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

Prospector1989 · 19-02-2019 10:44pm

amcalester wrote: »

Sort out your mortgage protection, as this is could be an issue if you have any medical issues.

House insurance can be sorted with a phone call.

Other than that keep on top of the bank and make sure that they have everything they need. Get PTSB to list everything that’s outstanding in an email so you can cross them off.

But remember, doesn’t matter what you do something will delay things.

Thanks amcalester.
Yeah we know there will inevitably be some delays just want to minimise any delays from our side.
Appreciate the advice!
P

Phillip k · 20-02-2019 3:54am

Hi I'm just wondering would I be better to get a loan from credit union as myself and partner are going to build or own home in kildare on a part of land my family own .

TedsRevengeP · 20-02-2019 10:09am

Hi guys,

We're using the Help to Buy scheme and have our mortgage paperwork together. We were about to proceed with a broker but somebody has told us if we use a broker there are disadvantages. For instance, with EBS if you go through a broker you lose access to the 3% cashback.

Does anybody know if this is true? We thought there was no disadvantage to using a broker.

Thanks

ILikeBoats · 20-02-2019 10:10am

We used a broker and PTSB gave us our 2% cashback, sorry can't comment on EBS

Prospector1989 · 20-02-2019 10:58am

ILikeBoats wrote: »

We used a broker and PTSB gave us our 2% cashback, sorry can't comment on EBS

We're going through a broker at the moment as well and he confirmed we'll be receiving 2% from PTSB provided our offer doesn't fall through. Would be surprised if any banks excluded such an offer for going through a broker.

NearlyForty · 20-02-2019 9:12pm

Can I ask.. On approval of your mortgage by a bank, what type of income are ye on in general? Are many of ye (as couples) earning over the 80k mark? We earn around the 75k a year between us (with kids but no childcare or loans) and I’m worried that no bank will look at us

Samuel T. Cogley · 20-02-2019 9:24pm

NearlyForty wrote: »

Can I ask.. On approval of your mortgage by a bank, what type of income are ye on in general? Are many of ye (as couples) earning over the 80k mark? We earn around the 75k a year between us (with kids but no childcare or loans) and I’m worried that no bank will look at us

Why wouldn't they? The only issue you'll have is the 3.5 rule but depending on where you are that may not be an issue. And the deposit of course.

Prospector1989 · 20-02-2019 10:01pm

NearlyForty wrote: »

Can I ask.. On approval of your mortgage by a bank, what type of income are ye on in general? Are many of ye (as couples) earning over the 80k mark? We earn around the 75k a year between us (with kids but no childcare or loans) and I’m worried that no bank will look at us

Up until last week (I just got a promotion), we were on less than that, and were being offered an exemption of 4 times our salary
No kids but the salary wasn't an issue for the bank anyway.

Samuel T. Cogley · 20-02-2019 10:02pm

Prospector1989 wrote: »

Up until last week (I just got a promotion), we were on less than that, and were being offered an exemption of 4 times our salary
No kids but the salary wasn't an issue for the bank anyway.

Congrats.

spoonerhead · 20-02-2019 10:03pm

Prospector1989 wrote: »

We're going through a broker at the moment as well and he confirmed we'll be receiving 2% from PTSB provided our offer doesn't fall through. Would be surprised if any banks excluded such an offer for going through a broker.

If you also open a permanent tsb explore account, you’ll receive 2% cash back on each Repayment up until 2027

NearlyForty · 21-02-2019 2:27am

Samuel T. Cogley wrote: »

Why wouldn't they? The only issue you'll have is the 3.5 rule but depending on where you are that may not be an issue. And the deposit of course.

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

GaGa21 · 21-02-2019 11:10am

NearlyForty wrote:

Because Iâ€™ve been hearing from people that the bank wonâ€™t look at you unless youâ€™re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess! AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

We dont earn 75k but were approved by 3 banks. But like previously said, we could only borrow 3.5 times salary and had to have deposit and proof of savings.

optogirl · 21-02-2019 11:14am

My husband has 2 jobs - BOI have told us they can only take 3.5 x (my salary + 1 of his salaries) & 3.5 times x ( half the salary of his second salary). Is this the case with all lenders or is this a BOI specific rule?

ELM327 · 21-02-2019 11:45am

NearlyForty wrote: »

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

Generally it's €250 income disregard per child, after daycare etc, per month.

