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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]

HannahR31 wrote: »

V good chance. Exactly comparable to my own circumstances and I just got 4.2x from BoI.

Did you have to have a property lined up or could you get a 4.2x exemption without a specific property in mind?

HannahR31

cisk wrote: »

Did you have to have a property lined up or could you get a 4.2x exemption without a specific property in mind?

They were able to give fairly good assurances of what they would approve without a specific property but in order to get the approval down on paper I had to send them the address of the actual property.

[Deleted User]

Thanks, I'll be looking for around the same myself. Currently have the regular 3.5x AIP from them.

HannahR31

cisk wrote: »

Thanks, I'll be looking for around the same myself. Currently have the regular 3.5x AIP from them.

Did you apply online or via a specific contact? I found applying with a person to be great - having someone who got to know my specific circumstances and advise me prior to the docs going to the credit team was a god send. He was able to input the amount I wanted (4.2x) into his computer and it would go green or red depending on if it met the stress test. So we were able to make sure it would go green before sending it up the line. No guarantee that the credit team will approve but a good indicator.

And I was able to say to him I want 4.2x but I can make it work at 3.9k so he had that info and could play with the numbers and go back and forth with the credit team on my behalf. Rather than just asking for something and being told Yes/No.

[Deleted User]

Cheers, yeah I've been working with a specific BOI Bank to Work advisor so it's been a good service so far. The only concern is that my partner changed jobs two months ago so she has 4 months of probation to go which the advisor said would be a higher bar for an exemption. The Regular AIP approval was fine with this.

The way we see it is that if a suitable property comes up that we can manage with the regular AIP + Savings then we will be fine but if we find that the properties are just that little bit out of reach and we have to wait until April then so be it. Hopefully they will still be available by then, I'm led to beleive they will.

[Deleted User]

In a similar situation with probation which I'll have completed at end of February. But just planning to pursue approval in principle in the intervening time.

Green Mile

KBC rates seems to have changed in the last few days, I was looking at a fixed LTV 60:40 for 2.25% but that rate/offer seems to have been removed.

According to bonkers, ulsterbank are now the best price with €1.5k cash back.

Feel like I missed the boat now. I wonder if there will be a fresh offer shortly.

mtoutlemonde

Can exemptions be considered for self build?

social.lite

Didn't see this thread so i already posted a thread of my own regarding the following question. Maybe it'll be removed.

My question:

I'm looking at getting a mortgage but I'm not sure if it's possible.
I'm a first time buyer. I have ~40k in savings and I'm self employed since last April. I was away travelling for a year before that. I'm earning approx ~55k.

Mortgage calculators tell me I could maybe get ~€210k in the mortgage.

On the websites for a couple of banks, they say they want the most 2 - 3 years of financial reports / tax declarations if self employed.

In that case I can just return all my financial reports/ tax stuff for the past 7 months? Or is it an absolute minimum of 2 - 3 years that you have to be self employed?

I plan on ringing a couple of brokers today but I figured I'd ask here first.

Cheers

Ikozma

My partner has been receiving covid payments on and off all year like many others, I presume this would effect a mortgage application for us as her wage would be needed to get one, will we be better off waiting till all this craic blows over and she goes back to work full time again?

Markitron

Ikozma wrote: »

My partner has been receiving covid payments on and off all year like many others, I presume this would effect a mortgage application for us as her wage would be needed to get one, will we be better off waiting till all this craic blows over and she goes back to work full time again?

Yes probably. Someone can maybe correct me on this but she will probably need 3 months of payslips free of covid subsidies.

Ikozma

Markitron wrote: »

Yes probably. Someone can maybe correct me on this but she will probably need 3 months of payslips free of covid subsidies.

I was thinking that alright, the way it's going now that might not be till nxt year now, but unfortunately I suppose there's plenty of people in this situation, I suppose we'll have a bigger deposit saved by then which is something I suppose

Markitron

Ikozma wrote: »

I was thinking that alright, the way it's going now that might not be till nxt year now, but unfortunately I suppose there's plenty of people in this situation, I suppose we'll have a bigger deposit saved by then which is something I suppose

Yea you would have had endless hassle with the banks, just take it as a positive and keep saving.

DubLad69

Ikozma wrote: »

I was thinking that alright, the way it's going now that might not be till nxt year now, but unfortunately I suppose there's plenty of people in this situation, I suppose we'll have a bigger deposit saved by then which is something I suppose

I've had a few delays over the last 18 months and now it's looking like I won't have my house until September.

