Saving/Applying for a mortgage 2015/16/17/18/19

GingerLily · 11-03-2019 5:35pm

Radsky wrote: »

hanaimai wrote: »

You'll need your letter of offer to sign contracts, so it depends on when you expect to get contracts.

We got confirmation that we can sign contracts with just the underwritten AIP.

Really?? We needed a full loan offer at contract signing stage

TheShow · 11-03-2019 5:57pm

Reversal wrote: »

Have gotten a bit confused looking at the new build sale prices on the property price register.

Am I correct in thinking the sale price shown on the PPR is exclusive of VAT? But the price you actually pay is inclusive of VAT?

If so, why is the PPR exclusive of VAT?

PPR is updated when Stamp duty is paid. Stamp Duty is only eligible on EX Vat cost as you don't pay tax on a tax.

The full sale price for a new house includes Vat, there is no VAT on "used" houses.

TheShow · 11-03-2019 6:00pm

Radsky wrote: »

We got confirmation that we can sign contracts with just the underwritten AIP.

from the vendors solicitor or yours? seems unusual to be honest.

If that is the case, wait as long as you can on the AIP, then request contracts...

Natashaw88x · 11-03-2019 6:16pm

TheShow wrote: »

from the vendors solicitor or yours? seems unusual to be honest.

If that is the case, wait as long as you can on the AIP, then request contracts...

Never heard of that. We have underwritten AIP and solicitor required letter of offer for contracts. It’s very unusual, I personally would be vary of doing it. Nothing is official till you get your letter of offer.

Glen_Quagmire · 11-03-2019 7:16pm

Has anyone have any difficulties with using online payslips and if so how you got around it?

The OH gets her payslips through an online portal but there is a separate window/tab for each section of the payslip so you cannot see all the details in one screen. I saved all the different sections and them combined them into one PDF for each month but the bank has comeback to us saying they are not sufficient as it is an online version and are asking for a "proper" payslip, however the OH says her employer doesn't give out payslips any other way but the online portal.

Any suggestions?

11-03-2019 7:29pm

Glen_Quagmire wrote: »

Has anyone have any difficulties with using online payslips and if so how you got around it?

The OH gets her payslips through an online portal but there is a separate window/tab for each section of the payslip so you cannot see all the details in one screen. I saved all the different sections and them combined them into one PDF for each month but the bank has comeback to us saying they are not sufficient as it is an online version and are asking for a "proper" payslip, however the OH says her employer doesn't give out payslips any other way but the online portal.

Any suggestions?

Who are you with? I was with bank of Ireland and they accepted online payslips. Like there’s no other option in my work so they have to accept them....

Glen_Quagmire · 11-03-2019 7:34pm

Rey Muscular Jack wrote:

Who are you with? I was with bank of Ireland and they accepted online payslips. Like thereâ€™s no other option in my work so they have to accept them....

We are applying with BOI. Yeah I think 90% of people get online payslip these days, I think it's just the way the OH's are formatted is the issue. The stupid things omit her name also but has her PPS number.

She emailed her HR department a while ago but she reckons they won't do anything as it's a large company with HR is based in the UK and are apparently not great to deal with.

Musefan · 12-03-2019 9:09pm

Hi all,

Wondering if anyone has a bit of advice!

My spouse and I were previously considering buying in Dublin/surrounding counties as this is where we work at the minute. After a number of years here we have realised that we're not tied to city living.

In the last few months our priorities have changed and we have decided that we would prefer to move back closer to our family. Both of us have the option to work from home/relocate closer to where our families are based.

According to the 3.5 rule, we would be able to borrow about 390000. We would be looking to purchase a house in the 280000-300000 range. We have one car loan which has <10,000 left on it and will be completed in Nov 20. We currently pay out 2100 a month (rent and car loan included) and manage this comfortably without any debts. No previous debts/no credit cards etc.

At the min, we have about 7000 saving. We have access to RSUs which we cash in as soon as they vest, so they should add about 5000 this year.

My first question is what should we be budgeting in for extra costs (solicitor etc), and will anyone even look at us with less than 10% of the deposit considering that we pay out more on a monthly basis than we would be spending on mortgage repayments. We don't need to factor in the cost of a survey as we have a family member who is qualified to complete this.

Thanks.

13-03-2019 7:34am

Survey is relatively cheap anyway. The biggest cost is stamp duty which is 1% of the purchase price.

