Saving/Applying for a mortgage 2020-22 Edition

Starlord_01 · 13-10-2020 8:45am

DD85 wrote: »

I have been offered a mortgage by AIB and BOI.

AIB is the 5 year fixed rate and BOI is a one year fixed rate on a higher rate of 2.75%

whats the smart thing to do here? had applied for the AIB mortgage initially but decided to apply to BOI as well as i was thinking it might make more sense to go on a one year in case interest rates come down soon. The AIB is a better option long term as things stand.

also BOI offer cash back. surely im not entitled to that on a one year fixed rate if i decide to move ?

We were advised to go 2 or 3 year fixed rate.

td2008 · 13-10-2020 10:59am

We are looking at a new build and it mentions that appliances would be included if contracts are signed within 21 days. (I assume from the point the booking deposit is paid)

Just unsure what needs to happen within those 21 days and what can wait until after the contracts are signed as it does not seem to be a long time. Also, I assume when you sign contracts you pay the full deposit which is then not refundable?

mortgage drawdown (just have AIP now)- letter offer, bank survey/valuation
mortgage protection
exchange & agree contracts with the solicitors
complete snag list & items

Thanks

sparkle109 · 13-10-2020 11:12am

Is your new build ready yet?

td2008 wrote: »

We are looking at a new build and it mentions that appliances would be included if contracts are signed within 21 days. (I assume from the point the booking deposit is paid)

Just unsure what needs to happen within those 21 days and what can wait until after the contracts are signed as it does not seem to be a long time. Also, I assume when you sign contracts you pay the full deposit which is then not refundable?
mortgage drawdown (just have AIP now)- letter offer, bank survey/valuation

mortgage protection

exchange & agree contracts with the solicitors

complete snag list & items

Thanks

td2008 · 13-10-2020 11:15am

It's built anyway but not sure if there's anything left to do.
We viewed a different one in the same estate a few months ago and are going back this week to view again.

hi! · 13-10-2020 3:35pm

Got approval today with ICS mortgages. As they’ve gone up our pay scales it works out at basically 4.5 times our current salaries. 2.6% fixed rate. Very happy with this. Now to find our dream home

Took about 5 weeks from initial application so obvious delays but happy with the outcome.

DubLad69 · 13-10-2020 6:07pm

hi! wrote: »

Got approval today with ICS mortgages. As they’ve gone up our pay scales it works out at basically 4.5 times our current salaries. 2.6% fixed rate. Very happy with this. Now to find our dream home

Took about 5 weeks from initial application so obvious delays but happy with the outcome.

Thats amazing! Can I ask if they also took any over time or extra work into account?

CarMc · 13-10-2020 6:23pm

td2008 wrote: »

We are looking at a new build and it mentions that appliances would be included if contracts are signed within 21 days. (I assume from the point the booking deposit is paid)

Just unsure what needs to happen within those 21 days and what can wait until after the contracts are signed as it does not seem to be a long time. Also, I assume when you sign contracts you pay the full deposit which is then not refundable?
mortgage drawdown (just have AIP now)- letter offer, bank survey/valuation

mortgage protection

exchange & agree contracts with the solicitors

complete snag list & items

Thanks

Talk to your solicitor, ask them to put a subject to finance clause in the contract, then if you don't get loan offer or can't drawdown for any reason you'll get your deposit back. Once that's in the contract you can sign early and work on getting all the other bits into place.

I've read on here that some sellers / builders will fight against it but I've just completed a sale & purchase and it was in all the contracts for that.

brisan · 13-10-2020 6:39pm

CarMc wrote: »

Talk to your solicitor, ask them to put a subject to finance clause in the contract, then if you don't get loan offer or can't drawdown for any reason you'll get your deposit back. Once that's in the contract you can sign early and work on getting all the other bits into place.

I've read on here that some sellers / builders will fight against it but I've just completed a sale & purchase and it was in all the contracts for that.

Anyone who signs a contract that is not subject to finance is crazy
Even more so so in Corona times
Cash buyers excepted of course

hi! · 13-10-2020 7:00pm

DubLad69 wrote: »

Thats amazing! Can I ask if they also took any over time or extra work into account?