Just apply, the banks will tell you what they need you to change if they give you a no initially.

sheroman01 · 21-02-2019 12:32pm

I'm gonna ask a very basic question here, but would just like clarification on how mortgages work exactly! (Have never even considered buying until recently). Lets say there's a house for sale for 300k and gross salary is 50k. So for a first time buyer, you'd need 10% deposit, so 30k. Then a loan of 270k over x number of years. However I've heard that the loan minus deposit is usually 3.5 times your salary. So in this case you'd only be able to get a loan of 175k. Have I got this right? If so, what if I wanted a loan of more than 3.5 times my salary, is that possible?

el Fenomeno · 21-02-2019 12:46pm

sheroman01 wrote: »

I'm gonna ask a very basic question here, but would just like clarification on how mortgages work exactly! (Have never even considered buying until recently). Lets say there's a house for sale for 300k and gross salary is 50k. So for a first time buyer, you'd need 10% deposit, so 30k. Then a loan of 270k over x number of years. However I've heard that the loan minus deposit is usually 3.5 times your salary. So in this case you'd only be able to get a loan of 175k. Have I got this right? If so, what if I wanted a loan of more than 3.5 times my salary, is that possible?

The limit is 3.5 times your salary.

Banks are allowed make exceptions on this up to 4.5x your salary, but it's on a case-by-case basis and obviously your ability to repay the larger mortgage is taken into account. The higher your salary (or joint salaries) and the lower your other commitments, the better chance you have. The banks have a limit on how much of their loan book can be made up of these "exception" based mortgages, and the consensus is that they are more liberal giving them out early in the year and then come April/May, they need to start balancing their loan book and are less likely to give them out.

Julez · 21-02-2019 12:57pm

NearlyForty wrote: »

Because I’ve been hearing from people that the bank won’t look at you unless you’re over the 80k mark, with which I would have thought was the average income.. I know with kids, they take a certain percentage off you too. Maybe I should stop listening to others and just go for it.. Each case is different I guess!
AIB and BOI seem to be giving the best AIP that would be reasonable for us for where we are

Myself and my partner applied and are earning around the same as you, though we have no children. We used a broker, he brought our details to a few banks and came back with what they were willing to offer. We can now purchase up to 350k which isn't terrible.

sheroman01 · 21-02-2019 1:18pm

el Fenomeno wrote: »

The limit is 3.5 times your salary.

Banks are allowed make exceptions on this up to 4.5x your salary, but it's on a case-by-case basis and obviously your ability to repay the larger mortgage is taken into account. The higher your salary (or joint salaries) and the lower your other commitments, the better chance you have. The banks have a limit on how much of their loan book can be made up of these "exception" based mortgages, and the consensus is that they are more liberal giving them out early in the year and then come April/May, they need to start balancing their loan book and are less likely to give them out.

Thanks! I had never even heard of this x3.5 salary limit before. Will meet with some banks and see how I get on. Cheers

NearlyForty · 22-02-2019 4:21am

Thanks all..!! The feed back is much appreciated..
Even though I know your offer tends to be 3.5 your income, but some banks seem to be tighter with regards how much they’ll quote you when you have kids. I think that was the part that was worrying me more. When we multiply ours by 3.5 it comes out at 265k and take say 50k off that with 5 kids, that leaves us with roughly 215k.. So AIB and BOI came back with those quotes, yet PTSB and a few others came back with 105k or 150k, like that’s a huge chunk gone..crazy?!! Why do they differ so much

dudara · 22-02-2019 7:51am

The bank will test your ability to meet the monthly repayments. They look at your monthly income, then deduct for any existing loans etc. They then deduct a fixed amount per child. With 5 children, that deduction is going to be large enough.

Once that’s done, they have a number that they are confident you can repay each month. The offer you receive will be asked on that number.

So while you may on paper qualify for €250k, if you have a lot of monthly putgoings (which impact your ability to repay), they may only offer €105k.

Obviously I don’t know what’s going on in your particular case, but this could be one explanation.

charlietheminxx · 22-02-2019 10:09am

Myself and my partner saved our asses off for the last 3 years and got mortgage approved a couple of weeks ago, with an exception of up to 4.5 times our salaries. We don't need to borrow quite that much (we were looking for 4 times our salaries) but it was great news all the same.

Put a booking deposit down on a new build last week, exciting times!

prettyboy81 · 23-02-2019 9:09am

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

Tipsy McSwagger · 23-02-2019 9:13am

prettyboy81 wrote: »

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

Talking to a mortgage advisor during the week and he told me everyone is fixing nowadays. I will defo be fixing.

myshirt · 23-02-2019 11:16am

Tipsy McSwagger wrote: »

Talking to a mortgage advisor during the week and he told me everyone is fixing nowadays. I will defo be fixing.

