Saving/Applying for a mortgage 2020-22 Edition

Duke of Url · 21-04-2020 11:56am

Frank Grimes wrote: »

From: http://www.icb.ie/credit_rating.php#q13

I have a score on my report but it was generated when I was applying for a loan and the lender did a credit check.

So its impossible to know if you have a score unless a lender checks.

Weird that we have to go blind into a credit check when applying for a loan or a mortgage

stuey89 · 21-04-2020 9:14pm

Hi there, we have submitted our mortgage protection to the banks yesterday so we hope our solicitor will be able to draw down our mortgage within a couple of days as the house is ready to snag, but obviously building sites are closed so will not be able to close until they are back up and running. My question is, is it possible for my solicitor to draw down for us before we finnish snagging? Just living in fear of my job not knowing if is safe or not as I am in the hospitality sector and would like to draw down before I get bad news. My husband job is safe thankfully.

awec · 21-04-2020 9:29pm

stuey89 wrote: »

Hi there, we have submitted our mortgage protection to the banks yesterday so we hope our solicitor will be able to draw down our mortgage within a couple of days as the house is ready to snag, but obviously building sites are closed so will not be able to close until they are back up and running. My question is, is it possible for my solicitor to draw down for us before we finnish snagging? Just living in fear of my job not knowing if is safe or not as I am in the hospitality sector and would like to draw down before I get bad news. My husband job is safe thankfully.

Once you've your insurance / mortgage protection / valuation etc all sorted out your solicitor can draw down whenever you ask them to.

Snagging is not part of the formal process, it's just convention that people snag before draw down in case there's any big issues.

There is nothing to stop you snagging after you get the keys.

Atlas_IRL · 22-04-2020 8:57am

Gone through BOI twice now trying to get a mortgage. They said both times iv'e a great chance for the extra 4.7 times (not sure what it is called) then offered 3.5 both times. I wouldnt even buy an apartment on that, literally nothing. Going to have to go through brokers now.

coolperson05 · 22-04-2020 10:44am

We got approval from BOI this week, applied through a broker. We didn't need an exemption. I'd say you'll find it hard to get one at the moment. But to others applying, they are still lending. Covid is in the AIP letter, just that when we go sale agreed we'll need updated documents to show our earnings are where they were when we applied. But other than that, delighted to even be one step closer to escaping crazy rents.

Captainsatnav · 22-04-2020 10:47am

We got approval letter from PTSB last Friday.

random_banter · 22-04-2020 11:58am

Duke of Url wrote: »

So its impossible to know if you have a score unless a lender checks.

Weird that we have to go blind into a credit check when applying for a loan or a mortgage

Not quite. I ran my own ICB report a two years ago just to check it was clear. Yes, it's true that if a lending institution hasn't run a credit check on you, then there will be no score. However, it will still list the details (to you) that go into calculating that score. So by looking at the report, you can get a sense of how clean your credit history is and how you're likely to fare when the bank does a credit check on you.

As a practical example, mine listed a 12 month loan I was in the process of paying off. It listed each payment made on time. No overdue payments. Etc.

If there are overdue or outstanding payments listed on your report, that would be a factor in the bank's calculations when they run the credit check.

So if you have payments outstanding, or overdue payments marked on it, then it's not as good a report as someone who has literally nothing listed on the report. If you've nothing listed on the report (it's clear), it's more likely that the credit check the bank performs will be spotless.

I'm not using absolute terms here as I'm not an expert, but that's been my experience.

(As an aside, I literally innocently forgot to make a payment on my credit card about a year ago, and while it was paid within the "overdue" time the bank says it allows before informing the ICB, I'm still sh*tting a brick that it will show up on my report, and I'm too much of a pansy to check. Will be checking shortly though before making a mortgage application.)

P.S. There is also the newer Central Credit Register which now runs along with the ICB. You can also apply for a report from them to check your credit history. While doing my reading, it's been unclear if it's exactly the same kind of system in terms of reporting unpaid credit card payments etc. Anyone have any experience?

