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

Noodles81 · 16-01-2020 1:48am

Hi we are planning to move and our house is worth c.€210,000, leaving us with c.€100,000 to put into new house. I have a few queries...

1. How much do we need to have saved or will the banks accept that we will have money to pay fees etc once the house sells? We will have 6 months plus saved at least.

2. Can you sell your house, get the money into your account and arrange to sign contracts for the new house within a week or so? We would be moving a long distance away and want the selling of our house and buying of next house to dovetail so we are not left with no home!

3. My husband will need to change jobs but the mortgage offer will be based on his current salary. Is it true he can't change jobs until after the new house is bought and the mortgage drawn down?

4. My husband is 49, but we are only looking to borrow €100,000 to €130,000. Will he encounter any difficulties? The mortgage will be solely in his name but the house in both our names, as I am chronically ill and can't get mortgage protection.

NearlyForty · 16-01-2020 10:07am

scarepanda wrote: »

Oh no :-0, that is a seriously stressful thing to find out at an already stressful time. But the bank will question where the legal funds will come from in that case before they will issue the mortgage. What a pain in the rear.

Best of luck to ye as well, hopefully ye can figure something out.

Oh stop, we’ve been trying to work through our finances there to see if we can move stuff around and prioritise bills etc etc.. It could be very tight but we’ll see
Fingers crossed!

Creamy Goodness · 16-01-2020 11:29am

Noodles81 wrote: »

1. How much do we need to have saved or will the banks accept that we will have money to pay fees etc once the house sells? We will have 6 months plus saved at least.

they'll want to see the stamp duty figure + solicitors fees which can range anywhere from 1k-3k depending on the work that they need to do.

2. Can you sell your house, get the money into your account and arrange to sign contracts for the new house within a week or so? We would be moving a long distance away and want the selling of our house and buying of next house to dovetail so we are not left with no home!

Yes, this is quite common, there's a term for it but I can't think of it. Basically the sale of your house doesn't close until the purchase of the new home does.

3. My husband will need to change jobs but the mortgage offer will be based on his current salary. Is it true he can't change jobs until after the new house is bought and the mortgage drawn down?

They do not like seeing anyone on probation. if there's a 6 month probation and it'll be 6 months before you drawn down it should be fine.

4. My husband is 49, but we are only looking to borrow €100,000 to €130,000. Will he encounter any difficulties? The mortgage will be solely in his name but the house in both our names, as I am chronically ill and can't get mortgage protection.

Only problem is they'll only give him a term that is up to his retirement age, due to how little you're actually borrowing this shouldn't be an issue.

Woshy · 16-01-2020 11:37am

Noodles81 wrote: »

Hi we are planning to move and our house is worth c.€210,000, leaving us with c.€100,000 to put into new house. I have a few queries...

1. How much do we need to have saved or will the banks accept that we will have money to pay fees etc once the house sells? We will have 6 months plus saved at least.

2. Can you sell your house, get the money into your account and arrange to sign contracts for the new house within a week or so? We would be moving a long distance away and want the selling of our house and buying of next house to dovetail so we are not left with no home!

3. My husband will need to change jobs but the mortgage offer will be based on his current salary. Is it true he can't change jobs until after the new house is bought and the mortgage drawn down?

4. My husband is 49, but we are only looking to borrow €100,000 to €130,000. Will he encounter any difficulties? The mortgage will be solely in his name but the house in both our names, as I am chronically ill and can't get mortgage protection.

What area does your husband work in? My husband is on probation but they have given us mortgage approval anyway as he is highly skilled and works in an area and a role with a high demand. We had to provide a CV showing his work history.

Noodles81 · 16-01-2020 4:11pm

Woshy wrote: »

What area does your husband work in? My husband is on probation but they have given us mortgage approval anyway as he is highly skilled and works in an area and a role with a high demand. We had to provide showing his work history.

That's good to know. My husband would be similar. He's in pharmaceuticals.

Woshy · 16-01-2020 4:29pm

Noodles81 wrote: »

That's good to know. My husband would be similar. He's in pharmaceuticals.

