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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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redsteveireland

Sparky85 wrote: »

Get your ICB report and see what it says before you apply
http://www.icb.ie/
Going through a broker may be easier if it does show up issues

Thanks a million, didn't know you could do that.

fifth

Draw down happened today for me with Bank of Ireland. Didn't do any final checks or document requests.

Used a broker and had full approval in feb/March. Sale agreed May and due to get the keys by Friday. Happy days.

Anonposter2020

fifth wrote: »

Draw down happened today for me with Bank of Ireland. Didn't do any final checks or document requests.

Used a broker and had full approval in feb/March. Sale agreed May and due to get the keys by Friday. Happy days.

Congratulations ðŸ˜

Carl D

Hi I got a loan awhile ago towards a car , just wondering how does it affect my credit history if I am paying it off every week would there be a problem getting a mortgage?

Or am I better off paying it off before I go for a mortgage? Is it better to pay back loan faster than the original pay back , would they not ask how did you pay it off so quickly?

Anonposter2020

Carl D wrote: »

Hi I got a loan awhile ago towards a car , just wondering how does it affect my credit history if I am paying it off every week would there be a problem getting a mortgage?

Or am I better off paying it off before I go for a mortgage? Is it better to pay back loan faster than the original pay back , would they not ask how did you pay it off so quickly?

If you're paying your loan regularly like you're supposed to it won't affect credit rating, if anything it will go in your favour because it shows you pay your debts but it can affect the amount you can borrow so best to clear loans you have before applying.

We paid a loan back early and it wasn't an issue.

IvoryTower

It might not affect how much you can borrow either so its best to check. When you fill in the online calculators there's always a space for loans, rent etc

Renjit

Carl D wrote: »

Hi I got a loan awhile ago towards a car , just wondering how does it affect my credit history if I am paying it off every week would there be a problem getting a mortgage?

Or am I better off paying it off before I go for a mortgage? Is it better to pay back loan faster than the original pay back , would they not ask how did you pay it off so quickly?

They might reduce the maximum they can offer. Always good to pay it off. But check with the bank and explain to them first. You may get different opinion.

awec

If you have enough salary left over after they stress test you with the mortgage to pay the loan then the loan will have no affect whatsoever on your application. If you don't have enough salary, then they'll reduce the mortgage they'll offer you until you're back within the limits of what they want.

Car loans etc are just another outgoing as far as the bank is concerned, just having one is not a negative in itself and will not automatically count against you. It's all about your specific finances.

errlloyd

I never really looked at this mortgage saver stuff. I've probably got enough for a mortgage now, but I'm not in a rush.

Is there anything stopping me opening a BOI mortgage saver account. Lodge a grand a month for the next 6 months, draw down, and they'll give me 2 grand?

thunderdog

Shivvs wrote: »

Just to add to BOI mortgage saver discussion, you actually have to draw down a BOI mortgage within 30 months of opening the mortgage saver account to avail of the cash back - I foolishly opened the account in May 2018 and won’t be in a position to drawdown til mid 2021 so won’t be eligible for the cash back.

What’s to stop you closing down that account and opening a new boi mortgage saver account for 6 months of direct debits?

Shivvs

thunderdog wrote: »

What’s to stop you closing down that account and opening a new boi mortgage saver account for 6 months of direct debits?

I did ask the question to one of their advisors and was told I could only have 1 mortgage saver account in my name, even if one was closed down.

Shivvs

errlloyd wrote: »

I never really looked at this mortgage saver stuff. I've probably got enough for a mortgage now, but I'm not in a rush.

Is there anything stopping me opening a BOI mortgage saver account. Lodge a grand a month for the next 6 months, draw down, and they'll give me 2 grand?

Should work fine, once you drawdown a BOI mortgage, and have at least 5k in the saver account. You also need a BOI current account.

Renjit

Shivvs wrote: »

Should work fine, once you drawdown a BOI mortgage, and have at least 5k in the saver account. You also need a BOI current account.

BOI current account is not required. I have just the mortgage saver account and the bank advisor was ok with that.

You will receive 1.3k because of DIRT reduction.

Carl D

Anonposter2020 wrote: »

If you're paying your loan regularly like you're supposed to it won't affect credit rating, if anything it will go in your favour because it shows you pay your debts but it can affect the amount you can borrow so best to clear loans you have before applying.

We paid a loan back early and it wasn't an issue.

Thanks for the help, the loan was 10k over 2 years I pay back more most weeks then agreed on original payment.
Does that matter or just I dont miss a payment.

Is there a way to open a direct debt so the credit union can go in each week and take it out of my bank ?