Every time something holds you back, it's feel ****. But, all of these hold ups now mean that I will have enough saved to furnish my house exactly the way I want, without having to scrimp and buy budget items. Meaning I'll be in a much much better place when I do move in. And won't be stressed for months or years to come about trying to pay for sofa on finance or replacing broken cheap stuff.

gourcuff

Renting and saving for a mortgage - so tough.

Especially competing against people still living with their parents, its an extra 12k a year minimum they can save meaning they can outcompete renters.

Would never consider doing it myself for loads of reasons, but it is a huge advantage

DubLad69

gourcuff wrote: »

Renting and saving for a mortgage - so tough.

Especially competing against people still living with their parents, its an extra 12k a year minimum they can save meaning they can outcompete renters.

Would never consider doing it myself for loads of reasons, but it is a huge advantage

Most definitely. If I didn't live at home it would have taken me years to save up the deposit.

Bitconfused

Hi All

I have aip and was hoping to start looking at properties however im due to get a covid test and with some symtoms i feel it will be positive.

So afaik this mwans i will have to apply for covid supplement. I will only be out of work for the period i have covid.

What impact could or is likely to have on progressing towards drawing down the loan do you think?

GoldenSlumbers

I had a lovely chat with a mortgage advisor from my bank today (Bank Of Ireland). But I found out that I would only be able to get a loan of 14 000 euro on my gross monthly income of 1900. He said that only people that earn above 2500 gross a month would get the proper loan of 3.5 times your wage towards buying a house. Are all banks like this? I assume they are?

Also I assume if there was a second income/partner that would get the income above 2500 a month than you'd be fine in getting that 3.5 times your wage loan. But as a lower income single person you're basically ****ed unless you can manage to earn that minimum of 2500 a month? Anyone any advice?

Blowfish

GoldenSlumbers wrote: »

I had a lovely chat with a mortgage advisor from my bank today (Bank Of Ireland). But I found out that I would only be able to get a loan of 14 000 euro on my gross monthly income of 1900. He said that only people that earn above 2500 gross a month would get the proper loan of 3.5 times your wage towards buying a house. Are all banks like this? I assume they are?

Also I assume if there was a second income/partner that would get the income above 2500 a month than you'd be fine in getting that 3.5 times your wage loan. But as a lower income single person you're basically ****ed unless you can manage to earn that minimum of 2500 a month? Anyone any advice?

Take a look at the Rebuilding Ireland home loan, I don't know a lot about it myself as I dont qualify, but it seems to be designed for lower incomes.

http://rebuildingirelandhomeloan.ie/

GoldenSlumbers

Blowfish wrote: »

Take a look at the Rebuilding Ireland home loan, I don't know a lot about it myself as I dont qualify, but it seems to be designed for lower incomes.

http://rebuildingirelandhomeloan.ie/

Thank you Blowfish

fin12

GoldenSlumbers wrote: »

I had a lovely chat with a mortgage advisor from my bank today (Bank Of Ireland). But I found out that I would only be able to get a loan of 14 000 euro on my gross monthly income of 1900. He said that only people that earn above 2500 gross a month would get the proper loan of 3.5 times your wage towards buying a house. Are all banks like this? I assume they are?

Also I assume if there was a second income/partner that would get the income above 2500 a month than you'd be fine in getting that 3.5 times your wage loan. But as a lower income single person you're basically ****ed unless you can manage to earn that minimum of 2500 a month? Anyone any advice?

I thought 3.5 was the minimum you would get as long as you have the deposit and a record of saving/ paying rent. That’s discrimination against single people and lower income earners. 3.5 is bad enough and now they are making up this rule. The whole thing is a f*cking joke.

DubLad69

fin12 wrote: »

I thought 3.5 was the minimum you would get as long as you have the deposit and a record of saving/ paying rent. That’s discrimination against single people and lower income earners. 3.5 is bad enough and now they are making up this rule. The whole thing is a f*cking joke.

No, the general rule is that you can get up to x3.5 based on what you can afford, and a very small number of people get above x3.5.

As difficult as it is to accept, its not discrimination. Single people can not afford to spend as much on a mortgage because they don't have someone to split the cost of household bills/living with.

