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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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Starlord_01

DD85 wrote: »

I have been offered a mortgage by AIB and BOI.

AIB is the 5 year fixed rate 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 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 ?

We were advised to go 2 or 3 year fixed rate.

td2008

We are looking at a new build and it mentions that appliances would be included if contracts are signed within 21 days. (I assume from the point the booking deposit is paid)

Just unsure what needs to happen within those 21 days and what can wait until after the contracts are signed as it does not seem to be a long time. Also, I assume when you sign contracts you pay the full deposit which is then not refundable?

mortgage drawdown (just have AIP now)- letter offer, bank survey/valuation
mortgage protection
exchange & agree contracts with the solicitors
complete snag list & items

Thanks

sparkle109

Is your new build ready yet?

td2008 wrote: »

We are looking at a new build and it mentions that appliances would be included if contracts are signed within 21 days. (I assume from the point the booking deposit is paid)

Just unsure what needs to happen within those 21 days and what can wait until after the contracts are signed as it does not seem to be a long time. Also, I assume when you sign contracts you pay the full deposit which is then not refundable?
mortgage drawdown (just have AIP now)- letter offer, bank survey/valuation

mortgage protection

exchange & agree contracts with the solicitors

complete snag list & items

Thanks

td2008

It's built anyway but not sure if there's anything left to do.
We viewed a different one in the same estate a few months ago and are going back this week to view again.

hi!

Got approval today with ICS mortgages. As they’ve gone up our pay scales it works out at basically 4.5 times our current salaries. 2.6% fixed rate. Very happy with this. Now to find our dream home

Took about 5 weeks from initial application so obvious delays but happy with the outcome.

DubLad69

hi! wrote: »

Got approval today with ICS mortgages. As they’ve gone up our pay scales it works out at basically 4.5 times our current salaries. 2.6% fixed rate. Very happy with this. Now to find our dream home

Took about 5 weeks from initial application so obvious delays but happy with the outcome.

Thats amazing! Can I ask if they also took any over time or extra work into account?

CarMc

td2008 wrote: »

We are looking at a new build and it mentions that appliances would be included if contracts are signed within 21 days. (I assume from the point the booking deposit is paid)

Just unsure what needs to happen within those 21 days and what can wait until after the contracts are signed as it does not seem to be a long time. Also, I assume when you sign contracts you pay the full deposit which is then not refundable?
mortgage drawdown (just have AIP now)- letter offer, bank survey/valuation

mortgage protection

exchange & agree contracts with the solicitors

complete snag list & items

Thanks

Talk to your solicitor, ask them to put a subject to finance clause in the contract, then if you don't get loan offer or can't drawdown for any reason you'll get your deposit back. Once that's in the contract you can sign early and work on getting all the other bits into place.

I've read on here that some sellers / builders will fight against it but I've just completed a sale & purchase and it was in all the contracts for that.

brisan

CarMc wrote: »

Talk to your solicitor, ask them to put a subject to finance clause in the contract, then if you don't get loan offer or can't drawdown for any reason you'll get your deposit back. Once that's in the contract you can sign early and work on getting all the other bits into place.

I've read on here that some sellers / builders will fight against it but I've just completed a sale & purchase and it was in all the contracts for that.

Anyone who signs a contract that is not subject to finance is crazy
Even more so so in Corona times
Cash buyers excepted of course

hi!

DubLad69 wrote: »

Thats amazing! Can I ask if they also took any over time or extra work into account?

I’m not 100% sure how they worked out the loan amount but it is 68k more than the banks were offering. We went with a broker and on our salary cert overtime and shift allowances were included on it so it may have been factored in.

DD85

DD85 wrote: »

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 ?

Would appreciate some advice on this.

mimimcmc

DD85 wrote: »

Would appreciate some advice on this.

Personally, just going by what we chose:

We applied to both AIB and BOI and got loan offers from both.
We were seriously considering boi just for the cash back offer, but our sale has been delayed now and we have saved that amount in that time.
The repayments with AIB are much cheaper and we both bank with AIB so it makes sense for us.
Plus fee free banking with the mortgage account on AIB.

