Saving/Applying for a mortgage 2020-22 Edition

you2008 · 24-04-2021 11:17am

After a fixed rate mortgage ends, fix again? For how long?

https://debtcamel.co.uk/fixed-rate-remortgage/#:~:text=some%20expert%20help%3F-,Summary%20%E2%80%93%20your%20options%20when%20a%20fixed%20rate%20mortgage%20ends,rate%20with%20your%20current%20lender%3B&text=get%20a%20different%20mortgage%20with,remortgage%20with%20a%20different%20lender.

the Link from UK, dose the Irish bank apply?

Summary – your options when a fixed rate mortgage ends - When a fixed rate mortgage ends, you have four options:

do nothing – your mortgage moves to a variable interest rate with your current lender;
get another fixed rate from your current lender;
get a different mortgage with your current lender;
remortgage with a different lender.

L1011 · 24-04-2021 6:51pm

Same options here. They will write to you with whatever offerings they have in terms of fixed, and advise you of their SVR which will be the default, some time before the term expires.

Remember to check if your LTV has fallen below one of their band levels in the interim (by capital repayment or an upward valuation - you may need to pay for a valuer for that unless its blatantly obvious) which could improve the rates on offer.

Jambon93 · 25-04-2021 5:13pm

Hi there,
In the process of getting a new AIP.
My partner has a second job which we were previously told it couldn't be taken into account because he hadn't been there for 12 months.
Is it a possibility that the bank would include the earnings from this job in the offer, provided he would pass the 12 months before they release funds?

GingerLily · 25-04-2021 8:05pm

Jambon93 wrote: »

Hi there,
In the process of getting a new AIP.
My partner has a second job which we were previously told it couldn't be taken into account because he hadn't been there for 12 months.
Is it a possibility that the bank would include the earnings from this job in the offer, provided he would pass the 12 months before they release funds?

I'd imagine this is case by case or at least different banks will have different policies, so best check with your bank?
It sounds reasonable but you never know until you talk to them.

Damo 2k9 · 26-04-2021 2:29pm

Received AIP from KBC on Friday afternoon, process with our broker has been excellent. Was a bit worried when the news initially broke, but good to know its business as usual for the time being.

Timeline wise, our application was submitted and received acknowledgement 3 days later, with a decision 10 business days after that.

Now to let the hunt begin!

brianc27 · 27-04-2021 1:10pm

so i am current top bidder on a property and estate agent is looking to close today, the estate agent wants to know my loan to value ratio of the mortgage, i find this a bit odd, why should they care how its being funded, they know i have the funds

DancingDaisy · 27-04-2021 1:49pm

brianc27 wrote: »

so i am current top bidder on a property and estate agent is looking to close today, the estate agent wants to know my loan to value ratio of the mortgage, i find this a bit odd, why should they care how its being funded, they know i have the funds

Do they know that you have the funds without relying on any exemptions? That could be one thing. They may just be looking at it from a point of view of risk? Or is there a possibility that one of the bids under yours is a cash buyer?

brianc27 · 27-04-2021 1:57pm

DancingDaisy wrote: »

Do they know that you have the funds without relying on any exemptions? That could be one thing. They may just be looking at it from a point of view of risk? Or is there a possibility that one of the bids under yours is a cash buyer?

yea they know all that, broker said they have absolutely no need to know that information such as LTV ratio, broker just emailed the agent saying i have sufficient funding, which was basically the same as the proof of funding letter i got two days ago, agent accepted this again anyway, so all good, just thought it was a strange information request.

G_R · 27-04-2021 8:00pm

brianc27 wrote: »

so i am current top bidder on a property and estate agent is looking to close today, the estate agent wants to know my loan to value ratio of the mortgage, i find this a bit odd, why should they care how its being funded, they know i have the funds

Is it a new build? Are they checking your eligibility for help to buy scheme perhaps?

dubrov · 27-04-2021 8:12pm

Sellers may be under pressure to close.
Say there are two bidders
Bidder 1 - Top bidder borrowing 90% of sale price
Bidder 2 - Bid 1k below but borrowing 50% of sale price

They might go with bidder 2 as a slight change in bank criteria may cause the sale to bidder 1 to fall through.

