Saving/Applying for a mortgage 2020-22 Edition

ec18 · 14-04-2021 9:41am

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.

the exemption is going to be based on affordability i.e after you take what the bank considers your living expenses how much can you afford to repay. There was a calculator for the kbc i think posted here a while ago.

Some banks have minimum salary requirements for exemptions. Essentially you're looking at a 90% LTV with a 4.5x salary exception. Wouldn't be the strongest case? for an underwriter

D.Q · 14-04-2021 10:03am

ec18 wrote: »

the exemption is going to be based on affordability i.e after you take what the bank considers your living expenses how much can you afford to repay. There was a calculator for the kbc i think posted here a while ago.

Some banks have minimum salary requirements for exemptions. Essentially you're looking at a 90% LTV with a 4.5x salary exception. Wouldn't be the strongest case? for an underwriter

when you're applying do you have to specify the specific exemption amount you're looking for? even 3.8/4 x would obviously make such a big difference in the types of properties I can consider.

ec18 · 14-04-2021 10:08am

D.Q wrote: »

when you're applying do you have to specify the specific exemption amount you're looking for? even 3.8/4 x would obviously make such a big difference in the types of properties I can consider.

You can tell them you'll be looking for an exemption but they won't actually know whether you'll get one or not until you get to the full application stage where there is a property you are bidding on/sale agreed on. Which will be another factor in it. In short don't believe a mortgage advisor who tells you'll get one. The under writer has the final say.

When I was talking to UB earlier this year the advisor told me the only way you are guaranteed an exemption is if the LTV is favourable. i.e if you're looking for 4x LTI but the LTV is 50-60%

kev_s88 · 15-04-2021 6:01pm

has anyone had any experience with Finance Ireland? Me and the OH are applying through a broker for our mortgage at the moment. Finance Ireland came out as the best option from the early look as they are willing to take 100% of my bonus payments into account as salary, which has given us a good bump in our lending capacity (about €20k more than the 3.5x our normal salary). They also have pretty competitive rates (2.4% on 3 year fixed with 80% LTV, or 2.65% with 90% LTV)

our broker has said they deal with Finance Ireland a lot. I work in Financial Services so i know of them, but haven't heard much about them on the mortgage side of things (presuming this is mainly because they only deal through brokers for mortgage).

so has anyone had any first hand interactions with them? we're tempted to try for approval with a couple of different lenders just in case, but looking like Finance Ireland will be our main choice, all going well.

Ash3011 · 15-04-2021 8:31pm

Wondering if we would get away with stretching 12 weeks between going sale agreed on the house we want and completing the sale of the house we own?

For context- we have been given "househunter's approval in principle" from BOI (I didn't even know this existed).
As far as we are concerned, the longer things take, the better. Gives us more time to keep saving to stretch the last bit of deposit and I will have to finish my probation in June before drawing down.

Is this too long and would a buyer pull out because of it??

Paul Tergat · 15-04-2021 8:36pm

I've a question on mortgage cashback. Does anyone know if banks will allow cashback from the same customer but on different properties?

For example, if I switch my existing family home between the banks to get cashback and then upsize can I then do the round of cashbacks again?

It's quite hard to see full t and c's for most banks but judging by ebs it seems to be on a property basis rather than a customer basis.

Covid21 · 17-04-2021 9:34am

Do you need paperwork all the paperwork for your bank at each stage of drawdown . Eg.....payslips, bank statements etc

I understand you need it at Stage 1 the first drawdown and your engineer/architect can sign off that the work is done at each stage but just wondering if you need to submit new payslips bank statements etc at stage 2,3,4,5 of drawdown?

Kram_1 · 17-04-2021 2:29pm

1st fix just completed in house. How long for 2nd fix to be completed on average and ready to move in?

17-04-2021 11:58pm

Covid21 wrote: »

Do you need paperwork all the paperwork for your bank at each stage of drawdown . Eg.....payslips, bank statements etc

I understand you need it at Stage 1 the first drawdown and your engineer/architect can sign off that the work is done at each stage but just wondering if you need to submit new payslips bank statements etc at stage 2,3,4,5 of drawdown?

