Saving/Applying for a mortgage 2020-22 Edition

liam7831 · 20-01-2021 7:34pm

Sd2011 wrote: »

Does anyone know with the banks how can they tell companies that are on the EWSS as not on payslips? Thanks

It's a question on your Salary Cert, yes or no answer

Sd2011 · 20-01-2021 7:47pm

liam7831 wrote: »

It's a question on your Salary Cert, yes or no answer

Company not willing to tell the truth, want to say they aren’t

DubLad69 · 20-01-2021 7:58pm

D_s wrote: »

Has anybody had any experience getting an exemption with a missed loan payment on their credit history?

Got AIP this week with PTSB but broker told me they wouldn't give the exemption that we were going for as their policy is to require a squeaky clean credit history (which is honestly fair enough). Same for KBC.

Mostly just annoyed at myself as I was working abroad and getting paid into a foreign account, but loan was automatically coming out of an Irish acct every month, and didn't notice that my balance had fallen below the monthly loan payment amount - wasn't tight for money, it was just in the wrong account at the wrong time. This was explained by the broker to the lender, but policy is policy. I'm probably being overly optimistic but if anyone had luck, or experience, with a different lender in a similar situation it would be interesting to hear your outcome.

If you are on decent money then go to AIB direct. They will take into account stuff like missed payments due to one off events, but they will require you to have a decent amount of money left over.

liam7831 · 20-01-2021 8:04pm

Sd2011 wrote: »

Company not willing to tell the truth, want to say they aren’t

Why would be they want to say that ? Would count as fraud I would think, I'm not a legal expert though.

ownsbows · 20-01-2021 8:08pm

If some of the employees were on the covid payment in my company but I was not, I was still working and there was no change in my salary. Will this affect my mortgage loan offer? I did get approval in principal last Summer.

liam7831 · 20-01-2021 8:12pm

ownsbows wrote: »

If some of the employees were on the covid payment in my company but I was not, I was still working and there was no change in my salary. Will this affect my mortgage loan offer? I did get approval in principal last Summer.

From what I know yes it would affect your application as your company is being supported by the EWSS.

Sd2011 · 20-01-2021 8:27pm

liam7831 wrote: »

Why would be they want to say that ? Would count as fraud I would think, I'm not a legal expert though.

I found it odd too but they’re convinced they’re helping and the bank won’t ever know either way

shreko · 20-01-2021 8:33pm

ownsbows wrote: »

If some of the employees were on the covid payment in my company but I was not, I was still working and there was no change in my salary. Will this affect my mortgage loan offer? I did get approval in principal last Summer.

This came up with us. When we first applied for the mortgage we only had to provide a letter saying that neither of us were in receipt of a Covid payment. However when we went to drawdown the mortgage 3 months later they asked for letters confirming that neither us or the companies we worked for were in receipt of any Covid payments.

ownsbows · 20-01-2021 9:04pm

shreko wrote: »

This came up with us. When we first applied for the mortgage we only had to provide a letter saying that neither of us were in receipt of a Covid payment. However when we went to drawdown the mortgage 3 months later they asked for letters confirming that neither us or the companies we worked for were in receipt of any Covid payments.

Did you manage to get the mortgage? Do you know if this is the situation with all of the banks?

shreko · 20-01-2021 9:16pm

ownsbows wrote: »

Did you manage to get the mortgage? Do you know if this is the situation with all of the banks?

Yea we did cause neither of our company’s were in receipt of the payment. But it seems unfair cause technically they moved the goalposts. That wasn’t what they asked us when we provided all the docs for mortgage approval. And we had signed contracts and paid our deposit based on that mortgage approval. So if one of our company’s had been receiving it it might have been a problem.

