Saving/Applying for a mortgage 2020-22 Edition

Busi_Girl08 · 19-01-2021 9:30pm

We'e been saving the last couple of years but since last year more in earnest. Have a god bit saved between us and have sizeable gifts from our parents so are more or less ready to go but still saving like crazy.

We've started talking to lenders to review our options and aim to get an AIP in the next few weeks.

We got engaged in December and have full hopes and intentions to get keys this year, but hope springs eternal etc.

Pinoy adventure · 19-01-2021 9:32pm

It looks like the prices are on the up over the last few months so more savings might be needed

Lia_lia · 19-01-2021 10:14pm

We have been saving for a few years and are ready to go. But there's nothing to buy! So saving more while we are waiting for something to come up. We had mortgage approval but it ran out so reapplied recently.

ownsbows · 19-01-2021 10:34pm

Renjit wrote: »

Yes, scan the confirmation receipt and include it during your mortgage application.

Thanks and I'll do that. I was a bit worried it might look bad that we are down 5000 in our account.

Milena009 · 19-01-2021 11:18pm

We have been saving for a while as well and luckily both in stable enough employment so thinking this year might be time to pull the trigger however there is nothing to buy / new builds are on hold too

Yyhhuuu · 19-01-2021 11:41pm

Saving over 20,000 per year very easily.

L1011 · 19-01-2021 11:46pm

There is an existing thread for this - merging

liamoreilly · 20-01-2021 12:13am

...A question that may have already been asked, but have gone back awhile and can't see it exactly... Has anyone here been refused a mortgage over having gambling transactions?... Sadly i have 12 in the previous 6 months- lockdown boredom... I can show that i can meet the repayments no problems... I pay 1k a month rent, €600 savings for the last months too... And its a joint mortgage so no fear of missing a payment etc...
...Due to meet with a broker shortly, but not sure if i'm wasting time and some money meeting him if i've fked up chances of getting approval... Wonder what peoples opinion is?... TIA...

20-01-2021 9:29am

liamoreilly wrote: »

...A question that may have already been asked, but have gone back awhile and can't see it exactly... Has anyone here been refused a mortgage over having gambling transactions?... Sadly i have 12 in the previous 6 months- lockdown boredom... I can show that i can meet the repayments no problems... I pay 1k a month rent, €600 savings for the last months too... And its a joint mortgage so no fear of missing a payment etc...
...Due to meet with a broker shortly, but not sure if i'm wasting time and some money meeting him if i've fked up chances of getting approval... Wonder what peoples opinion is?... TIA...

Depends on the amounts - if it looks like you're having trouble managing your money, or you're betting high-risk amounts, that's a red flag for the bank. Same if you have more than one gambling outgoing a day - it shows that you planned to spend, say €20 on a site, then lost, then threw in more money than planned. They need to know you're reliable.

Regular gambling of small amounts I don't think should be an issue. I play the lotto online every week and those outgoings would have been in my account when I got my mortgage.

ms vieria · 20-01-2021 10:14am

When applying to BoI do you need to provide 6 months statements for Credit Cards or any open loan accounts as well?

DubLad69 · 20-01-2021 10:21am

Has anyone applied with the main banks recently? How long did it take for you to hear back?

shreko · 20-01-2021 10:25am

Xoo2 wrote: »

I have a question about the 20% deposit for non first time buyers if anyone could help.
We have a 2 bed apartment valued last year at 350k with 150k outstanding on mortgage. Not the best purchase in hindsight with 2 children later, ran out of space very quickly so we're looking to upgrade to a 4-bed with budget around 500k.
My question is, can we use the 200k equity towards the 20% deposit for our next purchase? Which is obviously dependent on our apartment selling, or would we need the 100k (20% of 500k) before our own place is sold? Thanks in advance.

No, you will face a problem here. At contract signing stage you will need to give your deposit to your solicitor so on your case it will be 100K. You may be able to request to pay less, maybe 50K but this is dependent on the seller accepting it. ( I did this in 2008 when I got a 95% mortgage)
Either way you will have to hand over some cash at contract signing stage, most likely a minimum of 10%, and this will be weeks before the sale of your own property so you can’t rely on the equity for this.
The only way you could use the equity is if you sell the property and rent while you look for a new one.

Haraldkare · 20-01-2021 10:28am

Yyhhuuu wrote: »

Saving over 20,000 per year very easily.

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

Markitron · 20-01-2021 10:35am

ms vieria wrote: »

When applying to BoI do you need to provide 6 months statements for Credit Cards or any open loan accounts as well?

