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

Santy2015 · 05-10-2015 6:59pm

An update, I found that Bank of Ireland changed their tune very quickly when I said ebs had given me a far better quote for a mortgage then they did a few months back and practicality matched what ebs had said. It's funny how that happened. I wonder how all this works in the end

MrMaki · 05-10-2015 9:28pm

Azalea Screeching Padding wrote: »

I would say it's rare to wait so long, I haven't seen people I know furnishing houses wait more than a few weeks for stuff they bought.

Whats wrong with furniture from Ikea if somebody must save for long time to afford deposit for not too expensive house?

Greyian · 06-10-2015 10:44am

Azalea Screeching Padding wrote: »

No the friends of mine I'm referring to are building their houses rather than buying so part of the mortgage is set aside for fully furnishing the main rooms in the houses, no maxing out credit cards.

So they're buying furniture with mortgage debt as opposed to credit card debt. That's still not very financially savvy.

Black_Knight · 06-10-2015 11:12am

Greyian wrote: »

So they're buying furniture with mortgage debt as opposed to credit card debt. That's still not very financially savvy.

How so? A mortgage APR is a whole lot less than a credit card.

06-10-2015 11:25am

Greyian wrote: »

So they're buying furniture with mortgage debt as opposed to credit card debt. That's still not very financially savvy.

Furnishing a self build is part of building it of course you use some of the mortgage to pay for it. A mortgage is also the cheapest money you can get, credit card interest is many multiples of it.

El_Dangeroso · 06-10-2015 11:34am

Azalea Screeching Padding wrote: »

Furnishing a self build is part of building it of course you use some of the mortgage to pay for it. A mortgage is also the cheapest money you can get, credit card interest is many multiples of it.

No, money you saved yourself is the cheapest money you can get. The APR on mortgages is low but it's spread over so many years that you repay over twice the principal.

No one 'needs' a fully furnished house straight away. Start with the bare necessities and build it from there.

Greyian · 06-10-2015 11:35am

Black_Knight wrote: »

How so? A mortgage APR is a whole lot less than a credit card.

You also pay it off over a much longer time.

If you take out a mortgage of €200,000 over 30 years at 4%, that's a monthly repayment of €954.83.

If you take out a mortgage of €210,000 (so €10,000 for furniture) over 30 years at 4%, that's a monthly repayment of €1,002.57.

That's a difference of €47.74 per month, which comes to €17,186.40 over the course of the 30 years.

So you're paying more than €7,000 extra, because of impatience. Before the Celtic Tiger, it wasn't unusual to move into a house with minimal furniture and then pick stuff up over the months and years after moving in.

Black_Knight · 06-10-2015 11:48am

Or just pay a lump off of your mortgage when you get some cash together after furnishing. ie. Pay off your "furnishing loan" in year 1.

It wouldn't be my first choice anyways. Hence going to Aldi on Thursday and picking up one of these bad boys:

There's a blow up couch too!

06-10-2015 11:48am

Greyian wrote: »

You also pay it off over a much longer time.

If you take out a mortgage of €200,000 over 30 years at 4%, that's a monthly repayment of €954.83.

If you take out a mortgage of €210,000 (so €10,000 for furniture) over 30 years at 4%, that's a monthly repayment of €1,002.57.

That's a difference of €47.74 per month, which comes to €17,186.40 over the course of the 30 years.

So you're paying more than €7,000 extra, because of impatience. Before the Celtic Tiger, it wasn't unusual to move into a house with minimal furniture and then pick stuff up over the months and years after moving in.

Well I am talking about essentials, cooker, fridge, dishwasher, furniture for living room and sitting room, tvs for the living and sitting rooms, bed for main bedroom, kitchen table etc.

I look on it more like Im spending 200k to build the house, no way Im not spending the extra 10k to move into a house with a lot more comfort rather than building a lovely house and having nothing in it.

Flatzie_poo · 06-10-2015 11:52am

Azalea Screeching Padding wrote: »

tvs for the living and sitting rooms

What an age we live in where multiple TVs are essentials!

Greyian · 06-10-2015 11:53am

Azalea Screeching Padding wrote: »

Well I am talking about essentials, cooker, fridge, dishwasher, furniture for living room and sitting room, tvs for the living and sitting rooms, bed for main bedroom, kitchen table etc.

A dishwasher is not an essential item. Neither is having multiple TVs, or multiple living/sitting rooms kitted out.

06-10-2015 11:58am

Greyian wrote: »

A dishwasher is not an essential item. Neither is having multiple TVs, or multiple living/sitting rooms kitted out.

