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Saving/Applying for a mortgage 2020-22 Edition

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    #2642
    antimatterx
    Registered Users Posts: 2,697 ✭✭✭antimatterx


    dkav9 wrote: »
    i was told by a broker that it would need to be at least 60k for a single salary (70 joint) before a bank would consider allowing an exemption

    That's dire. What is 50K going to buy.

    I'm still going to try. I might get lucky.


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    #2643
    CalisGirl
    Registered Users Posts: 76 ✭✭CalisGirl


    Ash3011 wrote: »
    Also, would anyone know if banks would view the fact that we were just saving generally, with no major objectives apart from replacing our car (which we have done) as we were not expecting this house to come back on market. Will they still appreciate the act of saving even though it wasn't originally necessarily for a deposit? We obviously removed some money from savings to pay for car, but saving continued at same rate afterwards.
    My gut feeling is we will be refused based on the fact that we push a large amount into savings straight after payday, then things can get a bit lean during the month and we go in & out of overdraft, I really didn't pay too much attention as we did not think we would move for another year or so!

    As long as you were accumulating funds steadily each month, it should be fine. I was in a similar situation where I looked for a mortgage a lot earlier than expected so hadn't a formal savings plan. But each month I was a) putting funds into a savings account ,b) letting funds accumulate in my current account each month and c) putting money into a savings product (that I had to withdraw from early due to needing it for a deposit). The broker used the funds from these 3 sources to indicate my repayment capacity and to show how much of my salary remained unspent each month.

    I can't comment on the overdraft part but certainly, the fact that you weren't saving directly for a deposit won't come against you. You still have good financial habits and are steadily putting funds aside each month.


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    #2644
    Renjit
    Registered Users Posts: 949 ✭✭✭Renjit


    WhiteWalls wrote: »
    Hi,

    How long is considered to be consistent overtime for a mortgage? My overtime is not guaranteed but is a general rule of thumb an average of the past three years?

    I'd be looking at 10k last year and around 7k for the past 2 years. This year which is still in its infancy I know, but I'd be averaging so far over 10k.

    I know some lenders take all of your overtime into consideration but is it correct to say an average of the past 3 years?

    Thanks for any help

    BOI takes average of last 3 years. May differ for other lenders.


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    #2645
    arleitiss
    Registered Users Posts: 3,515 ✭✭✭arleitiss


    Started filling out mortgage application form today (on my own)

    Realized I don't know a single thing about this, would solicitor (or anyone else) be able to fill out these forms and manage all the paper work on my behalf?


    I don't need mortgage broker as I know who I am going with but I assume solicitor would be able to do it? What would average cost be like?

    I thought I can do it but no, I realized there are way too many possible pitfalls here.


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    #2646
    Kevhog1988
    Registered Users Posts: 3,984 ✭✭✭Kevhog1988


    Got aip today. Delighted


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    #2647
    Pussyhands
    Registered Users Posts: 8,239 ✭✭✭Pussyhands


    arleitiss wrote: »
    Started filling out mortgage application form today (on my own)

    Realized I don't know a single thing about this, would solicitor (or anyone else) be able to fill out these forms and manage all the paper work on my behalf?


    I don't need mortgage broker as I know who I am going with but I assume solicitor would be able to do it? What would average cost be like?

    I thought I can do it but no, I realized there are way too many possible pitfalls here.

    What form are you filling?

    I just spent about 20 minutes on the phone with the bank with them asking me questions.

    Then got a list of documents they need - fairly simple.


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    #2648
    brianc27
    Registered Users Posts: 668 ✭✭✭brianc27


    arleitiss wrote: »
    Started filling out mortgage application form today (on my own)

    Realized I don't know a single thing about this, would solicitor (or anyone else) be able to fill out these forms and manage all the paper work on my behalf?


    I don't need mortgage broker as I know who I am going with but I assume solicitor would be able to do it? What would average cost be like?

    I thought I can do it but no, I realized there are way too many possible pitfalls here.

    The documents needed are pretty straightforward, you definitely don't need a solicitor for that, it's how the banks interpret them that's the issue really, there's absolutely nothing a solicitor would be able to help you with here.