It's worth checking with the bank then definitely. We applied to two banks and both said it wasn't an issue once they heard where he worked and what he does - plus his previous roles.

Noodles81 · 17-01-2020 3:50pm

Woshy wrote: »

It's worth checking with the bank then definitely. We applied to two banks and both said it wasn't an issue once they heard where he worked and what he does - plus his previous roles.

That's great Woshy, thanks for the info.

fifth · 18-01-2020 12:10am

I'm saving for my deposit and about 3-4 months out from having 10%. Mortgage broker says there should be no issues with getting approved due to my salary and regular saving.

Now, I've seen/viewed a house I like and the EA says if I put down a booking deposit now, the builder will wait until I'm ready with the mortgage come 3-4 months time.

My question is if I do this, and I continue saving as normal, will the bank be OK with this or will they see it as me dipping into my mortgage savings and view it negatively?

Left broker a message to ask this but hasn't responded yet this week.

ECO_Mental · 18-01-2020 12:32am

fifth wrote: »

I'm saving for my deposit and about 3-4 months out from having 10%. Mortgage broker says there should be no issues with getting approved due to my salary and regular saving.

Now, I've seen/viewed a house I like and the EA says if I put down a booking deposit now, the builder will wait until I'm ready with the mortgage come 3-4 months time.

My question is if I do this, and I continue saving as normal, will the bank be OK with this or will they see it as me dipping into my mortgage savings and view it negatively?

Left broker a message to ask this but hasn't responded yet this week.

I was told (recently) if you are spending your savings on building your house eg Architects fees planning etc take note of it and this wont be looked at negatively. Just record any spending you are doing and highlight to them and it wont be a problem.

Just looking at your post again, you are asking about booking deposit. If that comes out of your savings that no problem, that what you are saving for anyway.

aqn29swlgbmiu4 · 18-01-2020 2:05pm

Hey all, quick question.
I work full time and have just been made permanent. I'm aiming to save as much as possible and apply for a mortgage in Jan 2021. I have a part time temporary weekend job that makes about €3300 per year. Now that I'm full time and permanent I want to give it up as its tiring working 12 days in a row twice a month and it's all eaten up in tax anyways.

However, would the banks take the earnings into account for a mortgage? It's a year long temporary contract in the public service.
My wage in my 9-5 is only in the mid 30ies so any extra lending would be great.

Don't want to keep up the jobs if the bank won't lend based on it bring temporary however. Job is a bit of a pain in the neck also lol

fifth · 18-01-2020 5:07pm

ECO_Mental wrote: »

I was told (recently) if you are spending your savings on building your house eg Architects fees planning etc take note of it and this wont be looked at negatively. Just record any spending you are doing and highlight to them and it wont be a problem.

Just looking at your post again, you are asking about booking deposit. If that comes out of your savings that no problem, that what you are saving for anyway.

Cheers! Yeah it would just be booking deposit, other fees will be coming from other funds.

fifth · 19-01-2020 1:19am

The house I'm looking at has been on the market for at least 7 months now and not sold.

As it's a new build I know prices are generally fixed, but is it worth me asking if they'll sell for a little less?

What are people's experiences with this? There's clearly not much demand for it (3 houses remaining out of a development of 10). And the location isn't amazing.

What would be a good % discount to ask for? Chancing my arm but sure..

Dwarf.Shortage · 19-01-2020 7:02pm

"He (Michael Martin) also disclosed his party would be unveiling a policy to bring back a Special Savings Incentive Allowance (SSIA) type scheme to help young people save up for deposits on housing. He said his government would provide €1 for each €3 saved up to €10,000. A similar SSIA scheme for the general population was operated between 2003 and 2007."

I assume the €10k is if you save €30k they will add €10k rather than if you save €10k they will add €3,3333.33, it's vagely phrased but the €40k number makes more sense.

