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Saving/Applying for a mortgage 2020-22 Edition

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    #1922
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    Milena009 wrote: »
    Hey guys,
    General question
    Partner and I are looking at housing estate that has next phase launching Early 2021

    Now, for mortgage
    How are banks looking at 1) if bonus is paid each year yet not guaranteed? - him
    2) mine is a 5% of salary annually however 2021 would be my first year receiving it

    Otherwise might need to a small exception on LTI

    Thank you :)

    We were told they look at the last 3 years and between 20-50% of the bonus is considered.


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    #1923
    Pete123456
    Registered Users Posts: 963 ✭✭✭Pete123456


    Starlord_01 wrote: »
    We were told they look at the last 3 years and between 20-50% of the bonus is considered.

    We were the same. AIB will generally consider 25% if it’s guaranteed on a salary cert, but if you have several years they may consider up to 50%, however this seems to take a lot of convincing. We have been told KBC are more likely to consider 50% however we haven’t applied with them.

    I wouldn’t bank on any more than 50% being considered and I’d almost suggest doing your figures based on max 25% - even if it’s contractually guaranteed and on a salary cert. it’s a pain, but it is what it is, they call the shots!


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    #1924
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    Anyone gotten AIP from BOI lately? Just curious as to how long they took.


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    #1925
    Renjit
    Registered Users Posts: 949 ✭✭✭Renjit


    Milena009 wrote: »
    Hey guys,
    General question
    Partner and I are looking at housing estate that has next phase launching Early 2021

    Now, for mortgage
    How are banks looking at 1) if bonus is paid each year yet not guaranteed? - him
    2) mine is a 5% of salary annually however 2021 would be my first year receiving it

    Otherwise might need to a small exception on LTI

    Thank you :)

    BOI takes average of bonus over past years. But not sure how yours will be calculated. Perhaps they will be bit more conservative here.


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    #1926
    misstyc
    Registered Users Posts: 40 ✭misstyc


    Markitron wrote: »
    Anyone gotten AIP from BOI lately? Just curious as to how long they took.

    Took 7 working days for me recently, very efficient.


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    #1927
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    misstyc wrote: »
    Took 7 working days for me recently, very efficient.

    That's good to hear, thanks. Going through a broker so not sure what effect that might have.


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    #1928
    td2008
    Registered Users Posts: 478 ✭✭td2008


    Markitron wrote: »
    Anyone gotten AIP from BOI lately? Just curious as to how long they took.

    Not the quickest process for us - this was via a broker

    September 15th - Application
    October 2nd - AIP
    November 24th - Loan Offer


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    #1929
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    td2008 wrote: »
    Not the quickest process for us - this was via a broker

    September 15th - Application
    October 2nd - AIP
    November 24th - Loan Offer

    Also going through a broker, I assume the loan offer was after you had found a place? I am not likely to find somewhere suitable for a while.


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    #1930
    Masala
    Registered Users Posts: 3,463 ✭✭✭Masala


    Coming late to this thread... so apologies if this answer is buried in the previous 128 pages

    Are any of the lending institutions offering any first time buyer incentives???

    Asking for s friend...when I got my mortgage 25 yrs ago I got a €1500 kick back from the bank towards solicitors cost. Any thing line that going around etc..


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    #1931
    td2008
    Registered Users Posts: 478 ✭✭td2008


    Markitron wrote: »
    Also going through a broker, I assume the loan offer was after you had found a place? I am not likely to find somewhere suitable for a while.

    Yes, through a broker and the loan offer was after we had put a booking deposit down and had a valuation done. (new build)


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    #1932
    bulmersgal
    Registered Users Posts: 1,174 ✭✭✭bulmersgal


    td2008 wrote: »
    Not the quickest process for us - this was via a broker

    September 15th - Application
    October 2nd - AIP
    November 24th - Loan Offer

    Did you have place selected when you applied. I applied on 21st of November but looking for a exception and it's a new build. Have loan offer from other bank but broker said BOI would give me 8k more and then I would have the cash back. I've seen other people on Facebook groups saying application only took few days but I know my application will go straight to loan offer so hoping to hear word soon.


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    #1933
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    td2008 wrote: »
    Yes, through a broker and the loan offer was after we had put a booking deposit down and had a valuation done. (new build)

    Ah right, that makes sense. Did you get any cashback or anything from them or is that just for people that apply directly?


