Saving/Applying for a mortgage 2020-22 Edition

Just to warn that there is cap on how much you can offer on a house with the RI Home Loan. Has meant we have been unable to source a house in Dublin for 9 months - cannot bid a cent over 320k despite having a good bit over the 10% required deposit in savings.

We're applying for a mortgage through a broker and we chose to go with PTSB. We were told 5 weeks and it's been the 8th week now. Incredibly slow. Anyway, that's not the point it this post.

It's being held up by the underwriter as my wife does not have 12 months consecutive current employment and the worst of all, this is only an issue because she's not european even though she's eligible to be an Irish citizen since 2019, we just didn't get around to applying for it as its a fair bit of work.

The broker is absolutely fuming with them and can't believe its being held up by this. We've gone to appeal it but it's so frustrating.

Finally today got letter of Approval in Principle from two lenders that I applied with.

Some wording they use is confusing and now I am wondering what's next? They mentioned once I find property I am interested in purchasing - a valuation will need to be done.

Does this mean I can start viewing properties I am interested in?

Have few questions on this:

1) Who does the valuation? How does this work and who pays for it? How much does it cost?

2) (Mostly looking for new builds to utilize HTB that I got approved for) Let's say I found a house in one of the new build estates (which technically hasn't been built yet) - how does valuation work on that?

3) I was told to continue saving until the mortgage starts (without dipping into the funds unless it's for House Deposit), how do these work? Do I view demo house of new build that I am interested in and pay deposit to secure it? Is it refundable (if I pay deposit on lets say 3 different houses that I am potentially interested in but will only pick one in the end?)

Perfect thank you for this.

Just wondering about this part: "a final valuation will be done prior to drawdown to confirm it's all completed.""

Just wondering now how does HTB work in this case, I know it's valid until the end of year but lets say I put a deposit on a new build next week from today.

It may take about 6-7 months to complete - HTB wont/may not be available then?

What happens then? Am I screwed kind of?

Loan offer with KBC is due to expire this month, new build was delayed until November. Anyone get an offer with KBC have information on extending/reapplying with them? Our broker wants us to apply to a different bank due to KBC pulling out of Ireland but I'm anxious about getting approved in time for the house being completed. Would be ideal if we could just supply KBC with latest payslips and avoid beginning the whole process again.

You can use the equity released from the sale to fund the 20%, but you will be expected to have 10% in cash to pay as a deposit when you return signed contracts. If you intend to sell and buy at the same time then you will need this 10% in cash.

You would normally pay around 2% as a booking deposit to the estate agent when you go sale agreed. Then another 8% when you do the contracts. Your solicitor then takes the proceeds of your sale, clears that mortgage, draws down new mortgage and puts it all together to complete the purchase. Then they’ll refund any balance to you.

We didn’t have the full 10% in cash so had lined up family for a loan to cover us, but we ended up selling and then moving in with family before completing the purchase so it wasn’t an issue for us any more. The solicitor kept our equity in his client account and will be sending the 8% to the purchaser when we return contracts this week. He’ll then draw down the mortgage in 2 weeks when we’re closing and then give us a closing statement and return any monies we’re owed.

I was a bit too eager in getting my life assurance sorted. So I'll need drawdown approx 3 months after the life assurance started, which means the life assurance will end approx 3 months before mortgage fully paid off. Will the bank have a problem with this? I've about another month before requiring drawdown.

I found a website a few months ago that had a list of all the Mortgage Brokers in Ireland, and who they were approved to lend with. I'm 95% sure I saw it on here but I can't find anything on this site anymore since the update! I think it might have been a page on Bonkers.ie or Switcher.ie but I've spent a couple of hours the other day trying to find it on those sites and through Google and can't find it either.

If anyone knows what I'm on about would you mind posting the link here please!

No I don't think that's it unfortunately. This was a third party site so something like Bonkers.ie, not a specific business advertising mortgages like mortgages.ie

It basically had loads of rows and listed the names, addresses, phone numbers of each mortgage broker and said who they lent with so, for example:

John Murphy, Dublin, 01 1234567 - EBS | First Ireland | AIB

Sean Murphy, Waterford, 051 123456 BOI | Ulster Bank | KBC

etc......

All brokers get paid a commission. Some charge an additional fee.

I would go for recommended brokers that dont charge a fee but a good broker can make a world of difference so I wouldnt be discouraged by a 250 fee if you've gotten a glowing recommendation.