Saving/Applying for a mortgage 2020-22 Edition

15-12-2021 10:45pm

I never thought of that. Interesting. Thanks.

The Phantom Jipper · 15-12-2021 10:51pm

https://www.boards.ie/discussion/comment/118327956#Comment_118327956

I believe ICS allow you to pay 20% of your loan balance each year as an overpayment while on a fixed. Avant allow 10% as far as I know. They both also have quite low rates so it's best of both worlds.

15-12-2021 10:55pm

https://www.boards.ie/discussion/comment/118328312#Comment_118328312

Do you know what, maybe it's a combination of the two.

I liked a 30 year approach, as it spreads it so thin, the commitment is light and I could overpay how I wanted. I intended on overpaying about 100% extra per month, and a third portion equal to mortgage put aside in savings. I could live fine after that.

But, perhaps a 20 year term and still overpay a little, say the 20% as above. I would benefit from the cheaper fixed rates and still overpay.

The Phantom Jipper · 15-12-2021 11:16pm

https://www.boards.ie/discussion/comment/118328334#Comment_118328334

I'm open to correction on this but I understood the 20% overpayment to mean that if you had a 200k loan, you could overpay up to 40k off the loan in a year with ICS, or 20k in the same circumstances with Avant. Sounds like that would be right up your street.

Edit: I googled it out of curiosity and Avant provide a worked example;

"your annual overpayment allowance of 10% for 2022 is €40,000

(i.e. €400,000 x 10%)."

16-12-2021 11:50am

We are very close to drawdown. We are going with the fixed rate for 4 years. We are due another baby in February and will have those expensive creche fees for the next 3-4 years.

My husband is due money down the line which we intend to use to pay off mortgage.

I assume when the 4 years fixed term is up, we can switch to varible for a while and then back to fixed term when the lump is paid off? Ty.

houseyhouse · 16-12-2021 12:10pm

https://www.boards.ie/discussion/comment/118328312#Comment_118328312

Is it 20% off the loan balance or 20% of your repayments? I’m with ICS and I looked into it and couldn’t figure which it was from the way it’s worded.

The other thing is that even if you can only overpay a small amount each year, most banks only have you on fixed for a few years. You could put the extra into savings and then after the fixed period you can remortgage and pay off a chunk of the balance. It does mean you’re paying more in interest in the meantime so you’d have to figure out the cost vs the benefits of the fixed rate.

The Phantom Jipper · 16-12-2021 12:36pm

https://www.boards.ie/discussion/comment/118330075#Comment_118330075

The wording is pretty ambiguous alright, but anywhere I've looked online (Askaboutmoney, various brokers websites) it's confirming that it's 20% of the total loan balance, rather than 120% of your monthly repayment, so a big difference in our favour. No harm in reaching out to ICS directly just to be 100% sure though.

The Wife · 16-12-2021 9:12pm

Would love some advice on this. Separated from husband 6 months ago. Paying over 2k a month rent. 2 kids. €75k income a year. €65k in savings. Second time buyer. Public servant. Gold standard pension coming in 15 years time. Sent all paperwork to broker to try secure AIP who assured me I was a shoo in for a 4.5 exception. Got word today I haven't a hope. They tried everything. Trouble is, I can't buy without it. So is that it? Do I resign myself to renting or get another broker? Is there any point in going through the whole thing again?

17-12-2021 12:36am

https://www.boards.ie/discussion/comment/118333091#Comment_118333091

Did they give you an explanation why you were unsuccessful?

I would guess that it's not a LTI issue but rather a repayment capacity issue. I know that seems bizarre when you're managing to pay €2k pm in rent, but most lenders have strict criteria for how much disposable income you should have after your mortgage repayment and other regular outgoings, and that figure is bumped up per dependent child. The figures vary from lender to lender I think, but it could be that it's this disposable income figure that's got you beat.

You also say you're a second-time buyer - if your name is still on any existing loans from that purchase that could also be counting against you, especially in terms of disposable income calcs.

Definitely try another broker in the new year - you've nothing to lose by getting a second opinion.

