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

Paul Tergat · 15-10-2019 5:57pm

TheShow wrote: »

New house, why would you need a survey?

solicitor trying to spook me i think.

tomister · 15-10-2019 7:48pm

Paul Tergat wrote: »

Another question if that's ok - when is it best to take out the mortgage protection and home insurance? Want to make sure the timing of having to get these don't slow mortgage drawdown too long but as yet dont' know of completion date. Is it best to do this during the snag so they run alongside each other - also gives time to assign the mortgage protection to bank

My bank has suggested to get the ball rolling about 6 weeks prior to the planned drawdown. If you've any concerns on the mortgage protection (life assurance) due to health issues I would suggest getting the ball rolling earlier as some companies will request information from your doctor.

whatever76 · 15-10-2019 8:12pm

agree - just get the ball rolling and actually shop around for prices as you have the time and just have it lined up and ready to go when you draw down - I am near closing I hope and you be surprised how long it actually takes to draw down especially if you have some contract/legal stuff to agree to but i have all the requirements in place so not to cause further delays once these are sorted . You don't pay out for anything anyway until draw down so just have it ready .

BTW - not sure if its different across different providers but be prepared for personal questions for getting mortgage protection … I was taken back a bit TBH at some of the questions as they are pretty personal but has to be done !

woodchuck · 15-10-2019 10:25pm

I have a question if anyone can help...

We're looking at mortgage comparisons on www.ccpc.ie with a view to picking which bank to apply to for a mortgage, but we're confused about the "Potential ongoing monthly repayments" column (APRC?). The difference between the monthly repayments and the potential ongoing monthly repayments vary wildly within the same fixed term for different banks (~440euro difference for one bank compared to only ~60euro difference for another bank).

Should we just go with the bank that has the best initial interest rate and monthly repayments for the fixed term we have in mind, or do we need to put any stock in the potential ongoing monthly repayments? Presumably we can switch mortgage providers after the fixed term, so I don't know if we need to pay any attention to this number...

G_R · 15-10-2019 11:54pm

woodchuck wrote: »

I have a question if anyone can help...

We're looking at mortgage comparisons on www.ccpc.ie with a view to picking which bank to apply to for a mortgage, but we're confused about the "Potential ongoing monthly repayments" column (APRC?). The difference between the monthly repayments and the potential ongoing monthly repayments vary wildly within the same fixed term for different banks (~440euro difference for one bank compared to only ~60euro difference for another bank).

Should we just go with the bank that has the best initial interest rate and monthly repayments for the fixed term we have in mind, or do we need to put any stock in the potential ongoing monthly repayments? Presumably we can switch mortgage providers after the fixed term, so I don't know if we need to pay any attention to this number...

You can switch providers, but you can also switch rates within the same bank.

The APRC will be calculated based on that banks Standard Variable Rate after the fixed period. It's a pretty meaningless calculation to be honest, when there are so many variables at play.

For example, most banks will allow you to re-fix after a fixed period (some will insist on a new valuation which may cost you 100-150), which will (usually) be substantially less than their SVR.

I wouldn't give it much heed unless you plan on fixing for a period then not changing (which would be madness) and even then, its reliant on the SVR not changing to be accurate.

woodchuck · 16-10-2019 4:16pm

Great, thanks G_R! It sounds like we shouldn't get hung up on that number at this stage of the process then.

We were thinking of asking for a 5 year fixed rate, but it looks like up to 10 years is possible. Obviously it's a bit of a gamble no matter what you do, but I wonder would the 10 year fixed rate be worth considering to avoid the hassle (and legal fees etc) of changing providers after 5 years? I imagine the time will fly in!

r93kaey5p2izun · 16-10-2019 5:23pm

woodchuck wrote: »

Great, thanks G_R! It sounds like we shouldn't get hung up on that number at this stage of the process then.

We were thinking of asking for a 5 year fixed rate, but it looks like up to 10 years is possible. Obviously it's a bit of a gamble no matter what you do, but I wonder would the 10 year fixed rate be worth considering to avoid the hassle (and legal fees etc) of changing providers after 5 years? I imagine the time will fly in!

Have you considered whether the LTV will have dropped into a lower category during the term too? I'm completely risk averse and wanted to fix for 10 years because stability is so important to me. My broker advised against because my LTV will be in a different category well before then according to him, so I would be in a "cheaper" category. He advised I fix for 4 or 5 but I think I'll go for 7. It's a tough decision!