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    #1934
    td2008
    Registered Users Posts: 478 ✭✭td2008


    @bulmersgal - no, we didn't have a place selected when we applied but had a few ideas. Broker had got AIP from BOI and Ulster Bank, BOI was better due to the cashback - they also have 0.2% off the rates for A rated houses.

    @Markitron - yes, still eligible for the cashback but that's after draw down which hasn't happened yet. 2% then another 1% after 5 years if you have a BOI current account


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    #1935
    Starlord_01
    Registered Users Posts: 443 ✭✭Starlord_01


    Masala wrote: »
    Coming late to this thread... so apologies if this answer is buried in the previous 128 pages

    Are any of the lending institutions offering any first time buyer incentives???

    Asking for s friend...when I got my mortgage 25 yrs ago I got a €1500 kick back from the bank towards solicitors cost. Any thing line that going around etc..

    https://www.moneyguideireland.com/mortgages

    Mortgage Incentives :
    BOI offer 2% cashback to all new customers and 3% to those who stay with them for 5 years. (no maximum cashback)
    PTSB also offers 2% cashback lump sum for new customers and 2% off the monthly repayments back until 2027
    EBS also give 2% cashback to all new mortgage customers – plus another 1% if you stay with them for 5 years.
    Ulster Bank offers €1500 towards legal fees for all new customers.
    KBC will give €3000 to mortgage switchers only and €1500 towards legal fees for all new customers.
    AIB give €2000 cashback for switchers.

    https://mortgage123.ie/mortgage-rates/

    Not entirely sure if all are still valid.


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    #1936
    Malmedicine
    Registered Users Posts: 499 ✭✭Malmedicine


    Just wondering regarding Mortgage AIP and a change in situation. Wife is on pregnancy related sick leave and her salary has temorarily decreased as a result of this . She is due to go back to full pay and maternnity leave in early 2021. We have an AIP but am now wondering do I need to go through that process again?


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    #1937
    Steb87
    Registered Users Posts: 4 ✭Steb87


    Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

    Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

    Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

    Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

    Any other tips at all is welcome!


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    #1938
    Renjit
    Registered Users Posts: 949 ✭✭✭Renjit


    Malmedicine wrote: »
    Just wondering regarding Mortgage AIP and a change in situation. Wife is on pregnancy related sick leave and her salary has temorarily decreased as a result of this . She is due to go back to full pay and maternnity leave in early 2021. We have an AIP but am now wondering do I need to go through that process again?

    Bank will ask for latest salary slips just before drawdown or final mortgage letter.


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    #1939
    The_Fitz
    Registered Users Posts: 330 ✭✭The_Fitz


    Hi folks, just looking to see if anyone knows about applying for a mortgage when you have set up your own company. I know some banks (AIB) ask for 3 years of audited account but some other look for 2 (UB).

    Scenario:

    Company incorporated July 2020.
    First years final accounts will be ready say Feb 2021, second years account ready Feb 2022.

    Ulster Bank's requirements for self employed (https://digital.ulsterbank.ie/personal/mortgages/mortgage-documents.html#):
    2 years audited accounts certified by an accountant and signed by you
    Self certified accounts if no accountant with revenue balancing statement
    6 months business bank statements on all business accounts held
    Revenue forms – Form 11 & Chapter 4 for last 2 years
    Tax clearance cert or letter from accountant confirming tax affairs up to date

    The section that says Revenue forms - Form 11 & Chapter 4 for last 2 years. The person who set up the company, and is a director pays their tax via PAYE each month. Does this director need to fill out a Form 11, even if they are paying their tax monthly, similar to an employed person (rather than self employed)?

    Also, does anyone know if the final accounts which will take into account the date the company started (July 2020) until year end (Dec 2020) will be accepted as a full year?

    Thanks for the advice


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    #1940
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,961 Mod ✭✭✭✭L1011


    KBC cashback date has been kicked out again; so I don't need to try torture my solicitors to get everything done in the few working days left. Offer letter only being sent today.


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    #1941
    Cian59
    Registered Users Posts: 119 ✭✭Cian59


    Trying to get an answer to what I hope is a simple question but failing. Any idea what date the house insurance should start? I have a closing date but do I need it active before that for drawdown?


