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

ELM327 · 10-10-2018 3:02pm

borus22222 wrote: »

Quick question, what would be a standard solicitor fee I should expect in north Dublin? Straight foward sale - first time buyers with no HTB no exemptions. 400k house?

As a seller or a buyer?
My solicitor fees as a first time buyer were approx €2k all in excluding stamp duty.

cindycindy · 10-10-2018 6:54pm

good price

10-10-2018 7:03pm

Posted here about two wks ago that mortgage protection was all sorted. They declined me at the last hurdle, bank wouldn’t proceed with mortgage without it. Thought I could get a waiver but that was a no go. Only sorted it out today, the relief I feel right now is an understatement
Would advise anyone to go with chill insurance. They were brilliant

dudara · 10-10-2018 8:11pm

Gavin shels wrote: »

Work expenses from your personal card/bank - how much would the banks frown upon this?

I don’t have a work credit card (no benefit to having one as our credit card scheme is self-paid not company-paid), so I use my two credit cards all the time when travelling. I just make sure to pay it all off promptly once the expense claims are reimbursed. I’d have €1k/week often in expenses.

This was not an issue when we applied.

myshirt · 11-10-2018 6:44am

borus22222 wrote: »

Quick question, what would be a standard solicitor fee I should expect in north Dublin? Straight foward sale - first time buyers with no HTB no exemptions. 400k house?

How do you know it will be a straight forward sale if you don't have the legal qualification to make that judgement?

It may not be. I've come across some difficult ones with various legal issues on them, and planning.

In any event, you are talking 2k plus VAT, incidentals, and outlay at the lower end. And 3 to 3.5 plus VAT at the higher. You shouldn't really see it get more expensive than that unless you are dealing with a right dog.

Trimm Trabb · 11-10-2018 7:04am

Question re being in overdraft - I’ve got 2 bank accounts one of which I get paid into and all my direct debits and savings come out of which should look fine.

But I have a second account that I have been intending to close but haven’t because it is a few hundred euro in overdraft and I haven’t had the spare cash (with all the saving) to bring it to 0 and close it.

But we have everything else in place to apply for mortgage now and are going to bank next week - supposing I clear the overdraft and close the account will that be something that would stop me getting approved?

Our 2 main accounts are with AIB and that’s where we are going for mortgage and the overdraft account is with Ulster Bank.

purpleisafruit · 11-10-2018 7:27am

ELM327 wrote: »

I was at 50% of my limit (€7k CC outstanding on a €12.5k card) and it was an issue, it affected my ability to repay as they count 6% of the outstanding balance each month.

Prior to submitting my application, I discussed this with my bank and it was all put on the file for underwriters by the mortgage advisor. My CC is generally only used for work purposes so it wasn't an issue in my case.

nim1bdeh38l2cw · 11-10-2018 8:07am

Anyone recommend a broker for an IT Contractor (umbrella company director)

soc · 11-10-2018 6:47pm

Trimm Trabb wrote: »

Question re being in overdraft - I’ve got 2 bank accounts one of which I get paid into and all my direct debits and savings come out of which should look fine.

But I have a second account that I have been intending to close but haven’t because it is a few hundred euro in overdraft and I haven’t had the spare cash (with all the saving) to bring it to 0 and close it.

How can you have savings and still an overdraft?
Your 'spare cash' (i.e. your savings) is what you use to pay it off. Why on earth put money into savings when this is still there?
Overdraft is a debt....and this will affect future mortgage applications

Glen_Quagmire · 11-10-2018 10:17pm

Is it normal for the builder when agreeing terms in the contract for a new build in a development to request the buyer to sign and agree there is no subject to loan clause in the contract?

wally79 · 11-10-2018 10:33pm

Glen_Quagmire wrote: »

Is it normal for the builder when agreeing terms in the contract for a new build in a development to request the buyer to sign and agree there is no subject to loan clause in the contract?

It’s a new and disturbing trend

If there’s a problem and your mortgage gets pulled you are in trouble

GingerLily · 11-10-2018 10:52pm

Glen_Quagmire wrote: »

Is it normal for the builder when agreeing terms in the contract for a new build in a development to request the buyer to sign and agree there is no subject to loan clause in the contract?

We had this issue and gambled. Our solicitor, my friend, was very apprehensive about it and advised us to be very cautious

Glen_Quagmire · 12-10-2018 7:31am

Kind of have to take the chance there are no other options are there the builder has us over a barrel really?