Edited to add: not sure about any other banks, that was PTSB. Although I had read the below article in the independent so wasn’t overly surprised that they asked. Be sure to have a “subject to finance” clause added to your contracts as things are changing so rapidly with Covid.

https://www.google.ie/amp/s/amp.independent.ie/business/personal-finance/property-mortgages/banks-tighten-up-mortgage-lending-for-at-risk-sectors-39772106.html

soc · 21-01-2021 12:12am

Sd2011 wrote: »

I found it odd too but they’re convinced they’re helping and the bank won’t ever know either way

Revenue publish a list of employers who avail of the subsidy.

L1011 · 21-01-2021 12:25am

Sd2011 wrote: »

I found it odd too but they’re convinced they’re helping and the bank won’t ever know either way

For you to submit that salary cert would be fraud; and the bank can find out easily enough if they care to - recipient firms are (or will be, if a recent applicant) public.

Lia_lia · 21-01-2021 11:23am

soc wrote: »

Revenue publish a list of employers who avail of the subsidy.

Yeah, was just going to say this. Huge risk as they can look it up.

Markitron · 21-01-2021 11:27am

Lying to or about revenue is such a terrible idea no matter how big or small.

EO2019 · 21-01-2021 6:14pm

Has anyone got AIP from ICS lately? How long was the wait?

Dob6487 · 21-01-2021 11:31pm

I was out of work recently due to being a close contact. My employer paid me as normal but now want me to claim the Enhanced Illness Benefit for 2 weeks and refund it to my employers bank account. I'm due to draw down mortgage with AIB in next week or two. Does anyone know if this will affect my mortgage drawdown?

klose · 22-01-2021 12:02am

Dob6487 wrote: »

I was out of work recently due to being a close contact. My employer paid me as normal but now want me to claim the Enhanced Illness Benefit for 2 weeks and refund it to my employers bank account. I'm due to draw down mortgage with AIB in next week or two. Does anyone know if this will affect my mortgage drawdown?

I'd keep away from it till you drawdown, we got a message from the bank for our drawdown confirming there was no covid impact to our income so they definitely check into it.

22-01-2021 1:19am

Zebrag wrote: »

I also pay rent so I have this hatred knowing that banks just won't accept rent payments AND savings as a means to prove to them that I can pay a mortage (correct me if I am wrong on that statement!)

I was chatting to a lady from Bank of Ireland about a week or so ago (I got approval in principle). Small talk on the phone, but she asked did I pay rent. I said no. She asked had I any outstanding loans, I said yes. She asked were my payments up to date. I said yes.

She then commented to the effect that rent would have been taken into consideration as demonstrating my ability to repay, but as I don't pay rent, she said it's "good that you have that loan" because that will demonstrate my ability to repay, instead.

I also said my loan would be ending this year (in 6 months or so) so she advised me to keep saving a set amount each month, as it'll be looked on favourably as my ability to repay (they actually suggested a BOI savings account, that direct debits a set amount each month, between €200-2,500, and commented I can get a couple of grand back from it, and also if i keep it up, when they look through my loan/savings history, that this will be a good indicator of ability to repay).

She did comment that I don't have to 'go mad paying loads in', but just to keep it consistent.

So I'm pretty sure that they will look at all your outgoings as a way of figuring out your ability to repay. From a Bank's standpoint, it'd be crucial information, so I'm not sure why any other bank wouldn't also take a proper look at it.

EDIT: Just to ramble on a bit more, as the conversation has become Covid related.

In the same phone call, i was asked was I claiming any of the Covid supports, I said yes, I'm on P.U.P. Girl on the phone then said I can't be actively claiming a pandemic support payment (although didn't say i have to be off it for any specific amount of time) and she said (I'm self employed) that I'd need my accountant to write a letter saying that Covid hasn't impacted on my business or ability to earn.

Plum Pud · 22-01-2021 9:20am

EO2019 wrote: »

Has anyone got AIP from ICS lately? How long was the wait?

Hi, yes. I've applied to them, however, I am still waiting to hear. Application is in just over 2 weeks now.

errlloyd · 22-01-2021 10:21am

Deleted User wrote: »

(they actually suggested a BOI savings account, that direct debits a set amount each month, between €200-2,500, and commented I can get a couple of grand back from it,

Mortgage Saver account. You get 2,000 when you draw down if you have had it for at least 6 months and put a minimum of 200 per month in it.

mrbrightside11 · 22-01-2021 2:31pm

liam7831 wrote: »

From what I know yes it would affect your application as your company is being supported by the EWSS.

