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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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Picka1

I applied in August for a mortgage and was able to get an exemption of 3.8 times but that was the highest the bank was able to go.

DubLad69

Picka1 wrote: »

I applied in August for a mortgage and was able to get an exemption of 3.8 times but that was the highest the bank was able to go.

What bank was that with? I need to get a minimum of x4 times. Preferably x4.25

Picka1

DubLad69 wrote: »

What bank was that with? I need to get a minimum of x4 times. Preferably x4.25

It was AIB.I rang and just said I would be looking at borrowing more than 3.5 times( I didn’t specify an amount at the time as hadn’t an exact house in mind).They came back and said 3.8 times was the max they could do.It’s well worth calling them though to see.

Bubbaclaus

I got AIP with AIB for 4.5 times in August. I didn't ask for it so was surprised, especially given some comments on here were saying they had stopped giving them.

DubLad69

Picka1 wrote: »

It was AIB.I rang and just said I would be looking at borrowing more than 3.5 times( I didn’t specify an amount at the time as hadn’t an exact house in mind).They came back and said 3.8 times was the max they could do.It’s well worth calling them though to see.

Thank for that. I had started looking at the AIB online application and before I even got past the second page wouldn't let me apply for more than 3.5 times.

I'm hoping that it won't be so difficult in Jan.

Mr_Muffin

Is a broker the recommended way to go when applying for a mortgage? If so, what are the reasons why?

Picka1

DubLad69 wrote: »

Thank for that. I had started looking at the AIB online application and before I even got past the second page wouldn't let me apply for more than 3.5 times.

I'm hoping that it won't be so difficult in Jan.

It won’t be! I would phone as opposed to online application.I was pleasantly surprised by the mortgage process as I didn’t feel extremely mortgage application ready ( Initially aiming for January but HTB made me able to do it earlier)

Best of luck in January!

Kyle1994

Hi,
Wondering can anyone share there experiences. I am in the process of applying for a mortgage. I am currently permeant for the last 2 years My wife has just secured her first fixed term contract in teaching. Ptsb and ulsterbank ruled us out until her 2nd fixed term contract. Boi have gave us house hunters AIP and kbc have sent docs to assessors. My question is has anyone secured a full offer in a similar situation?

DubLad69

Kyle1994 wrote: »

Hi,
Wondering can anyone share there experiences. I am in the process of applying for a mortgage. I am currently permeant for the last 2 years My wife has just secured her first fixed term contract in teaching. Ptsb and ulsterbank ruled us out until her 2nd fixed term contract. Boi have gave us house hunters AIP and kbc have sent docs to assessors. My question is has anyone secured a full offer in a similar situation?

I havnt done this myself. But I know of a teacher on 1 year fixed term contract who got a letter from principal stating that there is no reason why their contract would not be renewed and they were given a mortgage and even an LTI exception.

wassie

pooch90 wrote: »

Am quite fed up with our broker. We initially made contact at start of July and dealt with one lady, she was swamped so passed us to her colleague. Finally put an application in mid August with ICS. Took 6 weeks to come back €50k short of what broker had thought we would get. Rang broker and said I'd been told to try BOI and PTSB because they aren't as tough on having kids and only one income. Told absolutely no way I'd get near what I'd want with them and Finance Ireland was our only real hope now. Gave him go ahead to do FI application. Two days later emailed to ask for the application, fours days later I get a reply saying waiting for forms to generate on system. Now, four days later, still waiting.

The day after I gave the go ahead to do the FI application, I made an appt myself online with local branch of PTSB for the Friday. Brought my mortgage folder with me. Met for 70 minutes with a great advisor who was confident I'd get the full 3.5 times my salary, took my folder off me and photocopied everything there. Sent me away with the application form which I returned Monday, she had all submitted by Wed and AIP for the full amount by yesterday!! So one week in total. Longer than it's taken the broker to send us a bloody form!

