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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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ec18

LeeroyJ. wrote: »

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.

Not really you're wasting your time going to other lenders until you're done with the probation period. The only time they'll wave the probation requirement is some parts of the public service (and I'm not sure they even would then).

houseyhouse

LeeroyJ. wrote: »

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.

Don't be put off. It's possible. I drew down on probation. I'm public sector and got the mortgage through ICS. Only possible because I'd gone straight from one job to another with no break. I know many banks won't touch you on probation but definitely some will. When I was going through this somebody told me they drew down on probation with BOI but had to provide a letter saying employment was going well (also public sector though). It was discussed here or elsewhere on the property forum fairly recently so maybe have a search for names of other banks that do it.

I think somebody mentioned their company letting them off probation sooner so they can get the mortgage. You could ask about this. As I understand it, from the company's perspective it doesn't make a huge difference. Even if you're off probation, the Unfair Dismissals Act only applies once you've been in the job for a year so it's still easy to get rid of people in the first 12 months.

The other thing to remember is that it takes a few months to get through all the purchasing stages and actually draw down the mortgage. Banks might give you AIP with a condition about completing your probation and by the time you're ready to draw down, you could have it finished.

Edited to add: I think it was the currently buying/selling thread where this came up recently

Dodge

LeeroyJ. wrote: »

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.

I’d suggest engaging a broker. They’ll tell you if it’s doable and may make multiple applications for you

CalisGirl

LeeroyJ. wrote: »

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.

As other people already said, it takes a couple of months to get to Loan Offer stage of mortgage. After getting AIP from bank, you'll need to find a house to submit request for Loan Offer on and you may well be out of probation by the time the Offer is granted. At worst, the lender will make it a requirement for probation to be finished before drawdown.

Your best bet is going to a broker. Finance Ireland and Haven will allow drawdown while on probation (even for non public service employment) but depends on your industry, your experience and your type of employer.

Renjit

houseyhouse wrote: »

I think somebody mentioned their company letting them off probation sooner so they can get the mortgage. You could ask about this.

That's what my spouse did. Most banks are okay as long as your salary cert says you are not on probation.

thewheel2.0

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?

Be careful with this. There is no blanket policy that applies to every bank. Ulster Bank are happy to renew a letter of offer after 6 months with payslips and statements.

AIB are a pain to deal with, they issue it for 6 months and if it expires will renew it for one additional month. If that expires, then you have to re-apply from scratch. Nightmare.

The AIB policy is nuts. We put a booking deposit down in August 2020, house will be finished in Q4 2021. We only found out after AIP about the weird letter of offer rule. It meant we went with Ulster Bank so we could sign contracts and get Help to Buy drawn down. UB allowed us to renew our letter of offer but then in the middle of that announced that they are leaving the Irish market. So back to AIB we went, had to wait till mid June to progress to letter of offer so it lines up with the delivery date :rolleyes: :eek:

Alwandy

thewheel2.0 wrote: »

Be careful with this. There is no blanket policy that applies to every bank. Ulster Bank are happy to renew a letter of offer after 6 months with payslips and statements.

AIB are a pain to deal with, they issue it for 6 months and if it expires will renew it for one additional month. If that expires, then you have to re-apply from scratch. Nightmare.

The AIB policy is nuts. We put a booking deposit down in August 2020, house will be finished in Q4 2021. We only found out after AIP about the weird letter of offer rule. It meant we went with Ulster Bank so we could sign contracts and get Help to Buy drawn down. UB allowed us to renew our letter of offer but then in the middle of that announced that they are leaving the Irish market. So back to AIB we went, had to wait till mid June to progress to letter of offer so it lines up with the delivery date :rolleyes: :eek:

Out of curiosity, did your AIP expire with your offer of letter? I chased up on them and they said if the AIP hasn't expired, they will just ask for up to date payslip (60 days).

Pistachios & cream

LeeroyJ. wrote: »

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.

My husband was in the same position, just changed jobs as we were applying for a mortgage with BOI. Our bank manager asked us to provide a letter of comfort from his boss saying the probation was going well or something to that effect. We got approval in principle within 10 days.

C14N

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).

Yeah before you go in, there seem to be all kinds of rumours about what you'll get dinged for on your statements. I remember one in particular being that if you were going to make a bet on something to do it in cash, as if a bank is going to assume you're a gambling addict for putting a fiver each way on the Grand National 8 months ago :rolleyes: At the same time, I would assume a pattern of regular gambling wouldn't go over well, but the main thing is they want to know that you're generally able to keep your own money in order with bills paid, reliable savings, etc.