If you want to live in a house and not a semi building site then a certain level of furnishing is essential and I'd look on the above as an essential level. Personally i'd be inclined to completely furnish the entire house from the start if I'm building my own place down the line (not necessarily all from the mortgage).

I would say two tvs would be one of the most essential things in my house. A sport mad person and a person who hates sport living together...... one tv is a recipe for disaster :eek:!!

Greyian · 06-10-2015 12:01pm

Azalea Screeching Padding wrote: »

If you want to live in a house and not a semi building site then a certain level of furnishing is essential and I'd look on the above as an essential level. Personally i'd be inclined to completely furnish the entire house from the start if I'm building my own place down the line (not necessarily all from the mortgage).

I would say two tvs would be one of the most essential things in my house. A sport mad person and a person who hates sport living together...... one tv is a recipe for disaster :eek:!!

Plenty of properties don't have dishwashers at all. They are by no means essential.

As for needing to kit out living rooms and sitting rooms...plenty of properties don't even have separate rooms.

As for the TV issue being such a potential ticking bomb, I'd imagine there are far bigger issues than what's on TV if that could cause such an issue.

Ush1 · 06-10-2015 12:04pm

If you're getting a specific couch from the likes of DFS you'll be waiting weeks anyway for it to get made up in China and shipped.

06-10-2015 12:07pm

Greyian wrote: »

As for the TV issue being such a potential ticking bomb, I'd imagine there are far bigger issues than what's on TV if that could cause such an issue.

You would be surprised! Its more an issue of fairness for both parties though as opposed to guaranteed arguments.

As I said why go out and build yourself the house you both want then skimp at the end.

Black_Knight · 06-10-2015 12:27pm

Because a house is never finished, and buying everything all in 1 go at the start is a) expensive, and b) ruins the fun getting things bit by bit after you've figured out how you'll work in the house.
It's always nice to have a bit of a project on the go and it means some real thought has gone into how the room will be presented. A house is never finished, so no point rushing to the end.

Oh, and 2 TVs is not essential for move in day. #SnootyFirstWorldProblems

Sala · 06-10-2015 5:06pm

I currently don't even own 1 tv!! But I do want to keep some money back from our savings if we finally manage to buy somewhere - from renting I own very little. I'm hoping to buy a 3-4 bed house so I'm going to do the ikea thing- bed from ikea
For the first year, the it moves into the spare room when I get a new bed

Santy2015 · 07-10-2015 12:10pm

We're okay for TVs anyway haha, I've 2 and herself has her iMac. The joys of being full time in work and spending all your money but then to realise you have to grow up and start saving.

Sala · 07-10-2015 1:46pm

Santy2015 wrote: »

We're okay for TVs anyway haha, I've 2 and herself has her iMac. The joys of being full time in work and spending all your money but then to realise you have to grow up and start saving.

Same situation although no tv- we have two desktop pcs, two laptops, two tablets and three smart phones. At least we can watch Netflix while lying in a sleeping bag on the floor :-)

Sala · 07-10-2015 1:47pm

Santy2015 wrote: »

We're okay for TVs anyway haha, I've 2 and herself has her iMac. The joys of being full time in work and spending all your money but then to realise you have to grow up and start saving.

Same situation although no tv- we have two desktop pcs, two laptops, two tablets and three smart phones. At least we can watch Netflix while lying in a sleeping bag on the floor :-)

Sleepy · 07-10-2015 2:00pm

Santy2015 wrote: »

We're okay for TVs anyway haha, I've 2 and herself has her iMac. The joys of being full time in work and spending all your money but then to realise you have to grow up and start saving.

Just be glad you're in a position to do it tbh. Once kids come along it becomes a hell of a lot harder!

Santy2015 · 07-10-2015 2:23pm

Yeah but we'll hopefully be some way ready when that comes around. Get the house bought and we'll take it step by step then. It's easier to buy bits and pieces as we need them. More enjoyable and more thought put into what we do buy. Take always for a few won't kill nobody

Penn · 07-10-2015 2:29pm

Getting ready to submit a mortgage application. I have an existing credit union car loan which I pay €170 monthly. Putting my credit union statement into the application, I noticed that it notes how much I'm supposed to be paying, €186 monthly. I could have f*cking sworn I was meant to be paying about €166 (which I why I rounded it up to €170).

I've gotten 2 payrises in the last few months so obviously showing I can pay the extra €16 per month isn't a problem, but how likely is this to trip me up or cause a delay?

Santy2015 · 07-10-2015 3:50pm

Penn wrote:

I've gotten 2 payrises in the last few months so obviously showing I can pay the extra Ã¢Â‚Â¬16 per month isn't a problem, but how likely is this to trip me up or cause a delay?

