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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]

xElDeeX wrote: »

Just wondering did the extra paperwork take long? How detailed was it? I'm hoping to go sale agreed this week and have a preexisting condition. There was one consultation I was waiting for but not happening until August. Trying to decide do I bite the bullet and go for a private consultation in case this loose end slows things down.

Not long, took me half an hour. They do ask if any pending results etc so I'm not sure how they treat that. It is a bit of a frustrating and anxiety inducing part of process for me if I'm honest. I get it but Christ, it's invasive.

Alwandy

Anyone has experience on how long it takes for AIB to hand you the letter of offer? Was told it went on Friday to the department, but they keep iterating that they have a mass application going on that's causing delay... Just wondering if it's worth pestering them or not?

UPDATE:
Rang them today, got a short answer: It's with the lending department, nothing else I can say. Being absolute hard walled here not knowing what's going on. Unsure how the EA is feeling about the wait yet ..

Quick background,
Submitted my application on May 4th...

aodh_rua

Alwandy wrote: »

Anyone has experience on how long it takes for AIB to hand you the letter of offer? Was told it went on Friday to the department, but they keep iterating that they have a mass application going on that's causing delay... Just wondering if it's worth pestering them or not?

UPDATE:
Rang them today, got a short answer: It's with the lending department, nothing else I can say. Being absolute hard walled here not knowing what's going on. Unsure how the EA is feeling about the wait yet ..

Quick background,
Submitted my application on May 4th...

I spoke to a mortgage advisor in AIB today. There has been a surge in applications since restrictions lifted, and this is delaying decisions, but not beyond the 10 working days they advise.

Alwandy

aodh_rua wrote: »

I spoke to a mortgage advisor in AIB today. There has been a surge in applications since restrictions lifted, and this is delaying decisions, but not beyond the 10 working days they advise.

Yeah figured .. Just the 2 month delay has been driving me up the wall with lack of information on how it's going and the customer service some are great but some barely want to give you an answer and just shrugs you off.

Ulick_

Alwandy wrote: »

Anyone has experience on how long it takes for AIB to hand you the letter of offer? Was told it went on Friday to the department, but they keep iterating that they have a mass application going on that's causing delay... Just wondering if it's worth pestering them or not?

UPDATE:
Rang them today, got a short answer: It's with the lending department, nothing else I can say. Being absolute hard walled here not knowing what's going on. Unsure how the EA is feeling about the wait yet ..

Quick background,
Submitted my application on May 4th...

We submitted our application in March, only got full AIP last week (mid June), valuation submitted on Monday, now waiting on full loan offer.

paulers06

Anyone know how long a BOI letter of offer is taking at this stage? All our finances are with BOI so we thought the process would be a bit quicker, we’re three weeks submitted now.

Alwandy

Ulick_ wrote: »

We submitted our application in March, only got full AIP last week (mid June), valuation submitted on Monday, now waiting on full loan offer.

So in other words, no point of contacting them... Just wait?

brianc27

Ulick_ wrote: »

We submitted our application in March, only got full AIP last week (mid June), valuation submitted on Monday, now waiting on full loan offer.

That's a very long wait for AIP, mine took a month back in March to come through and I thought that was very long (with KBC)

Ulick_

Alwandy wrote: »

So in other words, no point of contacting them... Just wait?

Probably, didn’t seem to make any difference in our case. My understanding is that you aren’t communicating directly with the underwriter in any case. The only thing anyone else can see is whether your file is being looked at or not. They aren’t able to tell how close the underwriter is to completing the file. We seem to be in the midst of a surge not seen since before the big crash.

Ulick_

brianc27 wrote: »

That's a very long wait for AIP, mine took a month back in March to come through and I thought that was very long (with KBC)

It supposedly took so long because we had two previous loan offers which had expired. By the time it got to this one the bank wanted to know every detail of why we didn’t complete on the previous occasions – nothing to do with us but legal issues between the vendors and their lender. Added complications into an already overloaded system apparently. Each time we answered a query our file seemed to go to the bottom of a pile for another 10 working days.

td2008

paulers06 wrote: »

Anyone know how long a BOI letter of offer is taking at this stage? All our finances are with BOI so we thought the process would be a bit quicker, we’re three weeks submitted now.

BOI are a disaster for us - our loan offer expired and we are waiting about 6 weeks now for an updated one :eek:

PropBuyer101

Renjit wrote: »

Neither valuation, nor mortgage protection should be necessary for offer letter. Those are only required during before drawdown.

depends on bank

DopeTech

Question on the aib mortgage application regarding if you have had any bank accounts outside Ireland in the last 3 years. I had an n26 and a monese card up to about 6 months ago but closed both accounts. Both were almost never used. About 5 small transactions in total. Should I mention these? I don't think I can even get a statement from them since the accounts are closed. Would aib be aware of these accounts or care about them given that virtually no transactions were made on them. Also I have a PayPal account but not much activity happening it that either. Should I mention that?

