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

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Comments

  • Registered Users Posts: 510 ✭✭✭Frozen Veg


    Are people generally going for variable or fixed mortgages these days?

    First mortgage appointments booked for next week.

    Will be looking for 90%, house value €120,000.


  • Registered Users Posts: 488 ✭✭soc


    Telling a person who has credit card debt to use their card more isn’t really the best advice.

    I'm not saying that. I'm saying that if they want to show repayment history to bank regarding a credit card then clearing the balance every month shows good repayment history and not making monthly payments to chip away at a balance. I don't know how good or not the person is with a credit card...


  • Registered Users Posts: 1,275 ✭✭✭august12


    Frozen Veg wrote:
    Are people generally going for variable or fixed mortgages these days?

    Depends on what you intend doing with repayments, some people like to overpay to reduce the term of mortgage, variable rate mortgage is more lenient when it comes to repayment plans, Ulster bank has a great fixed rate mortgage at present. Also allows an annual overpayment of 10% of outstanding balance.


  • Registered Users Posts: 15 Misssally


    I don’t use the card. It’s an old balance that I’ve reduced down. My question isn’t so much about the card, I’m aware it’s not a good thing to have so I’m trying to get rid of it. My concern is about reducing my savings. I have shown over 6 months that I can save over the expected repayments but if I take this 2k out it will reduce the average down. Obviously going forward I can save more as I won’t be paying the card but I’m not sure how it will look & if it will set me back another 6 months


  • Registered Users Posts: 514 ✭✭✭laserlad2010


    Well, back on here with second house sale agreed. This time the survey looks good so I won't have to back out this time!

    A feel good story - this house was subject to a really low bidding war (started at 75% of asking price 400k and went up by 5k every two days). I'd come in with a much higher offer the week before Christmas, but the next day the EA says the vendor wants it done and dusted - best and final offers by X deadline. There were 5 interested parties.


    Anyway, put in the best bid I could do and got a missed call from the EA the next day. Rang him back "Dear X, I'm just ringing about the property. You were not the highest bidder... but the vendor has preferred your bid" To say I was gobsmacked was an understatement! I think he couldn't resist the pause tbh:pac:


    The highest bid was an investment offer from a landlord, and the vendor wanted it to be a family home for a FTB, so she wanted us in the property.


    Just goes to show it's not all about the money sometimes. Obviously contracts not signed but hoping to do so in the next two weeks! :):)


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  • Registered Users Posts: 2,080 ✭✭✭fjon


    I was wondering how feasible is it to obtain keys to a property before the sale fully closes?
    We're at a very advanced stage and are just waiting for one piece of documentation (Land Registry), which is taking longer to obtain than anticipated. The date we have been given by the solicitor keeps being pushed forward - it was initially supposed to be before Christmas.
    We have little time left in our current rental house and need to move out in the next 2 weeks.
    I was wondering if anyone here has done this?


  • Registered Users Posts: 610 ✭✭✭JustMe,K


    fjon wrote: »
    I was wondering how feasible is it to obtain keys to a property before the sale fully closes?
    We're at a very advanced stage and are just waiting for one piece of documentation (Land Registry), which is taking longer to obtain than anticipated. The date we have been given by the solicitor keeps being pushed forward - it was initially supposed to be before Christmas.
    We have little time left in our current rental house and need to move out in the next 2 weeks.
    I was wondering if anyone here has done this?

    I did this years ago for similar reasons, but the person I was buying off had used it as a rental property so he was happy enough to 'rent' the place to me until the sale closed, which was about 10 days after we moved in.

    It really will depend on the owners circumstances, but given the current situation where everything is so heavily weighted in favour of tenants rather than landlords, I would be very hesitant if I was the owner.

    Can you speak to your landlord an extend your time?


  • Registered Users Posts: 2,080 ✭✭✭fjon


    kcdiom wrote: »

    Can you speak to your landlord an extend your time?

    She is unfortunately currently renting and will be moving back into her house, so there's no room to extend that.


  • Moderators, Sports Moderators Posts: 19,466 Mod ✭✭✭✭Weepsie


    Well, back on here with second house sale agreed. This time the survey looks good so I won't have to back out this time!