    You could use a broker to go through the bank you want if you feel they could put together a better package to submit to the bank


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    #2649
    Damo 2k9
    Registered Users Posts: 3,506 ✭✭✭Damo 2k9


    Kevhog1988 wrote: »
    Got aip today. Delighted

    Great news!

    Currently waiting on AIP with KBC, applied last week (through our broker), received confirmation of them accepting our application yesterday and their decision will be back with us in approx 10 working days. Keeping the fingers crossed!!


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    #2650
    D.Q
    Registered Users Posts: 6,054 ✭✭✭D.Q


    Hey guys I'm sure it's been asked loads before so apologies.

    Quick question on exemptions, as I'm not sure of how they work exactly.

    I'm single, on 37k basic, but salary cert shows 48k for last 3 years after commission. BOI have told me they take the 3 year average.

    In an ideal world I would ask for 4.5 times this, as that would bring me up the around the 200k mark, the properties I'm looking at are all around 220k.

    I have been saving 850 a month for a year and a half but have had to dip into it a few times for car stuff and some medical expenses. That balance is now at 9k.

    I am now saving 1500 each month, as well as paying 325 to my parents in rent via standing order. Regular direct debit for car insurance too.

    No overdraft, no credit card, two loans that have been paid off with BOI over the last year or two and never missed a payment.

    With the current rate of saving il have around 24k in savings by next January which is when I will be attempting to apply.

    Is saving that large amount each month the determining factor in exemptions or how do they decide? I'd be applying next January and want to give myself the best chance possible.


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    #2651
    Markitron
    Registered Users Posts: 3,157 ✭✭✭Markitron


    D.Q wrote: »
    Hey guys I'm sure it's been asked loads before so apologies.

    Quick question on exemptions, as I'm not sure of how they work exactly.

    I'm single, on 37k basic, but salary cert shows 48k for last 3 years after commission. BOI have told me they take the 3 year average.

    In an ideal world I would ask for 4.5 times this, as that would bring me up the around the 200k mark, the properties I'm looking at are all around 220k.

    I have been saving 850 a month for a year and a half but have had to dip into it a few times for car stuff and some medical expenses. That balance is now at 9k.

    I am now saving 1500 each month, as well as paying 325 to my parents in rent via standing order. Regular direct debit for car insurance too.

    No overdraft, no credit card, two loans that have been paid off with BOI over the last year or two and never missed a payment.

    With the current rate of saving il have around 24k in savings by next January which is when I will be attempting to apply.

    Is saving that large amount each month the determining factor in exemptions or how do they decide? I'd be applying next January and want to give myself the best chance possible.

    Each lender has it's own requirements but in general it is dependent on your salary and your expenditures. Things may change by the time you are going to apply, but it is highly unlikely they would give you an exemption on a 37k salary. My advice would be not to get too obsessed or sidetracked with thinking about it or the market in general. Just keep doing what you are doing and see what's what when you go to apply.


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    #2652
    ec18
    Registered Users Posts: 2,702 ✭✭✭ec18


    D.Q wrote: »
    Hey guys I'm sure it's been asked loads before so apologies.

    Quick question on exemptions, as I'm not sure of how they work exactly.

    I'm single, on 37k basic, but salary cert shows 48k for last 3 years after commission. BOI have told me they take the 3 year average.

    In an ideal world I would ask for 4.5 times this, as that would bring me up the around the 200k mark, the properties I'm looking at are all around 220k.

    I have been saving 850 a month for a year and a half but have had to dip into it a few times for car stuff and some medical expenses. That balance is now at 9k.

    I am now saving 1500 each month, as well as paying 325 to my parents in rent via standing order. Regular direct debit for car insurance too.

    No overdraft, no credit card, two loans that have been paid off with BOI over the last year or two and never missed a payment.

    With the current rate of saving il have around 24k in savings by next January which is when I will be attempting to apply.

    Is saving that large amount each month the determining factor in exemptions or how do they decide? I'd be applying next January and want to give myself the best chance possible.

    the exemption is going to be based on affordability i.e after you take what the bank considers your living expenses how much can you afford to repay. There was a calculator for the kbc i think posted here a while ago.