While I don't think they would impact negatively on my application I don't want to not mention them if they will ask for them further down the road.

Renjit

DopeTech wrote: »

Question on the aib mortgage application regarding if you have had any bank accounts outside Ireland in the last 3 years. I had an n26 and a monese card up to about 6 months ago but closed both accounts. Both were almost never used. About 5 small transactions in total. Should I mention these? I don't think I can even get a statement from them since the accounts are closed. Would aib be aware of these accounts or care about them given that virtually no transactions were made on them. Also I have a PayPal account but not much activity happening it that either. Should I mention that?

While I don't think they would impact negatively on my application I don't want to not mention them if they will ask for them further down the road.

They will reconcile any out transfers from your bank statements. They asked for revolut statements as my bank statements transactions had those. They did not ask details about papyal even though those were present too.

aodh_rua

Alwandy wrote: »

Yeah figured .. Just the 2 month delay has been driving me up the wall with lack of information on how it's going and the customer service some are great but some barely want to give you an answer and just shrugs you off.

I got another update on Friday. AIB underwriting is back to normal with decisions taking 7 to 10 working days for straightforward applications

Mr Hindley

I'm about to apply for a mortgage, but have just thought of something that could be a problem - since the pandemic started, I've been doing all my Dad's shopping for him. Often I pay for it myself on my card, and then get paid back ~monthly from my Dad's account via bank transfer. I should have thought of it before, but I could imagine a bank questioning it - it will show up in my bank accounts as me spending more on shopping than I actually do, and then being 'propped up' by payments from my Dad. I've started keeping receipts now, and could argue that the location where the money was spent is a giveaway (I live in Dublin, Dad's out in Greystones) - just wondering if anyone else has had a similar experience and how they got on with their mortgage application..?

brianc27

Mr Hindley wrote: »

I'm about to apply for a mortgage, but have just thought of something that could be a problem - since the pandemic started, I've been doing all my Dad's shopping for him. Often I pay for it myself on my card, and then get paid back ~monthly from my Dad's account via bank transfer. I should have thought of it before, but I could imagine a bank questioning it - it will show up in my bank accounts as me spending more on shopping than I actually do, and then being 'propped up' by payments from my Dad. I've started keeping receipts now, and could argue that the location where the money was spent is a giveaway (I live in Dublin, Dad's out in Greystones) - just wondering if anyone else has had a similar experience and how they got on with their mortgage application..?

If your saving regularly and not touching it then they probably won't ask any questions but if they do then just tell them the story, it won't be an issue

Mr Hindley

Thanks for the input. I've been debating whether to start running the payments around my Dad's shopping via cash, which feels strange now, haven't been to a bank machine in about a year..!

[Deleted User]

Mr Hindley wrote: »

Thanks for the input. I've been debating whether to start running the payments around my Dad's shopping via cash, which feels strange now, haven't been to a bank machine in about a year..!

But if your dad has a bank account, surely he has a debit card? Why not just pay for the shopping using his card details?

I'm in a similar situation to you, except my dad doesn't have a bank account, so I've no choice, really.

brianc27

Mr Hindley wrote: »

Thanks for the input. I've been debating whether to start running the payments around my Dad's shopping via cash, which feels strange now, haven't been to a bank machine in about a year..!

or even get dad to add a note to each transfer via online banking saying 'reimbursement for monthly shopping' or something like that

Mr Hindley

Deleted User wrote: »

I'm in a similar situation to you, except my dad doesn't have a bank account, so I've no choice, really.

How does your dad not have a bank account..?? Wow, I thought my old man was a bit old school!

brianc27 wrote: »

or even get dad to add a note to each transfer via online banking saying 'reimbursement for monthly shopping' or something like that

All good advice. I've been increasingly borrowing my Dad's card to do his shopping for him when I can, but it's not always practical e.g. I do the shopping on the way out to see him, or early in the morning. It would be more practical for me to just keep his bank card full time but that's a step too far in eroding his independence, to be fair to him. It's a good thing I'm fond of the old bugger (most of the time

)

Creamy Goodness

The banks ultimately don’t care about stuff like this. What they do care about is large transaction amounts where you don’t have a reasonable excuse for.

My example was I took €1,000 out of an ATM like 6-8 weeks before submitting my statements. The banks questioned the transaction and I had no answer for it. I couldn’t remember what I took out a sizeable chunk of money out for. It was only when I got into the car I realised it was for car repairs. Rang the advisor and they were like grand stuff no bother. It helps I live a relative cash free lifestyle and every transaction has a merchant or a note that I put on it when transferring in/out.

As long as everything has a reasonable excuse behind it they won’t care. They realise people have lives and the other thing that really raises red flags is repeated gambling and living beyond your means (constantly in overdrafts or using credit cards badly).

sillysocks

Creamy Goodness wrote: »

The banks ultimately don’t care about stuff like this. What they do care about is large transaction amounts where you don’t have a reasonable excuse for.

