Saving/Applying for a mortgage 2020-22 Edition

Ikozma · 28-09-2020 1:31pm

AlmightyCushion wrote: »

If you are on a fixed rate then there would probably be a breakage fee. Also there will be a small amount of interest. This would be the interest that accrued since your last mortgage payment.

I'm on variable, will that make any difference, thanks for your response btw

Ikozma · 28-09-2020 3:17pm

I've just applied in writing for a redemption fee if we decided to sell, I've no idea how much we are talking here, any rough idea how much the fee could be to pay back 80,000 that's left on the mortgage, are we talking a couple of grand or a lot more, I know everyones situation is different but just a rough ballpark figure would ease my mind for now
Thanks

G_R · 28-09-2020 8:18pm

If you're on a variable rate as you mentioned in your last post there will be no breakage fee, it will just be the capital outstanding and any interest which has accrued since your last payment hit the mortgage account.

The figure they give you will be as of x date, so it will also give you a daily interest figure to add on for each day after x date.

Pelezico · 28-09-2020 9:36pm

G_R wrote: »

If you're on a variable rate as you mentioned in your last post there will be no breakage fee, it will just be the capital outstanding and any interest which has accrued since your last payment hit the mortgage account.

The figure they give you will be as of x date, so it will also give you a daily interest figure to add on for each day after x date.

There is usually a redemption fee, variable or fixed. The bank has some admin on redemption.

G_R · 28-09-2020 9:45pm

Pelezico wrote: »

There is usually a redemption fee, variable or fixed. The bank has some admin on redemption.

I stand to be corrected, but im relatively certain there isn't. I've just checked the AIB, BOI and UB website and they all explicitly state no additional fees for paying off a variable rate loan early.

Only thing I could think of would be a vacate of mortgage legal fee or something, but even then you're talking €30-€40 max if it is charged.

mmrs · 28-09-2020 10:17pm

My wife has been on a 2 year career break and now returning to her full time permanent position soon. We're hoping to buy next year. Has anyone any idea how long she would have to be back working before we're considered for a mortgage?

Thanks

Pelezico · 28-09-2020 10:24pm

G_R wrote: »

I stand to be corrected, but im relatively certain there isn't. I've just checked the AIB, BOI and UB website and they all explicitly state no additional fees for paying off a variable rate loan early.

Only thing I could think of would be a vacate of mortgage legal fee or something, but even then you're talking €30-€40 max if it is charged.

The redemption fee is a standard fee...not an additional.fee. it may be as much as six hundred euros.

awec · 28-09-2020 11:27pm

mmrs wrote: »

My wife has been on a 2 year career break and now returning to her full time permanent position soon. We're hoping to buy next year. Has anyone any idea how long she would have to be back working before we're considered for a mortgage?

Thanks

You'll need to ask the bank how they handle this as your wife obviously won't be able to produce payslips.

Markitron · 29-09-2020 8:30am

mmrs wrote: »

My wife has been on a 2 year career break and now returning to her full time permanent position soon. We're hoping to buy next year. Has anyone any idea how long she would have to be back working before we're considered for a mortgage?

Thanks

If she is not on probation I would assume 3 months, as that is how many payslips you will need.

billybonkers · 29-09-2020 8:43am

mmrs wrote: »

My wife has been on a 2 year career break and now returning to her full time permanent position soon. We're hoping to buy next year. Has anyone any idea how long she would have to be back working before we're considered for a mortgage?

Thanks

Not as big a deal as you would think. 3 months probably enough.

The bank will give you all the info you need.

29-09-2020 9:12am

G_R wrote: »

I stand to be corrected, but im relatively certain there isn't. I've just checked the AIB, BOI and UB website and they all explicitly state no additional fees for paying off a variable rate loan early.

Only thing I could think of would be a vacate of mortgage legal fee or something, but even then you're talking €30-€40 max if it is charged.

I'm on a variable rate with AIB and my mortgage documentation stated that upon paying it off there is a €60 fee to close the mortgage off, whether it's early or not. They'll also obviously tot up all and any outstanding interest too.

I don't think you'd find any of that on the website as it was a small clause in the mortgage agreement and probably not the same for everyone.

dodo87 · 29-09-2020 4:18pm

Hi
I'm signing my letter of this week with AIB but am currently in the process of looking for a different job. Just wondering does anyone know if AIB will request another salary cert or more pay slips before the money is drawn down? I've already given them 3 salary certs and pay slips almost every month since I started my application process.
Just nervous if I do leave they will not give me the mortgage but all the positions I'm looking at are permanent positions.
Thanks in advance

HannahR31 · 29-09-2020 4:41pm

dodo87 wrote: »