And no I don't think you'll get a mortgage without the deposit saved. You'll need 11% of the house price plus an extra few thousand for solicitor.

el Fenomeno · 13-03-2019 8:23am

For new build mortgage where you're looking for 90% LTV, is it sufficient to provide proof of 5% mortgage saved and confirmation that you're approved for help to buy (which covers the other 5%)?

amcalester · 13-03-2019 9:03am

el Fenomeno wrote: »

For new build mortgage where you're looking for 90% LTV, is it sufficient to provide proof of 5% mortgage saved and confirmation that you're approved for help to buy (which covers the other 5%)?

Yes, but they'll also want to see funds to cover stamp duty, legal fees etc as well.

BOI asked me for proof I had enough to kit out the house, I think it was about €10 for that, though UB didn't ask for this.

GingerLily · 13-03-2019 10:18am

Musefan wrote: »

My first question is what should we be budgeting in for extra costs (solicitor etc), and will anyone even look at us with less than 10% of the deposit considering that we pay out more on a monthly basis than we would be spending on mortgage repayments. We don't need to factor in the cost of a survey as we have a family member who is qualified to complete this.

Thanks.

Budget 11.5% to be safe (1% stamp and the rest legal fees) .

I've not heard of lending with less than 10% deposit (allowing for HTB), you'll need to save more, you may need to get rid of your car loan.

mur223 · 13-03-2019 11:54am

Apologies if this has been asked before.
We are in the process of buying a house off the plans, our contracts and remaining 10% deposit are to be signed/paid next week.

I am wondering for whatever reason when we go to draw down the mortgage in a couple of months the bank refuses to offer us the money they agreed to. Does this mean we would loose our whole deposit? Anxious to meet the solicitor now face to face to discuss the contract but I am just wondering has anyone been in the same position?

thanks in advance

charlietheminxx · 13-03-2019 11:56am

mur223 wrote: »

Apologies if this has been asked before.
We are in the process of buying a house off the plans, our contracts and remaining 10% deposit are to be signed/paid next week.

I am wondering for whatever reason when we go to draw down the mortgage in a couple of months the bank refuses to offer us the money they agreed to. Does this mean we would loose our whole deposit? Anxious to meet the solicitor now face to face to discuss the contract but I am just wondering has anyone been in the same position?

thanks in advance

You're a little bit ahead of me in the same process but I think you can ask for a "subject to loan" clause to be included in the contracts. Your solicitor will be able to advise you properly on this.

As a matter of interest, for anyone who knows, does this happen much? The bank deciding to withdraw their loan offer at drawdown stage?

Julez · 13-03-2019 12:42pm

charlietheminxx wrote: »

You're a little bit ahead of me in the same process but I think you can ask for a "subject to loan" clause to be included in the contracts. Your solicitor will be able to advise you properly on this.

As a matter of interest, for anyone who knows, does this happen much? The bank deciding to withdraw their loan offer at drawdown stage?

I'm in the exact same boat right now. Will definitely be asking solicitor about "subject to loan clause". As for banks withdrawing loan, I'd say it's rare enough and probably only when there is some major change in circumstances or something you didn't declare before. But, I don't know for sure.

Bargain_Hound · 13-03-2019 12:46pm

This subject has been mentioned a few times in this thread now; but here's my experience of it - we got the clause written into our contract and agreed by the developer. This is at their discretion though. Not sure I would have been comfortable handing over my deposit with no plan b should the bank refuse to release the funds when you are due to close sale. Our new build was due to be ready within 6 months but took 10 months so we had to re-apply for the mortgage as the original offer expired after 6 months. I was on shaky ground in work as there was redundancies happening at the time so I was very glad I had the condition written into the purchase contract, worst case I'll get my deposit back (FYI - wasn't made redundant and sale completed last year). Worth noting it appears a lot of developers flat out refuse to write the condition into contracts as the demand is quite high for new builds.

charlietheminxx · 13-03-2019 12:47pm

Fingers crossed! Hoping it's not something else to worry about at this stressful enough time. As it is, we have been waiting a month for our contracts...! But I had read up on it a bit and will be making sure that the solicitor checks that there is either a subject to loan clause or that we can add one.

charlietheminxx · 13-03-2019 12:50pm

Bargain_Hound wrote: »

This subject has been mentioned a few times in this thread now; by my experience of it - we got the clause written into our contract and agreed by the developer. This is at their discretion though. Not sure I would have been comfortable handing over my deposit with no plan b should the bank refuse to release the funds when you are due to close sale. Our new build was due to be ready within 6 months but took 10 months so we had to re-apply for the mortgage as the original offer expired after 6 months. I was on shaky ground in work as there was redundancies happening at the time so I was very glad I had the condition written into the purchase contract. Worth noting it appears a lot of developers flat out refuse to write the condition into contracts as the demand is quite high for new builds.