    Some banks have minimum salary requirements for exemptions. Essentially you're looking at a 90% LTV with a 4.5x salary exception. Wouldn't be the strongest case? for an underwriter


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    #2653
    D.Q
    Registered Users Posts: 6,054 ✭✭✭D.Q


    ec18 wrote: »
    the exemption is going to be based on affordability i.e after you take what the bank considers your living expenses how much can you afford to repay. There was a calculator for the kbc i think posted here a while ago.

    Some banks have minimum salary requirements for exemptions. Essentially you're looking at a 90% LTV with a 4.5x salary exception. Wouldn't be the strongest case? for an underwriter

    when you're applying do you have to specify the specific exemption amount you're looking for? even 3.8/4 x would obviously make such a big difference in the types of properties I can consider.


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    #2654
    ec18
    Registered Users Posts: 2,702 ✭✭✭ec18


    D.Q wrote: »
    when you're applying do you have to specify the specific exemption amount you're looking for? even 3.8/4 x would obviously make such a big difference in the types of properties I can consider.

    You can tell them you'll be looking for an exemption but they won't actually know whether you'll get one or not until you get to the full application stage where there is a property you are bidding on/sale agreed on. Which will be another factor in it. In short don't believe a mortgage advisor who tells you'll get one. The under writer has the final say.

    When I was talking to UB earlier this year the advisor told me the only way you are guaranteed an exemption is if the LTV is favourable. i.e if you're looking for 4x LTI but the LTV is 50-60%


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    #2655
    kev_s88
    Registered Users Posts: 2,637 ✭✭✭kev_s88


    has anyone had any experience with Finance Ireland? Me and the OH are applying through a broker for our mortgage at the moment. Finance Ireland came out as the best option from the early look as they are willing to take 100% of my bonus payments into account as salary, which has given us a good bump in our lending capacity (about €20k more than the 3.5x our normal salary). They also have pretty competitive rates (2.4% on 3 year fixed with 80% LTV, or 2.65% with 90% LTV)

    our broker has said they deal with Finance Ireland a lot. I work in Financial Services so i know of them, but haven't heard much about them on the mortgage side of things (presuming this is mainly because they only deal through brokers for mortgage).

    so has anyone had any first hand interactions with them? we're tempted to try for approval with a couple of different lenders just in case, but looking like Finance Ireland will be our main choice, all going well.


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    #2656
    Ash3011
    Registered Users Posts: 8 ✭Ash3011


    Wondering if we would get away with stretching 12 weeks between going sale agreed on the house we want and completing the sale of the house we own?

    For context- we have been given "househunter's approval in principle" from BOI (I didn't even know this existed).
    As far as we are concerned, the longer things take, the better. Gives us more time to keep saving to stretch the last bit of deposit and I will have to finish my probation in June before drawing down.

    Is this too long and would a buyer pull out because of it??


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    #2657
    Paul Tergat
    Registered Users Posts: 10,741 ✭✭✭✭Paul Tergat


    I've a question on mortgage cashback. Does anyone know if banks will allow cashback from the same customer but on different properties?

    For example, if I switch my existing family home between the banks to get cashback and then upsize can I then do the round of cashbacks again?

    It's quite hard to see full t and c's for most banks but judging by ebs it seems to be on a property basis rather than a customer basis.


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    #2658
    Covid21
    Registered Users Posts: 12 ✭Covid21


    Do you need paperwork all the paperwork for your bank at each stage of drawdown . Eg.....payslips, bank statements etc

    I understand you need it at Stage 1 the first drawdown and your engineer/architect can sign off that the work is done at each stage but just wondering if you need to submit new payslips bank statements etc at stage 2,3,4,5 of drawdown?


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    #2659
    Kram_1
    Registered Users Posts: 5 ✭Kram_1


    1st fix just completed in house. How long for 2nd fix to be completed on average and ready to move in?


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    #2660
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Covid21 wrote: »
    Do you need paperwork all the paperwork for your bank at each stage of drawdown . Eg.....payslips, bank statements etc

    I understand you need it at Stage 1 the first drawdown and your engineer/architect can sign off that the work is done at each stage but just wondering if you need to submit new payslips bank statements etc at stage 2,3,4,5 of drawdown?