I'd also suggest that while you might not have the mortgage offer you hoped for, there is always the option to take a lower mortgage amount and buy a cheaper place. I realise that's no small thing - I'm aware of what's out there (or more to the point, not out there) at the moment, but it would be an alternative to renting indefinitely.

Emma2019 · 17-12-2021 12:35pm

https://www.boards.ie/discussion/comment/118333091#Comment_118333091

If you are a public servant, apply with ICS. Theyll let you borrow based on two increments above current salary.

bleaks · 17-12-2021 7:01pm

Any advice on bidding beyond your 3.5x max? Apparently you can't get an exemption until you are sale agreed.

Is it worth bidding up until 4x just to see how it goes, or is there any fallout from doing that bar the disappointment that can ensue!?

Hoping the bank will have a clean book of exemptions to hand out in the new year. We're both in fairly secure long term jobs, so hoping that will go for us.

houseyhouse · 17-12-2021 7:24pm

https://www.boards.ie/discussion/comment/118333091#Comment_118333091

Is your age the problem? Most banks want the mortgage repaid by 67 or so and if you’re eligible to retire in 15 years then you’d be paying it back over a fairly short period of time so repayments would be higher.

Are you still on the mortgage for your first house/ your husband’s house? That could impact your repayment capacity even if you’re not paying that mortgage.

Emma2019 · 18-12-2021 1:46am

https://www.boards.ie/discussion/comment/118339025#Comment_118339025

Depends on the lender. PTSB and KBC gave me my exception in advance and it wasnt tied to a property. I think BOI is one of the ones that tie it to a property.

I'd talk to your broker or mortgage advisor first about your likelihood of getting an exception before you start bidding. Will save you a lot of hassle/heartbreak.

Also by bidding with no idea if you can actually buy it, you're driving up the price for the other bidder when you have to back out.

PhilTorres · 20-12-2021 3:49pm

Just got AIP with Permanent TSB on Friday there, been back in Ireland 9 months now so one of the things we need to provide is a UK credit check which once we got we seen there was a £67 unpaid phonebill we must have missed as we closed everything off over there.

Have now paid it but wondering how likely this is to cause an issue?

Interested Observer · 20-12-2021 4:04pm

https://www.boards.ie/discussion/comment/118330003#Comment_118330003

You can come to the end of the fixed terms, be on a variable for one day, pay off the lump sum, and fix again if you like.

AdamD · 20-12-2021 4:20pm

https://www.boards.ie/discussion/comment/118339025#Comment_118339025

PTSB gave me approval in principal for 3.5x. The broker just used a property around the value I was looking for on the application, I then bought a different property using the exemption.

Amik · 28-12-2021 4:20pm

https://www.boards.ie/discussion/comment/118330075#Comment_118330075

Is this true that I can pay off a chunk of the mortgage balance when I remortgage in 5 years?

I'm weighing all the cashback and % overpay options at the moment.

The Phantom Jipper · 29-12-2021 3:22pm

https://www.boards.ie/discussion/comment/118382081#Comment_118382081

Yes that's right, once your fixed term ends after 5 years, you'll be able to make a lump sum repayment before you enter a new fixed term (assuming you didn't want to stay on the variable). However many banks will allow you to make overpayments during the fixed term, so you don't necessarily need to wait until the end of the 5 years before making an additional payment.

As an aside - it will vary depending on circumstances but generally it's considered better to get a lower interest rate rather than get cashback. The benefit of the cashback is usually swallowed up by higher interest within a few years.

29-12-2021 3:29pm

https://www.boards.ie/discussion/comment/118328312#Comment_118328312

Just as an update to this, I did email ICS and they said:

"The 20% extra per year is 20% of whatever the outstanding balance on the mortgage is that particular year. For example, if the balance was 120k, you could over pay 24k. and as the balance decreases, so will the amount you can overpay".

So that's that then. Thanks for chiming in btw.

On a separate note, are there many single people buying out there? The last thread I saw was 2017, I'd add there but I'm sure an overenthusiastic mod would complain about 'necroing', I've seen that on here.

Applying as a single person has many differences than as a couple. I'm at least grateful that I'm in a position to buy as a single person, many can't. Although I just realised the other day that the HTB will be useless to me. I'm currently steering toward a cheaper mortgage and that means an apartment, and almost definitely 2nd buyer. Most searches I've done seem to be catering for houses and couples, no good for me.