I’m not 100% sure how they worked out the loan amount but it is 68k more than the banks were offering. We went with a broker and on our salary cert overtime and shift allowances were included on it so it may have been factored in.

DD85 · 14-10-2020 10:36am

DD85 wrote: »

I have been offered a mortgage by AIB and BOI.

AIB is the 5 year fixed rate at 2.45% and BOI is a one year fixed rate on a higher rate of 2.75%

whats the smart thing to do here? had applied for the AIB mortgage initially but decided to apply to BOI as well as i was thinking it might make more sense to go on a one year in case interest rates in general come down soon. The AIB is a better option long term as things stand.

also BOI offer cash back. surely im not entitled to that on a one year fixed rate if i decide to move ?

Would appreciate some advice on this.

mimimcmc · 14-10-2020 10:49am

DD85 wrote: »

Would appreciate some advice on this.

Personally, just going by what we chose:

We applied to both AIB and BOI and got loan offers from both.
We were seriously considering boi just for the cash back offer, but our sale has been delayed now and we have saved that amount in that time.
The repayments with AIB are much cheaper and we both bank with AIB so it makes sense for us.
Plus fee free banking with the mortgage account on AIB.

It's all about personal preference, and if you really need that cash back.
I remember reading a comment here saying they wish they didn't go with boi, they got blinded with the cashback offer.

mimimcmc · 14-10-2020 10:50am

DD85 wrote: »

Would appreciate some advice on this.

Also, I'm 99% sure you are entitled to the cash back even on the 1 year fixed rate

Creamy Goodness · 14-10-2020 10:54am

You need to work out the cost of the mortgage over the 5 years fixed with AIB and 1 year fixed, 4 years variable + cashback with BOI (or go fishing for a better deal after the 1 year fixed is up).

not many here can advise this without know the figures.

thebiggestjim · 14-10-2020 10:56am

DD85 wrote: »

Would appreciate some advice on this.

IMHO the smart move here would be to go with Avant. 5 year fixed @ 2.2% LTV 80% if this applies to you.

BOI are notoriously high priced. Their variable rate is the worst in the market. You can't take it for granted that you will be able to switch mortgages in a years time. Life circumstances may change. In these unstable times I would be looking to fix for 5 years at the lowest rate possible.

Billythekid19 · 14-10-2020 12:02pm

thebiggestjim wrote: »

IMHO the smart move here would be to go with Avant. 5 year fixed @ 2.2% LTV 80% if this applies to you.

BOI are notoriously high priced. Their variable rate is the worst in the market. You can't take it for granted that you will be able to switch mortgages in a years time. Life circumstances may change. In these unstable times I would be looking to fix for 5 years at the lowest rate possible.

I disagree, its highly likely that rates will drop in the next few years with more competition. Locking yourself in for 5 years is not the way forward.

thebiggestjim · 14-10-2020 12:36pm

Billythekid19 wrote: »

I disagree, its highly likely that rates will drop in the next few years with more competition. Locking yourself in for 5 years is not the way forward.

This is certainly possible. A question I would ask yourself also though is will you be in a position to go through the mortgage process again with another lender if you want to switch lenders in year or twos time? 6 months worth of solid bank statements with no blemishes, no change in salary, etc. If rates do drop below the best in the market for 80% LTV, of 2.2% and that is an if, how much do you think they will drop? 0.3% to 1.9% at best I would imagine. I personally would be willing to lock in 2.2% for 5 years to ride out whatever is coming vs. holding out for a decent drop in rates that may never come.

I expect my circumstances will change in this time so I am happy to lock. Depends on your circumstances to the person who originally asked the question.

AngryLips · 14-10-2020 12:38pm

Billythekid19 wrote: »

I disagree, its highly likely that rates will drop in the next few years with more competition. Locking yourself in for 5 years is not the way forward.

In the short term rates will probably fall with the impact of Avant Money and also a possible imminent entry by An Post to the market. But in the medium term interest rates will probably go up what with all the money world governments are borrowing at the moment to get through this pandemic.