People say yeah but I can clearly afford to pay more than that in rent, but the bank is not willing to take the risk with their money they you will be able to keep paying.

fin12

DubLad69 wrote: »

No, the general rule is that you can get up to x3.5 based on what you can afford, and a very small number of people get above x3.5.

As difficult as it is to accept, its not discrimination. Single people can not afford to spend as much on a mortgage because they don't have someone to split the cost of household bills/living with.

People say yeah but I can clearly afford to pay more than that in rent, but the bank is not willing to take the risk with their money they you will be able to keep paying.

I don’t think that is true, I was told different it’s based on your gross salary, so if I earn 30 k a year, I should get 3.5 that.

DubLad69

fin12 wrote: »

I don’t think that is true, I was told different it’s based on your gross salary, so if I earn 30 k a year, I should get 3.5 that.

Well you were told wrong. As a general rule you can get UPTO x3.5 times your salary. But that is heavily dependent on you proving that you are able to afford the repayments and still live comfortably.

If you take EBS for example, their calculator will tell you that if you earn just under 31k you can get 107k (x3.5 times your income). But if you already have a €200 loan you can only get 100k mortgage. It's all based on what you can afford.

The same calculator will tell you that you can only get a mortgage of 55k if you earn 23k. A lot less than 3.5 times your income.

Yes x3.5 times is a good rule for most people, but is unlikely to apply to low earning single people or those who are already in debt.

https://www.ebs.ie/mortgage-affordability-calculator

fin12

DubLad69 wrote: »

Well you were told wrong. As a general rule you can get UPTO x3.5 times your salary. But that is heavily dependent on you proving that you are able to afford the repayments and still live comfortably.

If you take EBS for example, their calculator will tell you that if you earn just under 31k you can get 107k (x3.5 times your income). But if you already have a €200 loan you can only get 100k mortgage. It's all based on what you can afford.

The same calculator will tell you that you can only get a mortgage of 55k if you earn 23k. A lot less than 3.5 times your income.

Yes x3.5 times is a good rule for most people, but is unlikely to apply to low earning single people or those who are already in debt.

https://www.ebs.ie/mortgage-affordability-calculator

That’s why u clear all loans before going for a mortgage. Anyway banks aren’t the only institutions giving out mortgages.

MurDawg

Lads is having my "Savings" for a deposit tied up in stock seen in negative light when applying for mortgages?

Id be a first time buyer - but reinvest 3/4 of my savings. Actual deposit amount is no issue - may need to shift that strategy as I'm applying for a mortgae this month

Creamy Goodness

MurDawg wrote: »

Lads is having my "Savings" for a deposit tied up in stock seen in negative light when applying for mortgages?

Id be a first time buyer - but reinvest 3/4 of my savings. Actual deposit amount is no issue - may need to shift that strategy as I'm applying for a mortgae this month

banks will want to see at least 6 months savings where the only thing it's doing is sitting in a savings account / credit union account. they don't care where the bulk of your deposit comes from* but they want at least 6 months of savings (that covers the mortgage amount + rent you pay if any).

IMO investments are not savings and it's quite dangerous to use the two terms interchangeably.

* well as long as it's legal and you can provide a paper trail I guess.

Bitconfused

Bitconfused wrote: »

Hi All

I have aip and was hoping to start looking at properties however im due to get a covid test and with some symtoms i feel it will be positive.

So afaik this mwans i will have to apply for covid supplement. I will only be out of work for the period i have covid.

What impact could or is likely to have on progressing towards drawing down the loan do you think?

Hi All

Has anyone any insight on the above?

soc

MurDawg wrote: »

Lads is having my "Savings" for a deposit tied up in stock seen in negative light when applying for mortgages?

Id be a first time buyer - but reinvest 3/4 of my savings. Actual deposit amount is no issue - may need to shift that strategy as I'm applying for a mortgae this month

We have stocks and the bank included their value as being part of our saving capacity (we had to provide account statement for the shares). But we don't have a majority of our savings invested in them. So if they did drop it wouldn't take a significant hit on our deposit on-hand.

DubLad69

I was talking to Permanent TSB today about a mortgage and the idea of over payment came up. I thought that it was very interesting that when you make an over payment with them it is applied to your account as a credit. Rather than being paid off the principal.

That could mean that say for example your mortgage is €1000 per month and for the next 2 years you are paying €1100 per month. You could then take a two month mortgage break.

You are also only paying interest on the principal minus the amount that you are in credit.

I love that idea. Do any other banks work the same way?