frw5 wrote: » Does anyone know what are the odds of applying for a mortgage 3 months after taking out a car loan? Car loan was 280 per month. 2 applicants, no other payment or expenses. Both full time workers >2 years same company and all the rest.
Duke of Url wrote: » Our Car is on PCP and we had to list it in our Application, The bank didnt seem to have a issue with it.
Kav_Piero wrote: » Would anyone be able to offer some advice please in relation to what is technically classed as "savings" by banks when applying for a mortgage?
Kalico92 wrote: » With regard to evidence of savings, does anyone know if Irish banks would take UK bank statements as evidence of continuous regular saving or would we need to build from ground up since moving back?
frw5 wrote: » How is rent calculated there, in what regards?
errlloyd wrote: » It's just the repayability test. Say you've gone for a 270k mortgage over 35 years. Repayments are gonna be 1,100 a month give or take. They want to know you can afford that. If you're saving 600pm and paying 700pm in rent then you've got 1,300pm so you can afford repayments.
errlloyd wrote: » According to my broker pretty much any month to month surplus across your accounts would be counted, plus rent. They like it to be regular, but effectively if your current account is going up, you're in business. The one exception is that banks don't count reduction in credit card debt as saving.
frw5 wrote: » Ah yeah makes sense. Considering the situation they should simply take that as a plus without even checking because there is no chance rent is going to be lower than mortgage payment, so basically if you have a pulse that should cover it
WeeCuppaCha wrote: » I’m hoping some of you would give me a ‘what would you do if you were me’ opinion. I’m really not sure how to proceed. Second time buyer, currently renting Age: 45 Single applicant, 1 dependant. Full time public servant Basic salary €32000 Guaranteed allowances €3300 Overtime/unsocial hours €8000 Savings €60000 Current rent €550 Monthly savings €1500 No loans/credit card I am awaiting an increase in basic salary, now due to me but the HSE is working at a snails pace so could be another 6 months before I see it. Basic salary would then be €36000, allowance the same but guaranteed overtime would increase accordingly. I am aware that some allowances/overtime will not be accepted in an application. I want to buy a house. The market in my area is pretty stagnant since Covid, but I would expect to see an increase in stock in coming weeks/months. Assuming the bank allow 3.5 of current salary and guaranteed allowances only, I would be eligible for a mortgage of €123,540. If I wait for my increase to kick in, I would be allowed €137,550. However, if I wait until this new base salary kicks in, I’m potentially decreasing the term of the mortgage, making it unaffordable in the banks’ eyes. So, what would you do? Continue saving for another year, increasing savings by €18,000 and reducing term by another year? Also running the risk of these savings being swallowed up by rising house prices... Or, just go ahead now on lesser salary and budget?
Creamy Goodness wrote: » I don't understand why credit card debt would be considered anything but debt? Certainly isn't any form of savings
Creamy Goodness wrote: » If you're paying €1000 rent right now and up until your going to drawdown, they will take that into account into your repayment capability i.e. that €1000 can go towards paying part of/all of the mortgage amount. For AIB, savings were classed as any payment I could show going into a savings account/credit union at regular intervals and for the same monetary amount for at least 6 months. I don't understand why credit card debt would be considered anything but debt? Certainly isn't any form of savings
Markitron wrote: » This might sound like a stupid question but when they say that they need to see six months of solid savings, does that have to be the 6 months before you apply or drawdown? I am not planning to apply for anything until January, but I will have 6 months of solid savings in October. Would they care if I only saved half of the normal amount at Christmas for example?
Jsmac67 wrote: » All, Does this application seem reasonable? Combined salary: 100k Occupation: Teacher and public servant Savings: 50k in credit union account. Saving roughly 3.5k per month combined Amount to borrow: 350kish Financial commitments: Nil, never had a loan or credit card either Does this bode well for getting approval in principle? Appreciate anyone's opinions or thoughts!
wally79 wrote: » I can’t back this up but I would say yes. They are looking to see if you can pay your mortgage each month. If it looks like you can’t afford Christmas without hitting your savings then I think it would be a flag. I think it would be better to save a little less each month for mortgage and have a separate Christmas saving account which you add to each month
awec wrote: » There is no hard and fast rule. Banks know that you are a person and not a robot, the thing they want to see is financial prudence. If you are saving a relatively low amount of your income each month then they'll be concerned if you have to dip into savings to fund purchases. However, if you're saving a lot, and you save a bit less to spend a bit extra at christmas they won't care. You could go out and spend 40 grand on a brand new car the day before you submit your mortgage application and they will not care once you can afford it.
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