I got questioned on a few transactions. Any standing orders were asked about (all just utility bills or rent), and any fairly large bank transfers to other accounts. In my case, my dad had helped me with my apartment deposit a few years ago, so when I moved apartments I transferred part of it back to him, and part to my siblings as a gift from him. Once you can explain it you're fine, they don't even bother to follow-up.

They're generally not looking for an excuse to deny approval in my experience. They just have to do some degree of due dilligence after the disaster of the last crash.

[Deleted User]

Still waiting on mortgage protection... They didn't go through with the pma but now they want to... Think I'm two weeks going with it now.

CalisGirl

Mortgage protection providers seem to be paranoid about covid. When applying, I had to complete a form stating I didn't have covid or any symptoms of covid. Had to complete it again when signing Terms of Agreement. It was a form I can complete myself luckily, didn't need a doctor. I can understand why an insurance company would want to make sure their customers are as healthy as possible before insuring them. But surely, a huge percentage of the population must have had covid at some stage and don't deserve higher premiums because they're living in a pandemic.

[Deleted User]

Have a reply from the bank on my application requesting a letter stating my company is not availing of any pandemic wage subsidies. Is this normal at the moment for applications? I work for a large company who have tried to automate all these sorts of letters so worried they won't provide it.

Circus_O

Very normal. Most if not all providers are requesting it.

[Deleted User]

Interested Observer wrote: »

Have a reply from the bank on my application requesting a letter stating my company is not availing of any pandemic wage subsidies. Is this normal at the moment for applications? I work for a large company who have tried to automate all these sorts of letters so worried they won't provide it.

Yep I had to get one. Argued with hr for a while until they gave me one.

TessC

Deleted User wrote: »

Still waiting on mortgage protection... They didn't go through with the pma but now they want to... Think I'm two weeks going with it now.

It took me five weeks to get it first time around, but they went back to my doctor a second time which probably added at least a week's delay. There were delays with the underwriters too.

brianc27

Interested Observer wrote: »

Have a reply from the bank on my application requesting a letter stating my company is not availing of any pandemic wage subsidies. Is this normal at the moment for applications? I work for a large company who have tried to automate all these sorts of letters so worried they won't provide it.

My place was the same, all letters automated, HR actually wouldn't give me a personal letter stating I wasn't on receipt of covid payments, ended up just writing up my own and asking my immediate manager to sign, no issues at all doing that

IamTheWalrus95

Folks, signing contracts next week. One question is have is it up to me to arrange my life assurance policy or will i organise this through the broker? Also with home insurance, so i organise through the mortgage broker or arrange myself?

brianc27

IamTheWalrus95 wrote: »

Folks, signing contracts next week. One question is have is it up to me to arrange my life assurance policy or will i organise this through the broker? Also with home insurance, so i organise through the mortgage broker or arrange myself?

can do it all yourself, probably work out cheaper, don't make the same mistake i did and start the mortgage protection too early

, just tell them you've no move in date yet and you'll get in touch when you have that and then the policy can start, i had to get mine put on hold after i realised id got ahead of myself

DecRyan1976

Informed today we will receive our Loan Offer but won't be able to draw down until my Wife is off maternity leave, back to work and presents evidence her pay hasn't changed. Her company is in receipt of EWSS as they qualify! It means her returning to work half way through her Maternity leave if we want to buy. We are currently sale agreed. HAs anyone experienced this or is there something we could do?

Antares35

DecRyan1976 wrote: »

Informed today we will receive our Loan Offer but won't be able to draw down until my Wife is off maternity leave, back to work and presents evidence her pay hasn't changed. Her company is in receipt of EWSS as they qualify! It means her returning to work half way through her Maternity leave if we want to buy. We are currently sale agreed. HAs anyone experienced this or is there something we could do?

What?? Omg I've never heard of that. I'm due to start mat leave in a month and really don't want to wait seven months til we can draw down. I just assumed employer could give a letter confirming that you return to normal pay at X date. Seems ridiculous and a little discriminatory

DecRyan1976

Antares35 wrote: »

What?? Omg I've never heard of that. I'm due to start mat leave in a month and really don't want to wait seven months til we can draw down. I just assumed employer could give a letter confirming that you return to normal pay at X date. Seems ridiculous and a little discriminatory

We have submitted the requested letter from Bank confirming from employer the return to work date plus no change in pay or terms of employment. It is fully paid maternity leave as well.

Antares35

DecRyan1976 wrote: »

We have submitted the requested letter from Bank confirming from employer the return to work date plus no change in pay or terms of employment. It is fully paid maternity leave as well.

