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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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[Deleted User]

MickyPearse wrote: »

First time buyer. Taking out a 150K Mortgage to buy a house for 280k. I am paying 130k myself.

BOI are offering me 2.9% fixed rate. I feel like I can do much better giving how much I am paying myself. Any advice would be greatly appreciated.

Have a look here: https://www.ccpc.ie/consumers/money-tools/mortgage-comparisons/

You can get 7 year fixed with Avant for 1.95%.

Leozord

MickyPearse wrote: »

First time buyer. Taking out a 150K Mortgage to buy a house for 280k. I am paying 130k myself.

BOI are offering me 2.9% fixed rate. I feel like I can do much better giving how much I am paying myself. Any advice would be greatly appreciated.

you can get a good rate with avant money because of the low LPV you got: https://www.avantmoney.ie/mortgages/rates

brisan

Milena009 wrote: »

Hi all,
Quick question
Where does everyone look for new build developments?
Especially upcoming phases for these
Other than daft / myhome.
We gonna be looking to buy mid next year, commuting distance to dublin when all comes back to "normal"

You could look at developments that interest and then ring the estate agents and ask them do they know if futher phases are planned and when they will come onstream

brisan

Interested Observer wrote: »

Question, my parents are currently thinking of downsizing, they have no mortgage and the house being sold would be a lot more valuable (at least 100k) than the house being bought. The thing is, they wouldn't have a huge amount of cash so would probably struggle to pay an initial deposit to the estate agent on the house they're looking to buy. Is there any suggestion on what to do here? Options would be get a short term loan, or myself + siblings scrape the money together and lend it, and get it back when the house sells, but none of us are exactly loaded either.

Bank may offer a short term loan with the house as security
Make SURE the deposit is fully refundable

td2008

Leozord wrote: »

you can get a good rate with avant money because of the low LPV you got: https://www.avantmoney.ie/mortgages/rates

Also need to be near the city
https://www.thecork.ie/2020/09/18/mortgage-competition-new-lender-avant-money-enters-cork-market/

Cork City plus locations within 30km of Cork City Centre
Dublin County plus any town within 30km of Dublin County Border
Galway City plus locations within 30km of Galway City Centre
Limerick City plus locations within 20km of Limerick City Centre
Waterford City plus locations within 20km of Waterford City Centre

Shoden

Sneak wrote: »

Pretty silly question just hoping I'm not missing something. My partner and I are looking at a house for 380k. We've been approved a 300k mortgage and we've 50k savings. We've been approved the full amount on the help to buy scheme which in my head adds up to 380k. Just wondering am I missing something?

Sounds right, therefore the max ye can afford after stamp duty and legal fees is around €375k. Good work!

Whodanoob

Just looking for some opinions. I'm a ftb, work south Dublin, looking to buy second half of next year. Should have about 90k to out into the mortgage. My question is, should I buy a 3 bed new build in Wicklow and get htb, or a 2/3 bed north county Dublin or possibly west Dublin. Ideally I would rent out a room or two. Max price about 300 for new build or about 275 for second hand. I like the idea of paying down a second hand, cheaper house more quickly. Apologies if this is not the right forum for this question!

Bluefoam

Whodanoob wrote: »

Just looking for some opinions. I'm a ftb, work south Dublin, looking to buy second half of next year. Should have about 90k to out into the mortgage. My question is, should I buy a 3 bed new build in Wicklow and get htb, or a 2/3 bed north county Dublin or possibly west Dublin. Ideally I would rent out a room or two. Max price about 300 for new build or about 275 for second hand. I like the idea of paying down a second hand, cheaper house more quickly. Apologies if this is not the right forum for this question!

Wicklow seems to be highly desirable and robust in terms of property prices at the moment... I believe similar prices as Dun Laoghaire but more space to deveop new builds... North Wicklow is very desireable. It's possibly easier to commute to South Dublin from Wicklow. I commuted from The Northside for years and it took time, but was almost bearable...

It's really up to you... will it suit your lifestyle, where do you see yourself in the future, does it have a good pub close by (my own criteria), is it suitable for you to be able to get out and meet friends, socialise... get to whereever you socialise... they are some of the key things for me... the dredge of commuting to work is balanced by access to nice things...

pooch90

itsusuallyjazz wrote: »

I applied through a broker nearly 3 weeks ago and no response yet

Jesus, that's nuts! I applied direct a few weeks ago. Initial meeting on the Friday, dropped in application the Monday, advisor submitted it on Wed and had approval that Friday!

itsusuallyjazz

pooch90 wrote: »

Jesus, that's nuts! I applied direct a few weeks ago. Initial meeting on the Friday, dropped in application the Monday, advisor submitted it on Wed and had approval that Friday!