DD85 · 14-10-2020 9:50pm

thanks for the replies everyone.

actually when i look at it i end up saving more on a 5 year fixed rate with BOI at 2.8% than the AIB green 2.45%. BOI is over 3000 more on repayments over the 5 year term but the total cash back would be over 6000 as im an existing customer and entitled to the extra 1% cashback after 5 years.

can always switch to AIB in 5 years time if they still have lower rates and they offer 2000 for switching. obviously alot can change in that time though.

i looked at Avant card also as suggested. their 1.95% rate is only available with a 50% LTV and thats not an option for me as you must be over 70% LTV to avail of help to buy. if i fix with them for 5 years on a rate of 2.2% , BOI still works out as less when you factor in the 3% cashback. also im in the west of ireland and the nearest avant card broker is in Cork.

wassie · 14-10-2020 11:00pm

AngryLips wrote: »

In the short term rates will probably fall with the impact of Avant Money and also a possible imminent entry by An Post to the market. But in the medium term interest rates will probably go up what with all the money world governments are borrowing at the moment to get through this pandemic.

Interest rate levels are a factor of the supply and demand of credit, not government borrowings. To suggest otherwise is simply misleading.

Kyle1994 · 15-10-2020 11:33am

Does anyone know the max distance from your workplace that the bank will accept?

itsusuallyjazz · 15-10-2020 8:24pm

question for those who have been through the process - I am a FTB and have just about got the 10% deposit saved for the value house I want. As I'm a month or 2 away I decided to go through a broker for the mortgage. The broker has advised me that to draw down the bank will expect me to have the full deposit, the value of stamp duty and 2k euro to cover the solicitors fees.

Has anyone been able to draw down when they have been a little short on the latter 2?

**edited to add ** I would expect to have the shortfall made up with the next pay after drawdown

pooch90 · 15-10-2020 8:50pm

itsusuallyjazz wrote: »

question for those who have been through the process - I am a FTB and have just about got the 10% deposit saved for the value house I want. As I'm a month or 2 away I decided to go through a broker for the mortgage. The broker has advised me that to draw down the bank will expect me to have the full deposit, the value of stamp duty and 2k euro to cover the solicitors fees.

Has anyone been able to draw down when they have been a little short on the latter 2?

**edited to add ** I would expect to have the shortfall made up with the next pay after drawdown

You probably wouldn't be drawing down for a few months after going sale agreed anyway as you wait for contracts etc to be sorted. Some AIP applications are taking up to a month and a half to process(ICS, Finance Ireland are two I know of) so I wouldn't worry about time.
But most lenders won't let you drawdown without all fees ready to go.

brisan · 15-10-2020 8:52pm

itsusuallyjazz wrote: »

question for those who have been through the process - I am a FTB and have just about got the 10% deposit saved for the value house I want. As I'm a month or 2 away I decided to go through a broker for the mortgage. The broker has advised me that to draw down the bank will expect me to have the full deposit, the value of stamp duty and 2k euro to cover the solicitors fees.

Has anyone been able to draw down when they have been a little short on the latter 2?

**edited to add ** I would expect to have the shortfall made up with the next pay after drawdown

From the time you apply for mortgage until you drawdown could take 6 months
Longer would not be unusual
Do not forget surveyors fees ,snag fees if a new build and valuation fees

L1011 · 15-10-2020 8:58pm

Two things I should have realised are far from fast:

1: Getting a salary cert in a large company
2: Getting a final statement for a now-closed but used in the last 6 months current account. Was apparently sent to my online banking but as that account doesn't exist, it isn't there!

brisan · 15-10-2020 9:19pm

L1011 wrote: »

Two things I should have realised are far from fast:

1: Getting a salary cert in a large company
2: Getting a final statement for a now-closed but used in the last 6 months current account. Was apparently sent to my online banking but as that account doesn't exist, it isn't there!

WFH makes it even harder as the wages dept do not have bits and pieces on hand

Green Mile · 15-10-2020 9:35pm

brisan wrote: »

WFH makes it even harder as the wages dept do not have bits and pieces on hand

I work in the wages department in my company. Thank god there’s delays in getting payslips or salary certs for me.

Still, I’d recommend people thinking of getting a mortgage to get a salary certificate and payslip copies early in the mortgage application process. Also a letter on heeded paper confirming the status of employment also helps. All that it needs to state is Start date, job position and if permanent/fixed term etc.

brisan · 15-10-2020 9:40pm

Green Mile wrote: »

I work in the wages department in my company. Thank god there’s delays in getting payslips or salary certs for me.