My example was I took €1,000 out of an ATM like 6-8 weeks before submitting my statements. The banks questioned the transaction and I had no answer for it. I couldn’t remember what I took out a sizeable chunk of money out for. It was only when I got into the car I realised it was for car repairs. Rang the advisor and they were like grand stuff no bother. It helps I live a relative cash free lifestyle and every transaction has a merchant or a note that I put on it when transferring in/out.

As long as everything has a reasonable excuse behind it they won’t care. They realise people have lives and the other thing that really raises red flags is repeated gambling and living beyond your means (constantly in overdrafts or using credit cards badly).

We recently got approved and they didn’t ask about any transactions on our statements. The main thing was to prove we had been spending more than the potential mortgage payment on our current mortgage plus savings/loans repayments that are now repaid.

After that the approval came easily with no back queries. I was worried because we often use the overdrafts (bank approved overdrafts) due to timing of salaries etc, but that wasn’t questioned either.

Creamy Goodness

Yup it’s not necessarily bad to use overdrafts or credit cards especially if you’re able to show good repayment capacity. It’s important to note every application is different because everyone’s finances are different, most of the advice you’d hear here though is generally good financial advice regardless of mortgage applications.

If it’s touch and go though I’d suggest showing the bank you can live without an overdraft. Being in an overdraft should be for emergencies and always being in your overdraft month to month can be seen as constantly being in a state of emergency.

General advice here: If you get a regular salary (e.g. every 15th of the month or last Friday) try match up the direct debits for bills and mortgage payments so that they fall just after. What’s left is yours for saving and spending.

sillysocks

Creamy Goodness wrote: »

Yup it’s not necessarily bad to use overdrafts or credit cards especially if you’re able to show good repayment capacity. It’s important to note every application is different because everyone’s finances are different, most of the advice you’d hear here though is generally good financial advice regardless of mortgage applications.

If it’s touch and go though I’d suggest showing the bank you can live without an overdraft. Being in an overdraft should be for emergencies and always being in your overdraft month to month can be seen as constantly being in a state of emergency.

General advice here: If you get a regular salary (e.g. every 15th of the month or last Friday) try match up the direct debits for bills and mortgage payments so that they fall just after. What’s left is yours for saving and spending.

Yes need to try sort that for the new mortgage but one salary is monthly and one every two weeks so sometimes there might be timing where the two weekly one comes a few days after the mortgage/loans and the following month it might be a few days before etc. Then some months there’d be three of the two weekly salary because of the way the weeks fall etc.
thankfully wasn’t an issue anyway!

[Deleted User]

Mr Hindley wrote: »

How does your dad not have a bank account..?? Wow, I thought my old man was a bit old school!

Doesn't help that his last job (retired now), they paid him cash in an envelope, instead of encouraging him to get a bank account. :rolleyes:

(job was above-board with a real company, revenue knew about it, etc. it wasn't a few nixers or anything like that).

But he just never had a need for one. Now that he's a little more house-bound, I'm paying most of his bills and shopping, and he pays me in cash. It's grand in day-to-day life, but I'm sure it makes me look like i spend a lot when someone's looking at my accounts for a mortgage.

Antares35

[Deleted User] wrote: »

Doesn't help that his last job (retired now), they paid him cash in an envelope, instead of encouraging him to get a bank account. :rolleyes:

(job was above-board with a real company, revenue knew about it, etc. it wasn't a few nixers or anything like that).

But he just never had a need for one. Now that he's a little more house-bound, I'm paying most of his bills and shopping, and he pays me in cash. It's grand in day-to-day life, but I'm sure it makes me look like i spend a lot when someone's looking at my accounts for a mortgage.

I had something similar with mine. House was divided in two and we rented one side. It was always oh will you pay the electricity bill and we will give you cash for our share? Or will you throw in our full weekly shopping with your buymie and we will give you the cash? Same any time they wanted flights "can we put them on your credit card in case we want to cancel". It looked like I was keeping a small army!

Alwandy

Got the Letter of Offer today, super excited. But realised the offer only lasts 6 months, and the property we were looking at was said TBD at February, latest March. Any ideas? Can we just ask for a renewal in September to hit the 6 months?

CIARAN_BOYLE

Alwandy wrote: »

Got the Letter of Offer today, super excited. But realised the offer only lasts 6 months, and the property we were looking at was said TBD at February, latest March. Any ideas? Can we just ask for a renewal in September to hit the 6 months?

They need to reconfirm certain details (check you are still employed) but you can get renewals.

LeeroyJ.

I recently switched jobs due to being made redundant (no downtime, went from one straight to the new job). We were just rejected for Mortgage as they require me to pass my probation in the new company first. We're a little frustrated as my wife has been 10 years in the same employment, and we have a substantial amount of deposit saved (20% minimum as first time buyers). Looking for advice if its worth looking around with other banks or if the Job switch will present a barrier everywhere.