I spoke to the broker last week and he was sure all would be fine. To be honest I am getting a little concerned now though. Might chase him again tomorrow

donnaille

TM2015 wrote: »

Yes, they are. We are a combined income of 140k, rent 1550, save anywhere between 2000 to 3000 a month, one is a public servant, the other one a professional, 1 child in school. The "exemption" AIB gave was 5k above the 3.5 LTI. I didn't know whether to laugh or cry.

Is there a chance that it’s more about outstanding loans, after school childcare etc. that are reducing the amount you can borrow (I.e. without the exemption you wouldn’t get the full 3.5x)? I’d always understood the exemptions to be a salary multiple so €5k sounds strange - but then again we are in different times!

SarahS1987

itsusuallyjazz wrote: »

I spoke to the broker last week and he was sure all would be fine. To be honest I am getting a little concerned now though. Might chase him again tomorrow

Dont worry, we are first time buyers. Went through a broker, took 5 weeks for approval in principal and 2 weeks for full offer letter, just received it today. There are delays in the banks due to reduced staffing

pooch90

SarahS1987 wrote: »

Dont worry, we are first time buyers. Went through a broker, took 5 weeks for approval in principal and 2 weeks for full offer letter, just received it today. There are delays in the banks due to reduced staffing

A lot of lenders have been slow but PTSB are one of the fastest atm so I'd be annoyed if I was the OP.

Renjit

Whodanoob wrote: »

Just looking for some opinions. I'm a ftb, work south Dublin, looking to buy second half of next year. Should have about 90k to out into the mortgage. My question is, should I buy a 3 bed new build in Wicklow and get htb, or a 2/3 bed north county Dublin or possibly west Dublin. Ideally I would rent out a room or two. Max price about 300 for new build or about 275 for second hand. I like the idea of paying down a second hand, cheaper house more quickly. Apologies if this is not the right forum for this question!

If you are looking for city center connectivity (renting out to someone) then look no further. West dublin has some good developments right across the luas line. North is way up.

Brock Turnpike

Hi. I think a similar question may have been asked before in this thread but can't find it so hoping someone can provide some advice.

We have enquired about viewing a house and the EA has come back to us via email looking for the following info

We will also need you to include in the email your proof of funds. This can be an AIP letter, loan offer, bank statement or letter from your solicitor or accountant confirming that you are in funds (or will be in funds following a sale).

We really are not comfortable providing that detail. We have AIP but I see no reason why I should have to provide proof of this and essentially reveal my hand for bargaining of it comes down to it

Anyone had similar experience? Did you provide them this detail?

hi!

Brock Turnpike wrote: »

Hi. I think a similar question may have been asked before in this thread but can't find it so hoping someone can provide some advice.

We have enquired about viewing a house and the EA has come back to us via email looking for the following info

We really are not comfortable providing that detail. We have AIP but I see no reason why I should have to provide proof of this and essentially reveal my hand for bargaining of it comes down to it

Anyone had similar experience? Did you provide them this detail?

Yes every viewing I’ve gone to they’ve looked for this. I sent a copy of AIP with the loan amount blocked out and they were happy with that.

Milena009

Brock Turnpike wrote: »

Hi. I think a similar question may have been asked before in this thread but can't find it so hoping someone can provide some advice.

We have enquired about viewing a house and the EA has come back to us via email looking for the following info

We really are not comfortable providing that detail. We have AIP but I see no reason why I should have to provide proof of this and essentially reveal my hand for bargaining of it comes down to it

Anyone had similar experience? Did you provide them this detail?

As far as I understand they are entitled to see your aip however you can blur out the amount you have been approved for
I suppose it has to do with lockdown and level 5 restrictions.

narodvale

Brock Turnpike wrote: »

Hi. I think a similar question may have been asked before in this thread but can't find it so hoping someone can provide some advice.

We have enquired about viewing a house and the EA has come back to us via email looking for the following info

We really are not comfortable providing that detail. We have AIP but I see no reason why I should have to provide proof of this and essentially reveal my hand for bargaining of it comes down to it

Anyone had similar experience? Did you provide them this detail?

