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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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errlloyd

Springy Turf wrote: »

It depends on the estate agent - some do require an AIP letter to allow bidding. To be honest, as a bidder its good to know that the people you are bidding against have at least some evidence that they can actually follow through with a deal.

This is mad to me. Most EAs around here won't even let me view a property without mortgage approval!

For what it is worth, it seems banks are becoming much more strict on any disqualifying criteria. I work in a start up that is less than a year old, but is a subsidiary of a larger company that is very well capitalized. I am a professional that hasn't been out of work since graduating 5+ years ago and I work in insurance. Broker called me yesterday to say he didn't think he'd be able to get it across the line right now because the banks kept asking about my job security.

klose

Quick one, for those who were having wages topped up by covid payments, (I believe my partners workplace were still paying 80% of her wages while they were forced close during the height of the pandemic), and has since returned to work, are we looking at being told to wait another while to re-apply?

Queenio

I'm not sure how accurate this is but multiple friends who have been through the process have said a viewing cycle is the normal time frame. So 4ish weeks. Anecdotally we have two bids from the same day. Heard back from both vendors within a week, both rejecting for being too low (4-5% under asking each). The cheaper of the two said we are highest bidders but vendors holding out for more and they would get back to us. Almost 2 weeks later we followed up by email.... No update to give. The other are rejecting outright and want another very close to asking which is too tight for us.

I would love to know eg if you pay another 10k we would go sale agreed but they just aren't giving anything away. I hoping to close a sale very very quickly. And rapidly losing hope in this whole process

Aurelian

klose wrote: »

Quick one, for those who were having wages topped up by covid payments, (I believe my partners workplace were still paying 80% of her wages while they were forced close during the height of the pandemic), and has since returned to work, are we looking at being told to wait another while to re-apply?

I think as long as the Covid payment is gone off the wage slip you are ok.

[Deleted User]

Hi,

I have seen the news about aib refusing applicants with covid payments but have they stopped exceptions also? I thought I saw a poster here saying they got an exception for LTI? I have AIP with PTSB and BOI but if AIB still are doing exceptions I might apply there also.

Thanks

LoonyLovegood

The bank says they'll have confirmed my mortgage by Friday, and I've just put a bid in for a house that I'd love. Crossing my fingers this goes smoothly, but we all know how likely that is!

lir6777

tolow wrote: »

Hi,

I have seen the news about aib refusing applicants with covid payments but have they stopped exceptions also? I thought I saw a poster here saying they got an exception for LTI? I have AIP with PTSB and BOI but if AIB still are doing exceptions I might apply there also.

Thanks

AIB are still doing LTI exemptions yeah

Dylan94

lir6777 wrote: »

AIB are still doing LTI exemptions yeah

EBS are also doing exceptions. Minimum income needed is €84,000 and are willing to give x4.5 income.

lir6777

Dylan94 wrote: »

EBS are also doing exceptions. Minimum income needed is €84,000 and are willing to give x4.5 income.

You may well be correct but just to note someone in EBS told me you need about 70k income to qualify- that seemed to be from playing around with the calculator though so your higher number might be what the underwriters actually look for

Astro127

Springy Turf wrote: »

Well that really depends on the house!

30k would be a 10% deposit on a 300k house, which is a 270k mortgage. The repayments on that are in excess of 1000 euro per month.

As most of the deposit is not your own savings, there would need to be other ways of showing a consistent ability to service this mortgage. They stress test it so you would need to show that between rent and monthly savings, you are able to afford well in excess of the mortgage repayment amount.

If you talk to a mortgage provider they will look at your financial situation and give you a better idea of where you need to be in terms of deposit, savings and demonstrating your ability to repay.

Also, you might know this already, but be careful with the tax implications of such a gift. You are allowed a maximum of 3k per parent per year tax free in gifts. Anything more will have tax implications.

Thanks for the help. We are also thinking of waiting a year or two as we are not in a rush so to speak .

I have been thinking of buying a house now for around 200k just to rent If out . I still live at home so I see it as a long term investment which i will be looking into .

The rent from the house will pay off the mortgage and still make profit each month which can be used for saving for the house we will live in which will most likely be built on family land in kildare .

I know you need a 20% deposit for a second property
Again I see it as a long term investment.
Is it a stupid idea or would it be actually possible?

Any advice is welcome.

cant26

lir6777 wrote: »

You may well be correct but just to note someone in EBS told me you need about 70k income to qualify- that seemed to be from playing around with the calculator though so your higher number might be what the underwriters actually look for

Do you know if that is single or joint income? Seems very low for joint.

ELM327

cant26 wrote: »

Do you know if that is single or joint income? Seems very low for joint.

70-80 for joint is the minimum you need for an exception.

Draco

Astro127 wrote: »

Thanks for the help. We are also thinking of waiting a year or two as we are not in a rush so to speak .

I have been thinking of buying a house now for around 200k just to rent If out . I still live at home so I see it as a long term investment which i will be looking into .

The rent from the house will pay off the mortgage and still make profit each month which can be used for saving for the house we will live in which will most likely be built on family land in kildare .

I know you need a 20% deposit for a second property
Again I see it as a long term investment.
Is it a stupid idea or would it be actually possible?

Any advice is welcome.

Have you factored in income tax on the rent (remembering that it is on the gross rent not rent less the mortgage)?

lir6777

cant26 wrote: »

Do you know if that is single or joint income? Seems very low for joint.

That was single

lir6777

ELM327 wrote: »

70-80 for joint is the minimum you need for an exception.

Depends on the bank though, they all seem to have different criteria about even qualifying to apply for an exemption. Some base it on your net disposable income which would not just depend on salary but any loans, dependents etc too. Always worth just giving the bank a ring in my opinion, nothing to lose!