I just got AIP from them, you need 3 months on the CC statement. I think it is 6 months on a loan statement, the statement I got had the entire 2 years of the loan so I can't remember how long it had to be.

virginmediapls · 20-01-2021 11:10am

I have 100k saved up. I am expecting lose my job in the next few months, probably around April. I am on 150k a year.

I'd like to buy a house for 200k. Typically, just after getting the news that our job was rocky, I found the perfect place.

Is it possible for me to force things through before I lose my job? I am 100% sure I will be able to find another one quite quickly/comfortably - so no worries there. I'd just like to move to somewhere I own rather than waste another year renting.

My worry is that I will put down a deposit, my job goes out the door so mortgage approval is pulled, and I am left out of pocket.

virginmediapls · 20-01-2021 11:12am

PS, applying for approval now - I have everything in order except I need 3 years of P60/whatever its called now. On revenue.ie I can only get the past 2 years. What can I do?

shreko · 20-01-2021 11:22am

virginmediapls wrote: »

I have 100k saved up. I am expecting lose my job in the next few months, probably around April. I am on 150k a year.

I'd like to buy a house for 200k. Typically, just after getting the news that our job was rocky, I found the perfect place.

Is it possible for me to force things through before I lose my job? I am 100% sure I will be able to find another one quite quickly/comfortably - so no worries there. I'd just like to move to somewhere I own rather than waste another year renting.

My worry is that I will put down a deposit, my job goes out the door so mortgage approval is pulled, and I am left out of pocket.

Ensure you have your solicitor include a “subject to finance” clause in your contract if you get to contract signing stage. That way if mortgage approval is pulled for any reason (loss of job, Covid payment, unable to get life cover) you will be entitled to pull out of the sale and get your deposit back.

virginmediapls · 20-01-2021 11:29am

shreko wrote: »

Ensure you have your solicitor include a “subject to finance” clause in your contract if you get to contract signing stage. That way if mortgage approval is pulled for any reason (loss of job, Covid payment, unable to get life cover) you will be entitled to pull out of the sale and get your deposit back.

Brilliant, thank you. Is this a commonly done thing?

shreko · 20-01-2021 11:57am

virginmediapls wrote: »

Brilliant, thank you. Is this a commonly done thing?

I think it’s becoming more common now with the Covid payments. So you could get approval, pay your deposit and then your company could avail of the Covid scheme and the bank won’t pay.
We just drew down our mortgage this week and our solicitor had no issue including it in on the contracts (obviously the seller has to agree to the clause too) but gives you great peace of mind your money is safe.

For us (PTSB) we also had to sign a declaration prior to drawdown that our circumstances had not changed since applying so if you have been notified of losing your job after applying but haven’t lost it yet prior to drawdown you may come up against an issue when signing that declaration. Just a thought.
Although i don’t know if other banks require the same

froggy1985 · 20-01-2021 1:37pm

Hi all,

Hoping someone can provide some input on my situation from experience.

Looking to apply for a mortgage this year. I will be looking for a 70% mortgage at around 3x my income. I have been renting for years. I have zero debt and am comfortably saving a couple thousand a month on top of rent. On paper it should all be fine.

However, I had a credit card cancelled with a small unpaid balance back in 2011. There was some back and forth with the bank, with them saying the debt would be collected by a third party etc, but ultimately it was forgotten about ( my fault ) with no reminders from the bank / third party whatsoever.

I cleared the outstanding balance of €500 + interest in 2018 but it is obviously now showing on my CCR report. Is this likely to prevent me getting a mortgage?

Thanks

DubLad69 · 20-01-2021 1:43pm

froggy1985 wrote: »

Hi all,

Hoping someone can provide some input on my situation from experience.

Looking to apply for a mortgage this year. I will be looking for a 70% mortgage at around 3x my income. I have been renting for years. I have zero debt and am comfortably saving a couple thousand a month on top of rent. On paper it should all be fine.

However, I had a credit card cancelled with a small unpaid balance back in 2011. There was some back and forth with the bank, with them saying the debt would be collected by a third party etc, but ultimately it was forgotten about ( my fault ) with no reminders from the bank / third party whatsoever.

I cleared the outstanding balance of €500 + interest in 2018 but it is obviously now showing on my CCR report. Is this likely to prevent me getting a mortgage?

Thanks

Unfortunately it will. If it is only showing on your CCR and not your ICB, then you should be fine in the next few months to apply as they only keep records for 2 years.

It would probably be best to get a good Brooker to help you in a situation like this.

froggy1985 · 20-01-2021 1:49pm

DubLad69 wrote: »

Unfortunately it will. If it is only showing on your CCR and not your ICB, then you should be fine in the next few months to apply as they only keep records for 2 years.

