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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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Carl D

Hi currently saving for a mortgage, should I stay in current role for the next 6 months before applying for a mortgage, or does it matter if I move jobs once I'm still saving?

Also do I just need to be in new job for 6 months while saving to qualify for a mortgage as the bank only needs 6 months bank statements to see you are saving.

Markitron

Carl D wrote: »

Hi currently saving for a mortgage, should I stay in current role for the next 6 months before applying for a mortgage, or does it matter if I move jobs once I'm still saving?

Also do I just need to be in new job for 6 months while saving to qualify for a mortgage as the bank only needs 6 months bank statements to see you are saving.

As far as the job goes, you just can't be in probation when applying.

guyfawkes5

Carl D wrote: »

Hi currently saving for a mortgage, should I stay in current role for the next 6 months before applying for a mortgage, or does it matter if I move jobs once I'm still saving?

Also do I just need to be in new job for 6 months while saving to qualify for a mortgage as the bank only needs 6 months bank statements to see you are saving.

All that matters to the bank is that you're out of probation at your job at the point they approve your application.

If you move jobs after your application is approved, this would be a big problem to them as you would mostly likely be in probation and would have a new salary to boot. If you're planning a career move, I would execute it now with the expectation of only getting AIP six months after starting (you can apply beforehand with the understanding it only starts when your probation ends), or accept that you might be a year or more from AIP to closing on a house sale once you including searching, bidding, and closing.

Banks don't really mind about savings history, instead they care about your capacity to repay which is more your salary minus non-voluntary expenses like dependants or debts. It certainly wouldn't matter if your monthly savings occurred across different jobs.

Creamy Goodness

Carl D wrote: »

Hi currently saving for a mortgage, should I stay in current role for the next 6 months before applying for a mortgage, or does it matter if I move jobs once I'm still saving?

Also do I just need to be in new job for 6 months while saving to qualify for a mortgage as the bank only needs 6 months bank statements to see you are saving.

The bank will want to see security in your job, pre-COVID times this meant you needed to be considered a full-time employee and have passed your employers probation period. I assume it's still the same but COVID may have added some extra precaution on the bank's side with relation to this.

mimimcmc

guyfawkes5 wrote: »

I'm saying that if you left BoI or EBS after one year (or six months, or even a day, there's no minimum period you have to stay with them), then the 'worked out' interest after cashback would be far less than 2.3% and you could pick up a lower actual interest rate with someone else. The only thing that depends on is the entrance criteria other banks have for picking you up, as some have minimum periods that you have to have with be with your previous mortgage provider, but this will usually be no longer than a year and sometimes even less.

Just a quick one on these switches. Say i went with BOI 2 year fixed rate at 2.9% and in 2022, i want to change to say ulster bank 2 year fixed rate at 2.3% (using this years rate just as a guess) is the term changed too, or do you have to stick with the term you choose with BOI or is it all totally renegotiated?

mycro2013

Carl D wrote: »

Hi currently saving for a mortgage, should I stay in current role for the next 6 months before applying for a mortgage, or does it matter if I move jobs once I'm still saving?

Also do I just need to be in new job for 6 months while saving to qualify for a mortgage as the bank only needs 6 months bank statements to see you are saving.

From my understanding you'll need to have completed your probationary period. If the position is permanent from the start you dont need to pass the probationary period. Best have a chat with your bank.

Carl D

mycro2013 wrote: »

From my understanding you'll need to have completed your probationary period. If the position is permanent from the start you dont need to pass the probationary period. Best have a chat with your bank.

Yeah makes sense, so if the probationary period is 3 or 6 months and pass that do you have to wait another 6 months on top of that ?.

Once you get a mortgage is it ok then to change jobs .

guyfawkes5

mimimcmc wrote: »

Just a quick one on these switches. Say i went with BOI 2 year fixed rate at 2.9% and in 2022, i want to change to say ulster bank 2 year fixed rate at 2.3% (using this years rate just as a guess) is the term changed too, or do you have to stick with the term you choose with BOI or is it all totally renegotiated?

BoI has no say in you changing to another bank unless you're still in a fixed term with them, in which case you can pay them a break fee which they will quote you at the time. It should reflect the original cost of them borrowing the money for you, which won't be much for a remaining few months. If you're out of term, then you can just immediately start the process of applying somewhere else.

Switching to UB is a totally new proposition, and involves you hiring a solicitor just like a new purchase (although it is less arduous) and UB valuing your property again.

guyfawkes5

Carl D wrote: »

Yeah makes sense, so if the probationary period is 3 or 6 months and pass that do you have to wait another 6 months on top of that ?.

People only say 6 months because that's what the probationary period is for most jobs. If you didn't have a probationary period with your new job at all, the bank would probably grant your mortgage application from day one.

If you're not under probation and are working full-time, you can apply for a mortgage.

Carl D wrote: »

Once you get a mortgage is it ok then to change jobs .

No, the bank expects your situation to stay the same while you are looking for a house and completing any sale.

If you have a probationary period with the new job, effectively this invalidates your approval.

Woshy

Carl D wrote: »

Yeah makes sense, so if the probationary period is 3 or 6 months and pass that do you have to wait another 6 months on top of that ?.

Once you get a mortgage is it ok then to change jobs .

My husband was on probation when we got our mortgage approval. He works in a high demand area and we had to provide his CV to show his work history and that there was no employment gaps but they were fine with it.

Duke of Url

Hi All

For the HTB.

You upload the signed contract from the Vender and the Signed Letter of Offer from the Bank?

Creamy Goodness

Duke of Url wrote: »

Hi All

For the HTB.

