Saving/Applying for a mortgage 2020-22 Edition

TheMilkyPirate · 05-04-2021 4:15pm

If one of us is out of work on PUP how long will they have to be back at their job before we could apply? Everything else is in order savings etc

DubLad69 · 05-04-2021 4:32pm

TheMilkyPirate wrote: »

If one of us is out of work on PUP how long will they have to be back at their job before we could apply? Everything else is in order savings etc

As long as you kept up the savings, you only need 1 payslip without the PUP.

TheMilkyPirate · 05-04-2021 4:35pm

DubLad69 wrote: »

As long as you kept up the savings, you only need 1 payslip without the PUP.

We only need to provide one applicants payslip? Savings have never stopped

dkav9 · 05-04-2021 9:18pm

Starting to get a few bits together as will be applying for a mortgage approval soon.

Most of my savings are with a life insurance company, and is basically invested in different funds, and I also have some invested in stocks and etfs. Will I need to convert all of this to cash for proof of deposit?

I will likely need an exemption for >3.5 times income for any of the houses I was looking at. Was speaking to a broker who said my circumstances with regards to rent payments and savings to be eligible. Would this add a lot of time to getting mortgage approved? How long would I be expecting to wait for approval? (I would be going through a broker)

Thanks!

Pete123456 · 05-04-2021 10:34pm

dkav9 wrote: »

Starting to get a few bits together as will be applying for a mortgage approval soon.

Most of my savings are with a life insurance company, and is basically invested in different funds, and I also have some invested in stocks and etfs. Will I need to convert all of this to cash for proof of deposit?

I will likely need an exemption for >3.5 times income for any of the houses I was looking at. Was speaking to a broker who said my circumstances with regards to rent payments and savings to be eligible. Would this add a lot of time to getting mortgage approved? How long would I be expecting to wait for approval? (I would be going through a broker)

Thanks!

No you shouldn’t need to cash out, at least in the case of AIB or Haven.

Timing is a bit like a piece of string though - it depends on the day and the underwriter you get (assuming your broker sends stuff in immediately after they get it from you). Some will ask more questions than others...

I preempted a lot of the queries the underwriters had (on the standard stuff - allowances etc) and sent on the answers in an email - they seemed to ignore this and ask the questions anyway. This pushed everything back by 10 days or so. It really depends on your circumstances. Your app could sail through right first time or it could get bounced back two or three or more times.

If you’re broker is on the ball and you don’t get any queries at all back, I would expect about 3 weeks from sending everything to your broker.

Plasandrunt · 05-04-2021 11:10pm

Can someone PM the name of a decent broker in the Dublin area.

TIA

Ikozma · 05-04-2021 11:42pm

Not sure if anyone can answer this but if you buy a site to build on with your own cash can that be classed as the same as a 20% deposit needed to get a mortgage as a second time buyer or would you need the cash deposit as well as the site?

thomas 123 · 06-04-2021 9:34am

Ikozma wrote: »

Not sure if anyone can answer this but if you buy a site to build on with your own cash can that be classed as the same as a 20% deposit needed to get a mortgage as a second time buyer or would you need the cash deposit as well as the site?

Similar situation FTB considering buying the site with deposit savings to secure it (once pp granted).

Wondering if this is a good idea or not also!

Swampy · 06-04-2021 4:26pm

Sweet mother of God it is taking an age to get mortgage approval. Rant over.

thegreatescape · 06-04-2021 4:30pm

Swampy wrote: »

Sweet mother of God it is taking an age to get mortgage approval. Rant over.

Don't be in any rush, there's nothing coming onto the market at the moment (in my area anyway!)

Hanaolosdad · 07-04-2021 12:11pm

Sent all my stuff in to AIB for self build mortgage application

have site with planning worth 100,000 in our name ( this is valuation done two weeks ago ), We have 95,000 in savings and going direct labour ,estimate cost of 250,000

Had an issue with KBC not updating my address correctly- did not get 3 statements, complained, the never updated address still- paid it all all , they told me they cancelled the credit card, they didnt ,left it at revoked, complained again they said they cancelled it of September 2019, complained again- they updated it to show cancelled as of June 2019- which is again incorrect as it should of been March- currently have a complaint in with FSPO

the fact that its currently with the FSPO will that hinder my application?

