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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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Jasna1982

SteelyDanJalapeno wrote: »

Afaik there's little to no monetary benefit in most savings accounts these days.

Probably the best incentive out there is BOI who offer 2k I think if you save your deposit with them, and if you draw down with them.

Ulster Bank have a similar savings account

Ikozma

If my wife's wages are being subsidised by the government would that effect us getting a mortgage

pooch90

Ikozma wrote: »

If my wife's wages are being subsidised by the government would that effect us getting a mortgage

In short, yes.

Bubbaclaus

Ikozma wrote: »

If my wife's wages are being subsidised by the government would that effect us getting a mortgage

Depends on whether she is on TWSS or the new EWSS. You wont be able to tell on a payslip whether someone is on EWSS or not.

greengrass88

Bubbaclaus wrote: »

Depends on whether she is on TWSS or the new EWSS. You wont be able to tell on a payslip whether someone is on EWSS or not.

Unfortunately I heard first hand from various banks and a broker just today, that anyone on the twss or the upcoming ewss will be unable to drawdown until they have a payslip showing their employer is paying wages in full. As for the ewss and payslips...supposedly companies in receipt of it will be published and it will appear on payslips. So I'm told.

Bubbaclaus

greengrass88 wrote: »

Unfortunately I heard first hand from various banks and a broker just today, that anyone on the twss or the upcoming ewss will be unable to drawdown until they have a payslip showing their employer is paying wages in full. As for the ewss and payslips...supposedly companies in receipt of it will be published and it will appear on payslips. So I'm told.

I cant see how somebody will be able to tell how someone is on EWSS or not from a payslip. Company publishing probably wont be until next year anyway.

luketitz

Best bit of advice I got (from a broker, naturally) when going through our application last year was not to buy life insurance (or mortgage protection) directly from the bank as it's always more expensive. Brokers will always get the better deal for each step of the way if you trust them to.

Good read on it here, it's the kind of thing I'd have never known til I was told!

https://lion.ie/life-insurance/why-buying-life-insurance-from-a-bank-is-always-a-bad-idea/

greengrass88

Bubbaclaus wrote: »

I cant see how somebody will be able to tell how someone is on EWSS or not from a payslip. Company publishing probably wont be until next year anyway.

I'm no expert in these things but going on what 2 brokers told me re the scheme and the fact that banks told me (today) if I'm on the scheme til april then no drawdown til april. My HR/payroll department also said it would be on my payslip. I joined a 'first time buyers Ireland's group on facebook (not that fb is gospel but it's a source of information just like boards) where I read the following: " *** Covid Wage Subsidy ***

A few people have contacted me about the wage subsidy changing to a new scheme in September and how it won’t appear on payslips anymore. Unfortunately this isn’t the case, it’s operated the same way. Companies will be published and one of the points is that it must be noted on payslips.

I don’t like approving posts that may get people’s hopes up and like to 100% confirm things before posting so I asked two different people who work in the tax field in the last week and they told me the above. One is my partners Dad who is a tax consultant and the other works in Revenue and would like to be kept anonymous (thanks to you both for helping)."

Dubs1990

greengrass88 wrote: »

I'm no expert in these things but going on what 2 brokers told me re the scheme and the fact that banks told me (today) if I'm on the scheme til april then no drawdown til april. My HR/payroll department also said it would be on my payslip. I joined a 'first time buyers Ireland's group on facebook (not that fb is gospel but it's a source of information just like boards) where I read the following: " *** Covid Wage Subsidy ***

A few people have contacted me about the wage subsidy changing to a new scheme in September and how it won’t appear on payslips anymore. Unfortunately this isn’t the case, it’s operated the same way. Companies will be published and one of the points is that it must be noted on payslips.

I don’t like approving posts that may get people’s hopes up and like to 100% confirm things before posting so I asked two different people who work in the tax field in the last week and they told me the above. One is my partners Dad who is a tax consultant and the other works in Revenue and would like to be kept anonymous (thanks to you both for helping)."

I was told the opposite from a friend of mine who works for an accountant doing peoples wages this is what I received .

Employers will be required to pay employees in the normal manner i.e. calculating and deducting Income Tax, USC and employee PRSI through payroll.

EWSS is a subsidy paid to an employer. It will not show on payslips or in myAccount. This was only confirmed to them today.

Hopefully for people its not on the wage slip !

Bubbaclaus

Dubs1990 wrote: »

I was told the opposite from a friend of mine who works for an accountant doing peoples wages this is what I received .

Employers will be required to pay employees in the normal manner i.e. calculating and deducting Income Tax, USC and employee PRSI through payroll.

EWSS is a subsidy paid to an employer. It will not show on payslips or in myAccount. This was only confirmed to them today.