That must have been so stressful! Delighted you got sorted anyway. Mine is also a new build but the mortgage approval is with AIB so the offer is valid for 12 months. I have an exception on the LTI rules though so my primary concern is if the bank won't stand over that later on in the process.

Bargain_Hound · 13-03-2019 2:16pm

charlietheminxx wrote: »

That must have been so stressful! Delighted you got sorted anyway. Mine is also a new build but the mortgage approval is with AIB so the offer is valid for 12 months. I have an exception on the LTI rules though so my primary concern is if the bank won't stand over that later on in the process.

I did too. Wasn't an issue getting the LTI re-approved but this was not definite and required LTI re-approval when reapplying after the initial 6 months. Was stressful indeed.

I should mention this was with BOI.

TheShow · 13-03-2019 6:05pm

mur223 wrote: »

Apologies if this has been asked before.
We are in the process of buying a house off the plans, our contracts and remaining 10% deposit are to be signed/paid next week.

I am wondering for whatever reason when we go to draw down the mortgage in a couple of months the bank refuses to offer us the money they agreed to. Does this mean we would loose our whole deposit? Anxious to meet the solicitor now face to face to discuss the contract but I am just wondering has anyone been in the same position?

thanks in advance

If you have an offer letter from the bank in your hand and all the conditions are satisfied, then the bank cannot refuse to pay out as it would be breach of contract and you could sue. The only reason they would not pay out is if the conditions of the loan offer have not been fully satisfied.

If the house is not completed and your offer expires, then you will need to get reapproved which should not be a major issue, unless there are material changes to your circumstances that impact affordability etc.

Also, your solicitor will normally insert a "subject to loan" clause on the contract which effectively covers this off.

GingerLily · 13-03-2019 6:36pm

TheShow wrote: »

Also, your solicitor will normally insert a "subject to loan" clause on the contract which effectively covers this off.

Everyone should ask their solicitor to add in this clause, every good solicitor should be trying to add it in anyway, but a lot of developers are not allowing this clause in for new builds.

bush · 13-03-2019 11:52pm

I'm coming up on a year in my first house which I plan to stay in for about 5 to 7 years. What the best course of action when upgrading? Overpay the mortgage or just save for a large deposit for the second house?

bush · 13-03-2019 11:52pm

I'm coming up on a year in my first house which I plan to stay in for about 5 to 7 years. What the best course of action when upgrading? Overpay the mortgage or just save for a large deposit for the second house?

Radsky · 14-03-2019 12:18am

charlietheminxx wrote: »

That must have been so stressful! Delighted you got sorted anyway. Mine is also a new build but the mortgage approval is with AIB so the offer is valid for 12 months. I have an exception on the LTI rules though so my primary concern is if the bank won't stand over that later on in the process.

Is the offer letter from AIB valid for 12 months? Or is it just the underwritten AIP that is valid for 12 months?

Abbey127 · 14-03-2019 12:18am

Hi what is the market rate to rent a room out in an apartment on the north side of Dublin. 20 mins away from the city centre.

myshirt · 14-03-2019 7:41am

Abbey127 wrote: »

Hi what is the market rate to rent a room out in an apartment on the north side of Dublin. 20 mins away from the city centre.

Entry point is about 550e for a single room, with most decent rooms costing 650+. Put it on the market and see how you get on.

JJJackal · 14-03-2019 9:55am

bush wrote: »

I'm coming up on a year in my first house which I plan to stay in for about 5 to 7 years. What the best course of action when upgrading? Overpay the mortgage or just save for a large deposit for the second house?

Do you plan to sell House A when buying House B? If you are not selling House A you will need a 20% deposit to buy House B. If you are selling House A, every euro extra you pay down on year one saves you about 1 euro interest at year 30 (as an example)

charlietheminxx · 14-03-2019 10:59am

Radsky wrote: »

Is the offer letter from AIB valid for 12 months? Or is it just the underwritten AIP that is valid for 12 months?

Sorry, you're quite right. The loan offer itself is for 6 months.... hadn't copped that! Wow I hope my house is finished by then!

el Fenomeno · 14-03-2019 11:39am

Can you apply for a mortgage with multiple institutions at the same time, to see which one of them gives you the best offer (and also to save time in case your first preference rejects you)?

I don't want a scenario where it's

1. Apply Bank 1
2. Wait 7-10 Days.
3. Get rejected.
4. Apply Bank 2
5. Wait another 7-10 days...

etc.