From what we were told at the meetings we've been at is to get rid of the loan but obviously that isn't possible in the short term. It knocked Ã¢Â‚Â¬10k off what we would be allowed borrow and that was a car loan of Ã¢Â‚Â¬170 a month too. As you got a pay rise I can't imagine you'll be hit much

lovelystuff · 07-10-2015 8:31pm

This is a bit off topic,but I'm also saving for a house deposit and thinking of moving home to my parents for a year to eighteen months to save a big chunk (I'm paying huge rent at the minute). Would this look ok to a bank in terms of getting a mortgage,or would it be better to rent for a while after saving a lump sum to show i can meet repayments? Thanks

Roselm · 07-10-2015 9:05pm

Ush1 wrote: »

If you're getting a specific couch from the likes of DFS you'll be waiting weeks anyway for it to get made up in China and shipped.

They are made in the UK I think.

Santy2015 · 07-10-2015 9:51pm

lovelystuff wrote:

This is a bit off topic,but I'm also saving for a house deposit and thinking of moving home to my parents for a year

from what I was told as long as you show that you save more then what a mortgage costs eg me and my fiancÃ႒Â©e are saving Ã¢Â‚Â¬1k a months and as long as we show those savings over a 6/12 month period we should have no problem getting the mortgage we can afford

07-10-2015 10:18pm

If I was working close enough to home to move in I'd do it in a heart beat (never would have moved out in fact had I got work close to home). The savings you make will be much more useful to you than paying rent just for the sake of paying rent!

Jen44 · 08-10-2015 8:03am

lovelystuff wrote: »

This is a bit off topic,but I'm also saving for a house deposit and thinking of moving home to my parents for a year to eighteen months to save a big chunk (I'm paying huge rent at the minute). Would this look ok to a bank in terms of getting a mortgage,or would it be better to rent for a while after saving a lump sum to show i can meet repayments? Thanks

Its fine so long as you show regular monthly savings

HiGlo · 08-10-2015 4:26pm

Right,
I’ve been having the thinks recently about mortgages, savings, etc. and I really need to ship myself into shape….
I am pretty bad with money and spend most of my time living in the moment. I have almost no savings and I’m pretty sure I have a really bad credit rating.
If I do have a dodgy credit rating is there a chance no bank will touch me? Even for a small mortgage?

I want to get my finances in order and start proper savings, pension (well, restart my pension that I used to have) and just behave like a proper grown up – for once!
Where should I start? Should I actually check my credit record with the ICB first? Or speak to a bank and ask their advice? Or would I be better to sort myself an independent financial advisor to guide/assist me?

Any help/advice?

Also, I am in a slightly different (lucky!) position in that due to a significant inheritance the mortgage I would need would only be a bit of a top up (maybe €50-70K). This means my LTV would be pretty low and also my repayments would be roughly €300-500 per month so manageable. I earn €32k a year so technically would be able to borrow up to about €110k
Would this make a difference when proving my ability to repay? Like given that I don’t have a great history of savings, if I start saving like €500 a month now for the next 6 months would that be enough for stress testing?

08-10-2015 4:29pm

Do you have debts, credit union loans, car loan, credit cards etc? Are they all up to date?

HiGlo · 08-10-2015 4:34pm

No current debt. I don't have loans, credit cards, nothing...

However, I did have a credit card with a €3k limit previously. I hit the limit and struggled to repay. Ended up taking out a loan to clear the card and that was fine. They capped my new limit on the CC as €1.5k and while I didn't hit that limit again I had about €800/900 on it which I struggled to clear again. (my biggest mistake was that I didn't set up a direct debit for it). It took me about 3 years to clear it with lots of irregular payments and lots of letters from the bank (which I never actually opened). I eventually set up a DD to clear it and it's been gone now for about 1 year.

MrStuffins · 08-10-2015 4:37pm

You might be fine.

Just request a credit report from the ICB website. Costs €6. I got one a while ago as i wasn't sure about a loan I had before. It was all clear. €6 well spent

HiGlo · 08-10-2015 4:53pm

Yeah, that might be a good place to start. I guess at least I'll know where I am then.

Alkers · 08-10-2015 5:21pm

HiGlo wrote: »

I want to get my finances in order and start proper savings, pension (well, restart my pension that I used to have) and just behave like a proper grown up – for once!
Where should I start? Should I actually check my credit record with the ICB first? Or speak to a bank and ask their advice? Or would I be better to sort myself an independent financial advisor to guide/assist me?

Any help/advice?