Markitron · 07-04-2021 12:14pm

Has anyone ever had any experience of a broker ignoring you? I have been waiting on my loan offer since late January, I was getting constant updates from the broker but a month ago he stopped replying to my emails. Its now putting the sale in jeopardy.

Can I go directly to the bank and ask them what is going on?

thegreatescape · 07-04-2021 12:30pm

Markitron wrote: »

Has anyone ever had any experience of a broker ignoring you? I have been waiting on my loan offer since late January, I was getting constant updates from the broker but a month ago he stopped replying to my emails. Its now putting the sale in jeopardy.

Can I go directly to the bank and ask them what is going on?

Is the broker apart of a larger company? If so I would get onto the company itself and say that the broker isn't responding etc. I did this with an incompetent broker and told them I was taking my business elsewhere. The same day I got placed with a different agent and it has been smooth sailing since.

Markitron · 07-04-2021 1:06pm

thegreatescape wrote: »

Is the broker apart of a larger company? If so I would get onto the company itself and say that the broker isn't responding etc. I did this with an incompetent broker and told them I was taking my business elsewhere. The same day I got placed with a different agent and it has been smooth sailing since.

He is yea, Ok this will be how I escalate it then. Thanks.

dkav9 · 07-04-2021 1:17pm

Irish mortgage rates remain ‘stubbornly high,’ new figures show (via @IrishTimes) https://www.irishtimes.com/business/economy/irish-mortgage-rates-remain-stubbornly-high-new-figures-show-1.4531009

we are still getting fleeced

thomas 123 · 07-04-2021 1:43pm

thomas 123 wrote: »

Similar situation FTB considering buying the site with deposit savings to secure it (once pp granted).

Wondering if this is a good idea or not also!

Just want to ask this again and leverage the knowledge in here!

klose · 07-04-2021 5:00pm

Anyone here have any experience renewing your AIP with AIB? What's involved etc..?
Ours expires next month so hoping to get a head start and have everything in line for a quick renewal.

Pussyhands · 07-04-2021 6:52pm

I've sent in some documents they asked for and they are asking me for a March bank statement. The statement I gave them goes up to 29th March.

Another document they wanted I can't get for a few weeks...is there any point in getting an updated statement now or should I just wait for a few weeks?

fago · 07-04-2021 7:15pm

klose wrote: »

Anyone here have any experience renewing your AIP with AIB? What's involved etc..?
Ours expires next month so hoping to get a head start and have everything in line for a quick renewal.

Just about to complete our 4th round of AIP, docs gone in.
For personal details part they inherit all that from previous application
After that it's like a fresh application, how much to borrow, salary cert, statements etc.
We were told to kick off application 6 weeks before current AIP expires

They are now supporting tracker retentions via the portal which has made it easier for us

CalisGirl · 08-04-2021 9:23pm

My broker confirmed that I've got my offer and said that I should have the official letter from the bank by post early next week and a copy will be sent to the solicitor. The apartment is at builders finish. Just wondering how long should it take until I get the keys?! Also, what's the rest of the process like?

dennyk · 10-04-2021 12:06am

Pussyhands wrote: »

I've sent in some documents they asked for and they are asking me for a March bank statement. The statement I gave them goes up to 29th March.

Another document they wanted I can't get for a few weeks...is there any point in getting an updated statement now or should I just wait for a few weeks?

Yeah, AIB are really picky about bank statements, it seems. Sent 'em a statement which covered six months minus a day or so (as it was generated a day before the end of March) and they didn't like that at all, but luckily they accepted a screenshot of my online banking for the missing period instead of insisting that I generate another statement to cover that day and a half...