Does applying with multiple institutions disadvantage you in any way (i.e. do the second bank who check your credit rating get worried/annoyed when they see it's recently been checked by another institution too, or would they assume we were rejected by someone else before coming to them, even if it's really the case that we applied for both at the same time and haven't been rejected/approved by anyone yet)?

JJJackal · 14-03-2019 12:03pm

el Fenomeno wrote: »

Can you apply for a mortgage with multiple institutions at the same time, to see which one of them gives you the best offer (and also to save time in case your first preference rejects you)?

I don't want a scenario where it's

1. Apply Bank 1
2. Wait 7-10 Days.
3. Get rejected.
4. Apply Bank 2
5. Wait another 7-10 days...

etc.

Does applying with multiple institutions disadvantage you in any way (i.e. do the second bank who check your credit rating get worried/annoyed when they see it's recently been checked by another institution too, or would they assume we were rejected by someone else before coming to them, even if it's really the case that we applied for both at the same time and haven't been rejected/approved by anyone yet)?

Get a mortgage broker?

BadSanta · 14-03-2019 12:24pm

JJJackal wrote: »

Get a mortgage broker?

Some broker get commission from the bank.

Creamy Goodness · 14-03-2019 12:35pm

BadSanta wrote: »

Some broker get commission from the bank.

of course they do, they bring the bank custom? You expect them to work for free?

awec · 14-03-2019 12:37pm

el Fenomeno wrote: »

Can you apply for a mortgage with multiple institutions at the same time, to see which one of them gives you the best offer (and also to save time in case your first preference rejects you)?

I don't want a scenario where it's

1. Apply Bank 1
2. Wait 7-10 Days.
3. Get rejected.
4. Apply Bank 2
5. Wait another 7-10 days...

etc.

Does applying with multiple institutions disadvantage you in any way (i.e. do the second bank who check your credit rating get worried/annoyed when they see it's recently been checked by another institution too, or would they assume we were rejected by someone else before coming to them, even if it's really the case that we applied for both at the same time and haven't been rejected/approved by anyone yet)?

You can apply at as many banks as you want at the same time. It makes no difference at all.

Phileas Frog · 14-03-2019 12:55pm

Creamy Goodness wrote: »

of course they do, they bring the bank custom? You expect them to work for free?

Some brokers are paid for by the client.

Creamy Goodness · 14-03-2019 1:08pm

Phileas Frog wrote: »

Some brokers are paid for by the client.

the person above suggested a broker, which was then responded to "some get commission". it's like anything... shop around.

TheShow · 14-03-2019 4:02pm

Personally I would not pay a broker.
They get paid handsomely by the banks for introducing the business. There are plenty of good brokers out there that will not charge you for the service.

A broker can, or you can submit multiple applications to all the different lenders for a mortgage. Do be aware though that each ICB search leaves a foot print and if there are multiple recent footprints, this can raise an eyebrow with the underwriters.

A broker, will however normally just go the the bank that pays the most commission.

Try and do a bit of research yourself on the different lenders and what rates they offer etc. Use their online calculators to get an idea of what amount is realistic given your circumstances.

BadSanta · 14-03-2019 9:39pm

Creamy Goodness wrote: »

the person above suggested a broker, which was then responded to "some get commission". it's like anything... shop around.

Read below comments, that's what I mean. so be careful choosing broker. even paid broker some do get commision lol

TheShow wrote: »

Personally I would not pay a broker.
They get paid handsomely by the banks for introducing the business. There are plenty of good brokers out there that will not charge you for the service.

A broker can, or you can submit multiple applications to all the different lenders for a mortgage. Do be aware though that each ICB search leaves a foot print and if there are multiple recent footprints, this can raise an eyebrow with the underwriters.

A broker, will however normally just go the the bank that pays the most commission.

Try and do a bit of research yourself on the different lenders and what rates they offer etc. Use their online calculators to get an idea of what amount is realistic given your circumstances.

Creamy Goodness · 14-03-2019 9:43pm

BadSanta wrote: »

Read below comments, that's what I mean. so be careful choosing broker. even paid broker some do get commision lol

It's hard to get all that from your original comment

"Some broker get commission from the bank."

bush · 14-03-2019 11:22pm

JJJackal wrote:

Do you plan to sell House A when buying House B? If you are not selling House A you will need a 20% deposit to buy House B. If you are selling House A, every euro extra you pay down on year one saves you about 1 euro interest at year 30 (as an example)

Ye I will be selling the first house. I'm on a 3 year fixed mortgage and was thinking of saving up and paying off a lump sum at the end. Shop around for a good variable rate and switch mortgage and overpay it a little bit every month while saving over the next 3 or 4 years towards the new house. Is this the best way to do this?