I wonder is it to exist in parallel with the HTB scheme (prob a one or the other thing if so) or is it to replace it.

wirelessdude01 · 19-01-2020 7:11pm

Dwarf.Shortage wrote: »

"He (Michael Martin) also disclosed his party would be unveiling a policy to bring back a Special Savings Incentive Allowance (SSIA) type scheme to help young people save up for deposits on housing. He said his government would provide €1 for each €3 saved up to €10,000. A similar SSIA scheme for the general population was operated between 2003 and 2007."

I assume the €10k is if you save €30k they will add €10k rather than if you save €10k they will add €3,3333.33, it's vagely phrased but the €40k number makes more sense.

I wonder is it to exist in parallel with the HTB scheme (prob a one or the other thing if so) or is it to replace it.

From what I've read it seems to be in conjunction with the HTB but no real information has been released yet.

Dwarf.Shortage · 19-01-2020 7:24pm

wirelessdude01 wrote: »

From what I've read it seems to be in conjunction with the HTB but no real information has been released yet.

Be very surprised if it was the case you could get the SSIA top up and then draw down the HTB money as well. I'd say it's more the case they want to take the heat off new builds so the SSIA is a boost for someone looking to buy an existing property.

i know HTB is supposed to incentivise building for developers but something to level the playing field a bit would be no harm.

We'll have to wait until Tuesday so!

lir6777 · 20-01-2020 4:47pm

Creamy Goodness wrote: »

To get an exemption you have to have squeaky clean record, your current loan for your car will stand against you when they do their calculations. I got a 4.4x exemption on a similar salary but there were no outstanding loans and I got AIP in January. It's not impossible but you just got to play it right.

Me again, can I ask which bank you managed to get the exception from? I'm finding a lot of them tell me straight off that for a single applicant they couldn't offer more than 3.8/4 etc. This is before they take a single detail from me!

Creamy Goodness · 20-01-2020 5:00pm

lir6777 wrote: »

Me again, can I ask which bank you managed to get the exception from? I'm finding a lot of them tell me straight off that for a single applicant they couldn't offer more than 3.8/4 etc. This is before they take a single detail from me!

AIB, however their rules might have changed since I got the AIP. I got it 28th January 2018.

lir6777 · 20-01-2020 5:08pm

Creamy Goodness wrote: »

AIB, however their rules might have changed since I got the AIP. I got it 28th January 2018.

Thanks for that, really appreciate your response! I haven't gotten a call back from them yet so fingers crossed!! ðŸ˜°

Dwarf.Shortage · 20-01-2020 6:20pm

FG are proposing changing HTB to 10% capped at €30,000, Varadkar on Matt Cooper as we speak.

lir6777 · 20-01-2020 7:22pm

Dwarf.Shortage wrote: »

FG are proposing changing HTB to 10% capped at €30,000, Varadkar on Matt Cooper as we speak.

As in that you could use HTB for 10% of the deposit instead of the current 5? Up to 30,000? That's amazing- this election might have me conflicted between what would be nice right now versus what would be good for the country going forward ðŸ€£

Dwarf.Shortage · 20-01-2020 7:23pm

lir6777 wrote: »

As in that you could use HTB for 10% of the deposit instead of the current 5? Up to 30,000? That's amazing- this election might have me conflicted between what would be nice right now versus what would be good for the country going forward ðŸ€£

10% of the purchase price, not the deposit.

lir6777 · 20-01-2020 7:37pm

Dwarf.Shortage wrote: »

10% of the purchase price, not the deposit.

Oh sorry yeah, that's what I meant- can you tell it's Monday in my brain ðŸ™„ðŸ˜† thanks!

Bigmac1euro · 20-01-2020 10:42pm

ILikeBoats wrote: »

I found him great - we've used him twice as we switched mortgage.
I should add it was 895 plus VAT
I'll PM you

Could you PM me this solicitor please.

ebayissues · 20-01-2020 10:57pm

What insurance does one need before draw down? - mortgage insurance, Income protection insurance, House Insurance.... Anything else?

tomister · 20-01-2020 11:35pm

ebayissues wrote: »

What insurance does one need before draw down? - mortgage insurance, Income protection insurance, House Insurance.... Anything else?