Latest payslip is needed before drawdown normally. It’s a condition on our loan offer from KBC anyway. There is only one drawdown, when you get your keys.

dubrov · 18-04-2021 7:53am

Covid21 wrote: »

Do you need paperwork all the paperwork for your bank at each stage of drawdown . Eg.....payslips, bank statements etc

I understand you need it at Stage 1 the first drawdown and your engineer/architect can sign off that the work is done at each stage but just wondering if you need to submit new payslips bank statements etc at stage 2,3,4,5 of drawdown?

I assume this is a self-build. Once you draw down the first amount, the bank won't ask any more questions about your personal financial position. Pulling out of the mortgage would be a complete disaster for both parties half way through a build.

They will look for your engineer/architect to sign off that the work was actually completed in previous phases though.

20-04-2021 1:09pm

So potentially have a property that I'm gonna bid on. There's a strong likelihood I'll need to request an exemption but not for a lot. I'm earning just under 80k, high saver so what are the odds of getting it atm? Have noticed a fair few seem to have them falling through atm so wondering if it's a lost cause atm.

errlloyd · 20-04-2021 1:22pm

I am buying an apartment in town.

Do I need a surveyor as well as a valuer?

klose · 20-04-2021 2:53pm

errlloyd wrote: »

I am buying an apartment in town.

Do I need a surveyor as well as a valuer?

Well for a house a valuation is required, a structural survey is optional but highly recommended. Not sure if apartments are treated differently.

CalisGirl · 20-04-2021 4:26pm

errlloyd wrote: »

I am buying an apartment in town.

Do I need a surveyor as well as a valuer?

The bank will require a valuation of the apartment when you're at the Offer stage (after AIP). A surveyor is for your benefit, but the bank shouldn't require it.

qwerty67 · 20-04-2021 6:42pm

Just got AIP today.

Once Sale Agreed on a house what are the typical next steps to take and average timelines?

Bare in mind we might not have viewed the house before sale agreed due to covid

CalisGirl · 20-04-2021 9:28pm

Anyone got experience of what happens if you change job after accepting mortgage offer? Will have 3 payslips from new employer by anticipated drawdown, but won't have 6 months probation period complete. But same industry and a better salary.

GingerLily · 20-04-2021 10:00pm

CalisGirl wrote: »

Anyone got experience of what happens if you change job after accepting mortgage offer? Will have 3 payslips from new employer by anticipated drawdown, but won't have 6 months probation period complete. But same industry and a better salary.

They won't release funds if your on probation

ec18 · 21-04-2021 11:03am

CalisGirl wrote: »

Anyone got experience of what happens if you change job after accepting mortgage offer? Will have 3 payslips from new employer by anticipated drawdown, but won't have 6 months probation period complete. But same industry and a better salary.

Are you direct app to bank and or broker? I changed the month before drawdown but the bank never asked for updated payslips. I've put it down to the relationship between broker and bank where as if we had gone direct to bank we probably would have had issues

21-04-2021 3:57pm

So I got the top aip a few months back but salary has increased. Have mentioned to broker by email but is it straightforward to increase amount? I'm at bidding phase in house I really like so the bump will help. I'm assuming getting slightly more based on new salary is fine, right?

brianc27 · 21-04-2021 4:01pm

[Deleted User] wrote: »

So I got the top aip a few months back but salary has increased. Have mentioned to broker by email but is it straightforward to increase amount? I'm at bidding phase in house I really like so the bump will help. I'm assuming getting slightly more based on new salary is fine, right?

My understanding is your offer is based on the previous years employment detail summary so I don't think you will get an increase until that's reflected on that

Markitron · 21-04-2021 4:04pm

brianc27 wrote: »

My understanding is your offer is based on the previous years employment detail summary so I don't think you will get an increase until that's reflected on that

It isn't, you can get an increased AIP amount with a new salary cert from your employer and at least 1 payslip to reflect the increase. May vary by lender of course but I think this is standard with most of them.

brianc27 · 21-04-2021 4:09pm

Markitron wrote: »

It isn't, you can get an increased AIP amount with a new salary cert from your employer and at least 1 payslip to reflect the increase. May vary by lender of course but I think this is standard with most of them.

