solicitor was very very surprised at this development.

Techn0 · 29-05-2020 3:00pm

anplaya27 wrote: »

Approved, hence us doing all those things. Solicitor was very very surprised at this development.

Can you not delay for 3 weeks until next payslip to show no more reliance on covid payment?

Duke of Url · 29-05-2020 5:05pm

anplaya27 wrote: »

Approved, hence us doing all those things. Solicitor was very very surprised at this development.

So what happens now. Did they give you options or have they revoked approval?

wally79 · 29-05-2020 5:27pm

Is there anything to stop vendor signing contracts still?

If they are pricks then your deposit could be in jeopardy if you have to pull out after contract signed.

anplaya27 · 30-05-2020 11:35am

Duke of Url wrote: »

So what happens now. Did they give you options or have they revoked approval?

Its in solicitors hands. Wont know anymore until after the bank holiday.

Apparently banks are changing minds re approvals in the last few days. Even if people are back in work theres still a subsidised scheme in some places I think till august to help businesses until back to normal. So it will show on payslip. Even getting a letter to show you'll be on what you were on prior and after scheme is over is no good apparently.

It looks like I lost out on a few grand anyway what with fees paid and to be paid due to bank giving the go ahead originally.

Danger781 · 30-05-2020 8:53pm

Hey all,

I have sone questions that I haven't seen answers to in this thread:

1. I'm still in probation in my new job. Assuming that period is not extended I should be over the line in September. I assume we need to wait for my probation period to be over before we apply? With all that's going it will probably be necessary anyway with herself out of work and on the Covid payment..

2. I see a lot of people here recommending applying via a Broker. Is that not an expensive option? Can anyone offer some information on the costs of a broker?

3. We are currently saving separately. Separate bank accounts. Separate saving accounts. Should we be saving together?

4. Would it better to be engaged before we apply? Currently still technically single but we're living in her parents house to save.

Creamy Goodness · 30-05-2020 9:40pm

Danger781 wrote: »

Hey all,

I have sone questions that I haven't seen answers to in this thread:

1. I'm still in probation in my new job. Assuming that period is not extended I should be over the line in September. I assume we need to wait for my probation period to be over before we apply? With all that's going it will probably be necessary anyway with herself out of work and on the Covid payment..

You can apply to get the ball rolling but you’ll need to be out of probation and your partner off any COVID related payments before drawdown.

2. I see a lot of people here recommending applying via a Broker. Is that not an expensive option? Can anyone offer some information on the costs of a broker?

Brokers shouldn’t charge. They get commission from the banks.

3. We are currently saving separately. Separate bank accounts. Separate saving accounts. Should we be saving together?

Doesn’t matter they’ll assess both of your current accounts and savings accounts so it won’t matter. Just make sure savings are regular and for the same amounts.

4. Would it better to be engaged before we apply? Currently still technically single but we're living in her parents house to save.

Marital status doesn’t mean much in terms of getting a mortgage. You’ll both be named on it so you’ll both be responsible for it. That’s about it.

houghton88 · 30-05-2020 9:53pm

Creamy Goodness wrote: »

You can apply to get the ball rolling but you’ll need to be out of probation and your partner off any COVID related payments before drawdown.

Brokers shouldn’t charge. They get commission from the banks.

Doesn’t matter they’ll assess both of your current accounts and savings accounts so it won’t matter. Just make sure savings are regular and for the same amounts.

Marital status doesn’t mean much in terms of getting a mortgage. You’ll both be named on it so you’ll both be responsible for it. That’s about it.

Good advice here. Doesn't matter if the money in credit unions, post office, multiple banks etc...they just need statements to prove you have it. So essentially it may as well all be in the one. Regarding brokers, I think they generally don't charge. They are probably the best and most competent person you'll deal with in the whole process. They can save a lot of time, money and hassle. If interested, I can pm you the guy I use. Best of luck regardless.

Danger781 · 30-05-2020 11:20pm

Creamy Goodness wrote: »

Doesn’t matter they’ll assess both of your current accounts and savings accounts so it won’t matter. Just make sure savings are regular and for the same amounts.

I have regular savings of €250 per month and have had that going for a couple of years. I know it's very little but I used to thrown in lump sums when I'd get quarterly bonus or if the account just got passed a certain point over time. I'm earning a lot more now in the newer job so I should really get around to increasing the regular amount...

Does it matter that my regular amount is quite small even though savings are substantial?

lir6777 · 31-05-2020 12:18am

Danger781 wrote: »

I have regular savings of €250 per month and have had that going for a couple of years. I know it's very little but I used to thrown in lump sums when I'd get quarterly bonus or if the account just got passed a certain point over time. I'm earning a lot more now in the newer job so I should really get around to increasing the regular amount...

Does it matter that my regular amount is quite small even though savings are substantial?

Depends- they will want to see you are proving repayment capacity, so between rent and savings they will want to see you consistently paying more than the mortgage repayments will be. So 250 is not going to be enough but if you're paying sizeable rent like most of us you should be fine. A lot of the banks have repayment estimators that would help you get a sense of what repayments you might be looking at, then add on a few hundred as the bank will want to see a buffer! If your rent and savings currently match that, they should be satisfied you'll be able to pay each month

Duke of Url · 03-06-2020 10:19am

Just got Mortgage Approval in principle this morning

bulmersgal · 03-06-2020 10:28am

Duke of Url wrote: »

Just got Mortgage Approval in Principal this morning

That's great news. I've another week to wait I think. Broker said two weeks but will update as banks get back in touch with him

Duke of Url · 03-06-2020 10:41am

bulmersgal wrote: »

That's great news. I've another week to wait I think. Broker said two weeks but will update as banks get back in touch with him

Good Luck

We applied directly with our Bank (BOI) We submitted everything last week but i think it was fast as they already have access to all our current accounts and savings accounts for the past few years.

random_banter · 03-06-2020 2:23pm

Duke of Url wrote: »

Good Luck

We applied directly with our Bank (BOI) We submitted everything last week but i think it was fast as they already have access to all our current accounts and savings accounts for the past few years.