You upload the signed contract from the Vender and the Signed Letter of Offer from the Bank?

Yes, both have to be uploaded otherwise the developer/builder will not be able to request the funds from the HTB.

brisan

Creamy Goodness wrote: »

The bank will want to see security in your job, pre-COVID times this meant you needed to be considered a full-time employee and have passed your employers probation period. I assume it's still the same but COVID may have added some extra precaution on the bank's side with relation to this.

I would say that over time banks will give different ratings of ability to repay to different sectors of industry /business
I would have thought that the food production industry (which I am in)would be considered safe.
However I recently found out that some manufacturers who supply both the home and export market are struggling because they are selling to restaurants /hotels etc
So I assume banks will take all factors into consideration

The_Fitz

Do banks ever ask for more than 6 months bank statements?

awec

The_Fitz wrote: »

Do banks ever ask for more than 6 months bank statements?

They can if they want. If they have any reason to want to see more than 6 months they can and will ask.

Ray1990

Has anyone applied with ICS and still waiting to hear back? We applied 3 weeks ago now via a broker and still no update on what stage of the process it’s even at.

BoI had told us they were highly confident in our application, said we ticked all the boxes, told us we would have no problems at all in getting a decent amount. Got approval from them today but it’s 20K short of what we need, and they’re acting as if we were crazy to expect any more. Super frustrating!

Not sure what to expect from ICS now but just wondering if anyone else has taken a while to hear from them?

brisan

Ray1990 wrote: »

Has anyone applied with ICS and still waiting to hear back? We applied 3 weeks ago now via a broker and still no update on what stage of the process it’s even at.

BoI had told us they were highly confident in our application, said we ticked all the boxes, told us we would have no problems at all in getting a decent amount. Got approval from them today but it’s 20K short of what we need, and they’re acting as if we were crazy to expect any more. Super frustrating!

Not sure what to expect from ICS now but just wondering if anyone else has taken a while to hear from them?

Banks are being cautious and rightly so

errlloyd

Requested irish credit bureau report. AIB asked for a credit score, but KBC and BOI didn't. What did they get from the ICB if not a credit score?

Duke of Url

Ray1990 wrote: »

Has anyone applied with ICS and still waiting to hear back? We applied 3 weeks ago now via a broker and still no update on what stage of the process it’s even at.

BoI had told us they were highly confident in our application, said we ticked all the boxes, told us we would have no problems at all in getting a decent amount. Got approval from them today but it’s 20K short of what we need, and they’re acting as if we were crazy to expect any more. Super frustrating!

Not sure what to expect from ICS now but just wondering if anyone else has taken a while to hear from them?

When you say 20K short. Did you apply for 3.5 times your income or an extra exemption?

Carl D

awec wrote: »

They can if they want. If they have any reason to want to see more than 6 months they can and will ask.

What if you moved to a new bank and only have 6 months bank statements?

When is the best time to change jobs ?
Only when the mortgage is confirmed and everything has gone through ok.

brisan

Carl D wrote: »

What if you moved to a new bank and only have 6 months bank statements?

When is the best time to change jobs ?
Only when the mortgage is confirmed and everything has gone through ok.

You should have statements from your previous bank

Creamy Goodness

Carl D wrote: »

What if you moved to a new bank and only have 6 months bank statements?

When is the best time to change jobs ?
Only when the mortgage is confirmed and everything has gone through ok.

Statements don't have to be with the same bank/credit institutions. The bank is just trying to build a picture of how you are with money, who you bank with is irrelevant.

With regards to job changing through the mortgage application process, I'd say the minute you have the keys in your hands and not a second sooner. If you're only at the deposit building phase and haven't gone to letter of offer etc. you'll have 6 months in the new job anyways.

guyfawkes5

The_Fitz wrote: »

Do banks ever ask for more than 6 months bank statements?

Not in my experience, although they may ask for bank statements from other accounts or cards like Revolut if you use them a lot, as my bank did.

cyberwit

I am using an online 40 Day Notice account to save deposit is that good enough. If I change banks for current account I assume I loose the credit for all time in terms of months I saved

guyfawkes5

I wouldn't say it'll be a problem.

Banks judge you very humanly when it comes to a saving history. Where they get stricter and more robotic is how much you're allowed borrow.

thewheel2.0

I'm applying for a mortgage now but drawdown wont be till April. AIB mentioned that their letter of offer is only valid for 6 months and drawdown cant happen until the house is complete. Does anyone have experience with whats required to renew a letter of offer?

I cant find much info on it. Is it a whole new application where all the documents are resumitted, or is the renewal process quicker?

pooch90

thewheel2.0 wrote: »

I'm applying for a mortgage now but drawdown wont be till April. AIB mentioned that their letter of offer is only valid for 6 months and drawdown cant happen until the house is complete. Does anyone have experience with whats required to renew a letter of offer?

I cant find much info on it. Is it a whole new application where all the documents are resumitted, or is the renewal process quicker?

Would you not just wait until Oct/Nov to apply then?

Top chief

Can a bank know if you have another account open with another bank or if you use Revolut , N26

brisan

Top chief wrote: »

Can a bank know if you have another account open with another bank or if you use Revolut , N26

I assume they ask for all your bank acounts
if they find you have being hiding one I am sure they will take a dim view of it .
Surely you have to lodge funds electronically into a revelout account,unless you give somebody cash and they transfer it for you.

thewheel2.0

pooch90 wrote: »

Would you not just wait until Oct/Nov to apply then?

When I started the application I was looking at houses which would be ready sooner. Now I'm nearly to letter of offer stage and I want to know if I would be approved on paper.

Just wondering what the renewal is like, is it less involved?