Green Mile · 27-04-2021 8:51pm

Just tell the agent you’re a 50:50 LTV, it’s none of their business and that statement will only aid you.

arleitiss · 27-04-2021 10:24pm

[Used a reputable broker] Got quoted by three main banks (BOI, AIB and PTSB) for limit of (Salary x 3.5) but one I've never heard of before said they can give Salary x 4 (apparently falls under some sort of their exemption) - Finance Ireland.

While its temping to have budget increased by quite a bit (as a single applicant) - Anyone ever heard or dealt with "Finance Ireland"?

Jasna1982 · 27-04-2021 10:42pm

arleitiss wrote: »

[Used a reputable broker] Got quoted by three main banks (BOI, AIB and PTSB) for limit of (Salary x 3.5) but one I've never heard of before said they can give Salary x 4 (apparently falls under some sort of their exemption) - Finance Ireland.

While its temping to have budget increased by quite a bit (as a single applicant) - Anyone ever heard or dealt with "Finance Ireland"?

Yeah they’re really well known.
And a lot of people get their mortgage with them. They’re a reputable lender.

pooch90 · 28-04-2021 9:05am

Finance Ireland are reputable. They give 2 extra points on the public sector pay scale, just as ICS do.

Ikozma · 29-04-2021 7:59am

If i buy a site with cash, can that be taken as a deposit when looking for a mortgage or will I also have to have my 20% saved ontop of that?
I would have saved the money for the site anyway

JimmyVik · 29-04-2021 8:32am

Ikozma wrote: »

If i buy a site with cash, can that be taken as a deposit when looking for a mortgage or will I also have to have my 20% saved ontop of that?
I would have saved the money for the site anyway

You should be ok. It will be staged as the build progresses.

LittleMissRed · 29-04-2021 8:51am

Could be good news for us house hunters waiting to do viewings...

https://www.thejournal.ie/easing-restrictions-5422865-Apr2021/

Whatcar212 · 29-04-2021 9:10am

Ikozma wrote: »

If i buy a site with cash, can that be taken as a deposit when looking for a mortgage or will I also have to have my 20% saved ontop of that?
I would have saved the money for the site anyway

Approached a bank about this back in 2019. They said no they wouldn't take the site as a deposit as they would view it as them giving you a 100% mortgage for the house itself.

They advised to get a mortgage for the site and building together and put the cash you have down as the deposit which you buy the site with after getting approval. In other words, let the bank see that you have that cash before you spend it.

Antares35 · 29-04-2021 3:00pm

Hi all sorry if this seems like a silly question, when the bank is calculating your multiple (say 3.5) is that 3.5 times your gross salary even if you have a pension deduction that comes out before tax? Thanks

cintec · 29-04-2021 3:03pm

Antares35 wrote: »

Hi all sorry if this seems like a silly question, when the bank is calculating your multiple (say 3.5) is that 3.5 times your gross salary even if you have a pension deduction that comes out before tax? Thanks

Yes gross salary, they may also take into account overtime/bonuses but the 3.5x is still on the gross.

Antares35 · 29-04-2021 3:10pm

cintec wrote: »

Yes gross salary, they may also take into account overtime/bonuses but the 3.5x is still on the gross.

Thank you

Blowfish · 29-04-2021 7:39pm

Antares35 wrote: »

Hi all sorry if this seems like a silly question, when the bank is calculating your multiple (say 3.5) is that 3.5 times your gross salary even if you have a pension deduction that comes out before tax? Thanks

For the 3.5 multiple, they calculate on gross tax, but for the stress test and ability to repay, they take your net take home pay after pension into account.

Renjit · 29-04-2021 9:59pm

BOI has 6 weeks covid review in place. So after every six weeks they ask for latest bank statement, salary slips, and a letter indicating you are not on EWSS.

Is it true for others too or just my case?

JimmyVik · 30-04-2021 7:25am

Blowfish wrote: »

For the 3.5 multiple, they calculate on gross tax, but for the stress test and ability to repay, they take your net take home pay after pension into account.

