Saving/Applying for a mortgage 2020-22 Edition

Our broker advised that it's not a good idea to apply with more than one mortgage provider as it can affect your credit rating if there's a hiccup. Something about it not being a good look seeking credit from more than one institution.

Is this true? Seems anti competitive to me. We should be able to apply for more than one surely especially given the rapid change in rates?

Absolutely. Correct

When did you initially put in the application with them for full offer?

We are trying to request our funds ahead of our new build house being complete to avoid the rate increase on the 22nd from BOI.

The house is fully finished, we have our floors and carpets in. The only delay is Irish water.

The builder is saying they won't have the homebond certificate as the they need the utilities to be finished before issuing this.

Does anyone know is it possible to drawdown funds without a homebond certificate?

Also, what happens to your letter of offer if the rate does increase, does this need to back to the underwriters for approval again? I think we were right on the limit with what we were borrowing anyway.

They are right. That's madness. I have done this on multiple occasions now. I am in the process of doing it this week with AIB and BOI again. I was discussing both applications with the AIB mortgage advisor last week even.

I don't see 4.20% for the green mortgage?

The 5yr fixed green mortgage is increasing from 3.1/3.15/3.25 to 3.65 / 3.75 / 3.85.

As others have said this isn't true. A record of each application for credit will be recorded on your CCR but at worst the other lender would ask what happened here and you'd tell them you were approved but didn't drawdown coz you prefer other lenders interest rate etc. I doubt they'd even ask though because it's so common for people to apply too multiple mortgage lenders and this would be obvious from the CCR report since all the applications were made at the same time.

Someone else mentioned the broker probably doesn't want to do the leg work and that's not really true either.

The more likely explanation is that the broker who tells you that you should only apply to one lender wants to maintain their sales relationship with lenders and doesn't want to be sending in applications that don't result in drawdown.

You can't draw down, but I would get a date from the builder for the Homebond, then advise your solicitor to start the process.

Your approval is stress tested for a few % rise in rate, so you won't have to go back. Not much consolation if you're stuck paying an extra 100 a month over some silly delay.

My broker had another customer who just missed out on a 2.55% rate because the BER inspector never showed up to issue a cert.

The document requests were pretty quick, usually within a couple of days. 7 days sounds to me like you're about to get your answer in the next day or so, might be of little comfort but try not stress too much over the bank holiday! Even if they did pull out on you, you would just go back a day or so later with the offer and they'll likely go sale agreed immediately again.

We've already pushed it out twice and they've lost patience. This is their hard deadline and they have a waiting list of people (end of phase). I haven't seen any change of status in my docs (reviewed to accepted) like others have seen so I don't think it's been picked up yet. Fingers crossed, but I've resigned myself to losing the house at this stage.

Hey, thanks for the reply.

I know it's not enough to buy a house but is it enough to be able to bid or get viewings for new builds? Estate agents ask for it.

Just seemed way easier than the other banks. It was almost immediate. Whereas BOI is taking 4 weeks to give AIP.

Oh yeah we have almost all docs uploaded, just waiting on help to buy from Revenue which is delayed as its saying my affairs aren't in order. Presume it's cause I'm still waiting on Statement of Liability for 2019.

PTSB won't give AIP without it which was another reason why the AIP from AIB was a very pleasant surprise.

I'm trying to decipher what the cost would be in relation to paying off a fixed rate loan early. Bank of Ireland's terms and conditions state the following:

If you repay your Mortgage early when you are on a fixed rate of interest, or change to another rate within your fixed rate period, you may have to pay an additional funding fee. This funding fee is compensation for the additional interest expense that the bank may incur as a result of a customer breaking their fixed rate contract. If there is no additional interest expense incurred by the Bank no compensation will be required. This is how the funding fee compensation is calculated - it is equal to “C” where:

C = Ax (R% - R1%) x D / 365

So they have this formula. A is the amount being repaid early and D is the number of days left on the fixed term, simple enough. However I'm struggling to understand with R and R1 are.

“R%” = the annual percentage interest rate which was the cost to us of funding an amount equal to “A” for the originally intended fixed rate period.

“R1%” = the annual percentage interest rate available to us for a deposit of an amount equal to “A” for a period equal to “D”.

So it sounds like R is what it cost BOI to magic up the money to loan to me and R1 is how much they'll make by leaving the amount I paid early gathering interest. But what does that mean in real terms? Is R the ECB rate at time of drawdown and R1 is the ECB rate at time of early repayment? If you were to draw down today and the ECB rates went up in the summer and stayed up, does that mean there would be no charge to pay off the loan early?

Have a read through this thread. It should shed some light on how it all works.

It depends on where they are with contracts. I put a booking deposit down, got the contract a week later and had 3 weeks to sign it.

I told them I might be 1 - 2 weeks late as I still needed an exemption approved. They were fine with that because they got a timeline from me. But they still asked me to confirm as soon as my exemption was approved because they had dozens of people on the waiting list