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Saving/Applying for a mortgage 2020-22 Edition

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    #1772
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Carter D wrote: »
    Good thing about building is we can build within our budget we wouldn't be able to get a mortgage for a 500k house but we can build a 4 or 5 bed house then buying a new build and paying back a higher/longer mortgage.

    Not being smart but if you budget for 300k I would be amazed if it came in at that
    Very very few one offs come on on budget and the banks know this and will look for 10% cost overruns
    Brexit May also have a negative impact on the price of building materials
    Good luck with the build by the way
    Measure twice cut once 😂


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    #1773
    DaikinTest
    Registered Users Posts: 9 ✭DaikinTest


    Doctorsamuel wrote: »
    I have got AIP from AIB the same day we applied and after less than 3 weeks we received a positive answer that the mortgage was approved. Now they just want to know if somehow our working conditions will change due to Covid but it's not our case. Fair play to them, we are very satisfied for the service. Thanks to all of you guys for the previous suggestions. I strongly believe this forum is really useful!


    You got AIP same day? Wtf, they(Haven/AIB) much slower dealing with us even though we have a solid application and have been very responsive.


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    #1774
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    DaikinTest wrote: »
    You got AIP same day? Wtf, they(Haven/AIB) much slower dealing with us even though we have a solid application and have been very responsive.

    It's not underwriting AIP though, through their portal I would imagine.


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    #1775
    DaikinTest
    Registered Users Posts: 9 ✭DaikinTest


    Hmm. Fair enough. We waiting on full approval now. Told they wont even look at documents until 5 days after you've them sent in. This resulted in a previous income cert going out of date i.e. older than 28 days. Feels a bit like they drag it out needlessly.


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    #1776
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    DaikinTest wrote: »
    Hmm. Fair enough. We waiting on full approval now. Told they wont even look at documents until 5 days after you've them sent in. This resulted in a previous income cert going out of date i.e. older than 28 days. Feels a bit like they drag it out needlessly.

    We begun our application with EBS on September 23rd and had full underwriting approval October 5th.


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    #1777
    poker--addict
    Registered Users Posts: 1,725 ✭✭✭poker--addict


    ebs and aib are linked are they not?

    😎



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    #1778
    Doctorsamuel
    Registered Users Posts: 16 ✭Doctorsamuel


    DaikinTest wrote: »
    You got AIP same day? Wtf, they(Haven/AIB) much slower dealing with us even though we have a solid application and have been very responsive.

    yes, just seconds after submitting the form through their website. Then we uploaded all the required documentation (not a lot as we have our accounts with them) and in less than 3 weeks we got the final approval.


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    #1779
    CarMc
    Registered Users Posts: 74 ✭✭CarMc


    Doctorsamuel wrote: »
    yes, just seconds after submitting the form through their website. Then we uploaded all the required documentation (not a lot as we have our accounts with them) and in less than 3 weeks we got the final approval.

    When you say final approval do you mean underwritten AIP, rather than loan offer - did you go sale agreed and submit the valuation for your new home ?


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    #1780
    antimatterx
    Registered Users Posts: 2,701 ✭✭✭antimatterx


    I read on the "First time buyers" Facebook group that bank give single people an exemption of 4.5 if their salary is > 50K. Great news if so.


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    #1781
    Creamy Goodness
    Registered Users Posts: 26,558 ✭✭✭✭Creamy Goodness


    antimatterx wrote: »
    I read on the "First time buyers" Facebook group that bank give single people an exemption of 4.5 if their salary is > 50K. Great news if so.

    it is totally dependant on the bank and is not the only factor for single people. If I was to say the top three things the bank look for when giving exceptions to single people it would be.

    1. High disposable income after stress test*
    2. Little to no loans/childcare/maintenance payments that severely affect point 1.
    3. High salary with stable job.


    * AIB wanted me to have 1,500 left over after stressed mortgage payment and other bills were taken into account, this changed to 2,300 after 6 months but luckily in that six months I was able to change my salary (via promotion) and save more to require not using the exception.

    There's just so many permutations of the rules that I dislike seeing a person latch on to just one thing mentioned (be it here or Facebook or wherever), the best thing is to talk and engage with the banks or a broker if you're unsure.


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    #1782
    DubLad69
    Registered Users Posts: 481 ✭✭DubLad69


    Creamy Goodness wrote: »
    it is totally dependant on the bank and is not the only factor for single people. If I was to say the top three things the bank look for when giving exceptions to single people it would be.

    1. High disposable income after stress test*
    2. Little to no loans/childcare/maintenance payments that severely affect point 1.
    3. High salary with stable job.


    * AIB wanted me to have 1,500 left over after stressed mortgage payment and other bills were taken into account, this changed to 2,300 after 6 months but luckily in that six months I was able to change my salary (via promotion) and save more to require not using the exception.