Hopefully for people its not on the wage slip !

Exactly. The EWSS is a subsidy to the employer and set up very differently to the TWSS. Won't be going anywhere near an employee's payslip.

Renjit

That's good news. EWSS will circumvent this covid wage item on payslips for the potential buyers. Also, one can get conditional Approval in Principle. So go ahead with that.

greengrass88

Dubs1990 wrote: »

I was told the opposite from a friend of mine who works for an accountant doing peoples wages this is what I received .

Employers will be required to pay employees in the normal manner i.e. calculating and deducting Income Tax, USC and employee PRSI through payroll.

EWSS is a subsidy paid to an employer. It will not show on payslips or in myAccount. This was only confirmed to them today.

Hopefully for people its not on the wage slip !

I hope this is the case as we are unable to buy at the moment as I am on twss....there seems to be a lot of conflicting information out there though. Is it possible that banks will request employers provide letters to confirm if the company is or isnt in receipt of the new ewss?

JohnK

greengrass88 wrote: »

Is it possible that banks will request employers provide letters to confirm if the company is or isnt in receipt of the new ewss?

I'd be shocked if they didn't tbh.

wassie

luketitz wrote: »

Best bit of advice I got (from a broker, naturally) when going through our application last year was not to buy life insurance (or mortgage protection) directly from the bank as it's always more expensive. Brokers will always get the better deal for each step of the way if you trust them to.

Good read on it here, it's the kind of thing I'd have never known til I was told!

https://lion.ie/life-insurance/why-buying-life-insurance-from-a-bank-is-always-a-bad-idea/

As with any insurance policy it pays to shop around. Include the lending bank as they may offer a discount - although this generally is more applicable to house & contents policies.

Another tip, especially if you are in a position where you need to drawdown quickly, sometimes also it can be simply easier to go with the banks policy. There is statutory cooling-off period of 30 days on life insurance, so after drawdown you are then free to go and find a cheaper policy, then cancel the bank one.

Just be aware the cooling-off period starts from when the policy begins or when you receive your policy documents, whichever is later to make sure you are inside the 30 day window.

You should get a refund of any premiums you have already paid. However, your insurer may take off a small amount to cover days when the policy was in force but this should be small. They may also charge you a small administration fee.

Graham

greengrass88 wrote: »

Is it possible that banks will request employers provide letters to confirm if the company is or isnt in receipt of the new ewss?

I'm not sure on what basis the banks could ask an unrelated party (the employers) for details of the company finances.

random_banter

greengrass88 wrote: »

I hope this is the case as we are unable to buy at the moment as I am on twss....there seems to be a lot of conflicting information out there though. Is it possible that banks will request employers provide letters to confirm if the company is or isnt in receipt of the new ewss?

I suppose aside from this, every bank is also asking you to confirm & state that your employment and/or wages haven't been impacted by covid. In some cases they seek a letter from your employer to state this too, or to state that you're not on the scheme. The subsidy scheme counts as an impact to your wage.

In any case, you have to be honest with the bank's underwriters when they ask this question - if you get found out down the line, it would be very much on you for not being up front.

I had to be honest with them when they asked me about it - there's been a temporary company-wide pay-cut for me rather than the subsidy scheme. The bank said they would still give AIP but the condition is that I either get a new salary cert to state my new "temporary" wage or a letter from the employer to state that the wage will be restored on X date.

It's really painful that this has happened for so many people. In our case we won't get to buy now as we needed an LTV exemption and they're gone. That was the big goal for the last few years so I'm gutted.

But underwriting is underwriting and the banks were hauled over the coals for not being incredibly strict with lending risks the last time around. The central bank are very much cracking down on any loan that would be deemed risky.

wassie

But you are not going to be alone. At some point all the AIPs with exemptions are going to run out if not drawn down so this may impact on prices accordingly. Especially if exemptions are not going to available again until next year.

Supply is low at the moment and seems to be supporting prices.

Green Mile

Graham wrote: »

I'm not sure on what basis the banks could ask an unrelated party (the employers) for details of the company finances.

Unlike TWSS, the EWSS won’t be mentioned on employees payslip but there will be a new PRSI class on the payslip (previously J9). Revenue are to announce the new PRSI class next week.
Banks will lookout for that prsi class on the payslip and they will know if the individual’s company received Covid support.

Bubbaclaus

Green Mile wrote: »

Unlike TWSS, the EWSS won’t be mentioned on employees payslip but there will be a new PRSI class on the payslip (previously J9). Revenue are to announce the new PRSI class next week.
Banks will lookout for that prsi class on the payslip and they will know if the individual’s company received Covid support.