Anonposter2020

Carl D wrote: »

Thanks for the help, the loan was 10k over 2 years I pay back more most weeks then agreed on original payment.
Does that matter or just I dont miss a payment.

Is there a way to open a direct debt so the credit union can go in each week and take it out of my bank ?

Sounds like your car loan is with the credit union? In that case if you're over paying every week then it won't matter if you miss a week here or there. Just once you don't go into arrears.

Our loan was with credit union too and I always over paid every week. So when we went on holiday for 2 weeks I didn't pay anything but because we were ahead in repayments those 2 weeks were already covered, if you get me..

I clarified that with the credit union before we went away.

Yes credit unions do direct debits now.

Carl D

Anonposter2020 wrote: »

Sounds like your car loan is with the credit union? In that case if you're over paying every week then it won't matter if you miss a week here or there. Just once you don't go into arrears.

Our loan was with credit union too and I always over paid every week. So when we went on holiday for 2 weeks I didn't pay anything but because we were ahead in repayments those 2 weeks were already covered, if you get me..

I clarified that with the credit union before we went away.

Yes credit unions do direct debits now.

Yeah I get you , good way to do it so dont have to catch up on payments
Only thing is if I set up a direct debt with the credit union I have to set a price that will be going out each week , so wonnt be able to give more if I wanted to .

wayne0308

I'm currently in the middle of the application process with bank of Ireland. I sent in the application and documents on 25th June, which will be 3 weeks ago tomorrow. The advisor looked them over and formally submitted the application on 30th June.

On the 3rd of July I received a text message from the bank to say that they had all the required documentation, and that they were assessing my application for approval. So, I'm still waiting for approval in principle at this stage. I emailed the mortgage advisor for an update and he said that there is a backlog of applications at the moment which is understandable given the pandemic situation and working from home Etc.

I'm just wondering if others experiencing similar timelines with their application with BOI?

Anonposter2020

Carl D wrote: »

Yeah I get you , good way to do it so dont have to catch up on payments
Only thing is if I set up a direct debt with the credit union I have to set a price that will be going out each week , so wonnt be able to give more if I wanted to .

You could always make a cash payment in person when you want to pay extra on top of the direct debit.

Good luck on your journey

Ray1990

wayne0308 wrote: »

I'm currently in the middle of the application process with bank of Ireland. I sent in the application and documents on 25th June, which will be 3 weeks ago tomorrow. The advisor looked them over and formally submitted the application on 30th June.

On the 3rd of July I received a text message from the bank to say that they had all the required documentation, and that they were assessing my application for approval. So, I'm still waiting for approval in principle at this stage. I emailed the mortgage advisor for an update and he said that there is a backlog of applications at the moment which is understandable given the pandemic situation and working from home Etc.

I'm just wondering if others experiencing similar timelines with their application with BOI?

Hi, having a similar experience here. It seems the applications have gone up so there’s a bit of backlog!

We submitted our documents about two weeks ago. Got a text on Monday saying they received everything and will be processing it. I rang the mortgage specialist in our branch today and she hopes they’ll have a decision for us by the end of the week. We also have a broker looking after an application at ICS for us and that’s also taking ages.

Hoping we’re not waiting too much longer! You could ring up and ask what stage it’s at, we got a bit more info on it when we did which helped.

Vikings

UB current account customer here applied for a call back online on one evening. Got a call first thing the next morning.

14 days later had approval in principal following submission of all documents. (Of which I had none prepared, had to gather everything)

Approx. 48 hours to get the approval once submitted to creditors. The online portal they have makes quick work of a lot of things.

dmakc

New to the mortgage side of things but have bought land in excess of €200k in the past so am somewhat familiar with the loan process.

My dilemma is whether to save or to keep hitting my land loan. You really get stung on the land loan (APR = 5.76%) so it always made sense to hit it early and often instead of saving money. I'm wondering if I had exceptional performance on the land loan (which to be fair I have with €60k left), would the same bank let me apply for example a €200k mortgage on top of this despite no down payment, as most of what I received in past 5 years has been used against my current loan? I'd have a decent off-farm income. Bank of Ireland.

Springy Turf

dmakc wrote: »

New to the mortgage side of things but have bought land in excess of €200k in the past so am somewhat familiar with the loan process.

My dilemma is whether to save or to keep hitting my land loan. You really get stung on the land loan (APR = 5.76%) so it always made sense to hit it early and often instead of saving money. I'm wondering if I had exceptional performance on the land loan (which to be fair I have with €60k left), would the same bank let me apply for example a €200k mortgage on top of this despite no down payment, as most of what I received in past 5 years has been used against my current loan? I'd have a decent off-farm income. Bank of Ireland.

