Saving/Applying for a mortgage 2015/16/17/18/19

Sebastian Dangerfield · 13-01-2017 2:42pm

kwat wrote: »

Quick question.

Currently saving towards a deposit and as part of this, along with my own savings, I'm hoping to be gifted an amount by my parents. I understand I will need a letter from them stating it's a gift and they don't require it back however in reality I will pay them back this amount over time.

Does anyone know if this letter usually suffices or if the banks can look for further information on the source of funds for the gift e.g. bank statements from my parents etc.

Thanks

It may depend on what % they're giving you, but mine didn't. There was a gift letter as part of the application, then another declaration prior to closing.

kwat · 13-01-2017 2:53pm

Sebastian Dangerfield wrote: »

It may depend on what % they're giving you, but mine didn't. There was a gift letter as part of the application, then another declaration prior to closing.

No the gift won't be above €20k so hopefully just the gift letter will suffice.

Thanks

kwat · 13-01-2017 2:54pm

Reese Lively Cabinet wrote: »

In order to get approval in principal, you won't even need the letter from them. The bank only need to look further if the gift is above €20,000. At least this was the case for my application (didn't need gift in the end however).

Thanks for that - was your application pretty recently?
Won't be above €20k so hopefully just the letter will suffice.

q85dw7osi4lebg · 13-01-2017 3:02pm

kwat wrote: »

Thanks for that - was your application pretty recently?
Won't be above €20k so hopefully just the letter will suffice.

Got approved at the end of September

Best of luck with your application.

howtolive · 13-01-2017 8:47pm

Hi,

I am in full time permanent employment with the same company several years. My Fiancee is with a new company, has just come out of her three month probationary period, and has been advised that her contract is fixed term (12 months with options to offer further contracts down the line, she initially believed it was a permanent role).

Will any bank consider any percentage of her salary at the 6 month mark, or base their calculations on mine alone?

If they would consider her salary, would it be as simple as mine + her proportion X 3.5?

Would a broker have any extra leverage with this, or is it futile even trying?

Thanks.

Idioteque · 13-01-2017 9:27pm

howtolive wrote: »

I am in full time permanent employment with the same company several years. My Fiancee is with a new company...

Best bet is to just ring a few of them and explain the situation, you never know how they might see things depending on a lot of factors specific to your situation.

Sebastian Dangerfield · 13-01-2017 11:55pm

kwat wrote: »

No the gift won't be above €20k so hopefully just the gift letter will suffice.

Thanks

Mine was only 15k, still needed it.

morrga · 14-01-2017 12:31am

howtolive wrote: »

Hi,

I am in full time permanent employment with the same company several years. My Fiancee is with a new company, has just come out of her three month probationary period, and has been advised that her contract is fixed term (12 months with options to offer further contracts down the line, she initially believed it was a permanent role).

Contracts can roll for no longer than 2 years. At the end of two years the company has to either offer a permanent role or cease employment. They cannot offer another fixed term for another 12 months.

detoxkid · 15-01-2017 10:54am

Just wondering? We want to get a mortgage of 290k, house worth 330k. We have around 45k of a deposit which we have saved ourselves over the years. I'm on 70k, permanent state job. Husband is on 38k, permanent job which he started recently in a start up business. We are second time buyers and are renting out our other house for 4 years, we have been renting ourselves for the last 4 years. We have no other debts. I don't want to sell the other house yet as I'd barely break even on the mortgage So we meet the criteria for salary but not deposit yet, would anyone know would we be eligible for an exemption on the strength of my job and the fact that we have a good track record with savings?

bleary · 15-01-2017 11:20am

Yes banks can grant exemptions, go talk to one or a broker, also if you are still in negative equity on first house then the 20% deposit doesn't apply

Bubbaclaus · 15-01-2017 4:14pm

Does anyone here have any experience of getting a loan to income exemption? I'm in my mid to late 20s on 65k and would be looking for a mortgage of somewhere around 300k

Is a loan to income ratio of almost 5 possible with the exemption? Will being single help or hinder this?

I'm not at the stage yet where I will be reaching out to banks/brokers, but just wanted to see if there are people in a similar position further along the line on here.

irishbuzz · 15-01-2017 5:52pm

For exemptions, salary * 4.5 is the maximum they will go.