Still, I’d recommend people thinking of getting a mortgage to get a salary certificate and payslip copies early in the mortgage application process. Also a letter on heeded paper confirming the status of employee entrance also helps. All that it needs to state is Start date, job position and if permanent/fixed term etc.

In this covid era stating the company is not availing of income supports (ewss) if applicable would also be a bonus
IF you have all your ducks in a row and and know what you need in advance it makes it a lot easier ,
For years our company had an unofficial break up party on the day we finished for Christmas
The 2 girls that looked after us in maintenance never spent a penny and went out well oiled
Now they get 6 bottles of wine each at Christmas
Always pays to be well in with the girls in the wages dept.

lcarrol3 · 16-10-2020 2:28pm

Hi all, just off the phone to BOI who confirmed to me they are offering exemptions if you have a property identified.

Dec2020 · 16-10-2020 2:43pm

Any update on what BOI are asking for prior to drawdown in relation to the EWSS?

Duke of Url · 16-10-2020 5:10pm

Dec2020 wrote: »

Any update on what BOI are asking for prior to drawdown in relation to the EWSS?

I got my mortgage mid COVID with BOI

My adviser said that if I drawdown within 6 weeks of the letter of offer there was no checks. If after 6 weeks they have something called a COVID review and payslips need to be submitted?

16-10-2020 5:19pm

This is probably a stupid question

But I have applied online for approval in principal with AIB. It is unofficial I assume as I now have to send in documents to support the figures etc which is grand.

We have saved about 7% of the max purchase price... We aim to have the rest in about three or four months time.

But at the same time, we have seen some houses lower than the max AIP they gave.... So in that case how much deposit are you meant to have on application? eg if we took a lower price houe, we would have 10% and extra in theory already...

I know they don't need it until drawdown but they asked forproof of how we were going to fund the remainder of the process.... Am I supposed to be sending these docs now? As I am unsure if we are eligible for a mortgage so I don't want to base any viewings or decisions on a ten minute online assessment

Rattlehead_ie · 16-10-2020 5:30pm

943 wrote: »

This is probably a stupid question

But I have applied online for approval in principal with AIB. It is unofficial I assume as I now have to send in documents to support the figures etc which is grand.

I found this process with AIB confusing as normally an AIP comes after the documents have all been verified. I'm worried as with all these things they significantly mark me down after documents are recieved. How close are AIBs AIP in comparison to others??

However to answer your question...the 10% is based on the value of the house you are looking at and must NOT be taken from mortgage funds...this 10% must be savings,gift,HTB etc

16-10-2020 5:34pm

Rattlehead_ie wrote: »

I found this process with AIB confusing as normally an AIP comes after the documents have all been verified. I'm worried as with all these things they significantly mark me down after documents are recieved. How close are AIBs AIP in comparison to others??

However to answer your question...the 10% is based on the value of the house you are looking at and must NOT be taken from mortgage funds...this 10% must be savings,gift,HTB etc

Yeah it seems to be just a fancier version of the calculator tbh...

No I know, when I say max aip I mean the max mortgage they offer with our 10% deposit aswell (of which we have 7%, we need another bit to get the full 10%). But for example with a 90% mortgage (max they will offer) and 10% deposit a house could be 200k and a 20k deposit + fees. Whereas we have seen some properties for about 150k which meaks 15k deposit + fees. In the latter we have 10% whereas for the max mortgage offered we don't just yet but will soon. So how can they ask for proof of 10% when we don't know the purchase price

Sorry if that doesn't make sense haha

So I should just keep going with sending the docs in at the moment and treat it like a formal application?

Rattlehead_ie · 16-10-2020 5:40pm

943 wrote: »

Yeah it seems to be just a fancier version of the calculator tbh...

No I know, when I say max aip I mean the max mortgage they offer with our 10% deposit aswell (of which we have 7%, we need another bit to get the full 10%). But for example with a 90% mortgage (max they will offer) and 10% deposit a house could be 200k and a 20k deposit + fees. Whereas we have seen some properties for about 150k which meaks 15k deposit + fees. In the latter we have 10% whereas for the max mortgage offered we don't just yet but will soon. So how can they ask for proof of 10% when we don't know the purchase price

Sorry if that doesn't make sense haha

So I should just keep going with sending the docs in at the moment and treat it like a formal application?