You need to have at lest 10% deposit in cash (And that's with FTB allowance or an LTV exemption)

The Wordress

Still waiting for our mortgage approval to come through. We applied for it 4 weeks ago. I don't actually mind as it has allowed us to research houses for sale and hopefully viewings as soon as we get full approval.

brisan

dmakc wrote: »

New to the mortgage side of things but have bought land in excess of €200k in the past so am somewhat familiar with the loan process.

My dilemma is whether to save or to keep hitting my land loan. You really get stung on the land loan (APR = 5.76%) so it always made sense to hit it early and often instead of saving money. I'm wondering if I had exceptional performance on the land loan (which to be fair I have with €60k left), would the same bank let me apply for example a €200k mortgage on top of this despite no down payment, as most of what I received in past 5 years has been used against my current loan? I'd have a decent off-farm income. Bank of Ireland.

Central bank rules dictate the minimum deposit ,not the individual bank
You MUST have a minimum 10% deposit if you are a FTB ,and with good reason

thewheel2.0

I'm looking for advice on fixed rates, I saw this from the CCPC "At the end of the fixed rate period, your lender will write to you and inform you of your options which may include moving to a variable rate or availing of another fixed rate."

When your initial fixed rate period expires, are the fixed options the bank offers the same as the rates available to new customers? Or is it a case that the rates for people "locked in" to a mortgage are worse?

Trying to figure out why some people go KBC and Ulster Bank, yes their fixed rate is better over two years, however, ICS and AIB have a lower cost of credit over the full mortgage term.

Is 35 year "cost of credit" a red herring cause people prioirtise the rate they can get today and if they see a better one when their fixed period expires they will switch?

awec

thewheel2.0 wrote: »

I'm looking for advice on fixed rates, I saw this from the CCPC "At the end of the fixed rate period, your lender will write to you and inform you of your options which may include moving to a variable rate or availing of another fixed rate."

When your initial fixed rate period expires, are the fixed options the bank offers the same as the rates available to new customers? Or is it a case that the rates for people "locked in" to a mortgage are worse?

Trying to figure out why some people go KBC and Ulster Bank, yes their fixed rate is better over two years, however, ICS and AIB have a lower cost of credit over the full mortgage term.

Is 35 year "cost of credit" a red herring cause people prioirtise the rate they can get today and if they see a better one when their fixed period expires they will switch?

The options you'll get will be the same as offered to new customers. When your current fixed term expires you can either move to another fixed term, at whatever rates they offer at that time, or you can move to their variable rate at that time. You could also decide to get your house re-valued, to see if you can qualify for a better loan-to-value rate.

Yes, the 35 year cost of credit is fairly meaningless as it's based on the interest rate you currently have. You have no idea what interest rates will be when your fixed term ends, you could switch banks, move house etc etc.

Creamy Goodness

You're basically moved onto their Standard Variable Rate product at the end of the fix term but can avail of any of the products they have available at the time. People go with KBC/Ulster Bank because in most cases they've done the math and their signing on bonuses are helpful in the time of buying a house. They are also free to move at any time once they're not breaking a fixed term mortgage contract.

No one should stay with one provider for the life time of the mortgage unless you get an exceptional deal which almost no one does. It's always best to jump around to get the best deal. For example I'm on a 2.45% 5 year fixed with AIB, it gave me peace of mind that mortgage payments won't change for 5 years, was a quick change as I was already with AIB on their Variable Rate (2.85%) and when the 5 years are up I'll look for a better rate from AIB and all other mortgage providers when the times comes.

dwayneshintzy

Anyone got experience of applying for a mortgage with an Irish bank from outside Ireland/outside the EU?

I've had a look here and contacted them, but they're really pushing the 3% interest and 35% deposit (which I'd be happy with), which just seems a bit too good to be true based on everything else I've researched; https://mymortgages.ie/overseas-buyers/

Bluefoam

dwayneshintzy wrote: »

Anyone got experience of applying for a mortgage with an Irish bank from outside Ireland/outside the EU?

I've had a look here and contacted them, but they're really pushing the 3% interest and 35% deposit (which I'd be happy with), which just seems a bit too good to be true based on everything else I've researched; https://mymortgages.ie/overseas-buyers/

100% arrange your mortgage and buy your house before coming back to the country... I should have done it... 2 years later I still don't have a home.

35% is right, there's a couple of brokers who specialise in it...

dwayneshintzy

Plan for us is to buy in summer 2021 if we can, but won't be moving back to Ireland until 2024. We'd plan to let it out in the meantime......I thought we'd only qualify for an investor mortgage, meaning 5% interest rate and more like 50% deposit (instead of 35%). Told those guys on MyMortgages but they've told me to get an application in and see (application fee of 500 euro).