Bigmac1euro · 22-04-2020 12:02pm

random_banter wrote: »

P.S. There is also the newer Central Credit Register which now runs along with the ICB. You can also apply for a report from them to check your credit history. While doing my reading, it's been unclear if it's exactly the same kind of system in terms of reporting unpaid credit card payments etc. Anyone have any experience?

https://www.centralcreditregister.ie/

This what you're talking about.
You can do a check yourself for free I think.
Bit more involved than with the ICB report as you need to print out documents and sign them and re-upload.

Think the banks do this one as well as the ICB.

Plasandrunt · 23-04-2020 1:07am

I've only started saving after finally getting stuff in order and ensuring all debts (Bank loan) have been cleared.On 37k per year and recieve rental income of €100 per week. Currently saving 2k a month due to Covid19, will drop it to 1500k a month when restrictions are relaxed and should have about 12k by September. I also own an apartment I bought in 2016 for 175k cash due to inheritence so I'll be selling to buy. Obviously don't know how much I'll get for the apartment now but before all this places went in same complex for around 230k.

Are banks looking for 10% of the mortgage value or 10% of the total value of the house to be saved up? Will they take into consideration the LTV will be fairly small?

wally79 · 23-04-2020 1:55am

Plasandrunt wrote: »

I've only started saving after finally getting stuff in order and ensuring all debts (Bank loan) have been cleared.On 37k per year and recieve rental income of €100 per week. Currently saving 2k a month due to Covid19, will drop it to 1500k a month when restrictions are relaxed and should have about 12k by September. I also own an apartment I bought in 2016 for 175k cash due to inheritence so I'll be selling to buy. Obviously don't know how much I'll get for the apartment now but before all this places went in same complex for around 230k.

Are banks looking for 10% of the mortgage value or 10% of the total value of the house to be saved up? Will they take into consideration the LTV will be fairly small?

I assume you are not buying a 2million plus home so the proceeds from the apartment will more than cover your deposit requirement if you are selling before buying

All you need to show is that you can meet the repayments really

Also I am not sure if previous cash purchase means you are no longer a first time buyer and need 20% deposit

Plasandrunt · 23-04-2020 2:29am

The reason I ask about the 10% thing is I'd rather have the sale and new purchase go hand in hand and not much time between the two so that I'm not renting/staying with a friend for too long.

I'm 99% sure it's only 10% of the deposit because this would be my first mortgage, however the proceeds of the apartment sale would cover if i need 20%.

Creamy Goodness · 23-04-2020 8:30am

Plasandrunt wrote: »

The reason I ask about the 10% thing is I'd rather have the sale and new purchase go hand in hand and not much time between the two so that I'm not renting/staying with a friend for too long.

I'm 99% sure it's only 10% of the deposit because this would be my first mortgage, however the proceeds of the apartment sale would cover if i need 20%.

FTB status is tied to mortgage loan, not owning a property which is weird tbh

https://mmpi.ie/mortgages/articles/am-i-a-first-time-buyer/

headtheball14 · 23-04-2020 8:34am

It’s 10 percent of the value of the property , Ltv must be 90 % or lower

headtheball14 · 23-04-2020 8:34am

“

Brock Turnpike · 28-04-2020 11:03pm

Hi all,

Does having/investing in shares have an impact on mortgage application? If so, can you give me an idea of what please?

Prezatch · 28-04-2020 11:25pm

Brock Turnpike wrote: »

Hi all,

Does having/investing in shares have an impact on mortgage application? If so, can you give me an idea of what please?

Just need to show a statement proving the value of your shares, if you are using it toward a deposit.

Plasandrunt · 29-04-2020 1:29am

I'm a owner occupier and my friend rents the spare room off me for €100 p/w. She pays me cash in hand but since Covid19 I've been self lodging the money into my account.

Was planning on applying for a mortgage in September and now thinking it might be a better idea for her to transfer the money over in case the bank query this? Or will it matter considering it's a relatively small amount?