It would probably be best to get a good Brooker to help you in a situation like this.

Thanks for that. The debt is not showing on ICB as 5 years passed between the card being cancelled and payment being made. It is only showing on the CCR, and the last record is from 2018 so it's over 2 years now. Are you sure banks can / will only look at 2 years CCR?

It's a real pain as the only reason I left it until 2018 to pay was because of advice I received in relation to ICB. Effectively I was told that if I paid the debt it would "reset the clock" on the 5 years so I held off and paid in full as soon as it dropped off ICB - I didn't know about CCR at the time!

Thanks again

Markitron · 20-01-2021 4:18pm

froggy1985 wrote: »

Thanks for that. The debt is not showing on ICB as 5 years passed between the card being cancelled and payment being made. It is only showing on the CCR, and the last record is from 2018 so it's over 2 years now. Are you sure banks can / will only look at 2 years CCR?

It's a real pain as the only reason I left it until 2018 to pay was because of advice I received in relation to ICB. Effectively I was told that if I paid the debt it would "reset the clock" on the 5 years so I held off and paid in full as soon as it dropped off ICB - I didn't know about CCR at the time!

Thanks again

As DubLad said, your best bet is to get a broker as they can explain the situation to the lenders. I had a similar situation with a loan repayment I missed last year (also a stupid mistake on my part unrelated to my financial situation). I told the broker and they explained it to the banks, got AIP without issue.

froggy1985 · 20-01-2021 4:32pm

Markitron wrote: »

As DubLad said, your best bet is to get a broker as they can explain the situation to the lenders. I had a similar situation with a loan repayment I missed last year (also a stupid mistake on my part unrelated to my financial situation). I told the broker and they explained it to the banks, got AIP without issue.

Thanks and yes I intend on going through a broker in any case, just getting the ducks in a row in advance. Good to hear you got the approval. Here's hoping there is a common sense approach taken to my overall application and the broker can advise on how to broach the subject if needed. I have had another credit card account since all of this, paid in full every month etc..

I checked the CCR policy regarding the 2 years. It appears that Banks only have access to the last 2 years data for active loans, but for loans that have been closed off they have access to the last 2 years of records associated with that loan before closure. In my case even though the debt was sorted in 2018 it will still unfortunately appear on the record.

ELM327 · 20-01-2021 4:46pm

froggy1985 wrote: »

Thanks and yes I intend on going through a broker in any case, just getting the ducks in a row in advance. Good to hear you got the approval. Here's hoping there is a common sense approach taken to my overall application and the broker can advise on how to broach the subject if needed. I have had another credit card account since all of this, paid in full every month etc..

I checked the CCR policy regarding the 2 years. It appears that Banks only have access to the last 2 years data for active loans, but for loans that have been closed off they have access to the last 2 years of records associated with that loan before closure. In my case even though the debt was sorted in 2018 it will still unfortunately appear on the record.

The funny thing is, if you had not made the payment in 2018, it would not show on either database now. The only reason it appears on the CCR is that it is within the past 2-5 years (not sure what their threshold is, it was 5 for me). If the last activity was 2011 then it would have aged out by 2019.

froggy1985 · 20-01-2021 5:41pm

ELM327 wrote: »

The funny thing is, if you had not made the payment in 2018, it would not show on either database now. The only reason it appears on the CCR is that it is within the past 2-5 years (not sure what their threshold is, it was 5 for me). If the last activity was 2011 then it would have aged out by 2019.

Yeah and the debt was gone off of ICB, the bank weren't pursuing it whatsoever. But morally I just wanted to pay it. Had no idea it would come back to bite me! Typical :rolleyes:

Had a brief chat with a broker this afternoon, they suspect based on the circumstances and overall application details I should be fine. Fingers crossed.

Thanks all for the input

Haraldkare · 20-01-2021 6:29pm

Can I add the deposit savings amount I have, to the mortgage quote from a bank?

If the bank offer a 250k mortgage and I have 30k savings, can I go for a property that is 280k?

Thanks.

pooch90 · 20-01-2021 6:45pm

Haraldkare wrote: »

Can I add the deposit savings amount I have, to the mortgage quote from a bank?

If the bank offer a 250k mortgage and I have 30k savings, can I go for a property that is 280k?

Thanks.

Yes that's it. Once you have money left aside for solicitor, stamp duty etc and you aren't trying to borrow more than 90% of property price.

D_s · 20-01-2021 7:04pm

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.

Sd2011 · 20-01-2021 7:31pm

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

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.

Saving/Applying for a mortgage 2020-22 Edition

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