Now, I'm wondering, do I stick with him for the FI application? We want to see if they'd offer more but I'm also reluctant that he gets any commission based on awful advise of not going to PTSB and total lack of communication. Like, can it actually take 10 days to get a form?

I would get a new broker immediately.

If this is the service your getting now what happens when you actually find a house and go through the purchase process. Would not give me a lot of confidence.

There are plenty of brokers out there who are keen for your business - and you don't even need to physically meet them. Mine is on the other side of the country to where I live and service has been A1.

FI are fairly good at turnaround times in assessing applications i.e. 10 working days or less. But your broker needs to get the application in first!

First time buyer 2025

I'm thinking to the future, and hoping to buy a house in about 5 years (when I'm 40.) I know literally nothing about the whole process! I'm looking for some advice about what changes I should be making between now and then to put me in a good position to get approved for a mortgage.

About me - I'm 35, female, single, with one child (who probably would not count as a dependent for the purposes of mortgage approval, as he lives mostly with his dad.)

I work part-time (20 hours a week) and my salary is 20k. For now, I would prefer to stay working part-time, but my understanding is that you can only get a mortgage for 3.5 times your salary? So I guess closer to the time I'll need to move to working full-time, we'll assume I could get a job for 40k, but I assume it's fine to stay part-time until I'm actually ready to apply for the mortgage?

Savings - I'm starting from scratch, but I intend to save €300 a month from here on out, so I should have €18k in savings in five years. Is it OK to save in the credit union, or should I set up a bank savings account? (My current account is with BOI.)

How far back do they look at your bank statements? I know anything to do with gambling is out, what other expenses should I avoid? I am thinking, for example, I see a psychiatrist a few times a year to help manage my mental health ... is that something that could go against me, or am I overthinking it?

I currently rent an apartment in Dublin via HAP, so my rent is very cheap (hence why I can afford to work only part-time. Will this put me at a disadvantage, for any reason, the fact that I'm on HAP? (I have a good record of always paying my rent to the council on time.)

I'd really appreciate any advice anyone could give me that will help put me in a good position to buy.

Milena009

Hi there,

Following as well some advice.

1) credit union is perfectly fine, all that banks want to see is consistent pattern of savings
2) they will look at 6 months of bank statements (+revolut type accounts if you have it)
3) they will definitely stress test you - so if your mortgage will be lets say 1100 they want to know you can easily pay 2% extra or so
4) you need to be post probation if you do change your job

Don't think mental health visits like therapist will be against. its a recurring expense and you clearly can budget it in.
I wouldn't worry.

As I am at saving stage myself, i cannot help with other points but looking forward to others responses as i will be a FTB too

DubCount

A few pointers:

1) Saving in a credit Union is fine. Make sure rent and savings are paid regularly and consistently - no exceptions
2) Stay away from Gambling. No gambling sites or even the lotto. Banks think if you gamble with your money, you gamble with theirs
3) Stress testing is a major factor, so being able to cope with increases in interest rates etc. needs to be looked at now.

I would actually talk to a mortgage broker now and get a steer on matters like whether your child will have an impact on your chances to get a mortgage or how much you could afford if you have 18k in savings. There is no point having a 5 year dream if the reality is different to expectation when you get to the end line. Maybe you might need to save more, or earn more etc. - find out now.

AngryLips

First time buyer 2025 wrote: »

I see a psychiatrist a few times a year to help manage my mental health ... is that something that could go against me, or am I overthinking it?

This might be questioned in more detail when it comes time to get mortgage protection cover and it could turn a simple and straight forward process into a longer back and forth between the potential insurer and your doctors. When that happens, it's usually at the worst possible time because by then most people are sale agreed and ready to sign. I suggest you look into your mortgage protection situation a bit earlier in the process just to avoid any delays. Find a broker who specialises in getting cover for people with a history of depression (for example) if you think something like this will be a concern in your situation. For this reason, it might be a good idea to go the broker route for both mortgage and mortgage protection.

