Saving/Applying for a mortgage 2020-22 Edition

Q&A · 13-02-2023 07:56PM

https://www.boards.ie/discussion/comment/120236993#Comment_120236993

You could have a pretty good idea of your chances now.

Are you in permanent jobs for more than 6 months? Are they tech jobs?

The property you're interested in would you need a mortgage of more than 3.5-4x income?

Have you 10% of the asking price saved?

How much would the monthly mortgage repayments be and how do they compare to what you're paying in rent and or saving now?

Any skeletons in your financial closest? Any unpaid loans from yesteryear that will trip you up? Will your last 6 months bank statement support all of the above answers.

For initial approval it can take a couple of weeks once you have all the paperwork in order. Don't underestimate how long it can take to get all your bank statements, credit card bills and payslips in order. Also with interest rates rising and banks leaving expect slow responses from lenders.

Ikozma · 13-02-2023 11:40PM

Both full time employment,and have 1/4 of the house value saved over last 5 or 6 years,plus another 1/4 will be raised from selling current property so we'll only be looking for half of the house price

psych77 · 14-02-2023 12:27PM

Quick question guys. How much are people paying for a BER cert? We need another one as sale closing tomorrow and our existing one expired a few weeks ago. Getting random quotes 230 300? Wanted it cheap as possible as I’m so over this sale now!! It’s a 3 bed in Oranmore!

aislingm999 · 14-02-2023 10:40PM

Anyone know what insurances/covers are necessary to have before drawdown. Eg.home insurance/mortgage protection/life assurance etc.

Does it differ from bank to bank ?

pc7 · 15-02-2023 02:58PM

Just wondering is anyone here trying to draw down BOI before rate rise and how you are getting on? My purchaser is trying to do this, but seems be getting told another day or 2, every day! I'd say BOI trying to delay it so they don't get it down before rate rise.

poker2k9 · 15-02-2023 03:05PM

https://www.boards.ie/discussion/comment/120244321#Comment_120244321

Won't be surprised. BOI are really dragging their feet right now. That said, my friend with BOI who had closing date last Monday got update from BOI yesterday saying predicted drawdown date will be today, and their solicitor did indeed get the funds today.

__________________________

Side post: Has anyone got offer letters from BOI this week and what the timeline was? Sent them docs from AIP (developer details) on the 8th and still waiting.

pc7 · 15-02-2023 03:12PM

Thanks for reply poker, seems really sharp practice, hopefully they get sorted, good news for you pal.

1percent · 15-02-2023 05:31PM

We are at the under writing stage with BOI, day 15 (working days) and have now been told an IT error has cause delays. We should have had LOI last week according to their metrics. We are livid! contracts have been issued, engineer is lined up and we are still sitting in purgatory waiting on them to take the finger out.

dubliner10 · 15-02-2023 11:24PM

Also at the underwriting stage with BOI, they told my mortgage advisor that we should expect to hear in another 2 days. Its been 2 weeks already

Hippodrome Song Owl · 16-02-2023 12:46AM

https://www.boards.ie/discussion/comment/120244321#Comment_120244321

A colleague of mine is in a similar situation with BOI. He was told that if everything was submitted to them by 14th then it will be processed on time. The final document was submitted to them on morning of the 13th (mortgage protection), but they haven't yet processed it. So it still appeared as outstanding when solicitor enquired today and now BOI is implying it will take days. He's doubting he will get drawdown before 21st now. It's hard not suspect BOI may delay things to their benefit.

pc7 · 16-02-2023 08:48AM

Yeah you'd wonder if it would be worthwhile people following up with the Ombudsman if the rate isn't honoured.

Cina · 16-02-2023 12:21PM

We got all our documents in on the 14th which was the deadline, but still no update from BOI for the solicitor.

Hopefully we get it by the 21st, just have to hope that if the problem is on their side they'll extend it though if they haven't given us funds by them.

AH92 · 16-02-2023 12:53PM

Does anyone know is it ok to get statements for 6 months savings from last September until now if we have 6 months finished since yesterday or is it better to let the month finish?