    There's just so many permutations of the rules that I dislike seeing a person latch on to just one thing mentioned (be it here or Facebook or wherever), the best thing is to talk and engage with the banks or a broker if you're unsure.

    AIB wanted me to have €3,500 as a couple left over each month after a stress tested mortgage payment to qualify for an exemption


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    #1783
    Accounting13
    Registered Users Posts: 64 ✭✭Accounting13


    Hi Guys, just wondering if anyone has been offered a lower mortgage due to outstanding car loans? Myself and my partner have o/s loan of 10k out and our broker has said that it’s preventing us getting an extra 40k on top of of current mortgage AIP offer from the bank. We earn over 100k Per year between us (both in our 20s) and save well over and above what our mortgage would be for stress test purposes, while also comfortably paying off the car loan each month. Would it be normal for the car loan to have such an effect on the mortgage offer even you can comfortably afford it? Can understand if a car loan repayment was putting a strain on us financially each month but it’s not.

    Cheers


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    #1784
    DubLad69
    Registered Users Posts: 481 ✭✭DubLad69


    Accounting13 wrote: »
    Hi Guys, just wondering if anyone has been offered a lower mortgage due to outstanding car loans? Myself and my partner have o/s loan of 10k out and our broker has said that it’s preventing us getting an extra 40k on top of of current mortgage AIP offer from the bank. We earn over 100k Per year between us (both in our 20s) and save well over and above what our mortgage would be for stress test purposes, while also comfortably paying off the car loan each month. Would it be normal for the car loan to have such an effect on the mortgage offer even you can comfortably afford it? Can understand if a car loan repayment was putting a strain on us financially each month but it’s not.

    Cheers

    Yes common enough unfortunately. If you need the extra 40k could you come up with an agreement to pay the loan off before drawdown? That way you are still up 30k.


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    #1785
    Accounting13
    Registered Users Posts: 64 ✭✭Accounting13


    DubLad69 wrote: »
    Yes common enough unfortunately. If you need the extra 40k could you come up with an agreement to pay the loan off before drawdown? That way you are still up 30k.

    Cheers. We only want about 30 out of the 40k but I’ll query if we could do something like that with the broker. To be honest, I feel like the broker isn’t pushing the issue enough with the bank. Broker seems to want us to clear the loan on our side off the bat as opposed to putting any the pressure on the bank first to see what they can do for us. Might be being a bit harsh on the broker, but I feel like they could do a bit more for us in terms of putting pressure on the bank.


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    #1786
    Exclamation Marc
    Registered Users Posts: 11,587 ✭✭✭✭Exclamation Marc


    Same happened here. Bank gave us two bands of value, one with my one loan of 15k remaining and one with it cleared. Big difference between the two. Our broker has been brilliant but this was out of his control.


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    #1787
    Accounting13
    Registered Users Posts: 64 ✭✭Accounting13


    Exclamation Marc wrote: »
    Same happened here. Bank gave us two bands of value, one with my one loan of 15k remaining and one with it cleared. Big difference between the two. Our broker has been brilliant but this was out of his control.

    Yeah looks to be the case that it may just have to be cleared. Seems to be an all or nothing with car loans. And there I was thinking a mortgage was more or less just about demonstrating repayment capacity and an ability to live...


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    #1788
    pooch90
    Registered Users Posts: 2,377 ✭✭✭pooch90


    When I met my PTSB advisor they put it an interesting way. She said that you have a certain limit on the amount of credit available to you based on earnings. I have a credit card with nothing on it. My limit is 8k. That 8k is taken into account as credit already made available to me so any mortgage given to me is also added to that. So I'd be better off having a credit limit of something more realistic. I've never gone more than 2k into it, just thought it was amazing they gave me such a high limit. Supposedly Avant are feckers for doing that.
    Overdraft facilities were also taken into account.


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    #1789
    Accounting13
    Registered Users Posts: 64 ✭✭Accounting13


    pooch90 wrote: »
    When I met my PTSB advisor they put it an interesting way. She said that you have a certain limit on the amount of credit available to you based on earnings. I have a credit card with nothing on it. My limit is 8k. That 8k is taken into account as credit already made available to me so any mortgage given to me is also added to that. So I'd be better off having a credit limit of something more realistic. I've never gone more than 2k into it, just thought it was amazing they gave me such a high limit. Supposedly Avant are feckers for doing that.
    Overdraft facilities were also taken into account.

    Would you not chance Avant for a mortgage in that case based on the high credit card limits they’re handing out haha?


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    #1790
    pooch90
    Registered Users Posts: 2,377 ✭✭✭pooch90


    Accounting13 wrote: »
    Would you not chance Avant for a mortgage in that case based on the high credit card limits they’re handing out haha?