The bare minimum you need is mortgage protection and house insurance to the value of the rebuild cost. If you work for a large multi national it’s worth checking what benefits you have as you could be paying for income protection but have something similar through work.

lir6777 · 21-01-2020 10:52am

Is anyone having any luck getting exceptions yet this year? The banks seem to be super-tight with them this year; one has told me that they have a new condition that for an exception, you have to have €2400 per month left over after the STRESSED mortgage repayments, which he felt was preventing most people from getting one as they stress test at over 5%. Even he was surprised at how tight this was. Hope someone's having success!!

alwald · 21-01-2020 12:55pm

lir6777 wrote: »

Is anyone having any luck getting exceptions yet this year? The banks seem to be super-tight with them this year; one has told me that they have a new condition that for an exception, you have to have €2400 per month left over after the STRESSED mortgage repayments, which he felt was preventing most people from getting one as they stress test at over 5%. Even he was surprised at how tight this was. Hope someone's having success!!

They are right to have tight rules and to complete a different stress test when assessing the customer's financial situation/repayment ability. This is part of their obligations as per the rules set by the CBI.

The less exceptions the better as they only contribute to a rise in housing prices.

lir6777 · 21-01-2020 1:07pm

alwald wrote: »

They are right to have tight rules and to complete a different stress test when assessing the customer's financial situation/repayment ability. This is part of their obligations as per the rules set by the CBI.

Totally agree, however these terms are particularly tight. The stress test is there to allow for increases in interest but to then also stipulate that a single person with no debts or dependents needs to have €2400 net disposable income per month is hard to grasp for me (much as I'd love to have it!!) I fully agree that exceptions should be, well, the exception, and caution is needed in giving them out, however these rules largely seem to be just leaving single applicants in a poor position even if they manage to save a deposit or plan to use HTB. I would love to see some help in that for single applicants (and I know people will likely point out that one person is riskier than two, which I get and agree with but that's what mortgage protection and all those other insurances are for too)

alwald · 21-01-2020 1:24pm

lir6777 wrote: »

Totally agree, however these terms are particularly tight. The stress test is there to allow for increases in interest but to then also stipulate that a single person with no debts or dependents needs to have €2400 net disposable income per month is hard to grasp for me (much as I'd love to have it!!) I fully agree that exceptions should be, well, the exception, and caution is needed in giving them out, however these rules largely seem to be just leaving single applicants in a poor position even if they manage to save a deposit or plan to use HTB. I would love to see some help in that for single applicants (and I know people will likely point out that one person is riskier than two, which I get and agree with but that's what mortgage protection and all those other insurances are for too)

I am also looking to buy a property as a single applicant so I can assure you that I can relate to your post.
IMO the mortgage rules should remain the same for all but further help to buy for single applicants or slightly different rules for the rebuilding Ireland loan need to be offered by the government for single applicants.

In addition most new builds are made for families and priced as such. Smaller properties and apartments are a must if single applicants are to become homeowners.

lir6777 · 21-01-2020 1:31pm

alwald wrote: »

I am also looking to buy a property as a single applicant so I can assure you that I can relate to your post.
IMO the mortgage rules should remain the same for all but further help to buy for single applicants or slightly different rules for the rebuilding Ireland loan need to be offered by the government for single applicants.

In addition most new builds are made for families and priced as such. Smaller properties and apartments are a must if single applicants are to become homeowners.

You're absolutely right. I had one bank on the phone suggesting my application would be so much stronger if it was a joint one- like I could just find someone to split it, hello like, it's not a pizzaðŸ€£ renting alone is also pretty much impossible if I want to keep saving, again back to your point about the property types but also generally inflated prices. Frustrating times

SteelyDanJalapeno · 21-01-2020 2:34pm

lir6777 wrote: »

You're absolutely right. I had one bank on the phone suggesting my application would be so much stronger if it was a joint one- like I could just find someone to split it, hello like, it's not a pizzaðŸ€£ renting alone is also pretty much impossible if I want to keep saving, again back to your point about the property types but also generally inflated prices. Frustrating times

A mortgage, it's not a pizza.

lir6777 · 21-01-2020 3:11pm

SteelyDanJalapeno wrote: »

A mortgage, it's not a pizza.