Congrats! Nice to hear that people are still getting approvals.

We were always planning to apply for approval this month, and have decided to keep going to try to get approval. We don't know if we will buy in the next 6 months as we want to know more about how COVID affects everything, but it's certainly much easier to look if you have approval.

I have a quick question actually, maybe somebody will know the answer - do they do the credit checks before issuing approval in principle?

(Tried to order my report from the ICB but their website errored out. I think i've likely got nothing to worry about but about a year ago I missed a credit card payment. Purely from being forgetful - I sorted it as soon as I got the letter. I did pay it within the bank's 30 day grace period, so they're not supposed to report it to the ICB, but I wouldn't have minded checking just in case. It's one of those niggly tiny things that's in the back of my head.)

Everything else is in order, good deposits built up, very good savings history and repayment capacity is far more than we need to borrow. So keeping the fingers crossed that we will be approved.

Duke of Url · 03-06-2020 2:50pm

random_banter wrote: »

I have a quick question actually, maybe somebody will know the answer - do they do the credit checks before issuing approval in principle?

With BOI I was informed Yes. During the Mortgage Application they asked for Statements, P60s, Salary Certs and pay slips.

They also told us they they would run a credit check from their side.

random_banter · 03-06-2020 3:44pm

Duke of Url wrote: »

With BOI I was informed Yes. During the Mortgage Application they asked for Statements, P60s, Salary Certs and pay slips.

They also told us they they would run a credit check from their side.

Thank you, that's great to know. Had my first proper call with a bank just now to get the process going. Hopefully we can get AIP to at least have the option of bidding on things once the market starts moving a bit more (whether that be up or down...)

Creamy Goodness · 03-06-2020 3:46pm

random_banter wrote: »

Thank you, that's great to know. Had my first proper call with a bank just now to get the process going. Hopefully we can get AIP to at least have the option of bidding on things once the market starts moving a bit more (whether that be up or down...)

I'm not a betting man but even I would call myself foolish if I didn't bet on a bank doing credit checks on a mortgage application, the sky is blue and the grass is green (technically yellow atm *shrug*).

random_banter · 03-06-2020 4:01pm

Creamy Goodness wrote: »

I'm not a betting man but even I would call myself foolish if I didn't bet on a bank doing credit checks on a mortgage application, the sky is blue and the grass is green (technically yellow atm *shrug*).

Of course, it's what i'd assumed too, I just didn't know how far along in the process that those checks occurred. There seems to be a lot of the "approval in principle" vs. "pre approval" terms thrown about in conversation (both online and in conversation with friends) and I often wondered at which point the banks actually did their background checks during each of those. And also wondered what the difference between "pre approval" vs. "approval in principle" was in terms of checks.

We've been working towards this for a few years and while there's lots I'm familiar with now, that was one of my few remaining questions. Thanks.

EvoEvo · 04-06-2020 12:59pm

Ehy Guys, I'm just wondering Will Lotto transactions affect mortgage application?
Personally I have only small amounts..like 20 E per month..

What do you think?

gmannix1000 · 04-06-2020 1:27pm

Anyone got a mortgage for 3.5 salary, and shortly afterwards applied for a top up to 4.0 times salary. Wondering if this is our only option at the moment to buy and do up a property given banks are not lending higher than 3.5 times salary at the moment with COVID and we need (and can afford) 4.0 times salary?

Creamy Goodness · 04-06-2020 1:29pm

gmannix1000 wrote: »

Anyone got a mortgage for 3.5 salary, and shortly afterwards applied for a top up to 4.0 times salary. Wondering if this is our only option at the moment to buy and do up a property given banks are not lending higher than 3.5 times salary at the moment with COVID and we need (and can afford) 4.0 times salary?

4 times salary is considered an exception. So they won’t entertain it.

Duke of Url · 04-06-2020 2:10pm

EvoEvo wrote: »

Ehy Guys, I'm just wondering Will Lotto transactions affect mortgage application?
Personally I have only small amounts..like 20 E per month..

What do you think?

I dont think so but im not 100% sure

Idjit · 04-06-2020 2:30pm

Does anyone know, does it matter to the bank if you have your savings in a joint account or can they be spread out over several accounts?

Myself and my partner have a credit union account each, and a bank savings account each. Our savings are split over these four accounts.

Do the banks have any preference over this, or does it matter as long as we can provide statements for them all?

ELM327 · 04-06-2020 2:40pm

Idjit wrote: »

Does anyone know, does it matter to the bank if you have your savings in a joint account or can they be spread out over several accounts?

Myself and my partner have a credit union account each, and a bank savings account each. Our savings are split over these four accounts.

Do the banks have any preference over this, or does it matter as long as we can provide statements for them all?

I know for us (2 accounts + 2 shares accounts) it wasnt an issue. PTSB. But this was before covid.

ELM327 · 04-06-2020 3:25pm

EvoEvo wrote: »

Ehy Guys, I'm just wondering Will Lotto transactions affect mortgage application?
Personally I have only small amounts..like 20 E per month..

What do you think?

probably wont look great but once it's 20 quid a month not a day you'd be grand I'd say.

Saving/Applying for a mortgage 2020-22 Edition

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