And if you pay AVCs dont forget to let them know that they can be stopped by you at any time, adding to your monthly take home. Some of them dont seem to get this until it is explained to them.

random_banter · 30-04-2021 9:34am

Renjit wrote: »

BOI has 6 weeks covid review in place. So after every six weeks they ask for latest bank statement, salary slips, and a letter indicating you are not on EWSS.

Is it true for others too or just my case?

We haven't been asked for this, but we are both in jobs where we're working from home. I spoke to someone who is a nurse i.e. frontline worker and they were asked to do this every 6 weeks. Perhaps it's due to the nature of your job that they're asking?

shawki · 30-04-2021 5:54pm

pooch90 wrote: »

Finance Ireland are reputable. They give 2 extra points on the public sector pay scale, just as ICS do.

Do you know if they take into account skipping increments and future pay increases?

In August 2021 I will be on point 3 on my scale but In August 2023, I will be on point 6 with a 2.01% increase.

pooch90 · 30-04-2021 6:11pm

shawki wrote: »

Do you know if they take into account skipping increments and future pay increases?

In August 2021 I will be on point 3 on my scale but In August 2023, I will be on point 6 with a 2.01% increase.

I honestly don't know, sorry!

01-05-2021 11:13am

Considering switching to PTSB from BOI for a better rate, anyone with them, have they been ok? Any reason not to? I'm 2 years into a 5 year fixed term, I'm on 3.2% and PTSB are offering 2.8%.

antimatterx · 02-05-2021 10:14pm

Hi

I'm finally getting myself into a good position money wise and I'm looking for some advice. I'm starting a new job on 50K, and I will have around a 50K deposit come the start of 2022 when I get past probation and Christmas is over.

Realistically I'm looking at 1 beds, unless I get get an exception for a two bed. What are the chances of getting an exception for a 4.5 mortgage, even a 4x as a single applicant?

I know 1 beds are not ideal, but it's probably what I can afford unless I get an exception.

DubLad69 · 03-05-2021 8:11am

antimatterx wrote: »

Hi

I'm finally getting myself into a good position money wise and I'm looking for some advice. I'm starting a new job on 50K, and I will have around a 50K deposit come the start of 2022 when I get past probation and Christmas is over.

Realistically I'm looking at 1 beds, unless I get get an exception for a two bed. What are the chances of getting an exception for a 4.5 mortgage, even a 4x as a single applicant?

I know 1 beds are not ideal, but it's probably what I can afford unless I get an exception.

If you go to the AIB or EBS websites their calculator are pretty accurate and will tell you if you qualify for an exemption under their current rules.

DubLad69 · 03-05-2021 8:16am

We have finally placed our deposit on our new build house. We now need to go to full letter of offer with the bank.

I am very stressed now, because when we were applying for a mortgage one bank wouldn't allow us to apply for an exemption because of a missed loan payment a few years ago (due to a mistake on the direct debit form and us being out of the country).

I am now getting worried that the two banks that have given us AIP, will no decide not to once we go for the full letter of offer.

Has this happened to anyone? Or is it likely to happen? We are both public sector workers, and our income hasn't changed (apart from a small pay increase for me).

CIP4 · 03-05-2021 9:51pm

I put my details into the AIB mortgage calculator more to get an idea on current interest rates and repayment amounts over various terms. The mortgage amount that came up when I filled in my details was 4.5 times my salary I thought it was unusual considering I am a single applicant plus I didn't think the online calculators would go above 3.5 times.

antimatterx · 03-05-2021 9:54pm

CIP4 wrote: »

I put my details into the AIB mortgage calculator more to get an idea on current interest rates and repayment amounts over various terms. The mortgage amount that came up when I filled in my details was 4.5 times my salary I thought it was unusual considering I am a single applicant plus I didn't think the online calculators would go above 3.5 times.

AIB only gives me 4.5 if I use 80K as the baseline.

Hanaolosdad · 04-05-2021 3:01pm

Hello, was hoping to get peoples opinions as i am worried sick with nerves!