It is going to be the employees normal PRSI class on the payslip. The EWSS has been designed to ensure it wont be noticable on the employees payslip.

Either people have been incredibly misinformed or are just making things up.

Green Mile

Bubbaclaus wrote: »

It is going to be the employees normal PRSI class on the payslip. The EWSS has been designed to ensure it wont be noticable on the employees payslip.

Either people have been incredibly misinformed or are just making things up.

Are you sure? It’s just a different prsi rate is to apply so may not be the normal PRSi class.
Revenue say that might not be the case from this video
https://youtu.be/jj7_465771w
Skip to 50:37

Bubbaclaus

Green Mile wrote: »

Are you sure? It’s just a different prsi rate is to apply so may not be the normal PRSi class.
Revenue say that might not be the case from this video
https://youtu.be/jj7_465771w
Skip to 50:37

You can read the Revenue guidance issued today if you dont believe me. PRSI as normal on payslip, refund of the excess employer amount (if any) at point of payment to Revenue.

I listened to the question and answer at 50:37. She says wait for the guidance and doesnt give an answer (presumably because she didnt know). I dont see how that proves your point at all.

Green Mile

Bubbaclaus wrote: »

You can read the Revenue guidance issued today if you dont believe me. PRSI as normal on payslip, refund of the excess employer amount (if any) at point of payment to Revenue.

I listened to the question and answer at 50:37. She says wait for the guidance and doesnt give an answer (presumably because she didnt know). I dont see how that proves your point at all.

Thanks, I wasn't aware there was an update released today. For anyone who’s interested, link below
https://www.revenue.ie/en/corporate/communications/documents/ewss-guidelines.pdf

Smiley11

Just FYI for anybody applying through EBS..our mortgage approval came through today & took just over 4 weeks! I was sweating over the wait but broker was confident & told us to just wait it out as there is a big backlog at the moment.

DubLad69

avm88 wrote: »

Do all banks check the central credit register AND the ICB when you apply for a mortgage?

I’m currently trying to get an inaccuracy sorted on my Central credit register report. This inaccuracy does not show on my ICB report so my query is to see if any banks only look at the ICB report when you make an application?.....I don’t have time to want to have to wait until I get this inaccuracy sorted before applying for my mortgage...

Similar situation. ICB report is spot on, the central credit register report had a few mistakes. Was told it could take a while to sort out so am applying through a brooker and they will explain the situation to the bank.

soc

DubLad69 wrote: »

Similar situation. ICB report is spot on, the central credit register report had a few mistakes. Was told it could take a while to sort out so am applying through a brooker and they will explain the situation to the bank.

When we were applying to several banks for AIP, you could see afterwards on the Credit Register Report ALL the banks pinged our record for both my partner and I. So unfortunately Credit Register trumps the ICB.

wassie

avm88 wrote: »

Do all banks check the central credit register AND the ICB when you apply for a mortgage?

I think its safe to assume the answer is yes.

Put it another way, if you were going to lend some one several hundred thousands euros, would you check both?

Rocket99

Anyone else waiting ages for AIB to come back to them regarding the letter of offer? It seems to be taking ages to get our docs verified. Understand there is a backlog, but I'm on countdown with the builder to sign the contract

MaryO100

Wondering if anyone has any update about exemptions? There is technically no blanket ban on mortgages for those in receipt of Covid payments now, but there is still a blanket ban on exemptions. I don’t know why it can’t be looked at on a case by case basis. We are two public servants with decent incomes and had hoped to buy this year and had assumed we could get a loan to value exemption. We were stung with negative equity for the past ten years, so we don’t have much equity in the house and so are short on the 20% deposit. It is so frustrating being in limbo and potentially having to wait years to save the 20% when we have the capacity to repay.

Also wondering if by any chance Avant Mortgages will offer exemptions?

DubLad69

MaryO100 wrote: »

Wondering if anyone has any update about exemptions? There is technically no blanket ban on mortgages for those in receipt of Covid payments now, but there is still a blanket ban on exemptions. I don’t know why it can’t be looked at on a case by case basis. We are two public servants with decent incomes and had hoped to buy this year and had assumed we could get a loan to value exemption. We were stung with negative equity for the past ten years, so we don’t have much equity in the house and so are short on the 20% deposit. It is so frustrating being in limbo and potentially having to wait years to save the 20% when we have the capacity to repay.

Also wondering if by any chance Avant Mortgages will offer exemptions?

Both AIB and EBS are still offering exemptions. On a case by case basis and you need to have a good income.

Jasna1982

DubLad69 wrote: »

Both AIB and EBS are still offering exemptions. On a case by case basis and you need to have a good income.

Really? Because EBS told me not at the moment