Saving/Applying for a mortgage 2020-22 Edition

DubLad69 · 03-05-2021 9:16am

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 10:51pm

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 10:54pm

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 4:01pm

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in 2018- changed address with my cc provider- ended up not getting statements for 3 months and then realized the card was revoked,( July August and sept )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

Interested Observer · 04-05-2021 5:09pm

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 5:17pm

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 7:04pm

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 7:23pm

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 7:29pm

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 7:39pm

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 8:28pm

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 9:34pm

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 8:37am

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 11:49am

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 2:14pm

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 3:18pm

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 3:25pm

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 4:45pm

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 4:59pm

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 5:02pm

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!

Creamy Goodness · 05-05-2021 5:47pm

Antares35 wrote: »

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!

Different banks will have different calculations with regards to your affordability to service the loan. The only thing the bank has to make sure of is you fall into the 3.5x - 4x (exemption) bracket and that you have 20% deposit (10% if FTB).

raze_them_all_ · 05-05-2021 6:00pm

Antares35 wrote: »

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!

Ebs

Antares35 · 05-05-2021 6:11pm

raze_them_all_ wrote: »

Ebs

That's funny, we were EBS too!

Green Mile · 09-05-2021 12:38pm

I’ve a ptsb bank account that I get my salary paid into, I have consistent savings and the account looks really nice and clean for applying for a mortgage.
I then have an N26 bank account, I do nixer work and get paid into that account, I also recklessly gamble a bit from that account.
I haven’t transferred money between ptsb and N26 in over 14 months.

I plan to supply only 12 months statements of the ptsb current and savings account details when applying for a mortgage with Avant Mortgages. I know “I’m meant to” disclose all my account details on a mortgage application but the N26 is all over the place and want to keep that private.
Should I be concerned with my mortgage application or will I be fine?

Jasna1982 · 09-05-2021 4:47pm

Green Mile wrote: »

I’ve a ptsb bank account that I get my salary paid into, I have consistent savings and the account looks really nice and clean for applying for a mortgage.
I then have an N26 bank account, I do nixer work and get paid into that account, I also recklessly gamble a bit from that account.
I haven’t transferred money between ptsb and N26 in over 14 months.

I plan to supply only 12 months statements of the ptsb current and savings account details when applying for a mortgage with Avant Mortgages. I know “I’m meant to” disclose all my account details on a mortgage application but the N26 is all over the place and want to keep that private.
Should I be concerned with my mortgage application or will I be fine?

I wouldn’t hold anything back. If they find out you have an account you didn’t disclose, you won’t get the mortgage.

Sheep Shagger · 09-05-2021 5:00pm

Jasna1982 wrote: »

I wouldn’t hold anything back. If they find out you have an account you didn’t disclose, you won’t get the mortgage.

Thats not true - worst case you'll be asked to provide the n26 accounts, you could say you forgot or didn't think it was relevant. Just be prepared to provide them.

What you could do is provide the n26 statements for the same period as the PTSB ones....there won't be any gambling on them. As for the nixers they won't take them into your income calculation anyway.

coolbeans21 · 10-05-2021 2:00pm

Hi guys, fairly rookie question here. We have AIP with Bank A, and put booking deposit down on New build but house wont be ready for 9 months. If we get contracts and sign and transfer help to buy deposit to builders, do we have to draw down with Bank A or can we reapply for the mortgage with another bank closer to the time the house will be ready? Thanks for your help,

IamTheWalrus95 · 10-05-2021 2:48pm

Well folks, on average how long is it taking the banks to come back with AIP? We have applied for mortgage (trading up) and all documentation went in last week to the broker. Are we talking a matter of days/weeks?

BronsonTB · 10-05-2021 3:04pm

IamTheWalrus95 wrote: »

Well folks, on average how long is it taking the banks to come back with AIP? We have applied for mortgage (trading up) and all documentation went in last week to the broker. Are we talking a matter of days/weeks?

Took us 3 weeks with PTSB recently (through a broker).
I believe each bank's timeframe to AIP is different.

IamTheWalrus95 · 10-05-2021 3:15pm

Was there much back and forth with questions etc?

Saving/Applying for a mortgage 2020-22 Edition

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