Also if we get a pay rise in 2 months time can we ask for a higher mortgage before drawdown? Thanks guys.

poker2k9 · 16-02-2023 01:03PM

https://www.boards.ie/discussion/comment/120248324#Comment_120248324

Up to you on the savings statement piece, but it has to be from August afaik. I know with AIB I can request one that shows the savings up till today. The bank will work it out themselves to know what is coming this month if you save a regular amount even if the month hasn't ended.

On asking for higher mortgage; you can, but you will need an amendment form submitted if they already gave you a mortgage offer based on your prior salary. So, factor in addional time delays after you send amendment request if going that route.

AH92 · 16-02-2023 01:06PM

https://www.boards.ie/discussion/comment/120248371#Comment_120248371

Lovely thanks for the info!

tippingpoint · 16-02-2023 03:15PM

https://www.boards.ie/discussion/comment/120248175#Comment_120248175

Just wondering if everything appears as Approved for you on the portal? I'm still waiting on them to process the Deed of Assignment of Life Policy. Doubting that they will have everything sorted for us by the 21st 😑

beatricebutrus · 16-02-2023 05:15PM

Could anyone advise on what the earliest stage I can drawdown at? I'm with AIB, just received loan offer however the rates have just gone up. If I drawdown before March 3rd, it looks like I could stick with old rate. I went directly to bank, rather than a broker, so would have to start from scratch again. Or should I just accept it won't happen and line up another lender?

I closed three weeks ago and am still waiting on contracts, thought the seller was keen to move as fast as possible. If I was to get the contracts this week, and aside from anything untoward popping up in conveyance, would there be any chance I could drawdown within two weeks? Anyone have a magic ball?

16-02-2023 05:42PM

I posted this a bit further up the thread.

"I have just had a bid accepted on a house today. I have approval with AIB. I had also applied to TSB. There is a hold up with TSB however as they are waiting for a February pay slip to see evidence of guaranteed bonus of 10% of my salary which they are prepared to lend to me on. TSB's rates are still more favorable so I would rather go with them. I am not due to receive the pay slip until 24th of February. I asked payroll could be provide it a bit earlier and they said they would see what they can do. Once submitted it then has to go through TSB's processes".

My payroll did me a massive favor and gave me the pay slip yesterday the 14th Feb rather than waiting until the 24th Feb, delighted. I sent it off to TSB (via broker) and was shocked to hear back that it would still be two weeks, surprised as they had all the rest of my stuff with a few weeks.

My question is would it be a good idea if I notified AIB I had paid a booking deposit on a property and they could do all the rest of their processes apart from perhaps the valuation/deal with my solicitor ? This would hedge my bets just in case anything went wrong with TSB in the next two weeks/ and I could then pull the trigger with AIB?

I would still much rather go with TSB due to much better rates as outlined above. Its just so frustrating waiting for TSB I feel restless.

poker2k9 · 16-02-2023 08:40PM

https://www.boards.ie/discussion/comment/120249687#Comment_120249687

Yes , you can apply to as many lenders as you want. I'm doing the same between PTSB and BOI. PTSB are favourable for me if they get back to me before BOI on a small update that reduces my monthly repayment. So it is waiting game on who i hear from first before next Friday as I have snagging then. My solicitor wants enough time (at least 3 weeks) before closing to send back all the docs and answer any unforseen questions from the banks.

17-02-2023 11:32AM

https://www.boards.ie/discussion/comment/120250537#Comment_120250537

Thanks a mil. I rang AIB there and gave them all the details of the property they said they would start working on a letter of offer.

I didnt give them my solicitors details yet is the only thing. Do they involve the solicitor in the letter of offer stage? I don't want to incur extra legal charges or anything.

Padre_Pio · 17-02-2023 12:14PM

https://www.boards.ie/discussion/comment/120246913#Comment_120246913

If the documents are in and are correct then he should be fine.

poker2k9 · 17-02-2023 12:42PM

https://www.boards.ie/discussion/comment/120252298#Comment_120252298

Yes, once the offer letter is ready, they need your solicitors details to post it to them.