Paul Tergat · 16-10-2019 8:11pm

Thanks all. In terms of the timing though, I have quotes from companies but when do I actually take out the policies? For example, if the new build is going to be completed (pre-snag) in mid November, should I just take it out now? Can I even do this when I don't yet own the property?

Bez Bing · 16-10-2019 11:10pm

How easy or hard is it to switch rates within the same bank after a fixed rate expires? Is it as simple as an email/call to your advisor pick the new rate or is more complicated than that?

KingCong · 17-10-2019 11:48am

Bez Bing wrote: »

How easy or hard is it to switch rates within the same bank after a fixed rate expires? Is it as simple as an email/call to your advisor pick the new rate or is more complicated than that?

Very easy, call them and they'll likely send out a form with the various rate options, fill it in and send it back.

colly10 · 18-10-2019 11:12am

Just got a loan pack and am wondering if I need both Life Insurance and Mortgage Protection?

With mortgage protection, if I die, the bank get the money back so why would I also need life insurance?

Creamy Goodness · 18-10-2019 12:14pm

colly10 wrote: »

Just got a loan pack and am wondering if I need both Life Insurance and Mortgage Protection?

With mortgage protection, if I die, the bank get the money back so why would I also need life insurance?

If you have dependents it's nice for them to have a lump sum to cover them, they'll have a lot to grieve having them worrying about the next pay cheque is one less thing to deal with.

awec · 18-10-2019 1:18pm

colly10 wrote: »

Just got a loan pack and am wondering if I need both Life Insurance and Mortgage Protection?

With mortgage protection, if I die, the bank get the money back so why would I also need life insurance?

Mortgage protection payout reduces over time, it basically just covers the exact amount outstanding on your mortgage, so if you die, your mortgage is paid off and nothing more. It is bare minimum cover.

Life assurance is a fixed sum, that will be paid when you die. It is there to protect your surviving dependents. The value of the payout doesn't decrease over time, and basically means your surviving dependents don't have to live off a single income (or no income, in the case where your surviving partner doesn't work). It basically means as much as possible your family is not worse off financially as a result of your death.

moonlighting_1 · 18-10-2019 4:50pm

Guys whats the deal with pulling out of a house sale.
I ask because my job turned into a nightmare just around the time I went sale agreed on a house.Great timing.
Company bought over and now everybody stabbing each other in the back trying to hold onto their jobs.

Had planned to stay till I got the keys of new house in my hands but sadly I cant do it anymore.
Payed the 5k deposit, Got the bank loan paperwork sorted. Solicitor is working away in the background.
Is it still possible to pull out of the sale. I need to re-plan my Career.

KingCong · 18-10-2019 5:37pm

moonlighting_1 wrote: »

Guys whats the deal with pulling out of a house sale.
I ask because my job turned into a nightmare just around the time I went sale agreed on a house.Great timing.
Company bought over and now everybody stabbing each other in the back trying to hold onto their jobs.

Had planned to stay till I got the keys of new house in my hands but sadly I cant do it anymore.
Payed the 5k deposit, Got the bank loan paperwork sorted. Solicitor is working away in the background.
Is it still possible to pull out of the sale. I need to re-plan my Career.

If you have only paid the booking deposit and haven't signed contracts and sent them back you can pull out without any losses (except maybe a bill from solicitor)

moonlighting_1 · 18-10-2019 6:35pm

KingCong wrote: »

If you have only paid the booking deposit and haven't signed contracts and sent them back you can pull out without any losses (except maybe a bill from solicitor)

Thank god, thanks for the info. Got some worrying phone calls to make next week.

woodchuck · 19-10-2019 10:14am

We're still trying to decide what bank we might apply to.

Would it be worthwhile going to a broker or mortgage advisor though as opposed to just applying directly to a bank? If anybody has any experience of this, how much it costs, if it's worth the money etc, that would be great, thanks

thomasdylan · 19-10-2019 11:03am

woodchuck wrote: »

We're still trying to decide what bank we might apply to.

Would it be worthwhile going to a broker or mortgage advisor though as opposed to just applying directly to a bank? If anybody has any experience of this, how much it costs, if it's worth the money etc, that would be great, thanks

We used a broker. Ours probably wasn't a straightforward application as 35k+ of my income is overtime and I had changed jobs recently. I think if the application is very straightforward or you aren't looking for an exemption there's maybe not as much benefit to just using a broker other than convenience.