Pivot Eoin · 29-04-2020 9:32am

Plasandrunt wrote: »

I'm a owner occupier and my friend rents the spare room off me for €100 p/w. She pays me cash in hand but since Covid19 I've been self lodging the money into my account.

Was planning on applying for a mortgage in September and now thinking it might be a better idea for her to transfer the money over in case the bank query this? Or will it matter considering it's a relatively small amount?

It will only become a factor for your Capacity for repayments. If you want that to go up by €400 monthly to give yourself more room for exemption then i'd start a rent book.

If you aren't looking for an exemption then you'll be alright. Although if you consider this part of your earnings... 5200*3.5 = 18,200 total value off the top of your mortgage. If you need this 18k to purchase then I'd legitimize it ASAP.

Pivot Eoin · 30-04-2020 11:09am

Just got off the phone with my Broker,

Said at any other time I'd more than qualify for an exemption but in current climate it's highly unlikely. I'd probably be considered a strong enough applicant in the current circumstances so that's food for thought for anyone applying.

Don't necessarily need it (Dependant on market behaviour), but wanted to have more options available to me with it. Will be interesting to see when they open back up to stronger applicants.

KilOit · 30-04-2020 3:40pm

Finally got loan offer from UB. 2 year fix at 2.3 but now thinking we should go with 5 year fix 2.2. Very hard to decide in this market, don't really feel like switching in 2 years unless saving a massive amount

ELM327 · 30-04-2020 3:43pm

Plasandrunt wrote: »

I'm a owner occupier and my friend rents the spare room off me for €100 p/w. She pays me cash in hand but since Covid19 I've been self lodging the money into my account.

Was planning on applying for a mortgage in September and now thinking it might be a better idea for her to transfer the money over in case the bank query this? Or will it matter considering it's a relatively small amount?

No need for it to be cash in hand, first 12k you get in renting a room(s) in your house is tax free.

OEP · 30-04-2020 7:26pm

ELM327 wrote: »

No need for it to be cash in hand, first 12k you get in renting a room(s) in your house is tax free.

14k now I think

EvoEvo · 01-05-2020 2:37pm

Hi all,

I'm planning to have the first mortgage appointment with Aib later this year after the lockdown (first-time buyer)...

I have a question about the amount that a bank can lend.

I have already checked the mortgage online calculator and I can get around 120K..I'm just wondering.. are they very strict about this? I mean under some circumstances Can they land an higher amount?

I don’t have any debts or previous loans

I'm hoping to get 20k more to be honest....

Thank you in advance

Creamy Goodness · 01-05-2020 3:12pm

EvoEvo wrote: »

Hi all,

I'm planning to have the first mortgage appointment with Aib later this year after the lockdown (first-time buyer)...

I have a question about the amount that a bank can lend.

I have already checked the mortgage online calculator and I can get around 120K..I'm just wondering.. are they very strict about this? I mean under some circumstances Can they land an higher amount?

I don’t have any debts or previous loans

I'm hoping to get 20k more to be honest....

Thank you in advance

Generally the max they can lend is 3.5x your gross salary. there are exceptions banks can do (loan to income LTI, or loan to value LTV)

LTI exception - where they can lend 4.5x your gross
LTV exception - where they can accept a greater than 80% Loan to value figure.

You have to meet certain criteria set out by the bank and only 20% of their mortgage drawdowns can be exceptions so if they've given them all out already you're out of luck.

There's a lot of factors that come into play as to whether a bank will give you an exception or not, salary is a big one, the only way to know for sure is to talk to the bank.

Just FYI no previous loans can be seen as a bad thing as it doesn't show you have an ability to pay a loan.

sparkle109 · 01-05-2020 4:06pm

Hi all
Hoping to go for a mortgage later this year. We will hopefully have approx 6% off deposit and hoping to go for new build. What way will the mortgage work, do I need the full deposit even if going with the help to buy to get approved? If so can we apply before having the full 10% and get approved in principle?