Your solicitor should charge you for the full service of retaining them to buy a house and all aspects that come with it that is their responsibility. So it doesn't matter if you give them the details now or later. Either way, all paper work needs to be signed with your solicitor.

17-02-2023 12:58PM

https://www.boards.ie/discussion/comment/120252651#Comment_120252651

That's great info cheers a million.

Cool I can let them do up that letter of offer and I should have my approval with my preferred lender TSB by that time. Then have AIB ready to roll as my fall backup just on the very small chance something goes tits up with TSB.

Hippodrome Song Owl · 17-02-2023 03:09PM

https://www.boards.ie/discussion/comment/120252495#Comment_120252495

I hope you're right! Nearing close of business for the weekend and the mortgage protection document submitted on Monday morning is apparently still not "marked off" by BOI. Another weekend of worry for him - last weekend it was worry over a delay in getting the mortgage protection document issued in time. It's a stressful enough process without this interest rate rise hanging over you.

I hope everyone here waiting on BOI drawdown is lucky and gets it before the 21st. Fingers crossed.

Padre_Pio · 17-02-2023 10:48PM

https://www.boards.ie/discussion/comment/120253664#Comment_120253664

I got my docs on the Thursday before Havens 0.5% increase on the Friday back in November, though I didn't draw down until the following Wednesday after the cut off, due to delays on their side (Haven are awful, avoid at all cost). I still locked in the rate though.

The broker told me of another case where the buyer sunmitted their final form on the Monday and was stuck on the higher rate. I'd be gutted. An extra 0.5% could be thousands extra over a 5 year fixed term.

Cina · 18-02-2023 06:02PM

Phew, got our funds issued on Friday at the current rate, after all that.

Can't recommend Mortgage Broker's enough, they were absolute stars from us especially with BOI being so awkward about everything. The fact that it's a free service is even better.

19-02-2023 12:04PM

Am I right in saying that now that I am sale agreed on a property and I get the formal letter of offer from the bank, the rates on this offer are valid if I draw down within a specified period even if there is further rate increases?

poker2k9 · 19-02-2023 01:29PM

https://www.boards.ie/discussion/comment/120260737#Comment_120260737

As previous poster mentioned, rates can still change.

That said, banks typically do give some sort of grace period (not always) to drawdown offer rate.

In my case, I got PTSB offer letter at 2.xx% back in October, and due to house delays (March 2023 ETA) , they gave a grace period till Feb 15 to still drawdown at 2.xx% when the initial increase in Nov hit. They still honoured this grace period when the Jan increase also hit. However due to slowness on developer side, I don't get to utilize the old rate because they won't keep rolling the grace period over if you already got it once.

That is to say, at this point my rate will be whatever the market rate is when I go drawdown in March even though I had my offer since October.

Hippodrome Song Owl · 19-02-2023 01:40PM

https://www.boards.ie/discussion/comment/120260737#Comment_120260737

They usually give a grace period to drawdown at your letter of offer rate if the rate rises shortly after. But they don't have to, and it may be quite short. BOI gave only 4 weeks grace on their most recent rise. That's an impossible timeline unless you're already near the end of the process.

My colleague signed contracts on day of the BOI rate rise - 24th Jan. Deadline for all documents to be submitted for processing to get drawdown at original offer rate was 14th Feb and drawdown by the 21st. He had everything submitted by 13th Feb but not all documents are processed so it doesn't look good for him drawing down by 21st now.

You're relying on everything going smoothly but also the bank working efficiently. Unfortunately BOI seem to be very slow. I experienced the same from them before Christmas - nearly lost the house as vendor was impatient and didn't believe BOI could be so slow to issue the letter of offer .

Dante · 19-02-2023 07:20PM

How long does it typically take to drawdown the mortgage after signing the contracts? I have a hard deadline of mid-April to drawdown in order to avoid getting hit with the latest interest rate increase. I'm hoping to sign the contracts next week.

Saving/Applying for a mortgage 2020-22 Edition

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