The broker didn't cost us anything, they get paid by the bank (1% of the mortgage I think). I found it was pretty easy, they asked for everything they needed and we met face to face twice but most of the communication was via email.

woodchuck · 19-10-2019 1:45pm

Thanks Thomas!

We anticipate that our application should be straightforward enough, but if there's no fee for a broker and it can make the whole process a little easier, I think it's something we'll serious consider.

Can anyone recommend a good broker in Dublin?

colly10 · 19-10-2019 3:01pm

Hi, we were in with the solicitor and signed our letter of offer along with contract and a stack of other forms.

I've also received a Letter of Offer, DD Mandate and Assignment of Life Policy in the post. I'm wondering if you normally send back what you receive in the post or if everything you sign with the solicitor covers it?

tomister · 20-10-2019 7:35am

colly10 wrote: »

Hi, we were in with the solicitor and signed our letter of offer along with contract and a stack of other forms.

I've also received a Letter of Offer, DD Mandate and Assignment of Life Policy in the post. I'm wondering if you normally send back what you receive in the post or if everything you sign with the solicitor covers it?

You need to sign and send back the Letter of Offer and the Assignment of Life to the bank. You will also need to fill out the DD mandate and there should have been an Interest in Fire Policy you also need to sign and send back.

If you’re availing of the HTB sign both Letter of Offer and keep one as you’ll need to upload this along with the counter signed contract.

Kiwi5449 · 20-10-2019 8:47pm

Hi all,

Not exactly mortgage related, but we have recently been approved for a mortgage and went sale agreed on a new build. Estate agent now wants us to start picking finishes - just wondering for anyone else who bought a new build, has anyone gone to the kitchen supplier for the development to make changes to the standard spec provided?

wirelessdude01 · 20-10-2019 8:57pm

Kiwi5449 wrote: »

Hi all,

Not exactly mortgage related, but we have recently been approved for a mortgage and went sale agreed on a new build. Estate agent now wants us to start picking finishes - just wondering for anyone else who bought a new build, has anyone gone to the kitchen supplier for the development to make changes to the standard spec provided?

Of course they have. You've just been given the option to do so. Be grateful that you can. My Mrs has just purchased and this wasn't offered even though she would have loved to upgrade the applied units. Colleague at work was given X as a kitchen allowance and went to the kitchen supplier, picked out what she wanted and payed the difference.

awec · 20-10-2019 9:09pm

Kiwi5449 wrote: »

Hi all,

Not exactly mortgage related, but we have recently been approved for a mortgage and went sale agreed on a new build. Estate agent now wants us to start picking finishes - just wondering for anyone else who bought a new build, has anyone gone to the kitchen supplier for the development to make changes to the standard spec provided?

Yes, we went to the kitchen supplier and changed the kitchen completely and paid the difference.

Kiwi5449 · 20-10-2019 9:15pm

Thanks for the replies!

Estate agent didn’t give much insight just told us who the supplier was so will give them a call ðŸ‘ŒðŸ¼

A Neurotic · 21-10-2019 3:16pm

Quick question: do we need to have a letter of offer in place from the bank before signing contracts on a new build?

twiddleypop · 21-10-2019 4:23pm

I went to view a house about a month a go to rent. The landlord has since decided to sell. It won't be on the market for a few months as he plans on renovating before putting it up for sale .

Meanwhile, I've been approved for a mortgage and was thinking of making an offer on the house as it is.. It would save him the hassle of renovating and advertising but I would be making a lower offer than maybe he would get otherwise as I would renovate myself.

The place ticks all the boxes for me and I just don't see what could possibly go wrong. Even if the inevitable market crash happens, my mortgage will still be lower than the rent and I would plan on subletting the spare room. I would see myself there for 10 years+. It's in Dublin.

My question is, how would this work in practice? Make the offer informally and then get solicitors involved (assuming he accepts of course!) ?

It's an old house and banks will require a surveyors report-would it be worth getting a report of my own before involving solicitors?

awec · 21-10-2019 7:03pm

A Neurotic wrote: »

Quick question: do we need to have a letter of offer in place from the bank before signing contracts on a new build?

Yes.

No solicitor would let you sign contracts without having a mortgage in place. That would be insane.

