Mortgage Exceptions

tippingpoint · 15-11-2018 5:45pm #1

Just wondering if anyone here has any experience in the last year of getting a mortgage exception? I've met with Ulster Bank who said the max they've given out in recent times has just been up to 4 times a person's salary

Does anyone know what banks would give up to 4.5 times salary? And what criteria would I have to meet to get over 4 times? I have over 10% deposit, good salary and savings..would I need closer to 20% deposit to be considered for 4.5 times salary?
Also I realise there are no exceptions at the moment...just getting prepared for January ðŸ˜Ž

dory · 15-11-2018 5:54pm

I went to a mortgage broker last weekend who said they getting four times or 4.2 times, but didn't specify which banks.

wersal gummage · 15-11-2018 6:16pm

It's also related to affordability, stress testing etc... (possibly higher stress testing).

tippingpoint · 15-11-2018 8:00pm

Perfect thanks! I'm just at the beginning of the process of looking at apartments and getting a mortgage so I wasn't completely sure how the exceptions worked.
Guess if I want to borrow more I'll have to save more & have a much bigger deposit..or just look at somewhere cheaper I suppose ðŸ˜

L1011 · 15-11-2018 11:53pm

You would need to have a very hefty deposit for a salary exception of that much to be given. Also you'll be waiting 6 weeks before any banks have any to give anyway.

jayjay2010 · 16-11-2018 1:42am

I got 4 times my salary in July 2017 with a broker. Banks wouldn't entertain the idea of an exception but the broker did.

GingerLily · 16-11-2018 1:49am

We got an exemption in January, 3.8 times income and a deposit over 20%.

I think you'll find it difficult to get an exemption that high with your current deposit,not sure also if the banks are as keen to lend outside the rules for apartments, the management fees will really hit into your affordability.

Do you know what the repayments would be?

catrionanic · 16-11-2018 4:57am

We got 4x a couple of months ago. Our deposit is around 33% though.

Creamy Goodness · 16-11-2018 8:37am

4.4. Had 21% deposit (excluding HTB) and met the affordability calculations of AIB.

skywayavenue · 16-11-2018 8:55am

We got 4.5 times with KBC back in May. Had only a 10% deposit but they had affordability criteria to meet i.e we needed a certain amount of net disposable income each month

tippingpoint · 16-11-2018 10:59am

Well I met with the bank manager in my own bank yesterday and she seems to think I'll get 4 times salary with them once the exceptions open again soon.

I've around 15% deposit if I'm borrowing 4 times my salary and save a decent amount each month, no loans, professional job etc so they seem to think I'll get 4 times with them.

I might talk with KBC as well as I have opened an account with them. Thanks!

Rew · 16-11-2018 6:04pm

Keep in mid that if you want 4x and <20% deposit your looking for 2 exemptions

SozBbz · 16-11-2018 6:11pm

Rew wrote: »

Keep in mid that if you want 4x and <20% deposit your looking for 2 exemptions

if they're a first time buyer then 10% is fine, no?

Rew · 16-11-2018 6:14pm

SozBbz wrote: »

if they're a first time buyer then 10% is fine, no?

Yeah sorry, 10% up top the limit of €220k 20% applies to the balance above that.

Samuel T. Cogley · 16-11-2018 7:20pm

Rew wrote: »

Yeah sorry, 10% up top the limit of €220k 20% applies to the balance above that.

Thought it was 10% flat now for FTB?

Edit: Yes it is: Since 1 January 2017: For first-time buyers of principal dwelling homes the limit of 90% LTV applies on the full value of all residential property, so first-time buyers will need a deposit of 10% for any house or apartment, regardless of price.

Rew · 16-11-2018 7:40pm

Didn’t know that, being a FTB is good for something again!

myshirt · 17-11-2018 9:05pm

SozBbz wrote: »

if they're a first time buyer then 10% is fine, no?

Yes, 10% as others have said.

I think what the poster was referring to was BANK rules if you want an exemption. It's all up to the bank if they want to give you an exemption. Some applications don't even get 3.5 times income which isn't mentioned here that often. So an exemption is extra. Where you do get an exemption you can get 3.75 times basic income, sometimes 4.00, and rarely 4.50.

To get the exemption, ballpark you need 90-100k family income, and a 20% deposit, and looking at a specific house. 3 beds are better than 4. Easier to flip. Etc.

The exemption is usually on basic income, not overtime, bonuses etc. On bonuses and overtime, if they are consistent you can get 3.5 times on them as long as the bonus is no more than 15% of your base.

[Deleted User] · 18-11-2018 11:40am

Ulster bank gave me approval for 5 times my salary in 2016 or 2017.
I do have a large deposit though

SozBbz · 19-11-2018 11:14am

I got 4.5x in 2015 from BOI. Again I had a large deposit, circa 40% and also my income multiplier was on my basic salary only, but in reality I earn up to 40% on top on an average year, more if I have a good year, so I guess I was a good bet in the round. I also had (have;) ) no dependents.

Exceptions are just that, and they're limited. You have to have something going for you over and above the norm, or the bank is unlikely to chose you for this scarce resource.

lir6777 · 11-12-2019 4:03pm

Hiya, I'm a curious hopefully-soon-to-be first time buyer and am interested to hear whether others not meeting the specific criteria listed above have managed to get the 4.5 exception? I'm going through a mortgage broker and will apply in January but I'm keen to see if others have been successful. I'm a single FTB, no dependants, with 10% deposit only, just over 61,000 annual gross salary. I'm in a permanent job in the public sector but I recognise that I am not likely to appear as strong of a candidate as a couple with higher savings or etc. I'd love to hear others' experiences and if there's anything I can do to strengthen my case. Cheers!