L1011

Milena009 wrote: »

3) they will definitely stress test you - so if your mortgage will be lets say 1100 they want to know you can easily pay 2% extra or so

KBC today applied a stress test to 5.5% on a 2.25% rate for me - so at least some banks are going more than +2% in some cases.

Milena009

L1011 wrote: »

KBC today applied a stress test to 5.5% on a 2.25% rate for me - so at least some banks are going more than +2% in some cases.

oh! interesting to know, thank you!

Was that because you try for an exception or is it their regular process?

I am kbc customer and seems for now, they got best rates too.

Milena009

Hi all,

Total newbie to the forum as well as the whole process

So, I would be FTB with my partner.
We are primarily interested in new builds with a reasonable commute.
I work in Sandyford, himself in IFSC.
Therefore link to train himself and drive for me.

We only have about 5k saved up right now. We set up a joint savings account for KBC with goal of 1k a month.
We both have separate credit union accounts for adhoc savings
He has currently a car loan)
We are currently renting in south Dublin for 1600 a month.

My question would be, what's the next process?

We would like to buy after about two years but with HTB (possibly) being extended, could be sooner.

Any tips, tricks are appreciated.
apologies for chaotic text.

Thank you

woodchuck

For your 18K savings, presumably that will be your deposit. Have you taken into account other money you'll need as part of the process? There are the obvious things like stamp duty, solicitor fees, surveyor report etc. But what about your budget for furniture, appliances etc? And if you buy an old house, you might need to do a lot of DIY, which all adds up very quickly.

Au_Revoir

Does anyone know, what is the maximum distance (kilometers) the property has to be from the workplace, for the bank not to ask any questions about commute?

pooch90

wassie wrote: »

I would get a new broker immediately.

If this is the service your getting now what happens when you actually find a house and go through the purchase process. Would not give me a lot of confidence.

There are plenty of brokers out there who are keen for your business - and you don't even need to physically meet them. Mine is on the other side of the country to where I live and service has been A1.

FI are fairly good at turnaround times in assessing applications i.e. 10 working days or less. But your broker needs to get the application in first!

Once we have the AIP we won't really need the broker much though will we?

Bubbaclaus

I wouldn't bother with a broker tbh if you have the time to be doing these things yourself and there is nothing funny with your financial position. Things can go wrong when middlemen are involved.

pooch90

Bubbaclaus wrote: »

I wouldn't bother with a broker tbh if you have the time to be doing these things yourself and there is nothing funny with your financial position. Things can go wrong when middlemen are involved.

Finance Ireland only work with brokers.
Our situation is a bit funny because we are a one income family with kids. Wasn't an issue with PTSB though.

First time buyer 2025

Thanks guys, a lot of food for thought here so far!

Honestly I was almost afraid to check this thread in case you'd all be laughing me out of it that I'd even think I might get a mortgage at that age and on my own!! So it's very reassuring that it seems it's not totally impossible. (I mean, in an ideal world, I'd go back a few years and start planning and making better decisions then. But look, I can only work with what I have now.)

One more thing - I've had small loans and credit cards a few years back, when I was young(er) and foolish(er), where I was rubbish with repayments. They're all cleared now, but would it be recommended that I get a loan in the next few years just to prove that I can make repayments? Or no?

@woodchuck those are expenses I wouldn't have factored in at all, thanks for that! I guess I'll aim at saving €300 a month for the next 6 months, and then look at where I can cut down expenses to up that amount to cover everything else. (It's possible I may also be gifted a couple of grand from family, but it's not something we've discussed yet, and I wouldn't count on it or factor it into my calculations for now.)

wassie

pooch90 wrote: »

Once we have the AIP we won't really need the broker much though will we?

It depends what you want with your mortgage (rates, cashbacks, var vs fixed, early repayment etc).

I would agree with Babbaclause and be applying direct if you are not in need of an exemption (which it seems your not) - obviously this only applies to the banks as non-banks (ICS, FI, Avant etc are broke only). You can have multiple AIPs also so when it comes time to drawdown you can choose who which one suits yourself.