Moved address in 2018- changed address with my cc provider- ended up not getting statements for 3 months and then realized the card was revoked,( July August and sept )

cc company rang in November and told me they had the wrong address for me - they corrected it and i straight away started paying off the CC- had it cleared by February

CC company were supposed to cancel and close the card in March 2019- they never did- , only cancelled and closed it in September 2019

I complained and they updated my ccr and icb to state March 2019 last month

i have placed a note on my file with ccr and made a complaint to fspo about my address being incorrect

Went to a broker- explained everything- he said because of our savings , have a site etc that he is confident we will get a good result....

has anyone been in this situaton and gotten a mortgage?

04-05-2021 4:09pm

Hanaolosdad wrote: »

Hello, was hoping to get peoples opinions as i am worried sick with nerves!

Moved address in 2018- changed address with my cc provider- ended up not getting statements for 3 months and then realized the card was revoked,( July August and sept )

cc company rang in November and told me they had the wrong address for me - they corrected it and i straight away started paying off the CC- had it cleared by February

CC company were supposed to cancel and close the card in March 2019- they never did- , only cancelled and closed it in September 2019

I complained and they updated my ccr and icb to state March 2019 last month

i have placed a note on my file with ccr and made a complaint to fspo about my address being incorrect

Went to a broker- explained everything- he said because of our savings , have a site etc that he is confident we will get a good result....

has anyone been in this situaton and gotten a mortgage?

I can't remember the exact details of it now but around the time I was going for my mortgage I missed a CC payment. I had the money so it wasn't that, it was some mix-up around moving accounts, I can't remember exactly.

Anyway, it made absolutely no difference and was never queried.

Kevhog1988 · 04-05-2021 4:17pm

am bidding on a house at the moment and the latest round the underbidder has gone with a €1000 bid. Is this normal or would it usually be a sign they are at their limit.

Darren 83 · 04-05-2021 6:04pm

Family have given us a small loan which we will pay back will a bank question a large deposit year down the line?

GoldenSlumbers · 04-05-2021 6:23pm

hey guys. do you know if the bank cares about your regular monthly savings? is there anyone with a bank that might be able to tell me if this matters or not in regards to getting a mortgage. I'm thinking of just saving 200 a month, but am wondering if the amount is too low.

cupcaketown · 04-05-2021 6:29pm

GoldenSlumbers wrote: »

hey guys. do you know if the bank cares about your regular monthly savings? is there anyone with a bank that might be able to tell me if this matters or not in regards to getting a mortgage. I'm thinking of just saving 200 a month, but am wondering if the amount is too low.

Yes the bank will look at regular savings, when deciding on how much to lend you the bank will consider what evidence there is that you can make the repayments. Usually look at 6 months of consistent savings and they consider if you have been paying rent.

GoldenSlumbers · 04-05-2021 6:39pm

cupcaketown wrote: »

Yes the bank will look at regular savings, when deciding on how much to lend you the bank will consider what evidence there is that you can make the repayments. Usually look at 6 months of consistent savings and they consider if you have been paying rent.

cool. i'll be paying about 700 on rent too so that should be good than I think.

pooch90 · 04-05-2021 7:28pm

If you can figure out what your likely mortgage repayments would be, make sure your rent+savings is in excess of that. Our repayments will be 950-1000. Rent is 800 so we made sure we were putting away at least 300/month (actually saving 800 the past few months)

brianc27 · 04-05-2021 8:34pm

Kevhog1988 wrote: »

am bidding on a house at the moment and the latest round the underbidder has gone with a €1000 bid. Is this normal or would it usually be a sign they are at their limit.

I bid at 1000 increments buying my place, think I placed about 10 grand in 1000 bids over all, didnt see the point in bidding more if there's a chance of my last 1000 bid being the accepted one, the other bidders seemed to be throwing random 5 and 3 grands down, I always just went 1000 higher each time, so probably not a sign they are reaching their limit

JimmyVik · 05-05-2021 7:37am

cupcaketown wrote: »

Yes the bank will look at regular savings, when deciding on how much to lend you the bank will consider what evidence there is that you can make the repayments. Usually look at 6 months of consistent savings and they consider if you have been paying rent.