I believe, from speaking to our estate agent conversationally, we are Sale Agreed, that in level 5 this is a requirement.

They can only show unoccupied houses to people who provide proof of AIP.

wally79

We bought two years ago and were asked for this. Just send the letter with the amount blacked out as suggested

dev_ire

I wish AIP was mandatory but it is in the interest of some people to not have it mandatory.

Duke of Url

dev_ire wrote: »

I wish AIP was mandatory but it is in the interest of some people to not have it mandatory.

What do you mean?

Renjit

Brock Turnpike wrote: »

Hi. I think a similar question may have been asked before in this thread but can't find it so hoping someone can provide some advice.

We have enquired about viewing a house and the EA has come back to us via email looking for the following info

We really are not comfortable providing that detail. We have AIP but I see no reason why I should have to provide proof of this and essentially reveal my hand for bargaining of it comes down to it

Anyone had similar experience? Did you provide them this detail?

You can hide the amount for AIP and loan offer and send them the screenshot of the papers. You dont have to show them the amount.

Starlord_01

Brock Turnpike wrote: »

Hi. I think a similar question may have been asked before in this thread but can't find it so hoping someone can provide some advice.

We have enquired about viewing a house and the EA has come back to us via email looking for the following info

We really are not comfortable providing that detail. We have AIP but I see no reason why I should have to provide proof of this and essentially reveal my hand for bargaining of it comes down to it

Anyone had similar experience? Did you provide them this detail?

Our advisor in the bank gave us an "auctioneers letter" as she called it. Stated we were AIP without any figures on it.

Brock Turnpike

Thanks for all the replies. Going to send a copy with the amount blurred out

TM2015

donnaille wrote: »

Is there a chance that it’s more about outstanding loans, after school childcare etc. that are reducing the amount you can borrow (I.e. without the exemption you wouldn’t get the full 3.5x)? I’d always understood the exemptions to be a salary multiple so €5k sounds strange - but then again we are in different times!

Nope, no loans. No credit card debt either. We do have childcare costs but they are quite low. We have nearly 100k in savings waiting to be spent and we are still saving min 2k every month (often 3k) on top of our rent which is 1550. FTBs. We got the full 3.5 without the exemption. When we queried about the exemption, they considered the application and gave us the 5k. It's laughable. Like, what stress test are they applying?!

It is down to Covid even though we, as the applicants, have not been impacted by it at all. If anything, we're actually better off. One of us has even gotten a pay increase this summer. We had hoped to purchase in spring but KBC stopped giving out exemptions (we qualified for one easily) once the pandemic hit and sure the market took a nose dive anyway. Very frustrating overall.

Shoden

Correct way to work out mortgage costs when comparing lenders?

I have been doing maths on the bonkers site and I just wanted to ensure that I was doing the maths correctly, as in my situation BOI are working out the cheapest.

My workings out were the following:
(Monthly repayment) × (number of months that term is fixed for) - (any cashback/fee payments)

This gives you the total cost for the fixed term you're looking at. Then divide that by the amount of years to compare various fixed length terms. Dose that all make sense?

itsusuallyjazz

Shoden wrote: »

Correct way to work out mortgage costs when comparing lenders?

I have been doing maths on the bonkers site and I just wanted to ensure that I was doing the maths correctly, as in my situation BOI are working out the cheapest.

My workings out were the following:
(Monthly repayment) × (number of months that term is fixed for) - (any cashback/fee payments)

This gives you the total cost for the fixed term you're looking at. Then divide that by the amount of years to compare various fixed length terms. Dose that all make sense?

That is pretty much what I did with my broker, for me PTSB were about 20 euro cheaper over the 5 years when all these were added up.

IvoryTower

unless you're buying a new build or self-build the 2k cash back is actually €1,340 after tax, just incase anyone didnt know that. Like me before it was too late.

Shoden

IvoryTower wrote: »

unless you're buying a new build or self-build the 2k cash back is actually €1,340 after tax, just incase anyone didnt know that. Like me before it was too late.

Interesting. What was the difference? Tax or offering?

itsusuallyjazz

IvoryTower wrote: »

unless you're buying a new build or self-build the 2k cash back is actually €1,340 after tax, just incase anyone didnt know that. Like me before it was too late.

https://www.boards.ie/ttfthread/2058025637

Have things changed since this reply from BOI last year? this indicates that cashback is not taxable