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

23-02-2019 2:20pm

prettyboy81 wrote: »

Interest related question, with ECB looking very unlikely touching interest rates this year & quantative easing programme still operating by ECB.

Anyone taking out a mortgage this year are you fixing? We are just waiting on approval & see no issues with our circumstances so outside of buying our family home and moving, the next big decision to make is to fix or not?

I am looking at 5 year fixed rate, other people’s thoughts?

I'm fixing for 5 years, currently sale agreed.

awec · 23-02-2019 6:40pm

Also fixing for 5.

prettyboy81 · 23-02-2019 6:45pm

Cheers for replies, like I said 5 years seems to offer best value at moment.

charlietheminxx · 23-02-2019 11:01pm

I chose 3 years fixed.

myshirt · 23-02-2019 11:07pm

charlietheminxx wrote: »

I chose 3 years fixed.

Nothing wrong with that. But in my opinion it would be the minimum I'd fix for.

5 is a good number. 3 is not bad. Always take advice as it applies to your own situation.

Crunchy Friends · 23-02-2019 11:58pm

We also fixed for 5 with UB!

Tipsy McSwagger · 24-02-2019 8:11am

myshirt wrote: »

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

No he didn’t say fix for 2 years just nearly everyone is fixing. I do like the idea of 5 years tbh, cheers.

charlietheminxx · 24-02-2019 5:41pm

myshirt wrote: »

Nothing wrong with that. But in my opinion it would be the minimum I'd fix for.

5 is a good number. 3 is not bad. Always take advice as it applies to your own situation.

Yeah that’s solid advice! I think the best option really varies from bank to bank. With AIB, the five year fixed rate was 3.5% and I didn’t think that was great.

GaGa21 · 24-02-2019 7:26pm

Sale closed and finally got our keys! I never want to have to do that again. This will be our forever home for sure. Best of luck to everyone here!

Charlie · 24-02-2019 10:14pm

Question for anyone who might know. We are sale agreed and have received our loan offer. Term on the loan offer is 35 years, as we agreed with the advisor at the time of meeting that we would apply for the maximum and could always reduce before drawdown.

Our preference is for a 32 year term, however, due to multiple delays with paperwork already, i'm minded not to request the bank change from 35 to 32 if it requires the loan offer packs to reissue, as I think we can overpay the monthy amount ourselves to effect this change (need to confirm this with the bank though).

Does anyone know if we were to request the change, would the bank do it via a branch/advisor request without any need for re-issuing of loan offer packs?

dubrov · 24-02-2019 10:19pm

No need to request any reduction. Just overpay if you like and you'll be done in 32 years anyway

amcalester · 24-02-2019 10:46pm

No harm in leaving it as is and overpaying (assuming you can). Then if your circumstances ever change you can stop the overpayments without any difficulties.

Charlie · 24-02-2019 11:24pm

Cheers guys, this was the option that I was leaning towards.

dudara · 25-02-2019 7:48am

If the change the term, the calculations will have to be redone and the loan pack re-issued. It’s probably easier for you to overpay, subject to whatever Ts&Cs are in your contract.

Abbey127 · 25-02-2019 10:08am

Hi I'm just wondering myself and my partner are looking to buy are first house for around 200k or less if possible .we have also have land available to us to build on . I know how land is expensive but we are not sure if we should get a loan to build are own home on it or just buy a new build house to save the hassle of having to build one . I know I would be paying way over the price for a new build but my partner doesn't want the hassle of building are own home . I think we would be better to build as we would save alot more and out house would be are own designs and not be the same as every house. Any help would be much appreciated thanks.

Tipsy McSwagger · 25-02-2019 1:54pm

myshirt wrote: »

I hope he didn't tell you to fix for two years which is possibly the worst advice you could give anyone at the moment. You'll be coming off a fixed rate smack bang into a time when interest rates will be on the up in a big way, and you may not be able to refix. Or at least that's how the futures market sees it.

I'd broadly advise someone to fix for 4 to 5 years, but all dependent on your own situation. Keep asking questions and keep an inquisitive mind. And best of luck with the gaff. All swings and roundabouts!