Your situation sounds straight forward - lenders just differ in terms of how they assess serviceability of a single income with dependents. Some will be more favourable to your specific situation.

pooch90

wassie wrote: »

It depends what you want with your mortgage. I would agree with Babbaclause and be applying direct if you are not in need of an exemption (which it seems your not). In which case your situation sounds straight forward - lenders just differ in terms of how they assess serviceability of a single income with dependents. Some will be more favourable to your specific situation.

I've got aip anyway from PTSB, just hoping that I could get more from Finance Ireland now they're doing extra salary points for public sector workers and they take children's allowance into account.

AngryLips

First time buyer 2025 wrote: »

One more thing - I've had small loans and credit cards a few years back, when I was young(er) and foolish(er), where I was rubbish with repayments. They're all cleared now, but would it be recommended that I get a loan in the next few years just to prove that I can make repayments? Or no?

Don't get a loan, that would only be considered another thing that compromises on your capacity to repay your mortgage and therefore lower the amount a bank would lend you. Repayment capacity can be judged from the amount you save and the consistency with which you pay your direct debits.

First time buyer 2025 wrote: »

It's possible I may also be gifted a couple of grand from family, but it's not something we've discussed yet, and I wouldn't count on it or factor it into my calculations for now.

I think that there's tax liability on gifts over €3k per year so if you're thinking of getting a gift and it's an amount in excess of that then you could get €6k by receiving €3k before this year is out and the rest after the new year.

wassie

pooch90 wrote: »

I've got aip anyway from PTSB, just hoping that I could get more from Finance Ireland now they're doing extra salary points for public sector workers and they take children's allowance into account.

By salary points I will assume you mean FI will assess your basic pay as two points up the salary scale from what you are currently on? If you you are looking to borrow more than the 3.5x salary and you are in a PS job, why don't you try to get an exemption. Given what is being reported o this thread they seem to be available in certain circumstances such as yours perhaps. In this instance, I would recommend a finding a good broker whom is aware of exemptions available.

I dont think FI include child benefit (if thats what you mean by childs allowance) as additional income in determining your loan to income (LTI). Ulster Bank are the only ones I am aware of - but i stand to be corrected on this.

Good luck with it all.

L1011

Milena009 wrote: »

oh! interesting to know, thank you!

Was that because you try for an exception or is it their regular process?

I am kbc customer and seems for now, they got best rates too.

I'm at the entire opposite end from needing an exemption, its a switcher for about 30% LTV.

pooch90

wassie wrote: »

By salary points I will assume you mean FI will assess your basic pay as two points up the salary scale from what you are currently on? If you you are looking to borrow more than the 3.5x salary and you are in a PS job, why don't you try to get an exemption. Given what is being reported o this thread they seem to be available in certain circumstances such as yours perhaps. In this instance, I would recommend a finding a good broker whom is aware of exemptions available.

I dont think FI include child benefit (if thats what you mean by childs allowance) as additional income in determining your loan to income (LTI). Ulster Bank are the only ones I am aware of - but i stand to be corrected on this.

Good luck with it all.

My income is under 70k so I don't know if I'd be considered for an exemption. But I am a deputy principal in a school so maybe? Yes I meant two points up the basic scale of salary.

FI and UB are the only two lenders who accept child benefit.

Just very disappointed with broker on the whole and don't want to immediately jump ship to someone else but it's very annoying. Surely brokers should be applying to loads of lenders, not just one at a time?

DD85

I have been offered a mortgage by AIB and BOI.

AIB is the 5 year fixed rate at 2.45% and BOI is a one year fixed rate on a higher rate of 2.75%

whats the smart thing to do here? had applied for the AIB mortgage initially but decided to apply to BOI as well as i was thinking it might make more sense to go on a one year in case interest rates in general come down soon. The AIB is a better option long term as things stand.

also BOI offer cash back. surely im not entitled to that on a one year fixed rate if i decide to move ?