It's all about personal preference, and if you really need that cash back.
I remember reading a comment here saying they wish they didn't go with boi, they got blinded with the cashback offer.

mimimcmc

DD85 wrote: »

Would appreciate some advice on this.

Also, I'm 99% sure you are entitled to the cash back even on the 1 year fixed rate

Creamy Goodness

You need to work out the cost of the mortgage over the 5 years fixed with AIB and 1 year fixed, 4 years variable + cashback with BOI (or go fishing for a better deal after the 1 year fixed is up).

not many here can advise this without know the figures.

thebiggestjim

DD85 wrote: »

Would appreciate some advice on this.

IMHO the smart move here would be to go with Avant. 5 year fixed @ 2.2% LTV 80% if this applies to you.

BOI are notoriously high priced. Their variable rate is the worst in the market. You can't take it for granted that you will be able to switch mortgages in a years time. Life circumstances may change. In these unstable times I would be looking to fix for 5 years at the lowest rate possible.

Billythekid19

thebiggestjim wrote: »

IMHO the smart move here would be to go with Avant. 5 year fixed @ 2.2% LTV 80% if this applies to you.

BOI are notoriously high priced. Their variable rate is the worst in the market. You can't take it for granted that you will be able to switch mortgages in a years time. Life circumstances may change. In these unstable times I would be looking to fix for 5 years at the lowest rate possible.

I disagree, its highly likely that rates will drop in the next few years with more competition. Locking yourself in for 5 years is not the way forward.

thebiggestjim

Billythekid19 wrote: »

I disagree, its highly likely that rates will drop in the next few years with more competition. Locking yourself in for 5 years is not the way forward.

This is certainly possible. A question I would ask yourself also though is will you be in a position to go through the mortgage process again with another lender if you want to switch lenders in year or twos time? 6 months worth of solid bank statements with no blemishes, no change in salary, etc. If rates do drop below the best in the market for 80% LTV, of 2.2% and that is an if, how much do you think they will drop? 0.3% to 1.9% at best I would imagine. I personally would be willing to lock in 2.2% for 5 years to ride out whatever is coming vs. holding out for a decent drop in rates that may never come.

I expect my circumstances will change in this time so I am happy to lock. Depends on your circumstances to the person who originally asked the question.

AngryLips

Billythekid19 wrote: »

I disagree, its highly likely that rates will drop in the next few years with more competition. Locking yourself in for 5 years is not the way forward.

In the short term rates will probably fall with the impact of Avant Money and also a possible imminent entry by An Post to the market. But in the medium term interest rates will probably go up what with all the money world governments are borrowing at the moment to get through this pandemic.

DD85

thanks for the replies everyone.

actually when i look at it i end up saving more on a 5 year fixed rate with BOI at 2.8% than the AIB green 2.45%. BOI is over 3000 more on repayments over the 5 year term but the total cash back would be over 6000 as im an existing customer and entitled to the extra 1% cashback after 5 years.

can always switch to AIB in 5 years time if they still have lower rates and they offer 2000 for switching. obviously alot can change in that time though.

i looked at Avant card also as suggested. their 1.95% rate is only available with a 50% LTV and thats not an option for me as you must be over 70% LTV to avail of help to buy. if i fix with them for 5 years on a rate of 2.2% , BOI still works out as less when you factor in the 3% cashback. also im in the west of ireland and the nearest avant card broker is in Cork.

wassie

AngryLips wrote: »

In the short term rates will probably fall with the impact of Avant Money and also a possible imminent entry by An Post to the market. But in the medium term interest rates will probably go up what with all the money world governments are borrowing at the moment to get through this pandemic.

Interest rate levels are a factor of the supply and demand of credit, not government borrowings. To suggest otherwise is simply misleading.

Kyle1994

Does anyone know the max distance from your workplace that the bank will accept?

itsusuallyjazz

question for those who have been through the process - I am a FTB and have just about got the 10% deposit saved for the value house I want. As I'm a month or 2 away I decided to go through a broker for the mortgage. The broker has advised me that to draw down the bank will expect me to have the full deposit, the value of stamp duty and 2k euro to cover the solicitors fees.