Tar.Aldarion · 29-12-2021 5:39pm

Yeah I'm applying just myself, am currently waiting to hear back from ICS and I want an exemption, broker said they are quite hard to get at the moment and also that Avant were doing none.

Interested Observer · 31-12-2021 4:45pm

Have any of you changed mortgage more than once in quick succession? In October we drew down having switched from 3.2% with BOI to 2.5% with PTSB. If house prices don't collapse we'll be under 70% LTV comfortably in 2022 which would open up the 2.05% rate with Avant. It's a huge pain switching but could be worth a lot of money. Thoughts?

theboringfox · 31-12-2021 8:21pm

Anyone gone for top up mortgage with likes of Avant or Finance Ireland for extension. Mortgage matures in 2022 and looking to switch from UB but also top up for extension. Will go through broker but hoping I can use one of these two as like the idea of booking in long term fixed rate.

Ciara26 · 01-01-2022 11:35am

https://www.boards.ie/discussion/comment/118386827#Comment_118386827

i applied as single as well. I got my exemption from ptsb. Did ur broker try them?

Tar.Aldarion · 01-01-2022 5:58pm

https://www.boards.ie/discussion/comment/118399467#Comment_118399467

Thanks I'll try them after, I am applying for the 1.95% rate with these first of all and then seeing what other rate/exemption I can get!

Paul_Mc1988 · 01-01-2022 7:25pm

https://www.boards.ie/discussion/comment/118401553#Comment_118401553

Do you have less than 60%LTV to get the 1.95% fixed rate and you are falling short on the 3.5 rule. If so that's a very strange situation to be in.

I'm in the middle of switching. House value about 525k. Outstanding mortgage 289k so 55%LTV. Combined earnings 105k base with 35k shift/bonus. We need less than 3x our Combined. Ages 32/30. We're having to jump through hoops with AVAMT.

Theres a reason they Give out this rate. They cherry pick clients which leaves them with the lowest default rate of any provider. They don't take on any risk

EvoEvo · 01-01-2022 11:49pm

Hi everyone,

I will apply for a mortgage this year and I'm still searching the best "rates"... I have found Avant Money with the best rates of 2.10%

the first 10 Y fixed and other 10 variable, LTV 40%).

Do you have any personal reviews about Avant Money ? is it trustworthy ?

I see in their website that you need to choose one of the 30 brokers displayed ..... Affinity Advisors, All Financials, Bonkers.ie etc.......Do you have any suggestions in Dublin area?

Thank you

Tar.Aldarion · 02-01-2022 1:56am

https://www.boards.ie/discussion/comment/118402063#Comment_118402063

Yes that's my position, will do a 45%-50% deposit but it is because I am buying it as a single applicant and want more like 4x or 4.5x for the kind of houses I am looking at. Avant won't do any exemptions at all I'm told, so that's why I'm trying ICS, the system didn't say no to me, just to refer to talk to them about it.

redsteveireland · 02-01-2022 11:04pm

https://www.boards.ie/discussion/comment/118333091#Comment_118333091

It's the disposable income that is effecting our application, we have 4 children. That was the feedback from PTSB anyway.

kev_s88 · 03-01-2022 5:26am

https://www.boards.ie/discussion/comment/118403459#Comment_118403459

I went with Finance One as my broker. They are doing a great job for me. What we found from going through the process with the broker is that rate is not everything. You may get a super low rate with one provider, but another provider may be willing to give you a larger mortgage. Avant didn't even factor in for us.

Our original approval was with Finance Ireland. 6 months lapsed on it in Nov 2021 and then a house came up that we could buy. Ended up being a little more than we had expected. Our broker went back to the market and we're now going with BOI, who are still giving us a decent rate and more money than any other provider would offer through LTI exceptions.

BobCat123 · 05-01-2022 1:59pm

What is the treatment of being on probation when applying for a mortgage? I’m in the civil service for a number of years, got an internal promotion and on probation for the next 6 months? Thanks

Saving/Applying for a mortgage 2020-22 Edition

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