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    #1942
    Renjit
    Registered Users Posts: 949 ✭✭✭Renjit


    Cian59 wrote: »
    Trying to get an answer to what I hope is a simple question but failing. Any idea what date the house insurance should start? I have a closing date but do I need it active before that for drawdown?

    You need it before drawdown. Ask your bank.


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    #1943
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Ask your solicitor.

    It might be wise to have insurance in place from the point you're committed to buying as that's arguably the time at which you have a risk.


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    #1944
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Steb87 wrote: »
    Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

    Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

    Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

    Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

    Any other tips at all is welcome!
    Apply to all the banks
    Your own bank will have access to your accounts going back to when the gambling accounts were there
    Most banks just want to see 6 months clean accounts with regular savings and
    net income that will cover the mortgage repayments
    You do not need an account with a bank to get a mortgage from them
    Clear any loans you have if possible
    If either of your employers are on a government Covid subsidy that may be an issue


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    #1945
    nerrad01
    Registered Users Posts: 237 ✭✭nerrad01


    Steb87 wrote: »
    Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

    Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

    Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

    Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

    Any other tips at all is welcome!

    Get a good broker, i got approved for 4.1x salary and just had funds released yesterday. My broker was worth her weight in gold as whatever she earned from the bank it wasnt enough, as she has been dealing with me for over 2 years with god knows how many iterations of applications to banks. I had a different broker before her who wasnt great, but thankfully got recommended my latest place and they were exceptional.

    It literally would have been impossible to do it myself. Its a long and painful process, just keep plugging away consistently with the savings and maximising amount of disposable income every month as its all the banks care about


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    #1946
    ELM327
    Registered Users Posts: 21,639 ✭✭✭✭ELM327


    Steb87 wrote: »
    Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

    Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

    Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

    Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

    Any other tips at all is welcome!

    BOI are good for including shift allowances, bonuses and OT.
    Once it's showing on your P60 for 3 years.

    When I bought my apartment, I only needed a 2X salary multiple (and got easy approval) because the salary amount they decided upon was my base salary plus and the average of my overtime and bonus amount over that past 3 years.

    Generally for a 4.5X exemption you'd need to be on a combined minimum of 80k base before they even consider you. Note, this is not a CBI rule, but a banks one.


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    #1947
    BrentMused
    Registered Users Posts: 1,358 ✭✭✭BrentMused


    Markitron wrote: »
    Anyone gotten AIP from BOI lately? Just curious as to how long they took.

    They were the slowest of all the banks we applied with, despite us starting with them a week earlier than any of the others.

    Probably about 3 weeks all in from the day we submitted all of the documentation to us getting AIP.


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    #1948
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    BrentMused wrote: »
    They were the slowest of all the banks we applied with, despite us starting with them a week earlier than any of the others.

    Probably about 3 weeks all in from the day we submitted all of the documentation to us getting AIP.

    Thanks, it will be two weeks tomorrow since I applied. Haven't heard anything so was assuming the worst. Going through a broker though so maybe that adds some time.


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    #1949
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    Markitron wrote: »
    Thanks, it will be two weeks tomorrow since I applied. Haven't heard anything so was assuming the worst. Going through a broker though so maybe that adds some time.

    This near to Christmas most banks will be on a bit of a wind down
    Hopefully you will get in before Christmas
    The broker will have had everything ready thus minimising the need for further documentation


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    #1950
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    brisan wrote: »
    This near to Christmas most banks will be on a bit of a wind down
    Hopefully you will get in before Christmas
    The broker will have had everything ready thus minimising the need for further documentation

    Yea I had been going back and forth with him for weeks putting everything together, they should have everything they need. I'm kinda hoping its the kind of scenario where the broker wouldn't bother applying unless they knew I had a reasonable chance of being approved. I assume they don't just apply and hope for the best.


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    #1951
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Myself an my partner got our AIP from BOI last week, it took about 2 weeks to get all the documentation in order, with BOIs systems being very legacy it's all paper applications, scans and emailing attachments to the mortgage advisor.

    It took a week once she sent it to the underwriters to come back approved. Getting the regular 3.5x AIP is straightforward enough but to get an exemption you need a specific property in mind and then they do it based off that property so it's sort off guessing game if you'll get it. In our case we tick every box except that my partner changed jobs two months ago so she still under probation for 4 months.

    That bar is higher for the exception, the mortgage advisor said even for the regular 3.5x it was 50/50 with one of us being under the probationary period.


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