The Phantom Jipper · 01-05-2020 10:54pm

Something I was wondering; Taking Ulster Bank's 2.3% two year rate for example - is this an introductory type offer and the next set of fixed rates increase for existing customers, or could you lock in another two years at 2.3% if it was still available?

fifth · 02-05-2020 12:25am

sparkle109 wrote: »

Hi all
Hoping to go for a mortgage later this year. We will hopefully have approx 6% off deposit and hoping to go for new build. What way will the mortgage work, do I need the full deposit even if going with the help to buy to get approved? If so can we apply before having the full 10% and get approved in principle?

You don't need the full 10% if you're getting the HTB.

And yes you can apply for approval in principle without having your full 10% deposit. As long as you are showing repayment capacity and evidence of regular saving.

Techn0 · 02-05-2020 12:41am

Creamy Goodness wrote: »

Generally the max they can lend is 3.5x your gross salary. there are exceptions banks can do (loan to income LTI, or loan to value LTV)

LTI exception - where they can lend 4.5x your gross
LTV exception - where they can accept a greater than 80% Loan to value figure.

You have to meet certain criteria set out by the bank and only 20% of their mortgage drawdowns can be exceptions so if they've given them all out already you're out of luck.

There's a lot of factors that come into play as to whether a bank will give you an exception or not, salary is a big one, the only way to know for sure is to talk to the bank.

Just FYI no previous loans can be seen as a bad thing as it doesn't show you have an ability to pay a loan.

This is good advice right here. Just to add to this, I don't think many (of any) banks are entertaining exceptions right now. I'm in the middle of this process with my broker (and had spoken to separate bank) and currently none are lending more than the 3.5x LTI. Anyone else come across this?

Pivot Eoin · 02-05-2020 10:43am

Techn0 wrote: »

This is good advice right here. Just to add to this, I don't think many (of any) banks are entertaining exceptions right now. I'm in the middle of this process with my broker (and had spoken to separate bank) and currently none are lending more than the 3.5x LTI. Anyone else come across this?

This is the exact same with us. We've been saving 4.5k per month and joint income of €115k (€35k over the necessity level for LTI exemption) and been told no exceptions at this time, but it may change.

EBS who weren't approached by our Broker seemed to suggest Exceptions may still be available and based on our savings and income we would in normal circumstances be a strong candidate.

Techn0 · 02-05-2020 4:15pm

Pivot Eoin wrote: »

This is the exact same with us. We've been saving 4.5k per month and joint income of €115k (€35k over the necessity level for LTI exemption) and been told no exceptions at this time, but it may change.

EBS who weren't approached by our Broker seemed to suggest Exceptions may still be available and based on our savings and income we would in normal circumstances be a strong candidate.

Completely agree. It's very frustrating being told you're a model candidate and cant get approved for the amount required with everything that's going on. I'm looking for a very minor exception myself (circa 3.7x LTI). I can fund the gap myself but going into a new build I don't want to be stretched.

There was a good article on IT yesterday regarding this. It sounds like AIB may still be entertaining exception applications so might be worth exploring.

Article in question:

https://www.google.com/amp/s/www.irishtimes.com/business/personal-finance/househunters-squeezed-as-banks-tighten-rules-in-covid-19-crisis-1.4240113

I'm going to reach out to AIB myself next week and will keep you updated on whether or not they're willing to lend above the 3.5x. Also from speaking to BOI yesterday, the manager had told me that they have no idea when it may reopen so they haven't put a date on it yet.

Best of luck with your purchase!

Pivot Eoin · 02-05-2020 4:22pm

Techn0 wrote: »

Completely agree. It's very frustrating being told you're a model candidate and cant get approved for the amount required with everything that's going on. I'm looking for a very minor exception myself (circa 3.7x LTI). I can fund the gap myself but going into a new build I don't want to be stretched.

There was a good article on IT yesterday regarding this. It sounds like AIB may still be entertaining exception applications so might be worth exploring.

Article in question:

https://www.google.com/amp/s/www.irishtimes.com/business/personal-finance/househunters-squeezed-as-banks-tighten-rules-in-covid-19-crisis-1.4240113

I'm going to reach out to AIB myself next week and will keep you updated on whether or not they're willing to lend above the 3.5x. Also from speaking to BOI yesterday, the manager had told me that they have no idea when it may reopen so they haven't put a date on it yet.

