Saving/Applying for a mortgage 2020-22 Edition

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

three putt · 17-10-2020 10:11pm

Bananaleaf wrote: »

Is this legal? It seems too good to be legal

Yes fully legal. Read the related threads on askaboutmoney - plenty of case studies there. Also links to solicitors with experience of doing it.
I'm amazed more people haven't done this.
Some of the cashback offers are expiring in Dec 2020 (I think BOI), so would be tight on time if starting the process now. But still banks there with the offer.

Bananaleaf · 17-10-2020 11:16pm

three putt wrote: »

Yes fully legal. Read the related threads on askaboutmoney - plenty of case studies there. Also links to solicitors with experience of doing it.
I'm amazed more people haven't done this.
Some of the cashback offers are expiring in Dec 2020 (I think BOI), so would be tight on time if starting the process now. But still banks there with the offer.

I did read the askaboutmoney link, that's why I was asking. It just seems crazy! Someone even saying to the bank that they were doing it! :eek:

I don't even know what the process involves when switching a mortgage - is it like reapplying all over again? It'll be the week after next before I get near a bank, so should I be off getting payslips, salary certs, pounds of our flesh (:pac:) etc in the meantime

poker--addict · 17-10-2020 11:29pm

its like electricity or insurance i guess, most people never change providers, and changing mortgage provider means doing some donkey work- while electricity provider can be changed in 10 min online.

Renjit · 18-10-2020 1:10am

Meandyou999 wrote: »

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.

Do you plan to sub let? Could be easier to pay off emis. Your pay will also appreciate your time. Getting a house late will be more difficult.

three putt · 18-10-2020 8:21am

Bananaleaf wrote: »

I did read the askaboutmoney link, that's why I was asking. It just seems crazy! Someone even saying to the bank that they were doing it! :eek:

I don't even know what the process involves when switching a mortgage - is it like reapplying all over again? It'll be the week after next before I get near a bank, so should I be off getting payslips, salary certs, pounds of our flesh (:pac:) etc in the meantime

Yes, basically it's like applying for a mortgage all over again, so lots of paperwork required. I would imagine you wouldn't even need to visit a bank to start the process - all can be done remotely.
There is a some time and effort involved, but the potential payoff is huge (depending on the size of your mortgage).
People shop around for the best mobile phone plans, e.g. switching from GoMo to 48.ie to save €2 a month, but are not interested in potentially saving/making thousands doing this because there is a bit of time involved.
If you are going to switch anyway, you already need to get all the paperwork. Each bank will require the same paperwork, so switching with more than one bank is no extra work, just additional time

tommyombomb · 18-10-2020 8:46am

Mortgage saver accounts,

I am currently saving for my mortgage through depositing money by bank transfer in credit union. I am wondering if i should be using a mort saving account to benefit for cashback, favourable interest rate and potential bigger mortgage. Need ideally 4-4.5x if i end up buying in Dublin to get the apt in the area i want.

Currently with AIB and hoping to be starting the mortgage process in about 12-16 months as waiting on job permanence.

Also due to covid and moving home, i can setup a few saving accounts if required as fortunately have very low monthly expenses

Meandyou999 · 18-10-2020 12:00pm

bdmc5 wrote: »

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

Do you have to get the house revalued when switching. What happens if the revalue is lower to the initial valuation.
Thanks.

Bluefoam · 18-10-2020 5:27pm

Meandyou999 wrote: »

Do you have to get the house revalued when switching. What happens if the revalue is lower to the initial valuation.
Thanks.

Switching is similar to applying for a new mortgage... The bank need to have confidence that the property has value against the loan.

Meandyou999 · 18-10-2020 6:22pm

If when switching mortgages, if it is a joint original mortgage can you make an application as one person when switching say if your other half is out of work due to childbirth.

Meandyou999 · 18-10-2020 6:22pm

If when switching mortgages, if it is a joint original mortgage can you make an application as one person when switching say if your other half is out of work due to childbirth.

Saving/Applying for a mortgage 2020-22 Edition

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