    Latest payslip is needed before drawdown normally. It’s a condition on our loan offer from KBC anyway. There is only one drawdown, when you get your keys.


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    #2661
    dubrov
    Registered Users Posts: 3,559 ✭✭✭dubrov


    Covid21 wrote: »
    Do you need paperwork all the paperwork for your bank at each stage of drawdown . Eg.....payslips, bank statements etc

    I understand you need it at Stage 1 the first drawdown and your engineer/architect can sign off that the work is done at each stage but just wondering if you need to submit new payslips bank statements etc at stage 2,3,4,5 of drawdown?

    I assume this is a self-build. Once you draw down the first amount, the bank won't ask any more questions about your personal financial position. Pulling out of the mortgage would be a complete disaster for both parties half way through a build.

    They will look for your engineer/architect to sign off that the work was actually completed in previous phases though.


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    #2662
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    So potentially have a property that I'm gonna bid on. There's a strong likelihood I'll need to request an exemption but not for a lot. I'm earning just under 80k, high saver so what are the odds of getting it atm? Have noticed a fair few seem to have them falling through atm so wondering if it's a lost cause atm.


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    #2663
    errlloyd
    Registered Users Posts: 12,603 ✭✭✭✭errlloyd


    I am buying an apartment in town.

    Do I need a surveyor as well as a valuer?


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    #2664
    klose
    Registered Users Posts: 11,592 ✭✭✭✭klose


    errlloyd wrote: »
    I am buying an apartment in town.

    Do I need a surveyor as well as a valuer?


    Well for a house a valuation is required, a structural survey is optional but highly recommended. Not sure if apartments are treated differently.


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    #2665
    CalisGirl
    Registered Users Posts: 76 ✭✭CalisGirl


    errlloyd wrote: »
    I am buying an apartment in town.

    Do I need a surveyor as well as a valuer?

    The bank will require a valuation of the apartment when you're at the Offer stage (after AIP). A surveyor is for your benefit, but the bank shouldn't require it.


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    #2666
    qwerty67
    Registered Users Posts: 3 ✭qwerty67


    Just got AIP today.

    Once Sale Agreed on a house what are the typical next steps to take and average timelines?

    Bare in mind we might not have viewed the house before sale agreed due to covid


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    #2667
    CalisGirl
    Registered Users Posts: 76 ✭✭CalisGirl


    Anyone got experience of what happens if you change job after accepting mortgage offer? Will have 3 payslips from new employer by anticipated drawdown, but won't have 6 months probation period complete. But same industry and a better salary.


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    #2668
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    CalisGirl wrote: »
    Anyone got experience of what happens if you change job after accepting mortgage offer? Will have 3 payslips from new employer by anticipated drawdown, but won't have 6 months probation period complete. But same industry and a better salary.

    They won't release funds if your on probation


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    #2669
    ec18
    Registered Users Posts: 2,702 ✭✭✭ec18


    CalisGirl wrote: »
    Anyone got experience of what happens if you change job after accepting mortgage offer? Will have 3 payslips from new employer by anticipated drawdown, but won't have 6 months probation period complete. But same industry and a better salary.

    Are you direct app to bank and or broker? I changed the month before drawdown but the bank never asked for updated payslips. I've put it down to the relationship between broker and bank where as if we had gone direct to bank we probably would have had issues


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    #2670
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    So I got the top aip a few months back but salary has increased. Have mentioned to broker by email but is it straightforward to increase amount? I'm at bidding phase in house I really like so the bump will help. I'm assuming getting slightly more based on new salary is fine, right?


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    #2671
    brianc27
    Registered Users Posts: 668 ✭✭✭brianc27


    [Deleted User] wrote: »
    So I got the top aip a few months back but salary has increased. Have mentioned to broker by email but is it straightforward to increase amount? I'm at bidding phase in house I really like so the bump will help. I'm assuming getting slightly more based on new salary is fine, right?

    My understanding is your offer is based on the previous years employment detail summary so I don't think you will get an increase until that's reflected on that


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