GingerLily · 12-10-2018 7:45am

Glen_Quagmire wrote: »

Kind of have to take the chance there are no other options are there the builder has us over a barrel really?

Exactly, realistically as long as there is someone else looking for the property at that price I think you'll be okay, but if there's another credit dip between deposit and drawdown then you've issues

Glen_Quagmire · 12-10-2018 8:49am

GingerLily wrote:

Exactly, realistically as long as there is someone else looking for the property at that price I think you'll be okay, but if there's another credit dip between deposit and drawdown then you've issues

I am hoping drawdown will be sometime around next April or May so are you saying the risk is if there is a dip in property prices between now and then and the house valuation is less then I won't secure the required loan from the bank?

I don't foresee any changes coming with regards our employment or salaries, they should actually be higher by then.

What other risks are there to consider?

Frank Castle · 12-10-2018 9:13am

Glen_Quagmire wrote: »

Is it normal for the builder when agreeing terms in the contract for a new build in a development to request the buyer to sign and agree there is no subject to loan clause in the contract?

We had the exact same issue, and we just signed and closed this week.
Contractor refused to add a loan clause so our solicitor advised us not to sign anything until we were 100% sure there would be no issues with drawing down the mortgage.

We didn't sign the contracts until the bank confirmed (via our solicitor) that we were 100% covered on the draw down clauses.
But once we did sign, everything went smoothly from there, and it was a very quick turn around to closing.

Just be sure there are no issues that may affect your ability to draw down your mortgage and you will be fine.

Doop · 12-10-2018 9:20am

Realistically though if you had signed without a subject to loan clause and lets imagine the bank declined the mortgage after signing for whatever reason... the builder surely would have very little chance of perusing you for €300-400k ...people dont have that kind of money under the coach or in assets.

GingerLily · 12-10-2018 9:28am

Doop wrote: »

Realistically though if you had signed without a subject to loan clause and lets imagine the bank declined the mortgage after signing for whatever reason... the builder surely would have very little chance of perusing you for €300-400k ...people dont have that kind of money under the coach or in assets.

But they have your deposit!

Its a low risk but material gamble, probably the biggest gamble I ever took

Frank Castle · 12-10-2018 9:30am

GingerLily wrote: »

But they have your deposit!

Its a low risk but material gamble, probably the biggest gamble I ever took

Exactly this!

We really didn't want to hand over 25k without any protection. It's a lot of money to lose.

Sure the builder will probably just look for another buyer instead of chasing you... but I doubt any of them would give the deposit back

Frank Castle · 12-10-2018 10:08am

To update my own experience.

Finally have everything sorted and have closed. Main points:

New build house, west of Ireland, used help to buy.

Mortgage with PTSB - had a fantastic experience with the bank, very quick turn around on everything on their side, went from walking in the door to valuation in less than 2 weeks. Have a part gifted deposit, minimal savings, a personal loan and new car pcp. PTSB had no issues with any of these. - Highly recommend based on my personal experience.

Mortgage protection - really struggled here due to a chronic illness. turned down instantly by laya and irish life. Ended up going to the brokers at Lion.ie and I honestly can't praise them enough. had our application submitted in less than 24 hours and policy cover for us in less than 10 days. Even contacting us outside of work hours when needed. - Highly recommend them.

Had several issues with the vendors solicitor, but luckily we have a great solicitor who really fought for us. Made our life a lot less stressful.
Main issue is the developer refusing to add a loan clause.
This was sorted by not signing any contracts until we confirmed that there would be no issues with drawing down the mortgage, at which point we went quickly through signing to closing. Our solicitor kept us on track here. - Highly recommend the solicitor, if anyone in the west on Ireland wants their contact just pm me.

Developer refused to abide by the standard building agreement, instead using Homebond as a guarantee of quality. This caused several issues in terms of our personal security and bank draw down requirements. In the end the bank accepted the homebond certificate as a quality guarantee before draw down. this was only issued once the house was completed. - Again our solicitor was great in sorting this with the bank.

Cashback offer from bank - We get 2% cashback after draw down. they state up to 40days after, but we got ours on the 3rd working day after drawdown (massive help kitting out the house!)

Help to buy was no issue at all for any party, and as we are bound to a the htb 5 year requirement we decided to also take a 5 year fixed rate from the bank (3.2%).

One thing a lot of people do underestimate (we did) is the additional fees on top of the solicitor fees. they came to an additional 3600 after the solicitors fees. 2500 of that is the stamp duty.

aloooof · 12-10-2018 10:48am

Frank Castle wrote: »

we decided to also take a 5 year fixed rate from the bank (2.25%).