Aha I get you now. I think,plus I'm open to correction, its proof of savings rather than proff of the numeric 10%. Its not so much related to the house as I havent even found one I wanted to bid/purchase. So say in your example you're near the 10% of the 200k (20k) say 18.5k.....just upload proof of that 18.5k. At the end of the day with AIB once you're approved you still have 12months to keep saving more of the deposit.
Again open to correction.

16-10-2020 5:43pm

Rattlehead_ie wrote: »

Aha I get you now. I think,plus I'm open to correction, its proof of savings rather than proff of the numeric 10%. Its not so much related to the house as I havent even found one I wanted to bid/purchase. So say in your example you're near the 10% of the 200k (20k) say 18.5k.....just upload proof of that 18.5k. At the end of the day with AIB once you're approved you still have 12months to keep saving more of the deposit.
Again open to correction.

Ahhh yes ok. That's what I thought. On the application it asks you to prove how you're going to fund the difference between what we have now and 10% so I just uploaded the savings proof so we will see what they say

Thanks a mill for your reply!

Bananaleaf · 16-10-2020 10:53pm

Apologies if this is the wrong place to seek advice....

Bought a home 3years ago. Interest rate on the mortgage was fixed 3% for 3years.

It is up in Jan and we have been offered the following:

Fixed 3yrs @3%
Fixed 5yrs @3%
Fixed 10yrs @3.5%

We were given variable rates, but not interested in those. I think I remember someone on here once saying that if you get offered a 5yr fixed term to snap it up, so that's what I was thinking but would love any suggestions/advice from those more in the know if ye have any

Thanks so much in advance

awec · 16-10-2020 11:06pm

Bananaleaf wrote: »

Apologies if this is the wrong place to seek advice....

Bought a home 3years ago. Interest rate on the mortgage was fixed 3% for 3years.

It is up in Jan and we have been offered the following:

Fixed 3yrs @3%
Fixed 5yrs @3%
Fixed 10yrs @3.5%

We were given variable rates, but not interested in those. I think I remember someone on here once saying that if you get offered a 5yr fixed term to snap it up, so that's what I was thinking but would love any suggestions/advice from those more in the know if ye have any

Thanks so much in advance

You can get far better rates if you shop around. Those rates are high.

Browney7 · 16-10-2020 11:11pm

Bananaleaf wrote: »

Apologies if this is the wrong place to seek advice....

Bought a home 3years ago. Interest rate on the mortgage was fixed 3% for 3years.

It is up in Jan and we have been offered the following:

Fixed 3yrs @3%
Fixed 5yrs @3%
Fixed 10yrs @3.5%

We were given variable rates, but not interested in those. I think I remember someone on here once saying that if you get offered a 5yr fixed term to snap it up, so that's what I was thinking but would love any suggestions/advice from those more in the know if ye have any

Thanks so much in advance

These rates look expensive enough to me and I assume you're with Bank of ireland. I'd be switching elsewhere for a lower rate or a cashback deal.

Bananaleaf · 16-10-2020 11:27pm

awec wrote: »

You can get far better rates if you shop around. Those rates are high.

Thank you

Browney7 wrote: »

These rates look expensive enough to me and I assume you're with Bank of ireland. I'd be switching elsewhere for a lower rate or a cashback deal.

I am with BOI. Thanks, will have to look around in that case.

I don't know if interest rates are influenced by how many years you are choosing to pay back over, if that makes a difference with what they offer? (as in, we didn't stretch it out over 30years)

awec · 16-10-2020 11:31pm

Bananaleaf wrote: »

Thank you

I am with BOI. Thanks, will have to look around in that case.

I don't know if interest rates are influenced by how many years you are choosing to pay back over, if that makes a difference with what they offer? (as in, we didn't stretch it out over 30years)

The years don't really matter, it's your loan-to-value ratio that'll influence what rates you get.

For example with AIB you'd likely be looking at a rate of 2.45% if you fixed for 5, assuming you're in the 50-80% LTV bracket. I think you could do even better than this, but I haven't compared the banks recently.