Pay off any outstanding loans as soon as you can.
Absolutely restart your pension as a matter of priority.
Start saving a regular amount each month into a separate bank account which you do not withdraw from. This amount plus any amount you're currently spending on rent will be what you can afford to pay off your mortgage each month. You will need to do this for 6+ months before the bank will give you a mortgage.

Santy2015 · 08-10-2015 5:56pm

If your living at home like me and my fiancÃ႒Â©e our savings will be used as a rent substitute, herself pays Ã¢Â‚Â¬30 a week at home to her parents but obviously you're not going to get a receipt for that. But when your saving Ã¢Â‚Â¬260 a week like us the bank should have no problem giving a mortgage. She does have a car loan but that's small money and ties in with what we can afford for a house anyway so we aren't left short when it comes to getting approval

lovelystuff · 08-10-2015 6:10pm

Great to hear peoples opinions and experience on this, thanks! I think we'll move home to save, very luckily we have family willing to take us so we can save. We would likely both move in with my parents and pay our way, but nothing like the 1400 rent we're saying a month now! Does anyone have any experience of this,as in how to not kill each other? The plan so far is pay our way, go out as often as possible, and ensure we only do our washing etc when we're not getting in the way....of course we're apprehensive about the reality though, any advice appreciated! Thanks

F412 · 08-10-2015 8:39pm

One question on the savings record. Does the bank take all your saving into account or only the money that's going towards the deposit. Say you save x per month into a general purpose savings account and y into a house deposit account do they count x+y as being your monthly saving ability?

Alkers · 08-10-2015 10:58pm

Depends on whether you are withdrawing from the "general purpose" account or not? I see a few people saying they still have outstanding loans and are saving. Instead of doing this, you should use the savings to pay off the loan and instead of saving increase the loan repayments until the loan is paid off and then start saving!

Jen44 · 09-10-2015 8:22am

they dont really care where you save it so long as there are no withdrawls. For example you cant really show savings in a current account so its best to keep it all in a separate savings account so they can clearly see the money coming in and not going out. We had a savings account in my name and husband used to transfer money to my current account that i then I would transfer it to my online savings account. We had to clearly highlight the funds coming into my current account and then show them going into the savings account

F412 · 09-10-2015 11:28am

Jen44 wrote: »

they dont really care where you save it so long as there are no withdrawls. For example you cant really show savings in a current account so its best to keep it all in a separate savings account so they can clearly see the money coming in and not going out. We had a savings account in my name and husband used to transfer money to my current account that i then I would transfer it to my online savings account. We had to clearly highlight the funds coming into my current account and then show them going into the savings account

How do they look on withdrawals?

As I said I've two separate savings accounts one that's for general savings that I would plan on using for big things such as say buying a car or other significant purchase but not for day to day. If I were to withdraw I would continue saving into it even on the month of withdrawal so wouldn't that show I'm not falling back on savings rather using them for something useful. As yet it's untouched in over a year since I opened it.

The other account I don't touch and it's purely for going towards a deposit (to show I can save every month towards it), thing is I already have the majority or even more than I'd spend on my deposit from various gifts over the years that's held separately so I actually would require very little or any of my actual savings for it I'm saving really to build up a record and for buying stuff or covering myself was I out of work for a period etc.

I'm not actually planning to buy at this moment by but I want to have my accounts in the right shape for when the bank do want to look at them.

Flatzie_poo · 09-10-2015 11:37am

F412 wrote: »

I'm not actually planning to buy at this moment by but I want to have my accounts in the right shape for when the bank do want to look at them.

Long story short, they just want to see you can do without (x) amount per month.

The amount you can do with out they'll determine as what you can pay back to them.

For example, you pay €800 PM on rent, save €400 on top. They''ll see you as being about to afford €1200 per month. They'll factor this into your ability to repay a particular sum, and approve you for whatever amount meet this and other factors.

Santy2015 · 09-10-2015 6:32pm

Yeah that's what we were told too, keep saving and don't even dream of touching those savings accounts. Another tip try and not use your Visa card for paying for drinks in a pub or gambling 6 months prior to going for approval

F412 · 09-10-2015 6:51pm

Santy2015 wrote: »

Yeah that's what we were told too, keep saving and don't even dream of touching those savings accounts. Another tip try and not use your Visa card for paying for drinks in a pub or gambling 6 months prior to going for approval

I've already moved over to using the cash card for lodging and withdrawing money from my betting account so no more gambling on my account, that said I have a friend who has just got a mortgage and he is often using his account for lodging to betting accounts and it didn't appear to have any impact.