Just a quick question on this, wondering if you were in the 80-90% LTV band? We went with BOI, fixed for 5 years at 3% a couple of months ago, this or KBC seemed to be the lowest rates I could find at the time. I'd be very tempted to switch if 2.25% was available.

Frank Castle · 12-10-2018 10:52am

aloooof wrote: »

Just a quick question on this, wondering if you were in the 80-90% LTV band? We went with BOI, fixed for 5 years at 3% a couple of months ago, this or KBC seemed to be the lowest rates I could find at the time. I'd be very tempted to switch if 2.25% was available.

Apologies. that is a typo. it should be 3 not 2! I'll fix that now.

But it is:
90% LTV.

Most of the banks have lower interest rates now (I think ulsterbank have the lowest 2.3%?), they have been having a bit of a rate war lately.
That said, if you are locked into a fixed rate with BOI I don't know how easy it would be for you to move off that. There are usually fees tied to leaving a fixed rate. This is something to look into and weigh up if it is worth switching before you make any decisions.

aloooof · 12-10-2018 11:10am

Frank Castle wrote: »

Apologies. that is a typo. it should be 3 not 2! I'll fix that now.

But it is:
90% LTV.

Most of the banks have lower interest rates now (I think ulsterbank have the lowest 2.3%?), they have been having a bit of a rate war lately.
That said, if you are locked into a fixed rate with BOI I don't know how easy it would be for you to move off that. There are usually fees tied to leaving a fixed rate. This is something to look into and weigh up if it is worth switching before you make any decisions.

Cool, thanks for the response.

ILikeBoats · 12-10-2018 11:25am

aloooof wrote: »

Cool, thanks for the response.

Just FYI
I was in a fixed 3 year with PTSB and am breaking out of it free of charge. Just ring your bank and check, there is a good chance it's free. I am going with the 2.3% rate with Ulster Bank

Glen_Quagmire · 12-10-2018 2:35pm

ILikeBoats wrote:

Just FYI I was in a fixed 3 year with PTSB and am breaking out of it free of charge. Just ring your bank and check, there is a good chance it's free. I am going with the 2.3% rate with Ulster Bank

It is 2.3% fixed for one year only though isn't it?

If you go to fix again next year the fixed rate could well be up.

It could well be down also but I suppose that's the gamble.

I opted to go with a 5 year fixed at 3% with BOI.

aloooof · 12-10-2018 2:40pm

Glen_Quagmire wrote: »

It is 2.3% fixed for one year only though isn't it?

If you go to fix again next year the fixed rate could well be up.

It could well be down also but I suppose that's the gamble.

I opted to go with a 5 year fixed at 3% with BOI.

For PTSB it seems to be 2.3% fixed for 2 years. I've also fixed for 5 years at 3% with BOI, which was the most competitive 5 year rate I could find at the time (including cash back deals).

ILikeBoats · 12-10-2018 3:52pm

Fixed 2 years with ulster Bank. Will just refix or look elsewhere in 2 years.

12-10-2018 4:19pm

Any of you folks got AIP from KBC or Ulster Bank recently and any idea how long it took from submitting all the documents?

Does it speed up/slow down at all using a broker?

chrismon · 13-10-2018 2:01pm

Rang a few estate agents this morning about setting up a viewing, do any of them work weekends?
Can you view houses at weekends or do people usually take days off to do it?

tiernanobrien · 13-10-2018 2:03pm

Ayan Prickly Road wrote: »

Any of you folks got AIP from KBC or Ulster Bank recently and any idea how long it took from submitting all the documents?

Does it speed up/slow down at all using a broker?

Ours took about 3 weeks. We went via a broker - I'm not sure if it would be quicker going direct or not but our broker had a direct link into KBC

GingerLily · 13-10-2018 2:14pm

chrismon wrote: »

Rang a few estate agents this morning about setting up a viewing, do any of them work weekends?
Can you view houses at weekends or do people usually take days off to do it?

Viewings regularly happen on weekends but the offices are generally closed. Better off arranging the viewings mid week.

dudara · 13-10-2018 6:03pm

chrismon wrote: »

Rang a few estate agents this morning about setting up a viewing, do any of them work weekends?
Can you view houses at weekends or do people usually take days off to do it?