Leozord · 16-10-2020 11:31pm

Bananaleaf wrote: »

I am with BOI. Thanks, will have to look around in that case.

They will give 2% cashback right after the drawdown and 1% I guess 5 years later?

Plus, if you have a mortgage saver account, they will give you another 2K euros (if you use that money to pay the deposit)

Bananaleaf · 16-10-2020 11:43pm

awec wrote: »

The years don't really matter, it's your loan-to-value ratio that'll influence what rates you get.

For example with AIB you'd likely be looking at a rate of 2.45% if you fixed for 5, assuming you're in the 50-80% LTV bracket. I think you could do even better than this, but I haven't compared the banks recently.

I just looked at the letter and it says the rates are for LTV greater tha 80%

Leozord wrote: »

They will give 2% cashback right after the drawdown and 1% I guess 5 years later?

Plus, if you have a mortgage saver account, they will give you another 2K euros (if you use that money to pay the deposit)

Yep, that's the one. We got the 2% and would be due the 1% in another 2years time. We didn't have the mortgage saver account and I think the snag with that was that you had to be using it for a couple of months before drawing down and we weren't able/willing to wait the 6 or 12 months or whatever it was

bdmc5 · 17-10-2020 1:27am

Browney7 wrote: »

These rates look expensive enough to me and I assume you're with Bank of ireland. I'd be switching elsewhere for a lower rate or a cashback deal.

We did just that this summer. Moved from BOi after our fixed term to TSB to avail of another 2% cashback. In addition to a lower rate and 2% back on every monthly payment. Shop around 100 percent

Duke of Url · 17-10-2020 7:59am

Leozord wrote: »

They will give 2% cashback right after the drawdown and 1% I guess 5 years later?

Plus, if you have a mortgage saver account, they will give you another 2K euros (if you use that money to pay the deposit)

You also need to be saving for 6 months into your mortgage savers account for the 2k cashback

Browney7 · 17-10-2020 9:28am

Bananaleaf wrote: »

I just looked at the letter and it says the rates are for LTV greater tha 80%

Yep, that's the one. We got the 2% and would be due the 1% in another 2years time. We didn't have the mortgage saver account and I think the snag with that was that you had to be using it for a couple of months before drawing down and we weren't able/willing to wait the 6 or 12 months or whatever it was

Well you need to do the sums on switching if you'll be getting back 1% of the original amount in two years time. It may or may not be worth your while switching now you are 3 years in. You need to look at the total repayments over the next 2 years factoring in the cost of switching for a range of options

three putt · 17-10-2020 10:01am

It's possible to do multiple switches all at once, and take advantage of the cashback offers with multiple banks.
Full information here:

https://www.askaboutmoney.com/threads/how-to-get-cash-back-4-times-in-6-months.214963/

Graham · 17-10-2020 10:05am

Mod Note

some posts moved from property market 2020 thread.

Green Mile · 17-10-2020 11:17am

I think I’m going to switch to KBC for the cashback offer. I’m correct that you need to have a KBC current account to avail of this?

Doesn’t bother me as they have zero fees on current accounts.
Apparently it take a long time to open a current account (according to google reviews) so I’m thinking of getting this sorted now before I start the mortgage switch process.

Meandyou999 · 17-10-2020 5:11pm

Looking at a 4 bed semi D in Munster, second hand new build home 4 years old. Price is 329k.
Take home pay after tax is 3,200k per month. Have been mortage approved (joint application) have 50k deposit saved and few grand for solicitors fees outside of the deposit.
My questions are:
1. Is the house worth it? Same house sold for 269k 4years ago when it was built.
2. Would i be able to afford to pay the mortgage back over 25 years on my pay.
3. Am i making a big mistake are house prices going to crash?. I have a refundable deposit paid.

Thanks.

Bananaleaf · 17-10-2020 8:51pm

three putt wrote: »

It's possible to do multiple switches all at once, and take advantage of the cashback offers with multiple banks.
Full information here:

https://www.askaboutmoney.com/threads/how-to-get-cash-back-4-times-in-6-months.214963/

Is this legal? It seems too good to be legal

Saving/Applying for a mortgage 2020-22 Edition

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