    Haha! It's actually through An Post Money. Doubt they would actually give me a mortgage, one income family with two kids.


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    #1791
    Accounting13
    Registered Users Posts: 64 ✭✭Accounting13


    pooch90 wrote: »
    Haha! It's actually through An Post Money. Doubt they would actually give me a mortgage, one income family with two kids.

    Ah I see but suppose you never know!


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    #1792
    pooch90
    Registered Users Posts: 2,377 ✭✭✭pooch90


    Accounting13 wrote: »
    Ah I see but suppose you never know!

    Might look into it. We have AIP from PTSB and Finance Ireland at the minute anyway. Our LTV wouldn't be very low so dunno if Avant would make much of a difference to us tbh.


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    #1793
    theintern
    Registered Users Posts: 589 ✭✭✭theintern


    Accounting13 wrote: »
    Hi Guys, just wondering if anyone has been offered a lower mortgage due to outstanding car loans? Myself and my partner have o/s loan of 10k out and our broker has said that it’s preventing us getting an extra 40k on top of of current mortgage AIP offer from the bank. We earn over 100k Per year between us (both in our 20s) and save well over and above what our mortgage would be for stress test purposes, while also comfortably paying off the car loan each month. Would it be normal for the car loan to have such an effect on the mortgage offer even you can comfortably afford it? Can understand if a car loan repayment was putting a strain on us financially each month but it’s not.

    Cheers

    The advisor in UB said this to us, that they would be subtracting the amount of the loan times 3.5 from what we could borrow which seemed crazy to me, so I offered to pay off the car loan before drawdown.

    Eventually when full underwriting approval came through, they approved what we needed without us having to pay off the loan.


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    #1794
    Accounting13
    Registered Users Posts: 64 ✭✭Accounting13


    theintern wrote: »
    The advisor in UB said this to us, that they would be subtracting the amount of the loan times 3.5 from what we could borrow which seemed crazy to me, so I offered to pay off the car loan before drawdown.

    Eventually when full underwriting approval came through, they approved what we needed without us having to pay off the loan.

    Yeah it’s crazy they way they do that. Wish I’d have known this before taking the car loan out a while back!


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    #1795
    Corruptedmorals
    Registered Users Posts: 4,194 ✭✭✭Corruptedmorals


    I found AIB very easy to deal with and very responsive. A bit different as it was immediately pre-Covid but we got AIP the same day as the application. Full loan approval took 1 week. The app was great for uploading everything and approved things quickly. Contacting them via the app or by phone was always successful and quick to sort out. Our mortgage advisor took a special interest in driving our sale over the line (8 months of hell closing the sale) and chased things on our behalf ahead of time so that we wouldn't have to. The legal team were very quick too when they were involved.


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    #1796
    Pete123456
    Registered Users Posts: 963 ✭✭✭Pete123456


    Can I ask where do people get their legal teams from and what kind of costs were talking? Seems a bit ridiculous that a solicitor charges 1%, but maybe that’s common?


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    #1797
    Corruptedmorals
    Registered Users Posts: 4,194 ✭✭✭Corruptedmorals


    I meant legal team as in AIB's legal team as they were involved before our sale closed. Including all fees I would have thought solicitor's ranged between 2-3k.


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    #1798
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    Pete123456 wrote: »
    Can I ask where do people get their legal teams from and what kind of costs were talking? Seems a bit ridiculous that a solicitor charges 1%, but maybe that’s common?

    Shop around. We contacted about 7/8 different solicitors in the area we are buying. 2 which were recommended. We calculated the average price and went with one in and around that. It is working out at 0.8% of sale price.


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    #1799
    Creamy Goodness
    Registered Users Posts: 26,558 ✭✭✭✭Creamy Goodness


    DubLad69 wrote: »
    AIB wanted me to have €3,500 as a couple left over each month after a stress tested mortgage payment to qualify for an exemption

    Yup this proves my original point further, all the info you gleam from social media (and I include boards and this thread in this) should be used as an indication only and the only real source of truth is the bank.


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    #1800
    Tar.Aldarion
    Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 60,090 Mod ✭✭✭✭Tar.Aldarion


    Do they factor in pension payments for that stress testing, as they can be stopped any time? Seems rather stupid to stop them for a few months.


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    #1801
    DubLad69
    Registered Users Posts: 481 ✭✭DubLad69


    Tar.Aldarion wrote: »
    Do they factor in pension payments for that stress testing, as they can be stopped any time? Seems rather stupid to stop them for a few months.

    I know they do with the public service anyway, because we don't have the option of stopping them.

    The payment are made pre tax so they will only take into account 60% of the pension payment. (At least with AIB).


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