It's worth noting that banks can only provide exemptions on a limited percentage of their total mortgages a year. This means that (1) they will only offer them to the most favourable applicants (2) mortgage applications made earlier in the year stand a better chance of receiving an exemption.

businessdit · 15-01-2017 6:42pm

Hi folks -

It's strange how my income comes in as I am self employed and also employed in a steady government job.

My PAYE gross income is €37,500. (Will rise to 42,800 in 3 years due to increments)

Also I am self employed and made 20,000 euro in 2015.
In 2016 I established a company and made a profit of about 60,000 euro.
This year we should be on track to make a mid-year profit of about 30,000 euro by June.

In June I want to get a mortgage approval and buy house over the summer.
I have about 65,000 cash in the bank for a deposit.
I am saving regularly so should be able to show a track record of savings.

Can anyone estimate how much of a mortgage I will get?
I'm confused because of my double incomes.

Thanks
Alan

tony1980 · 15-01-2017 6:45pm

Got our keys Friday, the painting has started

CPTM · 15-01-2017 6:46pm

My experience was that the bank does take salary into account but they focused more on savings and rent (if any). How much have you regular saved per month over the past 6 months and how much rent do you pay?

businessdit · 15-01-2017 6:53pm

CPTM wrote: »

My experience was that the bank does take salary into account but they focused more on savings and rent (if any). How much have you regular saved per month over the past 6 months and how much rent do you pay?

Thanks for the reply. I am saving about 1350pm and pay rent of €370 on top of that. Also every month I have about 5000 profit coming into the company every month, but I'm jut leaving that cash build up in the company so no directly taking a wage from the company.

So as you can imagine don't really know how they will like that...

TimeToShine · 15-01-2017 6:57pm

businessdit wrote: »

Thanks for the reply. I am saving about 1350pm and pay rent of €370 on top of that. Also every month I have about 5000 profit coming into the company every month, but I'm jut leaving that cash build up in the company so no directly taking a wage from the company.

So as you can imagine don't really know how they will like that...

You should start drawing a salary ASAP.

Consult an accountant.

businessdit · 15-01-2017 7:03pm

TimeToShine wrote: »

You should start drawing a salary ASAP.

Consult an accountant.

Thanks for the reply.

Why should I start drawing a salary?
The business needs to grow and will require investment in time.
So I pay 12.5% corp tax instead of 52% income tax.
Building company savings for security.

Are you saying that if I don't draw a salary then none of this company income will support my mortgage application? I am the sole owner/director of the company.

Thanks

Blingy · 15-01-2017 8:19pm

businessdit wrote: »

Thanks for the reply.

Why should I start drawing a salary?
The business needs to grow and will require investment in time.
So I pay 12.5% corp tax instead of 52% income tax.
Building company savings for security.

Are you saying that if I don't draw a salary then none of this company income will support my mortgage application? I am the sole owner/director of the company.

Thanks

While I haven't done it myself I wonder if speaking to a broker might help you. Seems like like a sensible decision not to draw a salary based on the taxes. This I'm sure could be explained. A broker might have experience in this type of application.

lfc200 · 15-01-2017 10:12pm

CPTM wrote: »

My experience was that the bank does take salary into account but they focused more on savings and rent (if any). How much have you regular saved per month over the past 6 months and how much rent do you pay?

Not sure whether this is the case with all banks but a friend of mine had recently set up his own business similar to you. Before the bank would take into account that business/salary for mortgage purposes they wanted 3 years of audited accounts for the business.

Whether this is all banks or done on case by case basis I don't know.

businessdit · 16-01-2017 2:31am

lfc200 wrote: »

Not sure whether this is the case with all banks but a friend of mine had recently set up his own business similar to you. Before the bank would take into account that business/salary for mortgage purposes they wanted 3 years of audited accounts for the business.

Whether this is all banks or done on case by case basis I don't know.

Thanks for the info - I will have accounts for being self employed 20,000 profit and accounts for 2016 of 60,000 profit and will be able to get a letter from my accountant with accounts to date of about 30,000 profit for 2017 come the summer I hope. Surely this will suffice?

It's a pity that no-one seems to have found themselves in a similar situation!
Very worried that for all of my work I won't be able to get a reasonable mortgae on a technicality....

athtrasna · 16-01-2017 7:55am

businessdit wrote: »

It's a pity that no-one seems to have found themselves in a similar situation!
Very worried that for all of my work I won't be able to get a reasonable mortgae on a technicality....