Pussyhands · 10-04-2021 12:28am

dennyk wrote: »

Yeah, AIB are really picky about bank statements, it seems. Sent 'em a statement which covered six months minus a day or so (as it was generated a day before the end of March) and they didn't like that at all, but luckily they accepted a screenshot of my online banking for the missing period instead of insisting that I generate another statement to cover that day and a half...

It's really annoying having a BOI account, when you generate a statement, it only includes from the last time a statement was generated. Very annoying trying to review spending and having to open up loads of documents.

Ash3011 · 10-04-2021 1:47pm

Would really appreciate hearing from anyone who has any info/experience regarding this situation:
Returning to work after being on PUP for several months (had to give up my job to stay home with our young children due to school/childcare closures). I am due to start a new full time permanent position, exactly the same as my previous job, with a new company next Monday. Probation has been agreed at 12 weeks as I am experienced, could potentially be shortened further. My partner has a secure job and very strong salary. Savings are uninterrupted despite being on PUP.
We already own a house but wish to trade up to a house gone on sale around the corner.
What are the chances of getting approved if I have a few payslips together and employer confirms end date of probation?

Also... are banks still hating on overdrafts?

cintec · 10-04-2021 2:26pm

Ash3011 wrote: »

Also... are banks still hating on overdrafts?

Every bank I spoke to asked about overdrafts.

10-04-2021 3:06pm

Ash3011 wrote: »

Would really appreciate hearing from anyone who has any info/experience regarding this situation:
Returning to work after being on PUP for several months (had to give up my job to stay home with our young children due to school/childcare closures). I am due to start a new full time permanent position, exactly the same as my previous job, with a new company next Monday. Probation has been agreed at 12 weeks as I am experienced, could potentially be shortened further. My partner has a secure job and very strong salary. Savings are uninterrupted despite being on PUP.
We already own a house but wish to trade up to a house gone on sale around the corner.
What are the chances of getting approved if I have a few payslips together and employer confirms end date of probation?

Also... are banks still hating on overdrafts?

I'd say you'd be alright in those circumstances. From my experience they will not let you draw down if you're on probation, and I think they asked for 3 payslips (could have been 6). The fact you own a house and presume are in good standing on the mortgage should help show ability to repay.

And yeah they don't seem mad about overdrafts.

Markitron · 10-04-2021 3:36pm

Ash3011 wrote: »

Also... are banks still hating on overdrafts?

An overdraft is basically a neon sign on your application that says ‘I can’t manage my finances’. Get rid of it ASAP, even if you don’t save anything for a month or two. Getting rid of it will still be seen as repayment capacity so it shouldn’t count against you.

Ash3011 · 10-04-2021 4:10pm

The overdraft is small enough, €750 and we would only be in it for a day or so at a time before moving back into positive balance. The worst we had over the last six months was a week or so in overdraft I think. Still understandable why they don't like them though and I agree it would be best to clear it.

antimatterx · 10-04-2021 4:41pm

What would be the chances of getting a exemption of 4X with a salary of €50K and a deposit of €50K - €60K.

soc · 10-04-2021 5:56pm

Ash3011 wrote: »

Would really appreciate hearing from anyone who has any info/experience regarding this situation:
Returning to work after being on PUP for several months (had to give up my job to stay home with our young children due to school/childcare closures). I am due to start a new full time permanent position, exactly the same as my previous job, with a new company next Monday. Probation has been agreed at 12 weeks as I am experienced, could potentially be shortened further. My partner has a secure job and very strong salary. Savings are uninterrupted despite being on PUP.
We already own a house but wish to trade up to a house gone on sale around the corner.
What are the chances of getting approved if I have a few payslips together and employer confirms end date of probation?

Also... are banks still hating on overdrafts?

FYI my probation for new job was 3months and despite having met the probation period, the bank still insisted that a condition of drawdown was I had to employed by my company for no less than 6 months. Probation period and me not being on it didn't matter...

Ash3011 · 10-04-2021 7:51pm

soc wrote: »

FYI my probation for new job was 3months and despite having met the probation period, the bank still insisted that a condition of drawdown was I had to employed by my company for no less than 6 months. Probation period and me not being on it didn't matter...