Hi
I'm signing my letter of this week with AIB but am currently in the process of looking for a different job. Just wondering does anyone know if AIB will request another salary cert or more pay slips before the money is drawn down? I've already given them 3 salary certs and pay slips almost every month since I started my application process.
Just nervous if I do leave they will not give me the mortgage but all the positions I'm looking at are permanent positions.
Thanks in advance

I'm not there yet but I've been told it comes down to how long goes by before drawdown; if it's more than a couple of months then they'll want to confirm nothing significant has changed. I'd imagine with a new job they'd be looking for a new statement from employer and payslips (could possibly even want a couple).

billybonkers · 29-09-2020 4:43pm

dodo87 wrote: »

Hi
I'm signing my letter of this week with AIB but am currently in the process of looking for a different job. Just wondering does anyone know if AIB will request another salary cert or more pay slips before the money is drawn down? I've already given them 3 salary certs and pay slips almost every month since I started my application process.
Just nervous if I do leave they will not give me the mortgage but all the positions I'm looking at are permanent positions.
Thanks in advance

They will want you to be passed probation is most cases

newfy · 29-09-2020 6:28pm

I’m in the same boat, I have my letter of offer from AIB now ,

I am looking to change job,

As I have letter of offer now, will I be ok to change?

HannahR31 · 29-09-2020 6:40pm

newfy wrote: »

I’m in the same boat, I have my letter of offer from AIB now ,

I am looking to change job,

As I have letter of offer now, will I be ok to change?

Oh gosh maybe I'm just a chicken but I wouldn't dream of changing jobs (unless absolutely necessary) until I had the whole process finished - picked up the keys and all!

Renjit · 29-09-2020 7:10pm

newfy wrote: »

I’m in the same boat, I have my letter of offer from AIB now ,

I am looking to change job,

As I have letter of offer now, will I be ok to change?

Not recommended. Banks can verify your financial circumstances again before draw-down. And if you are found to be in probation period then they can rescind the offer.

dodo87 · 29-09-2020 7:11pm

HannahR31 wrote: »

Oh gosh maybe I'm just a chicken but I wouldn't dream of changing jobs (unless absolutely necessary) until I had the whole process finished - picked up the keys and all!

Better to be on the safe side I suppose. I have literally only stayed where I am this year to help with the mortgage application so would be silly to risk it at this stage. Looks like I will be staying put for another few months ðŸ˜ž

Duke of Url · 29-09-2020 8:07pm

dodo87 wrote: »

Better to be on the safe side I suppose. I have literally only stayed where I am this year to help with the mortgage application so would be silly to risk it at this stage. Looks like I will be staying put for another few months &#55357;&#56862;

IMO stay where you are if you can stick it out until you drawdown.

Banks are currently making massive losses so don’t give them an excuse to pull your application.

BrosnanL27 · 30-09-2020 9:42am

Hi all, does anybody know if H2B has to be used as part of the deposit for a new build or can it be drawn down at any time (preferably later into the sale after the deposit has been paid out of our own savings)? Thanks

Interested Observer · 30-09-2020 10:13am

newfy wrote: »

I’m in the same boat, I have my letter of offer from AIB now ,

I am looking to change job,

As I have letter of offer now, will I be ok to change?

If the bank find out they will not be ok with it, no.

OhThePenguin · 30-09-2020 10:18am

BrosnanL27 wrote: »

Hi all, does anybody know if H2B has to be used as part of the deposit for a new build or can it be drawn down at any time (preferably later into the sale after the deposit has been paid out of our own savings)? Thanks

As far as I know it goes straight to the developer so has to be used as the deposit.

CBear1993 · 30-09-2020 4:22pm

Hi all,

How do most people afford to furnish their new house after forking out the deposit for the mortgage? I am looking at 90% LTV and all my savings will be put into the deposit.

Do most people then take a further loan to furnish the house for another 10-20K? (Not sure it this is accurate or near it) from say a credit union or bank?

Or do they have savings / gift

It is now putting me off as I originally thought you could take out a mortgage that is higher than the house price to cover all.

I can afford the mortgage repayments and another loan, just not sure if it’s a done thing or common

ELM327 · 30-09-2020 4:24pm

You have a deposit + X% to cover the furnishings.
The gap between your remaining funds and the amount you need for furniture etc you can either make do temporarily with second hand free stuff from friends/family/facebook groups until you can afford to replace.

Worked like this for generations

HannahR31 · 30-09-2020 4:25pm

CBear1993 wrote: »

Hi all,

How do most people afford to furnish their new house after forking out the deposit for the mortgage? I am looking at 90% LTV and all my savings will be put into the deposit.

Do most people then take a further loan to furnish the house for another 10-20K? (Not sure it this is accurate or near it) from say a credit union or bank?

Or do they have savings / gift

It is now putting me off as I originally thought you could take out a mortgage that is higher than the house price to cover all.