Sadly!

Dwarf.Shortage · 21-01-2020 3:42pm

Fianna Fail going with the SSIA match of €30k saved being supplemented by a €10k top up and increasing the HTB to €25k, also a 14% vacant sites levy and a waive of various charges if developers can deliver the units within 3 years.

Lots of social housing commitments too but I didn't listen as closely to the details.

lir6777 · 21-01-2020 4:34pm

Dwarf.Shortage wrote: »

Fianna Fail going with the SSIA match of €30k saved being supplemented by a €10k top up and increasing the HTB to €25k, also a 14% vacant sites levy and a waive of various charges if developers can deliver the units within 3 years

Thanks for that info. Do you know if they intend to increase the % HTB can make up from its current 5%? As in, is it planned as 25000 or 5%, whichever is less? I assume the percentage might be increased, otherwise it's only helping FTBs purchasing properties over 400k (who probably don't really need the help!)

Dwarf.Shortage · 21-01-2020 5:00pm

lir6777 wrote: »

Thanks for that info. Do you know if they intend to increase the % HTB can make up from its current 5%? As in, is it planned as 25000 or 5%, whichever is less? I assume the percentage might be increased, otherwise it's only helping FTBs purchasing properties over 400k (who probably don't really need the help!)

No mention of increased percentage but I’d say so. If it was the exact same as the current regime but changed to 6.25% it would give that figure so I wouldn’t be shocked if that was the policy.

lir6777 · 21-01-2020 5:06pm

Dwarf.Shortage wrote: »

No mention of increased percentage but I’d say so. If it was the exact same as the current regime but changed to 6.25% it would give that figure so I wouldn’t be shocked if that was the policy.

Nice maths, that would have taken me ages to figure out ðŸ€£

Glenbhoy · 23-01-2020 10:08am

lir6777 wrote: »

Is anyone having any luck getting exceptions yet this year? The banks seem to be super-tight with them this year; one has told me that they have a new condition that for an exception, you have to have €2400 per month left over after the STRESSED mortgage repayments, which he felt was preventing most people from getting one as they stress test at over 5%. Even he was surprised at how tight this was. Hope someone's having success!!

If you fix for 10 years, they don't apply the same stress test as there is no possibility of variance in that time period. Whilst it may change significantly after that it's too far into the future to try and assess risk given variables in overall economy and individual circumstances etc..

ebayissues · 23-01-2020 11:35am

lir6777 wrote: »

Totally agree, however these terms are particularly tight. The stress test is there to allow for increases in interest but to then also stipulate that a single person with no debts or dependents needs to have €2400 net disposable income per month is hard to grasp for me (much as I'd love to have it!!) I fully agree that exceptions should be, well, the exception, and caution is needed in giving them out, however these rules largely seem to be just leaving single applicants in a poor position even if they manage to save a deposit or plan to use HTB. I would love to see some help in that for single applicants (and I know people will likely point out that one person is riskier than two, which I get and agree with but that's what mortgage protection and all those other insurances are for too)

Net disposable after rent??

What banks aren't giving exception? I know KBC is gone.

lir6777 · 23-01-2020 1:24pm

Glenbhoy wrote: »

If you fix for 10 years, they don't apply the same stress test as there is no possibility of variance in that time period. Whilst it may change significantly after that it's too far into the future to try and assess risk given variables in overall economy and individual circumstances etc..

I've been told by a broker that they all stress test at the variable rate, which so far they do all seem to be doing. Makes no sense to me as I want the fixed rate as you say!!!?!

lir6777 · 23-01-2020 1:25pm

ebayissues wrote: »

Net disposable after rent??

What banks aren't giving exception? I know KBC is gone.

Net disposable after a stressed mortgage repayment!

Kbc seem to have gone very strict yeah, similar with ebs, ptsb, and aib. Wondering if it's the uncertainty around Brexit?!

