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

Glen_Quagmire · 14-09-2018 1:56pm

Folks, do estate agents accept deposits on new builds with AIP?

amcalester · 14-09-2018 1:59pm

Glen_Quagmire wrote: »

Folks, do estate agents accept deposits on new builds with AIP?

I was accepted without AIP and didn't apply for the mortgage until after I'd paid the booking deposit.

Talk to the agent, tell them what stage you're at and see what they say.

TheShow · 14-09-2018 2:00pm

Depends on each EA i'd imagine. sorry, cant be more concise than that.
There are no actual rules around it. I didn't have AIP on my mortgage when I paid booking deposit. Just said the mortgage application was submitted to the lender.

IS EA refusing to take booking deposit?

hanaimai · 14-09-2018 3:23pm

My EA never even asked about AIP, just took my booking deposit and that was that.

awec · 14-09-2018 4:47pm

Glen_Quagmire wrote: »

Folks, do estate agents accept deposits on new builds with AIP?

Of course. What else would they accept?

Captain Flaps · 14-09-2018 4:52pm

wally79 wrote: »

Don’t get too excited. Our solicitor got the contracts 6 weeks ago and still waiting

Our solicitor got our contracts in the first week of April and we didn't close until mid July

Glen_Quagmire · 14-09-2018 6:47pm

awec wrote:

Of course. What else would they accept?

An actually offer letter

TheShow · 14-09-2018 6:55pm

In theory you shouldn’t need any letter to put down a booking deposit, the whole purpose of making a booking deposit is that it gives you time to get all that stuff sorted.
But I think that due to the sheer demand, crafty EA’s are making their own rules up as they go along.

Glen_Quagmire · 16-09-2018 8:33am

What are most people going with these days, fixed or variable?

Looking on various different bank calculators and Bonkers but very difficult to decide what's the best choice.

Looking at around 300k over 27-30 years

toby2111 · 16-09-2018 9:43am

We gave our final few documents (insurance, mortgage protection, direct debit & deed of assignment) to our broker on Friday 7th September. PTSB say they've only received 2 of these, broker resent all 4 again.... It's painful how slow this process is(and has been) ...probably be another 10 days now before its issued.
What are people's experiences of getting cheque drawn down from PTSB?

amcalester · 16-09-2018 10:02am

Glen_Quagmire wrote: »

What are most people going with these days, fixed or variable?

Looking on various different bank calculators and Bonkers but very difficult to decide what's the best choice.

Looking at around 300k over 27-30 years

Fixed for 5 years with BOI, considered UB fixing for 4 years but preferred the longer certainty with BOI.

Wasn’t much between the 2 in terms of value.

I’m ignoring the follow on rate, too much can change between now and then.

Glen_Quagmire · 16-09-2018 11:43am

amcalester wrote:

Fixed for 5 years with BOI, considered UB fixing for 4 years but preferred the longer certainty with BOI.

As a matter of interest, why didn't you get the fixed rate for 10 years?

Creamy Goodness · 16-09-2018 12:07pm

Glen_Quagmire wrote: »

As a matter of interest, why didn't you get the fixed rate for 10 years?

Ten years is a long time in terms of a mortgage. Things could go down just as much as up. 5 years would be the most I’d be willing to fix a mortgage at personally.

It’s a bit of a gamble both ways.

dudara · 16-09-2018 12:09pm

Glen_Quagmire wrote: »

What are most people going with these days, fixed or variable?

Looking on various different bank calculators and Bonkers but very difficult to decide what's the best choice.

Looking at around 300k over 27-30 years

We’ve decided to go fixed for 5 years with KBC. Our broker gave us a spreadsheet with all the current rates loaded in, and we could vary our mortgage amount and term. Very helpful.

kippy · 16-09-2018 3:12pm

dudara wrote: »

We’ve decided to go fixed for 5 years with KBC. Our broker gave us a spreadsheet with all the current rates loaded in, and we could vary our mortgage amount and term. Very helpful.

Invaluable tool here for anyone looking at the figures:
https://m.drcalculator.com/mortgage/

amcalester · 16-09-2018 3:19pm

Glen_Quagmire wrote: »

As a matter of interest, why didn't you get the fixed rate for 10 years?

10 years just felt too long, more a gut decision than a financial one.

Glen_Quagmire · 16-09-2018 3:49pm

When you get AIP off a bank, what's the chances of things going pear shaped when it's gets to the underwriters?

Glen_Quagmire · 16-09-2018 3:57pm

kippy wrote:

Invaluable tool here for anyone looking at the figures:

Very useful little tool that is

bleary · 16-09-2018 6:05pm

Glen_Quagmire wrote: »

When you get AIP off a bank, what's the chances of things going pear shaped when it's gets to the underwriters?