ELM327 · 11-12-2019 4:05pm

myshirt wrote: »

Yes, 10% as others have said.

I think what the poster was referring to was BANK rules if you want an exemption. It's all up to the bank if they want to give you an exemption. Some applications don't even get 3.5 times income which isn't mentioned here that often. So an exemption is extra. Where you do get an exemption you can get 3.75 times basic income, sometimes 4.00, and rarely 4.50.

To get the exemption, ballpark you need 90-100k family income, and a 20% deposit, and looking at a specific house. 3 beds are better than 4. Easier to flip. Etc.

The exemption is usually on basic income, not overtime, bonuses etc. On bonuses and overtime, if they are consistent you can get 3.5 times on them as long as the bonus is no more than 15% of your base.

Does the bank get to use the excess delta between the approved amount and 3.5, to allow further exemptions?
I've never borrowed near 3.5 times.

Umaro · 11-12-2019 7:19pm

lir6777 wrote: »

Hiya, I'm a curious hopefully-soon-to-be first time buyer and am interested to hear whether others not meeting the specific criteria listed above have managed to get the 4.5 exception? I'm going through a mortgage broker and will apply in January but I'm keen to see if others have been successful. I'm a single FTB, no dependants, with 10% deposit only, just over 61,000 annual gross salary. I'm in a permanent job in the public sector but I recognise that I am not likely to appear as strong of a candidate as a couple with higher savings or etc. I'd love to hear others' experiences and if there's anything I can do to strengthen my case. Cheers!

+1 on this, I'm in the same situation and wondering if single people can get exemptions. Even 4x would make a massive difference to me.

Dolbhad · 11-12-2019 7:26pm

I’ve heard it’s harder for single applicants to get the exemptions. My brother was a single applicant was getting HTB but it mortgage was 69% of the purchase price. To be eligible for HTB he had to borrow 70%. In reality that was an extra 2k he needed for the bank to hit 70% and he would get 12k back from HTB. Bank refused to give him an exemption of the 2k as he was a sole applicant whereas a couple on the same income between would have gotten it. I agree with the rules in general but some decisions like that don’t make sense.

It’s not impossible but I say it’s a bit harder.

lir6777 · 11-12-2019 10:04pm

Dolbhad wrote: »

I’ve heard it’s harder for single applicants to get the exemptions. My brother was a single applicant was getting HTB but it mortgage was 69% of the purchase price. To be eligible for HTB he had to borrow 70%. In reality that was an extra 2k he needed for the bank to hit 70% and he would get 12k back from HTB. Bank refused to give him an exemption of the 2k as he was a sole applicant whereas a couple on the same income between would have gotten it. I agree with the rules in general but some decisions like that don’t make sense.

It’s not impossible but I say it’s a bit harder.

God that seems mad! Thanks for your thoughts; it does seem to leave single buyers in a position where (without a big deposit, which is very difficult to accrue while paying high rents) they will be unable to get a sufficient mortgage to buy a home in most cities. You'd hope for some flexibility but sounds like your brother didn't get any!

Underground · 12-12-2019 1:08am

I'm a single buyer and got an exception of 4x LTI. Have a chunky deposit (40%) which is more than likely what swung it for me. Very difficult to save for the deposit if paying high rents of course. I'm lucky enough to be living at home so didn't have to worry about that.

Dolbhad · 12-12-2019 10:43am

lir6777 wrote: »

God that seems mad! Thanks for your thoughts; it does seem to leave single buyers in a position where (without a big deposit, which is very difficult to accrue while paying high rents) they will be unable to get a sufficient mortgage to buy a home in most cities. You'd hope for some flexibility but sounds like your brother didn't get any!

That’s it - considering a small amount of money meant he was going to get more money back didn’t make sense. In the end he bought a slightly cheaper new build to bring him within the value of 70%. So I think you need to be earning a more than average wage and a nice deposit behind you as banks seem to be more cautious that if you lose your job, they don’t have a second person to come after.

Whereas myself and my partner have received an exemption of 4* times off more than one bank and I have a similar job to my brother.

lir6777 · 13-12-2019 2:26pm

Underground wrote: »

I'm a single buyer and got an exception of 4x LTI. Have a chunky deposit (40%) which is more than likely what swung it for me. Very difficult to save for the deposit if paying high rents of course. I'm lucky enough to be living at home so didn't have to worry about that.

Thanks for that. The rents really are crucifying people at the moment!! Even if I wait another year and save hard, because of rent and the rate of tax I pay I would struggle to put away much more than another 5-8% deposit, during which time I'm afraid property prices would only continue to increase anyway..

Dolbhad · 13-12-2019 9:34pm

lir6777 wrote: »

Thanks for that. The rents really are crucifying people at the moment!! Even if I wait another year and save hard, because of rent and the rate of tax I pay I would struggle to put away much more than another 5-8% deposit, during which time I'm afraid property prices would only continue to increase anyway..

Would you be eligible for the Rebuilding Ireland? I think that’s a good avenue to check out if sole applicant.

lir6777 · 13-12-2019 10:28pm

Dolbhad wrote: »

Would you be eligible for the Rebuilding Ireland? I think that’s a good avenue to check out if sole applicant.

Thanks for the suggestion! I just googled it and my income seems to be too high to be eligible- has to be under 50,000. Looks like a great scheme though,I didn't know about it!

Mortgage Exceptions

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