Fia11 · 23-10-2019 9:25am

Getting real sick of our broker. He has assured us that he gets paid the same fee no matter which bank we go with, but he is obsessed with KBC and is being obstructive regarding going with any other bank. I find it really hard to believe that there's no incentive for him to send us there.

He's now become very uncommunicative, and the bank can't talk to us directly as the application was started with a broker. I would love to just ditch the broker.

GingerLily · 23-10-2019 9:37am

Fia11 wrote: »

Getting real sick of our broker. He has assured us that he gets paid the same fee no matter which bank we go with, but he is obsessed with KBC and is being obstructive regarding going with any other bank. I find it really hard to believe that there's no incentive for him to send us there.

He's now become very uncommunicative, and the bank can't talk to us directly as the application was started with a broker. I would love to just ditch the broker.

I had an excellent experience going to banks directly, both AIB and PTSB. We had a straight forward application so didn't see the need for a broker.

I'm personally quite suspicious of using them.

Sorry you're having problems with yours

tomister · 23-10-2019 9:45am

GingerLily wrote: »

I had an excellent experience going to banks directly, both AIB and PTSB. We had a straight forward application so didn't see the need for a broker.

I'm personally quite suspicious of using them.

Sorry you're having problems with yours

Dealt directly with the bank also and it was extremely smooth for both the application and now the process of getting everything in line for drawdown.

I would recommend going through a branch rather than an online application as it felt more personal and I can contact them if there's any questions

Best of luck with the mortgage process!

stevek93 · 23-10-2019 10:14am

tomister wrote: »

Dealt directly with the bank also and it was extremely smooth for both the application and now the process of getting everything in line for drawdown.

I would recommend going through a branch rather than an online application as it felt more personal and I can contact them if there's any questions

Best of luck with the mortgage process!

My broker has been fantastic they went with my own bank, I cam ask them anything and they reply almost instantly.

stevek93 · 23-10-2019 10:15am

Waiting on vendors solicitors now how long await? We are sale agreed and loan approved but cannot sign loan before vendors solictors letters arrive is this normal? Thanks

Fia11 · 23-10-2019 10:42am

Thanks all for the responses and advice. If I had to do this again I would go straight to the banks.

All will come right in the end I'm sure.

whatever76 · 23-10-2019 11:42am

Very close to fully closing but just to make aware there are still a few days in it after Contracts are locked and loaded and Solicitor request draw down to bank ( people may have known this already , just naive thinking it be fast !) - further scans\reviews of all documents will be carried out by bank ( BOI) and they maybe back with some questions and clarifications if everything not lined up .From time solicitor sends off the request give it at least another 7 working days from when bank releases the money to your solicitor . ( assuming no extra clarifciations from bank needed which could delay things another few days)

Also for 2nd hand houses that are not complte do uppers - this is prob obvious but lesson learned for me be very clear and understand if/what contents are part of the deal and agree with EA & Sellers before it gets too late at the legal end of things - DONT ASSUME ANYTHING with contents if you half hoping some stuff be left that be handy for moving in at first while you figure out wht you want to get yourself as stuff left not to taste but will tie you over - be very clear and get that clarfied before legal proceedings so you know where you stand and what you need to plan for when moving - may not be as turn key as you thought !!

SteelyDanJalapeno · 23-10-2019 1:45pm

Is it possible to pay our solicitor and stamp duty with our cashback on draw down? Expecting about 6k if approved

heebusjeebus · 23-10-2019 1:49pm

SteelyDanJalapeno wrote: »

Is it possible to pay our solicitor and stamp duty with our cashback on draw down? Expecting about 6k if approved

Probably not the stamp duty but you could ask the solicitor to hold off on their fees. Don't expect the cash back until a month after drawdown.

Creamy Goodness · 23-10-2019 2:04pm

I don’t think any solicitor worth their salt is going to allow you to defer payment.

awec · 23-10-2019 5:49pm

Solicitor will want both payments before they transfer your money to the developer/vendor.

Dolbhad · 23-10-2019 8:31pm

SteelyDanJalapeno wrote: »

Is it possible to pay our solicitor and stamp duty with our cashback on draw down? Expecting about 6k if approved

Not a chance - they won’t risk not being paid! Also they have to confirm to bank before drawdown they have funds from you for stamp duty and registration fees to register house in your name and mortgage on property.

Dolbhad · 23-10-2019 8:36pm

Fia11 wrote: »

Getting real sick of our broker. He has assured us that he gets paid the same fee no matter which bank we go with, but he is obsessed with KBC and is being obstructive regarding going with any other bank. I find it really hard to believe that there's no incentive for him to send us there.