If it hasn't gone to the underwriters yet then all is not really much use. Branch aip is sales basically
Getting the business in. Until underwriter approves you have no approval

TheShow · 16-09-2018 10:24pm

Glen_Quagmire wrote: »

What are most people going with these days, fixed or variable?

Looking on various different bank calculators and Bonkers but very difficult to decide what's the best choice.

Looking at around 300k over 27-30 years

Rates are low and they will eventually go up, but when that happens is anyone’s guess. Fixed rates are cheap now too, so makes sense to take advantage of a medium term fixed rate option if you can get it at the right price. It will give you certainty and peace of mind if the rates do start to climb.

If you only have gotten AIP from the mortgage advisor, all that’s happened is that he/she has put your figure into a calculator and based on the inputs everything looks good. This should translate to a standard approval with the underwriters if it is a very straight forward case: 20%+ deposit, evidence of savings for FTB, meets income multiple and bank affordability criteria and bank profile is good with no excess fees of unpaid items occurring, it should translate to an easy approval.
If you have issues with any or all of the above then the underwriters might not be so positive towards it.
If you have gotten AIP through the underwriting process then you should be ok as long as it has not expired and no material changes to your financial position since AIP was given.

tigger123 · 18-09-2018 8:57am

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

wally79 · 18-09-2018 9:02am

tigger123 wrote: »

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

In my experience when you go sale agreed the agent will want proof of funds usually your formal approval letter from bank

tigger123 · 18-09-2018 9:11am

wally79 wrote: »

In my experience when you go sale agreed the agent will want proof of funds usually your formal approval letter from bank

Cheers for the response, much appreciated!

I'm just wondering generally how long the faffing about between Sale Agreed and the mortgage drawdown takes- is it a month? Or more likely to be 6 months?

GingerLily · 18-09-2018 9:13am

tigger123 wrote: »

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

You'll likely need approval at your current salary once your sale agreed, so you won't be able to benefit from your future wage increase, even if it happens before drawdown.

We fought tooth and nail for an exemption but 6 months on we're well below the 3.5 LTI, timing is a weird one!

wally79 · 18-09-2018 10:20am

tigger123 wrote: »

Cheers for the response, much appreciated!

I'm just wondering generally how long the faffing about between Sale Agreed and the mortgage drawdown takes- is it a month? Or more likely to be 6 months?

How long is a piece of string. Is it a new build, are you buying in a chain, are there legal issues with the property. Can be anything from weeks to months

wally79 · 18-09-2018 10:23am

tigger123 wrote: »

Cheers for the response, much appreciated!

I'm just wondering generally how long the faffing about between Sale Agreed and the mortgage drawdown takes- is it a month? Or more likely to be 6 months?

I guess the question is why you are asking?

Some context would help

As ginger lily says you will be asked for proof of funds by way of approval which will be based on current salary. Unless it’s a very unusual situation the vendor won’t accept an offer more than you have approval for based on a hypothetical wage rise. The risk is all on them

ArtyC · 18-09-2018 10:42am

Anyone draw down with boi recently? The money request was with them Friday .

Trying to swing my days off to suit

amcalester · 18-09-2018 10:42am

tigger123 wrote: »

If I were to go Sale Agreed on a property in the next few weeks, when would I reasonably expect to be drawing down the mortgage?

After contracts are signed, survey done etc?

The reason I'm asking is that I'm due a bump in my salary in the next few months that will definitly impact how much I can borrow.

I was in the same boat as you, was applying around the time I was due a bump in salary, BOI said I could apply with the higher salary but would need to provide at least 1 pay slip showing he higher salary before draw down.

Ended up just going with the lower salary because I was due to draw down the same month as the increase and I didn't want any hiccups.

2 months later I've received the increase and still no draw down.

ArtyC · 18-09-2018 10:49am

amcalester wrote: »

I was in the same boat as you, was applying around the time I was due a bump in salary, BOI said I could apply with the higher salary but would need to provide at least 1 pay slip showing he higher salary before draw down.

Ended up just going with the lower salary because I was due to draw down the same month as the increase and I didn't want any hiccups.

2 months later I've received the increase and still no draw down.

Can I intrude on ye here , is the drawdown delay on the banks side ?
I've been delayed a year now , need to finish this

Bargain_Hound · 18-09-2018 10:51am

Waiting to drawdown with BOI in the coming week or two, does anybody know do BOI typically request the most recent payslip or salary cert before drawdown? (I just signed the 6 month re-approval loan offer 3 weeks ago providing these at the time). There is nothing in the conditions except to produce the property valuation.

amcalester · 18-09-2018 11:28am

ArtyC wrote: »

Can I intrude on ye here , is the draw down delay on the banks side ?
I've been delayed a year now , need to finish this

All down to the builder, was supposed to be the end of August but that got pushed to mid-September which got pushed to end of September and now it's been pushed to mid-October.