    A feel good story - this house was subject to a really low bidding war (started at 75% of asking price 400k and went up by 5k every two days). I'd come in with a much higher offer the week before Christmas, but the next day the EA says the vendor wants it done and dusted - best and final offers by X deadline. There were 5 interested parties.


    Anyway, put in the best bid I could do and got a missed call from the EA the next day. Rang him back "Dear X, I'm just ringing about the property. You were not the highest bidder... but the vendor has preferred your bid" To say I was gobsmacked was an understatement! I think he couldn't resist the pause tbh:pac:


    The highest bid was an investment offer from a landlord, and the vendor wanted it to be a family home for a FTB, so she wanted us in the property.


    Just goes to show it's not all about the money sometimes. Obviously contracts not signed but hoping to do so in the next two weeks! :):)


    I started reading that half thinking we might have been bidding against each other! But I was only one of 2 bidders, and there was no investor that I am aware of, and wasn't given a deadline, so wasn't the same place

    We bid on a bhouse that started at 400, and came down a long way from that to nearly 75%. Bid under, as noone was bidding whatsoever. No contact from the agent at all. Send in an email, they eventually ring back and say they won't accept that, they want x amount, or we can try and negotiate.

    So we increase our bid a little to see if they move, again silence from the agent for 2 weeks. Another bidder then emerges, and I get a call straight away. We match their bid, explaining we can move straight away etc, so they up there bid. We made one more bid and they went up by 10k.

    We decided that we'd stop then. First time bidding, and I do not like estate agents. Kept telling me about the other bidder, when I said, I wasn't interested in other bidder says, I am interested in what the seller has said. The house was worth more than it went for too. They had mistakes in the description, addressed it wrong and when viewing the house (on 3 occassions), did not know some fairly basic details.

    The sellers should've got rid of them and got someone else in.


  • Registered Users Posts: 510 ✭✭✭Frozen Veg


    Any thoughts on selection of mortgage provider for 5 year fixed mortgage? Which bank would be considered best value at the moment.


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  • Registered Users Posts: 1,275 ✭✭✭august12


    Frozen Veg wrote:
    Any thoughts on selection of mortgage provider for 5 year fixed mortgage? Which bank would be considered best value at the moment.
    Ulster bank seems to have the best fixed rate mortgage at present,


  • Registered Users Posts: 419 ✭✭mkdon


    I had similar experience - I have found only speaking from my experience and the experience of those I know that estate agents for the most part to be unprofessional at every stage of the process.

    I have been proven on numerous instances where by they have been telling porkies and different stories to different individuals.

    I feel there is a lack of legislation governing this and this is badly needed considering the havoc the last housing crisis caused on our economy and ok they are not bankers but they were key stakeholders and for me, nothing has changed since then...over the phone phantom bidding ,etc. As I said I am sure there are some decent salt of earth EAs but I am yet to come across any in my experience


  • Registered Users Posts: 252 ✭✭Goose76


    Has anyone written a letter to the sellers in the hope of them “choosing” your bid? I’ve heard this can be a good strategy.

    We have gone sale agreed and everything is close to completion but have since found a property that suits us much better. Our budget is tight and we have no time to lose if we are to pursue this other house. The EA for the “new house” knows we are already sale agreed and need to move rapidly. Would a letter to the vendors help in any way and if so, any tips for what should be included?


  • Registered Users Posts: 1,724 ✭✭✭eoghan104


    august12 wrote: »
    Ulster bank seems to have the best fixed rate mortgage at present,
    You need to factor in the cashback offers with other banks.

    For us at a property price of 340k the BOI 2% cashback made them the best value for 5 years even though their rate was higher than UB.

    Easy sums. 60 x monthly repayment minus any cashback. Lowest total amount is best.


  • Registered Users Posts: 508 ✭✭✭purpleisafruit


    eoghan104 wrote: »
    You need to factor in the cashback offers with other banks.

    For us at a property price of 340k the BOI 2% cashback made them the best value for 5 years even though their rate was higher than UB.

    Easy sums. 60 x monthly repayment minus any cashback. Lowest total amount is best.
    Don't forget that after 5 years, BOI are giving another 1% cashback also


  • Registered Users Posts: 21,224 ✭✭✭✭ELM327


    eoghan104 wrote: »
    You need to factor in the cashback offers with other banks.