Just looking at UB. There 2 year fixed rate is by far the best option for me, savings of around €63 per month compared to 5 years fixed. I’m very tempted tbh but understand there is a risk in 2 years.

jbryc04 · 25-02-2019 2:39pm

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

Tipsy McSwagger · 25-02-2019 5:25pm

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

In fairness a savings account is for saving money not dipping into. I have a savings account that I do not touch, all bills and rent and disposable income come from my current account. No offense but the way you are going about things looks very unorganized.

ozbackineire · 25-02-2019 5:29pm

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

The bank advised us on several occasions that if you are dipping into your savings account they will not give mortgage approval. you have to show for 6 consecutive months that you can save and not dip into the savings. Maybe lessen the amount you are putting into your savings by €200 and put it in a credit union, then you have access to that money should you need it and you aren't dipping into your bank savings.

I was paying my parents rent from my account into their account on the 1st of every month, i did not need to show a letter to the bank, they accepted it as they could see it. we got our mortgage through BOI and got keys 2 weeks ago so it is do able if you are rigid for 6 months.

skywayavenue · 25-02-2019 7:59pm

jbryc04 wrote: »

HI there

Looking for advice please - We are looking to get a mortgage and the bank wont accept my rent which i pay to my parents through the bank account each month and have a letter from them to confirm this. Has anyone else heard of this? Also i was putting 2k into a savings account when i got paid but was dipping into it each month but over all in 6 months on avg i saved 1175pm but they are saying i have no repayment capacity since we used our savings account as well. - i don't like keeping money in current account for safety reasons Anyone hear of this before

KBC wouldn’t accept our rent to parents either, paid on the same day, every month for a year and a half but they were having none of it. Said they couldn’t be sure they weren’t handing it straight back to us in cash.

Ciarawera · 25-02-2019 9:06pm

I’ve been lurking here since mid January and couldn’t get a clear answer, so I thought I’d post in case someone was in the same situation.

Myself and my husband applied for mortgage approval last Wednesday with BOI and received mortgage approval today. My husband is on a fixed term contract. He has passed probation but is only there 7 months, contract end date is Jan 2020. This was causing me all sorts of stress, but it seems every application is different, and it didn’t hold us back.

Also, I have a car loan with the CU. We pay city centre rent and saved for over a year.

So, moral of the story...fixed term contracts aren’t the end of the line.

messy tessy · 26-02-2019 8:13am

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

amcalester · 26-02-2019 9:12am

messy tessy wrote: »

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

I would go for the longer term and overpay instead of the shorter term loan, not necessarily 35 years if you're aiming for 10-15 but whatever is comfortable for you.

Also worth considering is whether the bank allows over payments and how much. It might be worth your splitting your mortgage between fixed and a variable to allow you make larger payments off the capital.

myshirt · 26-02-2019 9:23am

messy tessy wrote: »

Another long term lurker here!

I am looking to get a mortgage of about 150k, and just wondering are you better to get a longer term mortgage of 34 years and overpay, or go for an option of 15 years? Realistically I would like this to be paid off between 10 - 15 years anyway.

What is the family take home pay and how much does the house cost?

Try manage your mortgage payment at 25% to 30%, preferably 25%. If you can do that over 15 years, great. If you can't, then go longer. Certainly don't fool yourself into thinking a 35 year mortgage is cheaper. It's not. By a long mile. The money you save, unless you invest it smartly (and the likelihood is you won't, you'll just spend it on discretionary items), is only going to end up back in the pocket of the bank along with more with it.

messy tessy · 26-02-2019 9:43am

myshirt wrote: »

What is the family take home pay and how much does the house cost?

Try manage your mortgage payment at 25% to 30%, preferably 25%. If you can do that over 15 years, great. If you can't, then go longer. Certainly don't fool yourself into thinking a 35 year mortgage is cheaper. It's not. By a long mile. The money you save, unless you invest it smartly (and the likelihood is you won't, you'll just spend it on discretionary items), is only going to end up back in the pocket of the bank along with more with it.

Yes I have worked out the interest with the various terms on the mortgage calculators.

The family is just me, single, no kids and no plans to have any. I could get a mortgage of 200k at current salary but don't want to take this much debt on. Its a three bed house I am looking at. Have a (relatively) large deposit saved.

scheister · 26-02-2019 10:15am

Hi Everyone,

I have been saving more a mortgage for the last year. Hope to start looking come next June 2020.

At that stage i should have 20k in deposit savings and 3k in other savings. Based on current wages i can get a mortgage of €133k.

I will be a FTB and single so wont be looking for much in the way housing a cheap 2 bed apartment in North Kildare is my aim.

I am trying to get a rough calculation on what other costs i will need. Thinking 5k would cover my for legal fees, SD and associated costs. Anyone have an idea if this is a fair estimate. Sorry if this is the wrong thread to ask.

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

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