We are just at loan offer stage. PTSB asking for a letter from our employers that they are not claiming any wage subsidy.

My letter is fine but my partners company are availing of EWSS. We had no idea and nothing shows on my partners payslip however as the company are claiming we may not be able to draw down.

So frustrating to get this far and fall at the last hurdle.

Anyone know if banks are taking case by case?

My partners director is willing to guarantee job or company is in noway at risk but don’t know if that will make any difference.

TheMilkyPirate · 22-01-2021 3:54pm

mrbrightside11 wrote: »

My partners director is willing to guarantee job or company is in noway at risk but don’t know if that will make any difference.

I don't think that will help as the fact that they are utilizing EWSS shows that the company is at least in some way at risk.

ownsbows · 22-01-2021 5:01pm

We are going to be in the same situation. We have approval but not loan offer yet. We really like the house we have went sale agreed and will be gutted if cant get the mortgage. I wonder will it be lifted in March or could we postpone things

mrbrightside11 · 22-01-2021 5:49pm

TheMilkyPirate wrote: »

I don't think that will help as the fact that they are utilizing EWSS shows that the company is at least in some way at risk.

Yes the company has to have a 30% reduction in turnover or customer orders to avail of the subsidy. But this is a very large company and unlikely to go under.

Just frustrating as I am sure other companies are at risk in normal circumstances but this has never been a criteria to check the company health before allowing drawdown.

mrbrightside11 · 22-01-2021 5:52pm

ownsbows wrote: »

We are going to be in the same situation. We have approval but not loan offer yet. We really like the house we have went sale agreed and will be gutted if cant get the mortgage. I wonder will it be lifted in March or could we postpone things

Fingers crossed! We are stuck at the loan offer stage now and don't want to miss out on this property either, took us a long time to get here. The thoughts of losing out on this and having to start all over again.

Sd2011 · 22-01-2021 10:28pm

L1011 wrote: »

For you to submit that salary cert would be fraud; and the bank can find out easily enough if they care to - recipient firms are (or will be, if a recent applicant) public.

Thanks for all the replies, have sent back the very asking for it to be updated with the EWSS scheme declaration on it so everything is above board! Basically a thanks but no thanks I know he genuinely was trying to help but don’t want anyone to get into trouble!

Yyhhuuu · 23-01-2021 1:07am

Haraldkare wrote: »

If its very easily, you are not saving enough ðŸ˜„

Saving €20k per annum isn't a good amount for a single person on moderate income?

Antares35 · 23-01-2021 11:21am

Yyhhuuu wrote: »

Saving €20k per annum isn't a good amount for a single person on moderate income?

I thought the same, surely whether you're saving "enough" is determined by how much you save relative to what your repayments will be when stress testing is factored in? It's to show repayability. It's not like they're going to say "you've been earning X but you only saved Y, why is that". OH and I are saving but we don't plan on maxing out on the multiples allowed by our wages.

Masala · 23-01-2021 12:42pm

TheMilkyPirate wrote: »

I don't think that will help as the fact that they are utilizing EWSS shows that the company is at least in some way at risk.

To claim the EWSS a company has only to show a fall in turnover. It can still have €100m++ in bank. So it’s not a sign of going under

Am sure Ryanair is claiming it..

Looptheloop30 · 23-01-2021 4:04pm

The BOI or Ulster Bank mortgage saver money back on drawdown offers.... Are they the best out there?

I've a decent sized deposit saved but with little construction happening in the immediate future and no suitable houses up for sale in my desired area, I'm looking to see if I can maximize what I get back for my money.
I use the term best loosely as well as I haven't crunched the numbers yet but I assume they have higher rates that ultimately negate the benefit.

Saving/Applying for a mortgage 2020-22 Edition

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