He's now become very uncommunicative, and the bank can't talk to us directly as the application was started with a broker. I would love to just ditch the broker.

We were with Ulster Bank with broker and there was something in the paperwork which stated how much the bank were paying which was 1% value of mortgage. So check if you have anything on that - if it’s more than 1% than it’s possible.

Our broker was amazing and great to deal with. However when our AIP expired I did just go directly to Ulster Bank and resubmit paperwork as very straight forward application. There is a clawback with brokers that if you switch mortgage within 3 years the bank could claim fee back from broker and broker claim off you - saw it on an Irish Times article. Was in the small print to of broker so kinda did put me off.

Dolbhad · 23-10-2019 8:38pm

stevek93 wrote: »

Waiting on vendors solicitors now how long await? We are sale agreed and loan approved but cannot sign loan before vendors solictors letters arrive is this normal? Thanks

How long is a piece of string? Honestly you’ll see from boards there is no set timeline on when you can expect contracts. Depends on how organise the sellers and their solicitors are. I’d say nag the auctioneer to put pressure on them.

el Fenomeno · 24-10-2019 10:11am

Out of interest, for anyone who went with PTSB - how long after drawdown day did you get the 2% cashback? (EDIT: Search function tells me a few people got it between 1 and 2 weeks after drawdown)

Our broker told us we don't actually have to do anything, it'll just be automatically credited to our account. Is that correct?

heebusjeebus · 24-10-2019 10:36am

el Fenomeno wrote: »

Out of interest, for anyone who went with PTSB - how long after drawdown day did you get the 2% cashback? (EDIT: Search function tells me a few people got it between 1 and 2 weeks after drawdown)

Our broker told us we don't actually have to do anything, it'll just be automatically credited to our account. Is that correct?

It 5 week for me. I did need to get onto my mortgage advisor as he told me it would usually be 2 or 3 weeks. Think someone dropped the ball and our payment was missed.
So, if you don't get it after your first mortgage payment, give them a call and they'll sort it.

Fia11 · 24-10-2019 10:39am

Dolbhad wrote: »

We were with Ulster Bank with broker and there was something in the paperwork which stated how much the bank were paying which was 1% value of mortgage. So check if you have anything on that - if it’s more than 1% than it’s possible.

Our broker was amazing and great to deal with. However when our AIP expired I did just go directly to Ulster Bank and resubmit paperwork as very straight forward application. There is a clawback with brokers that if you switch mortgage within 3 years the bank could claim fee back from broker and broker claim off you - saw it on an Irish Times article. Was in the small print to of broker so kinda did put me off.

We've been told it's 1% across the board...I have my doubts though.

That clawback is VERY interesting. Broker said zilch about that. Will investigate further, thanks for the heads up.

Blanco100 · 24-10-2019 11:23pm

how long after closing is your first mortgage payment?

heebusjeebus · 25-10-2019 6:13am

Blanco100 wrote: »

how long after closing is your first mortgage payment?

1 month after you draw down the mortgage.

guppy · 25-10-2019 8:34am

Blanco100 wrote: »

how long after closing is your first mortgage payment?

It's one month after draw down, however, we drew down 17 June, but wanted mortgage payments to come out 1st of every month. We contacted our advisor after 1st July (her request) and she changed the repayment date to 1st August, so that was our first repayment date.

We thought we'd have to pay 6 weeks for the first repayment, but it was divided across the mortgage term, so the increase per month was cents.

That was PTSB

heebusjeebus · 25-10-2019 9:59am

guppy wrote: »

It's one month after draw down, however, we drew down 17 June, but wanted mortgage payments to come out 1st of every month. We contacted our advisor after 1st July (her request) and she changed the repayment date to 1st August, so that was our first repayment date.

We thought we'd have to pay 6 weeks for the first repayment, but it was divided across the mortgage term, so the increase per month was cents.

That was PTSB

I changed to PTSB this year and I had to wait until after the first repayment until we could change the date of payment.

SteelyDanJalapeno · 25-10-2019 2:10pm

Got approval from PTSB this week, a very straightforward process, but very relieved now.

Surprised at how quick was, met with their advisor Tuesday submitted sal certs and wage slips for both of us, showed them 6 months accounts of everything else and that was it.

Onwards and upwards now

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

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