Hopefully it'll be straightforward from here on in. I've everything sorted with the bank bar the valuation which should be done this week so hopefully once the solicitor sends the cheque request the bank will remit the funds.

TheShow · 18-09-2018 12:20pm

Bargain_Hound wrote: »

Waiting to drawdown with BOI in the coming week or two, does anybody know do BOI typically request the most recent payslip or salary cert before drawdown? (I just signed the 6 month re-approval loan offer 3 weeks ago providing these at the time). There is nothing in the conditions except to produce the property valuation.

shouldn't be any further requirements other than whats stated on the current loan offer.

chrismon · 19-09-2018 6:40am

Has anyone been asked by estate agents what your AIP is?
Lady in the bank told me to not to disclose it to them.
Anyone had experience here?

sunshinew · 19-09-2018 6:57am

chrismon wrote: »

Has anyone been asked by estate agents what your AIP is?
Lady in the bank told me to not to disclose it to them.
Anyone had experience here?

Yeah, don't disclose how much money you have to spend with an estate agent. Besides AIP just covers what you plan to borrow, not how much cash deposit you are putting towards the property. I think I got a letter from the bank that just said "we've reviewed so and so's finances and we believe she can afford this property at the price agreed".

dudara · 19-09-2018 7:00am

chrismon wrote: »

Has anyone been asked by estate agents what your AIP is?
Lady in the bank told me to not to disclose it to them.
Anyone had experience here?

You can share a copy of the AIP letter, but blank out the approved amount. It’s literally none of their business how much exactly you’ve been approved for.

I was asked verbally many times if I had approval, but I was never asked to furnish any evidence.

Purple Sheep · 19-09-2018 8:45am

dudara wrote: »

You can share a copy of the AIP letter, but blank out the approved amount. It’s literally none of their business how much exactly you’ve been approved for.

I was asked verbally many times if I had approval, but I was never asked to furnish any evidence.

Interesting. I was always told to attach AIP proof when bidding by email, and even had an agent silently ignore a bid when I forgot to do that after the first bid.

chrismon · 19-09-2018 10:02am

Thanks all, these tips are very handy.

Gavin "shels" · 19-09-2018 2:20pm

Myself and herself are planning for a mortgage in 12 months time.

Few quick questions:
1) We currently have our own individual bank accounts with savings accounts, a joint bank account (all AIB) and I've Credit Union account - does it matter which we save into, etc...? We've money in all currently.

2) Both of us pay rent at home by cash, is it best to use Bank Transfer going forward for traceability to the banks? Do they take this into account?

3) My parents also will be contributing some money on top of our savings when we do go to apply, how does that work with regards to a mortgage application? It will be a fraction (maybe 15-20%) of what we'll have saved up in total? Is it frowned upon these days?

limnam · 19-09-2018 2:32pm

Gavin shels wrote: »

Myself and herself are planning for a mortgage in 12 months time.

Few quick questions:
1) We currently have our own individual bank accounts with savings accounts, a joint bank account (all AIB) and I've Credit Union account - does it matter which we save into, etc...? We've money in all currently.

Nope, just provide statments for all accounts at applicaton.

Gavin shels wrote: »

2) Both of us pay rent at home by cash, is it best to use Bank Transfer going forward for traceability to the banks? Do they take this into account?

The "clearer" your statements are the quicker and easier things tend to move so I'd say yes it would be better

Gavin shels wrote: »

3) My parents also will be contributing some money on top of our savings when we do go to apply, how does that work with regards to a mortgage application? It will be a fraction (maybe 15-20%) of what we'll have saved up in total? Is it frowned upon these days?

Should be fine.

GingerLily · 19-09-2018 2:34pm

Banks do not like rent paid to your parents in cash. Set up a standing order ASAP so you can prove in a year's time that you've been paying rent the whole time.

Bargain_Hound · 19-09-2018 2:42pm

2) Going forward, setup a standing order so there is a paper trail in your accounts showing dedicated commitment to paying rent.

In my circumstances, we paid our rent by cash for 2 years before we went for mortgage approval and we had no issues getting approval as we got our landlord to sign a rent book every month stating the amounts, might be too late to do this now but wouldn't be a bad idea going forward either. This was taken into consideration at the time of approval and definitely worked to our advantage.

hanaimai · 19-09-2018 3:55pm

The gift will be no problem. Two of the banks I applied to said our own savings just had to be at least 5% of the house price, the others never mentioned it. We had quite a large gift and no problems so far (still need to drawdown).

Glen_Quagmire · 19-09-2018 6:12pm

Folks couple of questions

Typically how long does it take once all your documents are submitted to the bank for underwriters to give the all clear?