Open viewings are mostly on Saturdays, so agents will be out and about at the open viewings. When you are searching on daft, you can select “Open viewings only” and work out a timetable for yourself.

chrismon · 13-10-2018 9:09pm

dudara wrote: »

Open viewings are mostly on Saturdays, so agents will be out and about at the open viewings. When you are searching on daft, you can select “Open viewings only” and work out a timetable for yourself.

That makes sense thanks.

13-10-2018 10:19pm

tiernanobrien wrote: »

Ours took about 3 weeks. We went via a broker - I'm not sure if it would be quicker going direct or not but our broker had a direct link into KBC

Thanks, longer than I was hoping.

dudara · 14-10-2018 11:41am

Ayan Prickly Road wrote: »

Any of you folks got AIP from KBC or Ulster Bank recently and any idea how long it took from submitting all the documents?

Does it speed up/slow down at all using a broker?

Our AIP from KBC came in less than a week once all docs had been submitted. We went through a broker

bri007 · 14-10-2018 12:45pm

We just got AIP with KBC, took 3 weeks.

When/if we go sale agreed, what other documentation will we have to submit to KBC of any?

We have provided everything so far, salary certs, bank statements, payslips, they did the credit checks etc.

Do we have to resubmit all this again say in 2-3 months when we go sale agreed or just payslips?

Thanks

limnam · 14-10-2018 12:57pm

bri007 wrote: »

We just got AIP with KBC, took 3 weeks.

When/if we go sale agreed, what other documentation will we have to submit to KBC of any?

We have provided everything so far, salary certs, bank statements, payslips, they did the credit checks etc.

Do we have to resubmit all this again say in 2-3 months when we go sale agreed or just payslips?

Thanks

They'll send any outstanding with your offer.

e.g. offer based on sending in x

Gavin "shels" · 14-10-2018 3:59pm

Do the Banks take into account how much you pay in rent/housekeeping to parents?

14-10-2018 4:01pm

Gavin "shels" wrote: »

Do the Banks take into account how much you pay in rent/housekeeping to parents?

They can yeah but you're definitely best off paying it regularly at the same time of the month each month. Set up a standing order.

skywayavenue · 14-10-2018 5:05pm

Gavin "shels" wrote: »

Do the Banks take into account how much you pay in rent/housekeeping to parents?

They didn't for us. We were paying 400- not a huge amount but still. Had a standing order set up but they said payments to parents didnt count, that they could be handing it back to us in cash...

Bubbaclaus · 14-10-2018 7:25pm

How do banks feel about investments? I've been putting around 20% of my savings into shares. Just wondering will this be looked at negatively when it comes to applying for a mortgage. I already have enough saved for a deposit, so its not like I'm messing around with the money I'm saving for the house.

Gavin "shels" · 14-10-2018 10:19pm

skywayavenue wrote: »

They didn't for us. We were paying 400- not a huge amount but still. Had a standing order set up but they said payments to parents didnt count, that they could be handing it back to us in cash...

Question answered :pac:

wardides · 15-10-2018 1:58pm

Somebody might have an answer on the below, as I can't seem to find anything online.

Got AIP from KBC a couple of weeks back. They requested a couple more bits such as booking deposit receipt (we are purchasing a new build property from plan) which we provided and they've said for us to expect loan offer package this coming Tue or Wed. Once we review this with our solicitor and, all going well, sign, I assume that is mortgage sorted and can look to sign contracts for the house?

Our main worry is understanding when to drawdown? Do you drawdown once contracts are signed? Do you wait until we are ready to move in? Big issue is we are currently renting at the moment so couldn't afford rent & Mortgage payment obviously. New house will be ready in March according to estate agent, so let's say May/June. If we sign for loan offer at end of Oct that will 8 months to June for example, will the loan agreement expire as we have not started to pay back?

Creamy Goodness · 15-10-2018 2:24pm

wardides wrote: »

Somebody might have an answer on the below, as I can't seem to find anything online.

Got AIP from KBC a couple of weeks back. They requested a couple more bits such as booking deposit receipt (we are purchasing a new build property from plan) which we provided and they've said for us to expect loan offer package this coming Tue or Wed. Once we review this with our solicitor and, all going well, sign, I assume that is mortgage sorted and can look to sign contracts for the house?

Our main worry is understanding when to drawdown? Do you drawdown once contracts are signed? Do you wait until we are ready to move in? Big issue is we are currently renting at the moment so couldn't afford rent & Mortgage payment obviously. New house will be ready in March according to estate agent, so let's say May/June. If we sign for loan offer at end of Oct that will 8 months to June for example, will the loan agreement expire as we have not started to pay back?