Has anyone been able to draw down when they have been a little short on the latter 2?

**edited to add ** I would expect to have the shortfall made up with the next pay after drawdown

pooch90

itsusuallyjazz wrote: »

question for those who have been through the process - I am a FTB and have just about got the 10% deposit saved for the value house I want. As I'm a month or 2 away I decided to go through a broker for the mortgage. The broker has advised me that to draw down the bank will expect me to have the full deposit, the value of stamp duty and 2k euro to cover the solicitors fees.

Has anyone been able to draw down when they have been a little short on the latter 2?

**edited to add ** I would expect to have the shortfall made up with the next pay after drawdown

You probably wouldn't be drawing down for a few months after going sale agreed anyway as you wait for contracts etc to be sorted. Some AIP applications are taking up to a month and a half to process(ICS, Finance Ireland are two I know of) so I wouldn't worry about time.
But most lenders won't let you drawdown without all fees ready to go.

brisan

itsusuallyjazz wrote: »

question for those who have been through the process - I am a FTB and have just about got the 10% deposit saved for the value house I want. As I'm a month or 2 away I decided to go through a broker for the mortgage. The broker has advised me that to draw down the bank will expect me to have the full deposit, the value of stamp duty and 2k euro to cover the solicitors fees.

Has anyone been able to draw down when they have been a little short on the latter 2?

**edited to add ** I would expect to have the shortfall made up with the next pay after drawdown

From the time you apply for mortgage until you drawdown could take 6 months
Longer would not be unusual
Do not forget surveyors fees ,snag fees if a new build and valuation fees

L1011

Two things I should have realised are far from fast:

1: Getting a salary cert in a large company
2: Getting a final statement for a now-closed but used in the last 6 months current account. Was apparently sent to my online banking but as that account doesn't exist, it isn't there!

brisan

L1011 wrote: »

Two things I should have realised are far from fast:

1: Getting a salary cert in a large company
2: Getting a final statement for a now-closed but used in the last 6 months current account. Was apparently sent to my online banking but as that account doesn't exist, it isn't there!

WFH makes it even harder as the wages dept do not have bits and pieces on hand

Green Mile

brisan wrote: »

WFH makes it even harder as the wages dept do not have bits and pieces on hand

I work in the wages department in my company. Thank god there’s delays in getting payslips or salary certs for me.

Still, I’d recommend people thinking of getting a mortgage to get a salary certificate and payslip copies early in the mortgage application process. Also a letter on heeded paper confirming the status of employment also helps. All that it needs to state is Start date, job position and if permanent/fixed term etc.

brisan

Green Mile wrote: »

I work in the wages department in my company. Thank god there’s delays in getting payslips or salary certs for me.

Still, I’d recommend people thinking of getting a mortgage to get a salary certificate and payslip copies early in the mortgage application process. Also a letter on heeded paper confirming the status of employee entrance also helps. All that it needs to state is Start date, job position and if permanent/fixed term etc.

In this covid era stating the company is not availing of income supports (ewss) if applicable would also be a bonus
IF you have all your ducks in a row and and know what you need in advance it makes it a lot easier ,
For years our company had an unofficial break up party on the day we finished for Christmas
The 2 girls that looked after us in maintenance never spent a penny and went out well oiled
Now they get 6 bottles of wine each at Christmas
Always pays to be well in with the girls in the wages dept.

lcarrol3

Hi all, just off the phone to BOI who confirmed to me they are offering exemptions if you have a property identified.

Dec2020

Any update on what BOI are asking for prior to drawdown in relation to the EWSS?

Duke of Url

Dec2020 wrote: »

Any update on what BOI are asking for prior to drawdown in relation to the EWSS?

I got my mortgage mid COVID with BOI

My adviser said that if I drawdown within 6 weeks of the letter of offer there was no checks. If after 6 weeks they have something called a COVID review and payslips need to be submitted?