    For us at a property price of 340k the BOI 2% cashback made them the best value for 5 years even though their rate was higher than UB.

    Easy sums. 60 x monthly repayment minus any cashback. Lowest total amount is best.
    Surely if you're looking to calculate the best value it should be the lowest for:

    (60*(M-C))-CB
    Where M is monthly repayment
    C is the non interest proportion (IE capital repayment)
    and CB is cashback


    Repayment of capital is not a cost, repayment of interest is a cost.


  • Registered Users Posts: 5,245 ✭✭✭myshirt


    Don't forget that after 5 years, BOI are giving another 1% cashback also

    Don't forget they are banking on customer inertia after the fixed term, or hoping the customer will be snookered into remaining with them. Box smart though and you are on to a winner, I agree.


  • Registered Users Posts: 1,724 ✭✭✭eoghan104


    ELM327 wrote: »
    Surely if you're looking to calculate the best value it should be the lowest for:

    (60*(M-C))-CB
    Where M is monthly repayment
    C is the non interest proportion (IE capital repayment)
    and CB is cashback


    Repayment of capital is not a cost, repayment of interest is a cost.
    Surely it is not a consideration when the term (ie 30 years) is the same? You are looking at it from a 5 yr calculation only.


  • Registered Users Posts: 951 ✭✭✭Greyian


    eoghan104 wrote: »
    Surely it is not a consideration when the term (ie 30 years) is the same? You are looking at it from a 5 yr calculation only.

    Less of the capital will have been paid off after 5 years if you are on a higher interest rate (higher interest rate = less capital paid off earlier on).

    So on a higher rate, you may have paid a total of €50000 after 5 years and receive €10000 cashback (so effectively €40000 paid).
    On a lower rate, you may have paid off €45000. So it seems you'd have paid €5000 more. But those payments could have paid an extra €7000 off the capital, meaning you'd be €2000 better off (€7000 extra off capital, less €5000 extra paid vs. the cashback mortgage).


  • Registered Users Posts: 21,224 ✭✭✭✭ELM327


    eoghan104 wrote: »
    Surely it is not a consideration when the term (ie 30 years) is the same? You are looking at it from a 5 yr calculation only.


    As greyian says below.
    In short even on the same term on the same interest rate the apportionment can be different. You need to look at the terms and only apportion interest as a cost. Apportioning the full repayment as a cost is incorrect as capital repayments (and in a 5 year period you will make some capital repayment) increases your equity but interest payments obviously do not.





    Greyian wrote: »
    Less of the capital will have been paid off after 5 years if you are on a higher interest rate (higher interest rate = less capital paid off earlier on).

    So on a higher rate, you may have paid a total of €50000 after 5 years and receive €10000 cashback (so effectively €40000 paid).
    On a lower rate, you may have paid off €45000. So it seems you'd have paid €5000 more. But those payments could have paid an extra €7000 off the capital, meaning you'd be €2000 better off (€7000 extra off capital, less €5000 extra paid vs. the cashback mortgage).


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  • Registered Users Posts: 270 ✭✭averagejoe123


    I am looking through the money back v the lower rate options at the moment and over a 5 year period I will save €3,187.89 by getting the BOI 3% cash back.

    Assumptions-
    1)- Borrowing €300,000 over 30 years
    2)- KBC rate of 2.6% is available for 5 years
    3)- Fix with Bank of Ireland for 5 years at 3%

    Workings
    1) With KBC
    - Monthly repayments of €1,201.02- annual repayment of €14,412.24-
    Repayments over 5 years- €72,061.20 - Mortgage Balance after 5 years- €264,734.38


    2) With BOI
    - Monthly repayments of €1,264.81- annual repayment of €15,177.72-
    Repayments over 5 years- €75,888.60 - Mortgage Balance after 5 years- €266,719.09


    I will pay €3,827.40 extra in monthly repayments and have a greater mortgage balance of €1,948.71 if I choose BOI = €5,812.11.

    I will receive €9,000 back from BOI over the 5 years which will give a gain of €3,187.89 (€9,000 - €5,812.11)


    Notes- Both BOI and KBC have high variable rates so the mortgage will have to be reassessed at the end of the 5 years.