That's interesting to know. I have spoken to a couple of banks who've assured me that once the 12 weeks probation was passed, we would be eligible for full approval & drawdown.

The issues that concern me the most are that they would go back on their word regarding approving somebody coming off the PUP and back into employment, and the fact that we use our overdraft a bit. I didn't monitor the account it closely enough as we weren't expecting this particular house to come back on the market, so we dip in and out but never reach the limit on it. We push aside between 2k-3k savings per month, combined income of 140k from Monday when I return to work and we would be asking to borrow around 30k less than our 3.5x limit. It's very hard to know how they'll view the application.

Ikozma · 10-04-2021 8:14pm

Ikozma wrote: »

Not sure if anyone can answer this but if you buy a site to build on with your own cash can that be classed as the same as a 20% deposit needed to get a mortgage as a second time buyer or would you need the cash deposit as well as the site?

Does anyone have the answer to this question?

Renjit · 10-04-2021 8:19pm

Ash3011 wrote: »

The overdraft is small enough, €750 and we would only be in it for a day or so at a time before moving back into positive balance. The worst we had over the last six months was a week or so in overdraft I think. Still understandable why they don't like them though and I agree it would be best to clear it.

If it wasn't for emergency circumstances, maintaining a rainy day fund is highly recommended.

cintec · 10-04-2021 9:05pm

antimatterx wrote: »

What would be the chances of getting a exemption of 4X with a salary of €50K and a deposit of €50K - €60K.

do you have additional income? without overtime/bonuses I don't think you stand a chance.

I have a salary of 60k and deposit of 120k but could only get 3.5x as they didn't take my RSU income into account.

soc · 10-04-2021 9:40pm

Ash3011 wrote: »

That's interesting to know. I have spoken to a couple of banks who've assured me that once the 12 weeks probation was passed, we would be eligible for full approval & drawdown

Mortgage Advisor said exact same thing to me. It was the underwriters that put the condition.

Basically as nice as Mortgage Advisors are and say, it's ultimately the underwriters who decides whether you get approved and what conditions are attached.

dkav9 · 10-04-2021 10:26pm

antimatterx wrote: »

What would be the chances of getting a exemption of 4X with a salary of €50K and a deposit of €50K - €60K.

i was told by a broker that it would need to be at least 60k for a single salary (70 joint) before a bank would consider allowing an exemption

xElDeeX · 11-04-2021 2:10pm

xElDeeX wrote: »

The CCR amendment is in progress at the moment and just got a call from the lender to say they agree the date is wrong but they don't agree they need to remove the event. We had a discussion over the phone and I disagreed so they are now contacting the dept to check if they (council) have been doing it wrong for everyone....so at least they are checking?! I went back and read the SI and the CCR handbook and page 39 appears really clear on what and when to report in this scenario. I'm hopeful but also annoyed and a little worried for people who don't read legal text and guidance for fun.

A positive update here. The note on the restructure is going to be removed. Hopefully within the next couple of weeks so my broker wants me to let them know once that is done. She seems to think the refusal decision can be appealed with the underwriters. Anyone know if this is a thing? I've already contacted a bank directly (just general inquiry and a chat about the situation) as I'm considering going that route instead but if the existing application can be resuscitated I won't bother.

StephenRy30 · 11-04-2021 2:20pm

cintec wrote: »

do you have additional income? without overtime/bonuses I don't think you stand a chance.

I have a salary of 60k and deposit of 120k but could only get 3.5x as they didn't take my RSU income into account.

Can you not get a mortgage for what you have saved and your income? Are you looking to buy or build ?
Would be in a great position to build .

Creamy Goodness · 11-04-2021 5:17pm

StephenRy30 wrote: »

Can you not get a mortgage for what you have saved and your income? Are you looking to buy or build ?
Would be in a great position to build .

With most applicants nowadays. It’s not whether they’ll get a mortgage or not, it’s whether you’ll get a sufficient mortgage to buy where they want to.