Awful stuff.

Green Mile

I’ve been saving for a long time and have a good chunk of cash to put towards buying a house. Mortgage approval was as expected (max allowable with central banks rules).

All was going to plan until I went to put a bid on a house but the current bid is €40k over the asking after the first week.
Feeling deflated after receiving that news.

I thought it would be €10k over asking which I could afford to place another €5k. That’s me maxed out and unable to afford anymore.

Now I’m thinking of asking family for a loan of €25k to €30k to allow me to be in a position of placing an offer and obtaining the property. I’d struggle with repayments for 3 years paying the mortgage and family. Am I mad? Is it a smart move if 3 years isn’t that long in the greater scheme of things? I mean people have expensive car loans for longer.

Paul_Mc1988

Green Mile wrote: »

I’ve been saving for a long time and have a good chunk of cash to put towards buying a house. Mortgage approval was as expected (max allowable with central banks rules).

All was going to plan until I went to put a bid on a house but the current bid is €40k over the asking after the first week.
Feeling deflated after receiving that news.

I thought it would be €10k over asking which I could afford to place another €5k. That’s me maxed out and unable to afford anymore.

Now I’m thinking of asking family for a loan of €25k to €30k to allow me to be in a position of placing an offer and obtaining the property. I’d struggle with repayments for 3 years paying the mortgage and family. Am I mad? Is it a smart move if 3 years isn’t that long in the greater scheme of things? I mean people have expensive car loans for longer.

Yes you're mad. Your stretching yourself beyond/to the limit of your means. Find a cheaper house or wait and hope the market cools

silver_sky

Deleted User wrote: »

Still waiting on mortgage protection... They didn't go through with the pma but now they want to... Think I'm two weeks going with it now.

Same here. We're about 3 weeks into the mortgage protection application and about 10 days of that the forms have been sitting with the GP.
They're busy with vaccinations so have basically just said they'll get to it when they can.

Kind of thinking to try Laya mortgage protection. They say they don't need to do the GP check. Anyone used that?

JustAThought

Green Mile wrote: »

I’ve been saving for a long time and have a good chunk of cash to put towards buying a house. Mortgage approval was as expected (max allowable with central banks rules).

All was going to plan until I went to put a bid on a house but the current bid is €40k over the asking after the first week.
Feeling deflated after receiving that news.

I thought it would be €10k over asking which I could afford to place another €5k. That’s me maxed out and unable to afford anymore.

Now I’m thinking of asking family for a loan of €25k to €30k to allow me to be in a position of placing an offer and obtaining the property. I’d struggle with repayments for 3 years paying the mortgage and family. Am I mad? Is it a smart move if 3 years isn’t that long in the greater scheme of things? I mean people have expensive car loans for longer.

Yes. If you are going to struggle you have zero contingency for anything - so could easily lose your home, your deposit, the 40k you begged from family and still be liable for all the costs involved. I guess you’re assuming you can afford to not pay back your family if you can’t? Or if you lose your house? People always assume it won’t be them but one lay-off, one bad diagnosis, one drunk driver and you can lose everything. Not to mention the global /covid recession coming.

LET IT GO.

[Deleted User]

silver_sky wrote: »

Same here. We're about 3 weeks into the mortgage protection application and about 10 days of that the forms have been sitting with the GP.
They're busy with vaccinations so have basically just said they'll get to it when they can.

Kind of thinking to try Laya mortgage protection. They say they don't need to do the GP check. Anyone used that?

Ya, the main problem for me is I have a chronic condition so I think laya would outright reject me if they don't do a gp check. I've lobbed my info out with another broker to see if they can find me one in case I run into problems. I'm reasonably confident I'll get it but it's an unpleasant process that is pretty poorly handled on the insurers side.

Covidhaveago

Does anyone have recent experience of equity release mortgages? I have a debt free property which I'd like to keep, wondering if it would be possible to release equity from that in addition to whatever mortgage value I could get based on my salary.

silver_sky

[Deleted User] wrote: »

Ya, the main problem for me is I have a chronic condition so I think laya would outright reject me if they don't do a gp check. I've lobbed my info out with another broker to see if they can find me one in case I run into problems. I'm reasonably confident I'll get it but it's an unpleasant process that is pretty poorly handled on the insurers side.

Same situation here, partner has some conditions which are managed but insurer wants more info. We're going through a broker that handles such cases where it can be harder to get mortgage protection. I may throw a query out to Laya to see what they say.

antimatterx

If you move jobs during a year, and the new one has a higher salary, you've passed probation etc. Do banks take your new salary in it's entirety, or average between new and old? E