Corruptedmorals · 24-01-2020 1:35am

Obviously rates and exceptions are the big draw, but I must say AIB have been an absolute delight to deal with from beginning to end of the entire application and sale process. Branch, app messaging and central mortgages team everything was so easy. We had AIP within an hour and underwriting, letter of offer were all quicker than expected and documentation was all verified within hours.

And it was a long, complicated sale that they had a lot of input in as they ended up accepting a qualification of title after 7 months sale agreed. Closing next week and it is completely surreal after so long!

Woshy · 24-01-2020 10:28am

Corruptedmorals wrote: »

Obviously rates and exceptions are the big draw, but I must say AIB have been an absolute delight to deal with from beginning to end of the entire application and sale process. Branch, app messaging and central mortgages team everything was so easy. We had AIP within an hour and underwriting, letter of offer were all quicker than expected and documentation was all verified within hours.

And it was a long, complicated sale that they had a lot of input in as they ended up accepting a qualification of title after 7 months sale agreed. Closing next week and it is completely surreal after so long!

That's great to hear! We've had a great experience with PTSB so far, we've been very pleased. Mobile mortgage consultant who came to my work to met us and collect the signed forms and things, excellent communication and we had AIP within 2 days of it going to underwriting. My husband is on probation and we weren't sure about applying now but the mortgage consultant said that wouldn't be an issue and it wasn't. I'm glad we did. We got approved for a decent amount.

All we need to do now is find a house! Hopefully once we do the rest of the process is as smooth as yours was.

fifth · 24-01-2020 12:19pm

Was refused an exemption this morning by BOI on the grounds that "it wasn't a large enough amount". I was looking for 3.6x salary instead of 3.5x.

I know it sounds like the solution is to just keep saving more, but it's going to add an extra 6-7 months onto things without the exemption and I'm worried about losing out on this house.

Ah. What will be will be I suppose!

lir6777 · 24-01-2020 12:25pm

fifth wrote: »

Was refused an exemption this morning by BOI on the grounds that "it wasn't a large enough amount". I was looking for 3.6x salary instead of 3.5x.

I know it sounds like the solution is to just keep saving more, but it's going to add an extra 6-7 months onto things without the exemption and I'm worried about losing out on this house.

Ah. What will be will be I suppose!

That sucks

I've heard they can hold exceptions for more profitable mortgages, which is frustrating. Have you tried the other banks? I'd be surprised if one of them couldn't help out. You don't work in the public sector by chance?

SteelyDanJalapeno · 24-01-2020 1:36pm

Hi,

We got approved for 300k in October, we now need about 350k, what is the process to get the additional amount?

Is it treated as a new application?

bswan · 24-01-2020 3:33pm

Have heard from a broker that Finance Ireland don't offer any LTI exemptions. Anyone know if that true ?

lir6777 · 24-01-2020 4:12pm

bswan wrote: »

Have heard from a broker that Finance Ireland don't offer any LTI exemptions. Anyone know if that true ?

I didn't know that but their webpage seems to suggest they're very flexible?!

Just to make people who work in the public sector aware that ICS have a new mortgage that allows you to get 3.5 times your salary two points ahead on your salary scale. They also allow you use overtime and other extras in calculating. Might be good for people who just need a little more to avoid the stress of an exception!

bswan · 24-01-2020 4:29pm

lir6777 wrote: »

I didn't know that but their webpage seems to suggest they're very flexible?!

I have a feeling the broker has their own preferences and is not putting in the application with them whilst pushing another. Time to find another broker.

24-01-2020 4:44pm

Anyone doing the Bank of Ireland mortgage saver? Apparently they won't accept cash deposits, does anyone know if that's stuck to? Would be handier for me for transferring from my CU account.

Humour Me · 24-01-2020 4:49pm

[Deleted User] wrote: »

Anyone doing the Bank of Ireland mortgage saver? Apparently they won't accept cash deposits, does anyone know if that's stuck to? Would be handier for me for transferring from my CU account.

Your credit union should be able to transfer the funds by EFT once you give them the instruction.

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

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