On the savings I can understand the keeping saving but not why you cant touch your savings (if its not really impacting on your deposit), obviously if you are dipping in constantly for paying your rent or food shopping its bad but if you go in for some every now and then for a big purchase like new tv, car etc but continue saving I don't see how it takes away from showing you have the ability to save as you are not using them to get by but to buy something useful and something you would not buy if you hadn't the money for it.

I have a fixed amount going to one account every month and then I dump everything left in my current account from the previous month into my other savings account. I would have no intention of touching the first but the second I would not plan on keeping untouched, though so far it is.

Santy2015 · 09-10-2015 7:38pm

F412 wrote:

gambling

F412 wrote:

I've already moved over to using the cash card for lodging and withdrawing money from my betting account so no more gambling on my account, that said I have a friend who has just got a mortgage and he is often using his account for lodging to betting accounts and it didn't appear to have any impact.

we have but standing orders into our credit union accounts each Thursday and SO into a separate bank savings the bank savings are a car for myself once we get the house sorted and for small furnishings. The credit union savings are for deposit and stamp duty

Alkers · 10-10-2015 12:48pm

F412 wrote: »

On the savings I can understand the keeping saving but not why you cant touch your savings (if its not really impacting on your deposit), obviously if you are dipping in constantly for paying your rent or food shopping its bad but if you go in for some every now and then for a big purchase like new tv, car etc but continue saving I don't see how it takes away from showing you have the ability to save as you are not using them to get by but to buy something useful and something you would not buy if you hadn't the money for it.

I have a fixed amount going to one account every month and then I dump everything left in my current account from the previous month into my other savings account. I would have no intention of touching the first but the second I would not plan on keeping untouched, though so far it is.

The amount going into your untouched savings account is what the bank will see as being an affordable mortgage repayment for you. Even when you have a mortgage, you would be hoping to be saving some money also, which is where the second account comes in.
If you're saving 1k a month into an account but every six months you're dipping into it to make a big purchase, they would calculate your affordable payment as being less than the 1k a month.

Del007 · 11-10-2015 6:18pm

Will any bank give a mortgage to someone working on a contract?

leanonme · 11-10-2015 6:42pm

I purchased a house this year. It was 140000, we got the maximum mortgage of 125000, as I was the only one of us who could be on the application. I had 19000 in savings, 15000 went to the deposit, 4000 on stamp duty and solicitors fees etc. my partner had a further 10 for furniture. But we had some other expenses as well, so make sure ya have a contingency fund.
Little things pop up, such as for us the boiler was broken, and the shower was broken, and worst of all, before we got the keys the place was broken into and the copper pipes were robbed. So make sure ha have money there for stupid things us would never think of.

My best advise is make sure you don't have an over draft that your using, don't touch your savings at any point and if you do ha will need a good explanation as why you did, save a consistent amount every month and don't drop below that amount. Also we were initially refused for a mortgage but then went to a broker and got accepted by three banks including the original that refused us, so I would advise if your working on a contract get a broker, because they help you to jump all those hurdles. I had to get letters from my employer which were worded in a nice way so that it seems like my contract would more than likely be renewed.

11-10-2015 6:44pm

Del007 wrote: »

Will any bank give a mortgage to someone working on a contract?

It would depend on many factors I'd imagine but I would think that they will in certain circumstances.

Bananaleaf · 11-10-2015 10:20pm

April 73 wrote: »

I based that on the quote I got from a solicitor as below:
The bit you might be able to negotiate on is the professional fee. I don't think they can do anything about the registration & search fees.

Purchase:
Land Registry fee to lodge Transfer €800.00
Land Registry fee to lodge Deed of Mortgage €175.00
Copy Folio €6.00 €981.00

Stamp Duty @ 1%

Search fees as required by the Lending Institution and against the vendor €125.00
V.A.T @ 23% €28.75 €153.75

Professional fee €1,250.00
V.A.T @ 23% €287.50 €1,537.50

Hi all

Hi Santy - hope the savings are going well. Good thread.

We are saving for a mortgage too. I really don't know what to do or how to make the first step - is there any manual or information anywhere???

We currently have 20k saved and will have 40k by next year. For what we are looking for, the price now is 160k, so we are looking at a 120k mortgage. I would say we have a combined salary of about 70k

We have no loans so I guess we should be okay.

I haven't factored in extra costs as I don't know what they would be

April - I was wondering if you can explain the costs in your post above. Do we also have to pay these?

40k would be all the savings we will have by next Sep so would we really need an extra 10k on top of that?

Furniture etc will be fine, we will get second hand/cheap/hand me downs and do up one room at a time.

Thank you

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

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