I can afford the mortgage repayments and another loan, just not sure if it’s a done thing or common

Not sure about 'the done thing' but I'm in the same boat and intend on beg, borrowing and stealing from as many members of my family as possible! I'll live on garden furniture if that's what it takes! I'm hoping to have a few thousand left to cover the absolute essentials as cheaply as possible and then I figure I can do the rest slowly but surely over a year or 2.

Creamy Goodness · 30-09-2020 4:51pm

CBear1993 wrote: »

Hi all,

How do most people afford to furnish their new house after forking out the deposit for the mortgage? I am looking at 90% LTV and all my savings will be put into the deposit.

Do most people then take a further loan to furnish the house for another 10-20K? (Not sure it this is accurate or near it) from say a credit union or bank?

Or do they have savings / gift

It is now putting me off as I originally thought you could take out a mortgage that is higher than the house price to cover all.

I can afford the mortgage repayments and another loan, just not sure if it’s a done thing or common

Ideally you'd pay your deposit and keep saving for the time between you pay your deposit and you move in.

Best thing to try and do is save enough extra to get flooring in (if it's not there or is a new build) it keeps the dust down.

Then head off to the likes of adverts or zero waste pages on Facebook and grab furniture to get you by. When we moved in to our place, we got a lend of a 4 person dining table set off my parents, it was tiny but it done us for a year whilst we saved up to get the funds together to furnish the house fully.

I also availed of a mortgage moratorium for the first 6 months (basically I moved in and didn't pay a mortgage payment for that period) it helped drastically in furnishing the house.

wassie · 30-09-2020 5:55pm

CBear1993 wrote: »

Hi all,

How do most people afford to furnish their new house after forking out the deposit for the mortgage? I am looking at 90% LTV and all my savings will be put into the deposit.

Do most people then take a further loan to furnish the house for another 10-20K? (Not sure it this is accurate or near it) from say a credit union or bank?

Or do they have savings / gift

It is now putting me off as I originally thought you could take out a mortgage that is higher than the house price to cover all.

I can afford the mortgage repayments and another loan, just not sure if it’s a done thing or common

Some retailers (think loud aussie adverts) offer interest free deals on purchases, which is great provided you are financially disciplined. But if you don't then you will be crucified in late penalty fees & high interest rates generally calculated on the original amount financed.

30-09-2020 8:04pm

CBear1993 wrote: »

How do most people afford to furnish their new house after forking out the deposit for the mortgage? I am looking at 90% LTV and all my savings will be put into the deposit.

Do most people then take a further loan to furnish the house for another 10-20K?

Don't forget you'll also be having to pay your solicitor, who will expect their professional fee paid and also charge you for expenses such as Land Registry, planning searches, etc. Then you'll also have stamp duty to pay. The sale can't go ahead without these so you need to have these funds on-hand (ours totalled aprox €6k).

We were left with about €4k in savings after all was said and done. We bought right at the start of lockdown, when no shops were really open at all, so we never actually ended up touching the €4k because we were earning in the meantime, had nothing we could really spend our money on, and could only buy furniture bit by bit via online retailers.

There's a lot of furniture you can live without. We had a mattress for a good while before we had a bed to go under it, and the headboard only arrived a few weeks ago. A table and chair for working from home was probably my next priority. Then couch. The couch definitely made a big improvement to my stress levels as it can be quite frustrating being on lockdown in an empty house, especially when the evening comes and you have no where to sit down and relax.

I'd avoid getting another loan unless you know you're definitely going to need it. I think you'd be surprised how doable it is to just buy what you can when you can.

klose · 30-09-2020 10:01pm

We have recently been approved in principle for our mortgage ( and thank you for all the help and answers we've seen around here) and are ready to start viewing houses, however in order to do so we need to send the letter of approval to the estate agents (they're asking for it)

That's fine however the amont we are offered is on the letter, which ultimately weakens our position as they know how high we can go, I'm just curious is this the norm or can we ask our bank to forward a letter without the amount on it?

Can we ask for proof of bids on houses? It's in their best interest to get the highest price after all so it's easy to say the current bid is higher that what it actually is.

dodo87 · 30-09-2020 10:28pm

klose wrote: »

We have recently been approved in principle for our mortgage ( and thank you for all the help and answers we've seen around here) and are ready to start viewing houses, however in order to do so we need to send the letter of approval to the estate agents (they're asking for it)

That's fine however the amont we are offered is on the letter, which ultimately weakens our position as they know how high we can go, I'm just curious is this the norm or can we ask our bank to forward a letter without the amount on it?

Can we ask for proof of bids on houses? It's in their best interest to get the highest price after all so it's easy to say the current bid is higher that what it actually is.

I would black out the amount you were approved for before you send it across. This is what I was planning on doing but never had to give it in the end. I wouldn't want them to know my position however good or bad it is.

Saving/Applying for a mortgage 2020-22 Edition

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