Building is one route but unless you have a very good architect, QS and builder it’s not for those who are struggling to buy where they want to buy, unless they’re gifted land.

Ash3011 · 11-04-2021 6:10pm

soc wrote: »

Mortgage Advisor said exact same thing to me. It was the underwriters that put the condition.

Basically as nice as Mortgage Advisors are and say, it's ultimately the underwriters who decides whether you get approved and what conditions are attached.

That is unfortunate, I'm sure you were disappointed. When we got AIP for our last mortgage the condition was that I would be off probation by the time we drew down. On that occasion, my probation was 6 months and I passed it pre-drawdown, so I've no idea if the length of time mattered or not.

Also, would anyone know if banks would view the fact that we were just saving generally, with no major objectives apart from replacing our car (which we have done) as we were not expecting this house to come back on market. Will they still appreciate the act of saving even though it wasn't originally necessarily for a deposit? We obviously removed some money from savings to pay for car, but saving continued at same rate afterwards.
My gut feeling is we will be refused based on the fact that we push a large amount into savings straight after payday, then things can get a bit lean during the month and we go in & out of overdraft, I really didn't pay too much attention as we did not think we would move for another year or so!

WhiteWalls · 11-04-2021 6:36pm

Hi,

How long is considered to be consistent overtime for a mortgage? My overtime is not guaranteed but is a general rule of thumb an average of the past three years?

I'd be looking at 10k last year and around 7k for the past 2 years. This year which is still in its infancy I know, but I'd be averaging so far over 10k.

I know some lenders take all of your overtime into consideration but is it correct to say an average of the past 3 years?

Thanks for any help

antimatterx · 11-04-2021 7:23pm

dkav9 wrote: »

i was told by a broker that it would need to be at least 60k for a single salary (70 joint) before a bank would consider allowing an exemption

That's dire. What is 50K going to buy.

I'm still going to try. I might get lucky.

CalisGirl · 11-04-2021 7:44pm

Ash3011 wrote: »

Also, would anyone know if banks would view the fact that we were just saving generally, with no major objectives apart from replacing our car (which we have done) as we were not expecting this house to come back on market. Will they still appreciate the act of saving even though it wasn't originally necessarily for a deposit? We obviously removed some money from savings to pay for car, but saving continued at same rate afterwards.
My gut feeling is we will be refused based on the fact that we push a large amount into savings straight after payday, then things can get a bit lean during the month and we go in & out of overdraft, I really didn't pay too much attention as we did not think we would move for another year or so!

As long as you were accumulating funds steadily each month, it should be fine. I was in a similar situation where I looked for a mortgage a lot earlier than expected so hadn't a formal savings plan. But each month I was a) putting funds into a savings account ,b) letting funds accumulate in my current account each month and c) putting money into a savings product (that I had to withdraw from early due to needing it for a deposit). The broker used the funds from these 3 sources to indicate my repayment capacity and to show how much of my salary remained unspent each month.

I can't comment on the overdraft part but certainly, the fact that you weren't saving directly for a deposit won't come against you. You still have good financial habits and are steadily putting funds aside each month.

Renjit · 11-04-2021 9:38pm

WhiteWalls wrote: »

Hi,

How long is considered to be consistent overtime for a mortgage? My overtime is not guaranteed but is a general rule of thumb an average of the past three years?

I'd be looking at 10k last year and around 7k for the past 2 years. This year which is still in its infancy I know, but I'd be averaging so far over 10k.

I know some lenders take all of your overtime into consideration but is it correct to say an average of the past 3 years?

Thanks for any help

BOI takes average of last 3 years. May differ for other lenders.

arleitiss · 13-04-2021 10:04pm

Started filling out mortgage application form today (on my own)

Realized I don't know a single thing about this, would solicitor (or anyone else) be able to fill out these forms and manage all the paper work on my behalf?

I don't need mortgage broker as I know who I am going with but I assume solicitor would be able to do it? What would average cost be like?

I thought I can do it but no, I realized there are way too many possible pitfalls here.