Best of luck with your purchase!

Yeah thanks mate. Would probably make sense as EBS are owned by AIB and told me similar. My application is going in with them next week so I'll let you know.

I'm the same boat, only need a minor one, may not even need it but I did want to have the option just because the value of house you get in the majority of the 4 bed market is far better than the desirable 3 bed market.

So probably need a small exception to allow me to afford a move in ready 4 bed in the area I'm looking without being down to 0 in all accounts - higher mortgage means you ideally have 6 months salary buffer just in case the worst happens.

EvoEvo · 02-05-2020 4:30pm

Thank you for your replies guys,
I would just me asking for a mortgage so I believe the exception is not possible in my case..anyway I'll check with Aib when I have the appointment.

Meantime I'll keep saving and hoping for a property market reduction ( yes I know I want to be optimistic).

Techn0 · 02-05-2020 5:19pm

EvoEvo wrote: »

Thank you for your replies guys,
I would just me asking for a mortgage so I believe the exception is not possible in my case..anyway I'll check with Aib when I have the appointment.

Meantime I'll keep saving and hoping for a property market reduction ( yes I know I want to be optimistic).

Just so you know I thought the same about getting an exception as a single applicant (I'm also applying solo), however the lady in BOI said that didn't factor in whatsoever. I even have a dependant (so again less likely) however it all came down to affordability. I was saving over double what a mortgage payment would be and she said as long as you can live comfortably with a means tested mortgage (and any other commitments), you should be fine. The number of people applying is a bit of a non-issue.

I should caveat by saying I have very good job security so it does depend on the nature of your job.

Plasandrunt · 04-05-2020 10:36pm

ELM327 wrote: »

No need for it to be cash in hand, first 12k you get in renting a room(s) in your house is tax free.

Oh the cash in hand is just for convenience rather than anything to do with tax purposes

Bargain_Hound · 05-05-2020 6:16pm

Waiting on drawdown from PTSB. Mortgage Advisor stated it’s gone for final audit checks before issuing of cheque, anybody know how long this takes and how long to expect funds to issue? Due to close sale Friday but not sure we will meet this now.

moonlighting_1 · 05-05-2020 7:38pm

Out of work sense x-mas luckily back to full time work now. Will I have to wait another 6 months or more before I can apply for a mortgage. Full work last year.

Prezatch · 06-05-2020 1:01pm

Was also banking on an exemption here, have been saving consistently for 18 months and have the deposit...exemption now not looking likely

EvoEvo · 06-05-2020 7:04pm

Hi Guys,

I have some questions just to clear my mind....

1) the Mortage approval process is free?

2) Question about the payment methods... the booking deposit is a normal bank transfer to the estate agent and the mortgage is released through a loan cheque from the bank...

What about the money that I have been saving ? eveything is included in the cheque?

Thank you in advance

Creamy Goodness · 06-05-2020 7:41pm

1) yes. Don’t forget banks profit a fair bit from you borrowing money. It should be at the very least free

.

2) After you pay booking deposit to the estate agent, the rest of your deposit is transferred to your solicitor and the loan cheque is issued to them and they release the funds at the end of the sale.

awec · 06-05-2020 9:35pm

EvoEvo wrote: »

Hi Guys,

I have some questions just to clear my mind....

1) the Mortage approval process is free?

2) Question about the payment methods... the booking deposit is a normal bank transfer to the estate agent and the mortgage is released through a loan cheque from the bank...

What about the money that I have been saving ? eveything is included in the cheque?

Thank you in advance

Booking deposit = bank transfer to estate agent.
Remaining deposit when signing contract = bank transfer to solicitor.

Drawdown = mortgage value transferred to your solicitor, who passes it on to the developers solicitor. You never see or touch any money / cheque in this process, and are not involved in any transfers except telling your bank that you're happy to draw down.