    There is also the option to consider multiple mortgage moves between EBS, PTSB and BOI to avail of the cash back offers.

    You could place the initial €6,000 from BOI on a 5 year savings and earn an additional €300


  • Registered Users Posts: 270 ✭✭averagejoe123


    Double post


  • Moderators, Sports Moderators Posts: 19,466 Mod ✭✭✭✭Weepsie


    Ulster bank is 2.6 for 5? It's advertised as 4 as you say, and 2.9 for 5 (or 2.8 for UB customers)


  • Registered Users Posts: 270 ✭✭averagejoe123


    Weepsie wrote: »
    Ulster bank is 2.6 for 5? It's advertised as 4 as you say, and 2.9 for 5 (or 2.8 for UB customers)

    No it's for 4 years. It would be silly to choose the current 5 year rate over the 4 year one available.

    I used the 2.6% over 5 years as to not to distort the figures too much. The additional 1% only comes in from BOI after 5 years so I pushed out UBs rate for an additional year for comparative purposes.

    Edited the initial post from UB to KBC as they offer 2.6% for 5 years


  • Closed Accounts Posts: 4,121 ✭✭✭amcalester


    No it's for 4 years. It would be silly to choose the current 5 year rate over the 4 year one available.

    I used the 2.6% over 5 years as to not to distort the figures too much. The additional 1% only comes in from BOI after 5 years so I pushed out UBs rate for an additional year for comparative purposes.

    You should really use the STV rate for year 5 rather than the lower 2.6% for a better comparison.

    When I looked at this last year, the BOI 5 year fixed @ 3% with 3% cash back was cheaper than UB @ 2.9%, my LTV was > 80% so I didn't qualify for the lower rate.


  • Registered Users Posts: 1,672 ✭✭✭djan


    Contrary to the message pushed through the media warning of cashback offers not being worthwhile, if you are prepared to switch after every term, given a average mortgage amount you will save over 10k euro. Thankfully, the banks no longer can claw-back the cashback even if you switch a few months into it.

    Going through the solicitors and the paperwork associated with numerous mortgage switching is time consuming, but definitely worth it!


  • Registered Users Posts: 4,767 ✭✭✭GingerLily


    There are other things you should consider - a lump sum when you buy a house might be worth more to you then a small saving over five years.

    For us it meant we could buy good quality flooring that we won't have to replace etc.


  • Registered Users Posts: 270 ✭✭averagejoe123


    amcalester wrote: »
    You should really use the STV rate for year 5 rather than the lower 2.6% for a better comparison.

    When I looked at this last year, the BOI 5 year fixed @ 3% with 3% cash back was cheaper than UB @ 2.9%, my LTV was > 80% so I didn't qualify for the lower rate.

    There are many different ways this could of been approached. I could of put the initial €6k off the mortgage with BOI to lower the monthly repayments be. I could explore the different LTV rates across Fixed and Variable options on offer etc.

    I wanted to give a basic illustration of two similar offerings from 2 different banks and compare the costs.


  • Moderators, Sports Moderators Posts: 19,466 Mod ✭✭✭✭Weepsie


    Edited the initial post from UB to KBC as they offer 2.6% for 5 years

    That's with a LTV of 60% though fyi and if you have an account with the.

    We're leaning towards KBC over BoI. Cashback is great and all and would be good at the very start, but over the course of a few years it doesn't make sense, unless we switched quickly.


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  • Registered Users Posts: 270 ✭✭averagejoe123


    Weepsie wrote: »
    That's with a LTV of 60% though fyi and if you have an account with the.

    We're leaning towards KBC over BoI. Cashback is great and all and would be good at the very start, but over the course of a few years it doesn't make sense, unless we switched quickly.

    Do you mind me asking why you would not switch to another cash back offer after the minimum term? Switching can be a bit of a pain from a paper work angle point but you can save and gain thousands. If you have a mortgage of 200k+ your hourly rate for time spent on it would be very high.

    Interesting reading for multiple switchers https://www.askaboutmoney.com/threads/multiple-switches.211122/


This discussion has been closed.
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