Kevhog1988 · 13-04-2021 10:08pm

Got aip today. Delighted

Pussyhands · 13-04-2021 10:09pm

arleitiss wrote: »

Started filling out mortgage application form today (on my own)

Realized I don't know a single thing about this, would solicitor (or anyone else) be able to fill out these forms and manage all the paper work on my behalf?

I don't need mortgage broker as I know who I am going with but I assume solicitor would be able to do it? What would average cost be like?

I thought I can do it but no, I realized there are way too many possible pitfalls here.

What form are you filling?

I just spent about 20 minutes on the phone with the bank with them asking me questions.

Then got a list of documents they need - fairly simple.

brianc27 · 13-04-2021 10:15pm

arleitiss wrote: »

Started filling out mortgage application form today (on my own)

Realized I don't know a single thing about this, would solicitor (or anyone else) be able to fill out these forms and manage all the paper work on my behalf?

I don't need mortgage broker as I know who I am going with but I assume solicitor would be able to do it? What would average cost be like?

I thought I can do it but no, I realized there are way too many possible pitfalls here.

The documents needed are pretty straightforward, you definitely don't need a solicitor for that, it's how the banks interpret them that's the issue really, there's absolutely nothing a solicitor would be able to help you with here.

You could use a broker to go through the bank you want if you feel they could put together a better package to submit to the bank

Damo 2k9 · 13-04-2021 11:00pm

Kevhog1988 wrote: »

Got aip today. Delighted

Great news!

Currently waiting on AIP with KBC, applied last week (through our broker), received confirmation of them accepting our application yesterday and their decision will be back with us in approx 10 working days. Keeping the fingers crossed!!

D.Q · 14-04-2021 9:23am

Hey guys I'm sure it's been asked loads before so apologies.

Quick question on exemptions, as I'm not sure of how they work exactly.

I'm single, on 37k basic, but salary cert shows 48k for last 3 years after commission. BOI have told me they take the 3 year average.

In an ideal world I would ask for 4.5 times this, as that would bring me up the around the 200k mark, the properties I'm looking at are all around 220k.

I have been saving 850 a month for a year and a half but have had to dip into it a few times for car stuff and some medical expenses. That balance is now at 9k.

I am now saving 1500 each month, as well as paying 325 to my parents in rent via standing order. Regular direct debit for car insurance too.

No overdraft, no credit card, two loans that have been paid off with BOI over the last year or two and never missed a payment.

With the current rate of saving il have around 24k in savings by next January which is when I will be attempting to apply.

Is saving that large amount each month the determining factor in exemptions or how do they decide? I'd be applying next January and want to give myself the best chance possible.

Markitron · 14-04-2021 9:33am

D.Q wrote: »

Hey guys I'm sure it's been asked loads before so apologies.

Quick question on exemptions, as I'm not sure of how they work exactly.

I'm single, on 37k basic, but salary cert shows 48k for last 3 years after commission. BOI have told me they take the 3 year average.

In an ideal world I would ask for 4.5 times this, as that would bring me up the around the 200k mark, the properties I'm looking at are all around 220k.

I have been saving 850 a month for a year and a half but have had to dip into it a few times for car stuff and some medical expenses. That balance is now at 9k.

I am now saving 1500 each month, as well as paying 325 to my parents in rent via standing order. Regular direct debit for car insurance too.

No overdraft, no credit card, two loans that have been paid off with BOI over the last year or two and never missed a payment.

With the current rate of saving il have around 24k in savings by next January which is when I will be attempting to apply.

Is saving that large amount each month the determining factor in exemptions or how do they decide? I'd be applying next January and want to give myself the best chance possible.

Each lender has it's own requirements but in general it is dependent on your salary and your expenditures. Things may change by the time you are going to apply, but it is highly unlikely they would give you an exemption on a 37k salary. My advice would be not to get too obsessed or sidetracked with thinking about it or the market in general. Just keep doing what you are doing and see what's what when you go to apply.

Saving/Applying for a mortgage 2020-22 Edition

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