If you have AVCs, point that oput to them and give them 6 months payslips too. Tell them that you can stop those AVCs if you ever need to and so will have more money into your salary.

raze_them_all_ · 05-05-2021 10:49am

GoldenSlumbers wrote: »

hey guys. do you know if the bank cares about your regular monthly savings? is there anyone with a bank that might be able to tell me if this matters or not in regards to getting a mortgage. I'm thinking of just saving 200 a month, but am wondering if the amount is too low.

Im currently saving between 1200-2 k a month on what will be about 1000e mortgage. You really want to show you have saving power for a rainy day and yes they want regular savings.

One bank told me that after your loans and mortgage is paid they want you to have 1400 to live on that month

BD850611 · 05-05-2021 1:14pm

pooch90 wrote: »

Finance Ireland are reputable. They give 2 extra points on the public sector pay scale, just as ICS do.

How is Finance Ireland in issuing the AIP for exemptions? we were told up to 10 working days or so, are they strict with the documents?

we were rejected by KBC recently for exemptions as they are pulling out of Ireland, so we are under serious pressure....

kev_s88 · 05-05-2021 2:18pm

BD850611 wrote: »

How is Finance Ireland in issuing the AIP for exemptions? we were told up to 10 working days or so, are they strict with the documents?

we were rejected by KBC recently for exemptions as they are pulling out of Ireland, so we are under serious pressure....

We actually got our AIP from Finance Ireland today with our 4x LTI exception. We got our application into them on the 19th April so they were pretty good with the timeline of 10 working days. From what I've heard they are pretty on the ball with their approvals. We didn't hear from them directly, everything came through our broker, so might be worth contacting your broker if you are over the 10 working days

BD850611 · 05-05-2021 2:25pm

kev_s88 wrote: »

We actually got our AIP from Finance Ireland today with our 4x LTI exception. We got our application into them on the 19th April so they were pretty good with the timeline of 10 working days. From what I've heard they are pretty on the ball with their approvals. We didn't hear from them directly, everything came through our broker, so might be worth contacting your broker if you are over the 10 working days

Congratulations!!!!
Thank you for getting back to me. we only applied on Tuesday, we have the house booked and deposit paid....so the estate agent is onto us for the solicitor info and push us to review the contract etc...we dont want to pay the solicitor yet in case FI rejected us...Thats why we are under huge pressure and was hoping to get the AIP ASAP....

Thanks again for the information! Best luck of your house hunting

random_banter · 05-05-2021 3:45pm

Darren 83 wrote: »

Family have given us a small loan which we will pay back will a bank question a large deposit year down the line?

Our bank asked where the savings had come from, and if they were a gift, requested a letter from the family gifter to state it was a gift and they would not have a claim on the sum (look for it to be paid back).

You should do some research and talk to a broker etc about this - as if you say you will be paying the loan back to family, the bank will see it as a liability and may reduce your total borrowing allowance.

LittleMissRed · 05-05-2021 3:59pm

shawki wrote: »

Do you know if they take into account skipping increments and future pay increases?

In August 2021 I will be on point 3 on my scale but In August 2023, I will be on point 6 with a 2.01% increase.

My husband was in a similar position when we applied. He was on point 3 but they assessed him two points up as if he was point 5, even though point 4 is skipped for him, so technically it should have been based on point 6. However, we weren't too worried as we knew we would have to reapply because of the current housing market and that he would be going up the scale by the time we reapply.
Perhaps confirmation from your salaries section regarding the point skip would help?

Antares35 · 05-05-2021 4:02pm

raze_them_all_ wrote: »

Im currently saving between 1200-2 k a month on what will be about 1000e mortgage. You really want to show you have saving power for a rainy day and yes they want regular savings.

One bank told me that after your loans and mortgage is paid they want you to have 1400 to live on that month

Which bank was that? Interesting that they all seem to be using different criteria. We had to show 1025 each. Plus 245 for a dependent. But others had frightened the life out of my before that saying they'd deduct 1000 for a baby!

Saving/Applying for a mortgage 2020-22 Edition

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