You asked the question on a Sunday night. Doesn't mean than nobody has been in your situation, just that nobody who was online on a Sunday night could help.

68 lost souls · 16-01-2017 9:39am

businessdit wrote: »

Thanks for the info - I will have accounts for being self employed 20,000 profit and accounts for 2016 of 60,000 profit and will be able to get a letter from my accountant with accounts to date of about 30,000 profit for 2017 come the summer I hope. Surely this will suffice?

It's a pity that no-one seems to have found themselves in a similar situation!
Very worried that for all of my work I won't be able to get a reasonable mortgae on a technicality....

Well technically the profit is not yours it belongs to the company and while it sounds like your business is being pretty successful I don't think it could be taken into account. Pure speculation on my part though. That's just how I would see it

09_09_09 · 16-01-2017 11:21am

businessdit wrote: »

Thanks for the reply.

Why should I start drawing a salary?
The business needs to grow and will require investment in time.
So I pay 12.5% corp tax instead of 52% income tax.
Building company savings for security.

Are you saying that if I don't draw a salary then none of this company income will support my mortgage application? I am the sole owner/director of the company.

Thanks

You need to look at the Close Company Surcharge. Whoever is filing your (means your company's) Corporation Tax Returns should pay CCS on undistributed profits.

Also, company is a separate legal entity. You need to have a chat with your accountant, if there is any.

spiderlover · 16-01-2017 11:41am

Just want to bump this in the hope that someone can provide so insight

spiderlover wrote: »

Hi everyone,
Long time lurker first time poster. Myself and the other half have AIP and have gone sale agreed on a place and have paid booking deposit. The valuation survey report has been sent to the bank so hoping for letter of offer this week. We have a structural survey booked for later this week so everything is moving along. What I was wondering was when we should expect contracts to come across from the sellers solicitor, we're heading into week 3 at this point and I thought they'd be over by now.

lbyrne121 · 16-01-2017 11:44am

Has anyone bought a house owned by the banks through an EA? Just put in an offer for a house but wondering how long it will take to hear back as it is your standard owner occupier house?

Anyone any experience with this? will I have to wait weeks to even see if offer was accepted or rejected?
TIA

big syke · 16-01-2017 11:53am

businessdit wrote: »

Thanks for the info - I will have accounts for being self employed 20,000 profit and accounts for 2016 of 60,000 profit and will be able to get a letter from my accountant with accounts to date of about 30,000 profit for 2017 come the summer I hope. Surely this will suffice?

It's a pity that no-one seems to have found themselves in a similar situation!
Very worried that for all of my work I won't be able to get a reasonable mortgae on a technicality....

For personal mortgages a bank will only look at salary drawn because firstly profit does not necessarily equal cash and also any profits and/or positive cash flow reside with the company.

If you were looking for a business loan the bank would look at this different because the loan is given to the company.

ThisRegard · 16-01-2017 12:12pm

spiderlover wrote: »

Just want to bump this in the hope that someone can provide so insight

You're into how long is a piece of string territory, there is no standard answer. You should have your solicitor check with theirs.

spiderlover · 16-01-2017 2:15pm

Thanks ThisRegard. I'm gonna chase my solicitor on it

q85dw7osi4lebg · 16-01-2017 2:21pm

lbyrne121 wrote: »

Has anyone bought a house owned by the banks through an EA? Just put in an offer for a house but wondering how long it will take to hear back as it is your standard owner occupier house?

Anyone any experience with this? will I have to wait weeks to even see if offer was accepted or rejected?
TIA

Normally the banks will ask the EA to run a fairly structured marketing campaign, which could include 3/4 weekends of open views and a minimum number of private viewings also.

The EA in a lot of instances won't know what the minimum price acceptable to the bank is.

Generally the EA will put all offer to the bank as they come in and then the bank will ask the EA to recommend the best offers to them by the end of the agreed marketing time frame.

There are obviously exceptions to the above. Another thing to keep in mind is that the EA will only be dealing with one contact in the bank / receiver, and that person will require sign off from their superiors. Depending on how long the property is on the market, you could be expected to wait 3 weeks or so IMO.

Saving/Applying for a mortgage 2015/16/17/18/19

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