You won't be able to drawdown until you have the following:

1. valuation report from the bank about the property (usually done when the building is complete).
2. Home insurance for said property
3. Mortgage protection to cover payments in the case of death/serious illness etc.

usually you'll pay 10% deposit at contract signing stage (this can include your booking deposit) and builder's solicitors will want to see a loan offer at this stage. Loan agreements usually last for 6 months so you may have to re-apply in the new year.

TheShow · 15-10-2018 3:51pm

Bubbaclaus wrote: »

How do banks feel about investments? I've been putting around 20% of my savings into shares. Just wondering will this be looked at negatively when it comes to applying for a mortgage. I already have enough saved for a deposit, so its not like I'm messing around with the money I'm saving for the house.

Shouldn’t be a problem unless any investments have cashcalls coming up.

Frank Castle · 15-10-2018 5:06pm

wardides wrote: »

Somebody might have an answer on the below, as I can't seem to find anything online.

Got AIP from KBC a couple of weeks back. They requested a couple more bits such as booking deposit receipt (we are purchasing a new build property from plan) which we provided and they've said for us to expect loan offer package this coming Tue or Wed. Once we review this with our solicitor and, all going well, sign, I assume that is mortgage sorted and can look to sign contracts for the house?

Our main worry is understanding when to drawdown? Do you drawdown once contracts are signed? Do you wait until we are ready to move in? Big issue is we are currently renting at the moment so couldn't afford rent & Mortgage payment obviously. New house will be ready in March according to estate agent, so let's say May/June. If we sign for loan offer at end of Oct that will 8 months to June for example, will the loan agreement expire as we have not started to pay back?

Your solicitor will guide you through all of this and keep you on track.

You firstly pay the booking deposit, then go through the motions with your solicitor on the loan offer.

The loan offer itself will have conditions attached, such as valuation, mortgage protection, house insurance etc. All of this will be in the loan offer package and your solicitor will go through these conditions with you.

You solicitor will also need to assess the contracts from the vendor, there will be various items in these contracts that will need to be looked at to ensure it satisfies both the banks requirements and your own.

If you are happy to proceed to signing contracts you then have 14 days to pay your 10% deposit. (potentially longer depending on circumstances). this 10% is minus your booking deposit and help to buy if you are using that.
e.g. 200k house = deposit of 20k. booking fee of 5k. means you owe an additional 15k to make up the 10% deposit. (if you use help to buy this further reduces that 15k amount).

You will then proceed with the completion of the house, final fixes etc.
You will also need to have an engineer survey and have snagging done.
Once these are complete and you satisfy the banks loan offer requirements, you then proceed to closing. This is the point where your solicitor will contact the back for drawdown (you do not need to do it yourself). The house will be yours and you will get the keys. your first mortgage payment will be 1 month after this.

Just remember you need to have your solicitor fees and additional fees for items such as searches and stamp duty. This came to around 3300 on top of the solicitor fees for myself. And you need to have this before closing.

Again your solicitor will guide you through everything.

Edit: Loan offers usually last for 6 months, and can be extended beyond that. although the bank may do another statement check to ensure there have been no changes to your circumstances. Provided you keep everything in order there should be no issue extending the loan offer

Bargain_Hound · 16-10-2018 10:58am

How long typically does BOI take to release funds to close sale? My solicitor requested / started the funds process Friday, curious how long to expect. Been a long 10 months waiting!

amcalester · 16-10-2018 11:43am

Bargain_Hound wrote: »

How long typically does BOI take to release funds to close sale? My solicitor requested / started the funds process Friday, curious how long to expect. Been a long 10 months waiting!

In my case my solicitor sent the request on Wednesday, BOI received it on Thursday and then emailed me Thursday evening to say docs were missing.

Friday was spent getting BOI to find these docs that had been hand delivered to a branch and then funds were sent on Monday, arrived on Tuesday.

I'd ring and ask if the payment is going ahead, otherwise it can drag on and on.

Bargain_Hound · 16-10-2018 1:02pm

The only doc that was missing was the homebond certificate. That was forwarded to bank today. Sounds like we might be close now.

ArtyC · 16-10-2018 3:00pm

Bargain_Hound wrote: »

How long typically does BOI take to release funds to close sale? My solicitor requested / started the funds process Friday, curious how long to expect. Been a long 10 months waiting!

Only took about 2 working days for them for me last month

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

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