Maz2016 · 06-05-2020 10:49pm

Prezatch wrote: »

Was also banking on an exemption here, have been saving consistently for 18 months and have the deposit...exemption now not looking likely

I’m in the exact same boat. As a single person you kind of need the exemption. I heard Paul Merriman On Q102 on Saturday saying most banks are stopping the exemptions except BOI and AIB but their expected to do it within the next few weeks.
He also said he expects property prices to drop 10-15% perhaps 20%. These aren’t my opinions Paul Merriman is a financial advisor aka Ask Paul.

EvoEvo · 07-05-2020 12:40pm

awec wrote: »

Booking deposit = bank transfer to estate agent.
Remaining deposit when signing contract = bank transfer to solicitor.

Drawdown = mortgage value transferred to your solicitor, who passes it on to the developers solicitor. You never see or touch any money / cheque in this process, and are not involved in any transfers except telling your bank that you're happy to draw down.

Thanks,

Could be a silly question but is very strange for me transfer large amount of money to the solicitor by bank transfer...is it safe?
Usually in my country we use a nominative cheque that the solicitor will deliver to the seller.

Thanks

CIP4 · 07-05-2020 1:37pm

I have gone through the full mortgage application process with PTSB and it was put forward to an underwriter and today I got an approval in principle letter. Is this as far as I can go in terms of being approved without having a specific house and getting it valued etc. ?

guyfawkes5 · 07-05-2020 1:54pm

CIP4 wrote: »

I have gone through the full mortgage application process with PTSB and it was put forward to an underwriter and today I got an approval in principle letter. Is this as far as I can go in terms of being approved without having a specific house and getting it valued etc. ?

Yes. At the point you're sale agreed on a property, the bank will make an offer letter for you to sign and then start the process with home insurance and the valuer.

Prezatch · 07-05-2020 1:57pm

CIP4 wrote: »

I have gone through the full mortgage application process with PTSB and it was put forward to an underwriter and today I got an approval in principle letter. Is this as far as I can go in terms of being approved without having a specific house and getting it valued etc. ?

You need to select a specific property address you are considering bidding on in order to apply for higher than 3.5x LTI (exemptions) as far as I know, if that's what you mean.

wally79 · 07-05-2020 2:15pm

Prezatch wrote: »

You need to select a specific property address you are considering bidding on in order to apply for higher than 3.5x LTI (exemptions) as far as I know, if that's what you mean.

We got an exemption without a property

DelBoy Trotter · 07-05-2020 3:44pm

Prezatch wrote: »

You need to select a specific property address you are considering bidding on in order to apply for higher than 3.5x LTI (exemptions) as far as I know, if that's what you mean.

wally79 wrote: »

We got an exemption without a property

+1 on Wally79's response. We got the exemption without a specific property in mind

guyfawkes5 · 07-05-2020 4:33pm

Prezatch wrote: »

You need to select a specific property address you are considering bidding on in order to apply for higher than 3.5x LTI (exemptions) as far as I know, if that's what you mean.

This is only the case with Bank of Ireland - other banks will give you one up front without a property in mind.

However, in both cases the banks can withdraw the exemption at any time, so neither gives a greater security.

chillywilly · 07-05-2020 6:13pm

Does anyone know the banks stance on Coinbase payments coming I n to my bank account (bitcoin etc)?

I’ve heard they can be unfavourable.....

CIP4 · 07-05-2020 7:05pm

guyfawkes5 wrote: »

Yes. At the point you're sale agreed on a property, the bank will make an offer letter for you to sign and then start the process with home insurance and the valuer.

Thanks I spoke to the Mortgage advisor this afternoon and she echoed this basically next step is find a house and get it valued. It’s the first time I have applied for and mortgage so nice to have got this far and be in the position to go looking at houses.

Prezatch wrote: »

You need to select a specific property address you are considering bidding on in order to apply for higher than 3.5x LTI (exemptions) as far as I know, if that's what you mean.

What I was granted was just under the 3.5 which is all I should need anyway. Seems not getting an exemption makes things easier well at the moment anyway.

Saving/Applying for a mortgage 2020-22 Edition

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