Conrad83

lir6777 wrote: »

Depends on the bank though, they all seem to have different criteria about even qualifying to apply for an exemption. Some base it on your net disposable income which would not just depend on salary but any loans, dependents etc too. Always worth just giving the bank a ring in my opinion, nothing to lose!

I would second this. Different banks have very different criteria and figures on net disposable income, loans etc. AIB have made it a condition of our mortgage to clear a very small personal loan (1k)!! Prior to loan offer. BOI dont even factor this into loan conditions!

mayota

Astro127 wrote: »

Thanks for the help. We are also thinking of waiting a year or two as we are not in a rush so to speak .

I have been thinking of buying a house now for around 200k just to rent If out . I still live at home so I see it as a long term investment which i will be looking into .

The rent from the house will pay off the mortgage and still make profit each month which can be used for saving for the house we will live in which will most likely be built on family land in kildare .

I know you need a 20% deposit for a second property
Again I see it as a long term investment.
Is it a stupid idea or would it be actually possible?

Any advice is welcome.

If the family land is farmland I’d be looking to get the ball rolling on PP sooner rather than later, one off housing is under threat from environmentalists.

ELM327

Conrad83 wrote: »

I would second this. Different banks have very different criteria and figures on net disposable income, loans etc. AIB have made it a condition of our mortgage to clear a very small personal loan (1k)!! Prior to loan offer. BOI dont even factor this into loan conditions!

I found AIB a right pain in the hole to deal with. Went with BOI last time and now PTSB a couple of years later.

AIB wanted a ream of documents, including tax clearance certs (which cannot be obtained by PAYE employees)

ELM327

mayota wrote: »

If the family land is farmland I’d be looking to get the ball rolling on PP sooner rather than later, one off housing is under threat from environmentalists.

Local needs planning will usually be granted for one off

Astro127

mayota wrote: »

If the family land is farmland I’d be looking to get the ball rolling on PP sooner rather than later, one off housing is under threat from environmentalists.

PP shouldn't be a problem there was 2 acrs sold on it which both have a house built on them .

Renjit

AIB reverses pause on mortgage applications from customers on Covid-19 payments

Creamy Goodness

Renjit wrote: »

AIB reverses pause on mortgage applications from customers on Covid-19 payments

Nothing but a good PR story. Article mentions that they may still refuse application if they fell like the customer may have problems making the repayments which I'd argue the COVID unemployed payment would put you at risk at anyways.

lcarrol3

ELM327 wrote: »

70-80 for joint is the minimum you need for an exception.

Maybe I can shed some light on this. My partner and I are on 77k joint and have been rejected for an exemption by AIB and are waiting to hear back from EBS (apparently our application was borderline).

Might help someone somewhere!

lir6777

lcarrol3 wrote: »

Maybe I can shed some light on this. My partner and I are on 77k joint and have been rejected for an exemption by AIB and are waiting to hear back from EBS (apparently our application was borderline).

Might help someone somewhere!

AIB and EBS are linked and I'm pretty sure they have very similar criteria to qualify. They do work off of net disposable income so other debts, dependents etc will be part of the calculations too (so a couple with 80k joint income, 2 kids, and 600 per month outgoings on loans may not qualify but a couple on the same income with no kids or other loans might). The monthly repayments of the mortgage will also affect NDI calculations so there's a lot of scope for variation. Best of luck with your application!!

LauraAaron

Just a quick question does rent count towards showing you can afford the mortgage repayments?

Duke of Url

LauraAaron wrote: »

Just a quick question does rent count towards showing you can afford the mortgage repayments?

Yes. It’s in the Mortgage Application with BOI anyway. The will look for proof of it also in your statements also

LauraAaron

Duke of Url wrote: »

Yes. It’s in the Mortgage Application with BOI anyway. The will look for proof of it also in your statements also

Thankyou we’re going with ulsterbank and also have an account with them so they’ll he able to see our statements of monthly rent. I’m worried as we only have 3 months of straight savings we’ve been saving since last year but that was also paying off a loan. We sold a car and put that into our savings too and have been gifted €15k from my parents just wondering if that will hinder us that the savings haven’t been longer?

Dylan94

LauraAaron wrote: »

Thankyou we’re going with ulsterbank and also have an account with them so they’ll he able to see our statements of monthly rent. I’m worried as we only have 3 months of straight savings we’ve been saving since last year but that was also paying off a loan. We sold a car and put that into our savings too and have been gifted €15k from my parents just wondering if that will hinder us that the savings haven’t been longer?

You have to show it for at least 6 months. So if you only have 3 months savings now, you won't be able to apply until September at the soonest

bulmersgal

LauraAaron wrote: »

Thankyou we’re going with ulsterbank and also have an account with them so they’ll he able to see our statements of monthly rent. I’m worried as we only have 3 months of straight savings we’ve been saving since last year but that was also paying off a loan. We sold a car and put that into our savings too and have been gifted €15k from my parents just wondering if that will hinder us that the savings haven’t been longer?

Try a broker I'm similar to you have deposit mostly gift from parents but was paying off loan and also rent. So only savings 4 months and I got AIP with finance Ireland

LauraAaron

bulmersgal wrote: »

Try a broker I'm similar to you have deposit mostly gift from parents but was paying off loan and also rent. So only savings 4 months and I got AIP with finance Ireland

Thanks for the reply we have an aip with ulsterbank my husbands been in and spoke to them we’re now sending away our stuff to Dublin for our credit check we’ll hopefully hear from them in the coming weeks and then we’ll look to a broker if that doesn’t work x