How long after putting a deposit down on a new build do you need to follow up with the next payment or what is the next stage in the process?

fjon · 19-09-2018 6:55pm

Hi folks, been following this thread for a few years and think I'm finally near the end of my house search.
We were Sale Agreed with a house a few months ago but pulled out before signing the contracts as there was structural issues with the house we weren't happy with. The solicitors had done some work already before this stage though.
I am wondering if anyone would hazard a guess of how much we're going to end up owing them? The initial quote they had given us had 1800e "professional fees" on it, but hopefully we're not going to be charged the whole lot?
We're currently Sale Agreed on another house and are getting the survey carried out shortly. Just trying to ascertain how much of a bill we're going to end up with and try to budget for that.

hanaimai · 19-09-2018 7:05pm

Glen_Quagmire wrote: »

Folks couple of questions

Typically how long does it take once all your documents are submitted to the bank for underwriters to give the all clear?

How long after putting a deposit down on a new build do you need to follow up with the next payment or what is the next stage in the process?

Varies depending on the bank. Our shortest was 3 days, longest was 6 weeks. Most were within 2 weeks.

After paying booking deposit next step is to sign contracts. You usually pay some amount at that stage. Ours was set at 20,000 so I don't think it's a defined percentage or anything. Balance on completion then.

GingerLily · 19-09-2018 8:15pm

Glen_Quagmire wrote: »

Folks couple of questions

Typically how long does it take once all your documents are submitted to the bank for underwriters to give the all clear?

How long after putting a deposit down on a new build do you need to follow up with the next payment or what is the next stage in the process?

We paid the balance of 10% minus booking deposit at contracts signing stage.

This was due, along with signed contracts and loan packs, 21 days after contracts were issued to ensure all white good were included (fridge, cooker etc.) or 56 days to secure the property.

Our contracts were issued about 2/3 weeks after our initial booking deposit.

TheShow · 19-09-2018 8:32pm

fjon wrote: »

Hi folks, been following this thread for a few years and think I'm finally near the end of my house search.
We were Sale Agreed with a house a few months ago but pulled out before signing the contracts as there was structural issues with the house we weren't happy with. The solicitors had done some work already before this stage though.
I am wondering if anyone would hazard a guess of how much we're going to end up owing them? The initial quote they had given us had 1800e "professional fees" on it, but hopefully we're not going to be charged the whole lot?
We're currently Sale Agreed on another house and are getting the survey carried out shortly. Just trying to ascertain how much of a bill we're going to end up with and try to budget for that.

No way for anyone to know how much, you need to bite the bullet and ask the solicitor.

GaGa21 · 19-09-2018 11:28pm

What is the best way going forward with an old debt when applying for mortgage? It was a student overdraft that was forgotten about to be honest as the focus was on the student loan being paid off.
It is not on the credit rating and hasn't been an issue for preapproval with other banks, but has turned up with the bank that issued overdraft.
They say to pay it off and a note will be put in with the application. But really can't afford to pay it atm with all the costs building up.
As far as I was told, it was issued in 2006 and wrote off in 2010 but is still on banks system.
Legally, I don't know if it still has to be paid due to the time passed. Morally, it should be paid but just can't afford to right now. Can I take my chances and ask bank to process application without payment? It was so long ago and there has been no debt since.

Gavin "shels" · 20-09-2018 12:51am

limnam wrote: »

Nope, just provide statments for all accounts at applicaton.

The "clearer" your statements are the quicker and easier things tend to move so I'd say yes it would be better

Should be fine.

GingerLily wrote: »

Banks do not like rent paid to your parents in cash. Set up a standing order ASAP so you can prove in a year's time that you've been paying rent the whole time.

Bargain_Hound wrote: »

2) Going forward, setup a standing order so there is a paper trail in your accounts showing dedicated commitment to paying rent.

In my circumstances, we paid our rent by cash for 2 years before we went for mortgage approval and we had no issues getting approval as we got our landlord to sign a rent book every month stating the amounts, might be too late to do this now but wouldn't be a bad idea going forward either. This was taken into consideration at the time of approval and definitely worked to our advantage.

hanaimai wrote: »

The gift will be no problem. Two of the banks I applied to said our own savings just had to be at least 5% of the house price, the others never mentioned it. We had quite a large gift and no problems so far (still need to drawdown).

Cheers guys!

Also another quick one - with anyone's experience has it benefited them being legally married when getting a mortgage? We're currently engaged but if it meant a Registry Office trip would make things easier in a year sign me up

House first, then wedding is the plan :pac:

hanaimai · 20-09-2018 6:32am

Gavin shels wrote: »

Cheers guys!

Also another quick one - with anyone's experience has it benefited them being legally married when getting a mortgage? We're currently engaged but if it meant a Registry Office trip would make things easier in a year sign me up House first, then wedding is the plan :pac:

We weren't even engaged when we applied and had no issues. My fiancé had bought an engagement ring though, which one of the banks questioned with me when going through our statements over the phone. It was a good thing I already knew about it ðŸ˜‚

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

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