Glen_Quagmire · 19-03-2019 4:46pm

5 year fixed at 3.2% or 3 year fixed at 3%

Overall difference of about 30 euro per month

What would you go with?

Glen_Quagmire · 19-03-2019 4:46pm

5 year fixed at 3.2% or 3 year fixed at 3%

Overall difference of about 30 euro per month

What would you go with?

Benny Biscotti · 19-03-2019 5:14pm

Is there any benefit to submitting mortgage applications or applying to rebuilding ireland / HAP schemes even if you are a couple of years away from saving for deposit?

Is there a time limit and you would just end up having to reapply?

awec · 19-03-2019 7:48pm

Glen_Quagmire wrote: »

5 year fixed at 3.2% or 3 year fixed at 3%

Overall difference of about 30 euro per month

What would you go with?

5 years personally.

awec · 19-03-2019 7:50pm

Benny Biscotti wrote: »

Is there any benefit to submitting mortgage applications or applying to rebuilding ireland / HAP schemes even if you are a couple of years away from saving for deposit?

Is there a time limit and you would just end up having to reapply?

No benefit and a total waste of time. You'll just be refused, or more likely the bank won't even bother with your application when you reveal you've no deposit at all.

Glen_Quagmire · 19-03-2019 8:14pm

awec wrote:

5 years personally.

Can I ask your reasons as a matter of interest?

awec · 19-03-2019 8:21pm

Glen_Quagmire wrote: »

Can I ask your reasons as a matter of interest?

Just for peace of mind and easier financial planning. While there seems no rate changes on the horizon, my personal view is they are more likely to go up than down.

Also, after 5 years of mortgage payments we would fall into the lower LTV bracket, so would qualify for better rates at that point.

19-03-2019 9:09pm

awec wrote: »

Just for peace of mind and easier financial planning. While there seems no rate changes on the horizon, my personal view is they are more likely to go up than down.

Also, after 5 years of mortgage payments we would fall into the lower LTV bracket, so would qualify for better rates at that point.

I am doing this exact thing and my reasons are the same, just purely to fix my costs for the time being, no surprises and will reassess at the end of the term and possibly switch bank.

scarepanda · 19-03-2019 9:46pm

We have the same dilemma at the moment, and were erring on the side of the 5 year term.

Our reasoning is that it gives some stability and no surprises for the duration. We have a young family, single income and were looking at 'forever' type homes rather than a starter home, so don't have any plans on moving any time soon. Buying a house will take up pretty much all of our savings and we'll only be left with a small rainy day fund. So having no surprises for 5 years will help build up our savings again. We hope to be able to put aside some extra every month for the 5 years as a rainy day mortgage fund or to use as a lump-sum payment at the end of the term. We'll also see if we can get better rates once the term expires.

AndreaSoly · 20-03-2019 5:56pm

When we were looking for a mortgage we definitely knew that we are looking for a fixed term mortgage for as long as we can. When you search on the mortgage market you can only find a very few banks who offers the 10 years. My friends suggested to us to get 5 years only with the best rate. But we decided to pick the 10years with a higher rate. Why?
Just a quick calculation:
Lets say we need to borrow € 292,000, for 25 years, we are first time buyers etc..
Currently the best offer for 5 years is €1,354/month with 2.8% interest rate and 3.5% APRC. No cash back comes with this offer.
While if we go with the best offer for 10 years is €1,461/month with 3.5% interest rate and 3.7% APRC. Comes with 2%+1% cash back offer. That means if you evenly split the 2% cash back ( €5,840) for the first 5 years, you will pay € 1,363/ month (just 9 euros more than with the best offer). Continue with the following 5 years and split the 1% cash back ( € 2,920) to the next 60 month monthly repayment will be € 1,412/month.

We felt it safer option than to go for a shorter therm, specially if you are planning a family, kids etc and it will takes lot's of money from your budget.
If you are lucky after the 5 years fixed term you can get an even better interest rate, but can go worse and pay much more.

It's all depend on your requirements, what's more important.

ELM327 · 20-03-2019 6:09pm

Interest rates will not fall much further, likelihood of rise is more likely than likelihood of fall, therefore fixing for as long as possible is in your best interest (pardon the awful pun)

Saving/Applying for a mortgage 2015/16/17/18/19

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