Never knew that, that's good to know

Markitron · 21-04-2021 4:11pm

brianc27 wrote: »

Never knew that, that's good to know

Yea I was expecting it to be more complicated myself, but again this was with KBC and BOI. Perhaps the others will make you jump through more hoops.

GingerLily · 21-04-2021 4:19pm

[Deleted User] wrote: »

So I got the top aip a few months back but salary has increased. Have mentioned to broker by email but is it straightforward to increase amount? I'm at bidding phase in house I really like so the bump will help. I'm assuming getting slightly more based on new salary is fine, right?

You may have to reapply depending on the bank but you'll likely get the marginal increase without much issue. Broker should sort it out for you

Markitron · 21-04-2021 4:22pm

GingerLily wrote: »

You may have to reapply depending on the bank but you'll likely get the marginal increase without much issue. Broker should sort it out for you

Yea, if your salary jumps by 30K I imagine it would be a more involved process than a jump of 5K.

21-04-2021 4:30pm

Markitron wrote: »

Yea, if your salary jumps by 30K I imagine it would be a more involved process than a jump of 5K.

Ya it's a pretty tiny increase but has the potential to make a difference at this point. Ah fun.

CalisGirl · 21-04-2021 5:27pm

ec18 wrote: »

Are you direct app to bank and or broker? I changed the month before drawdown but the bank never asked for updated payslips. I've put it down to the relationship between broker and bank where as if we had gone direct to bank we probably would have had issues

I've applied via broker. The Issue is I'm not certain when drawdown will be as the property is at builders finish and drawdown will be when it's fully finished. My broker is telling me once I've 3 payslips from new employer, probation won't be an issue. I've seen this is the way in the UK with some banks. I'm just a bit skeptical tbh as the banks seem completely risk averse!

GingerLily · 21-04-2021 5:30pm

CalisGirl wrote: »

I've applied via broker. The Issue is I'm not certain when drawdown will be as the property is at builders finish and drawdown will be when it's fully finished. My broker is telling me once I've 3 payslips from new employer, probation won't be an issue. I've seen this is the way in the UK with some banks. I'm just a bit skeptical tbh as the banks seem completely risk averse!

That's not typically Bank policy, I would be concerned trusting this advice

ec18 · 22-04-2021 11:05am

The probation is probably the big issue, what check what bank the mortgage is from the irish ones are more risk averse than KBC/UB so it mightn't be a problem?

klose · 22-04-2021 12:18pm

How are banks viewing re applications with a view to people being on covid pay for a while last year? Partners p60 is down about 3 grand after being on PUP for a while, waiting on her salary cert too but assume that will show less too.

L1011 · 22-04-2021 2:20pm

Generally if its over and done with most banks are OK working off current salary; possibly with a letter from the employer confirming no subsidy is being received.

pooch90 · 22-04-2021 8:01pm

Markitron wrote: »

Yea I was expecting it to be more complicated myself, but again this was with KBC and BOI. Perhaps the others will make you jump through more hoops.

I did this with PTSB in October. Just needed two payslips showing new amount and they added the extra few grand to AIP.

arleitiss · 22-04-2021 8:52pm

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.

I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

briancarr82 · 22-04-2021 10:28pm

Hi, will bank ask for statement of old a/c closed within the last 6 months? Also, have an old current ac no longer used. Should I close the ac now before application or wait

Kram_1 · 22-04-2021 10:30pm

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.

I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

If you were to keep the credit card, you would need to clear it and have clean for 6 months for the bank, as they will want to see statements.

Your best bet would be to clear the credit card and close the account. If you're used to using the credit card, having it close to hand might be tempting to use in the case of an emergency. Don't think you would need to show statements in this scenario.

I'd put a buffer of €2500 aside into a local credit union, separate from your deposit incase you need for an emergency.

brianc27 · 22-04-2021 11:20pm

Kram_1 wrote: »

If you were to keep the credit card, you would need to clear it and have clean for 6 months for the bank, as they will want to see statements.

Your best bet would be to clear the credit card and close the account. If you're used to using the credit card, having it close to hand might be tempting to use in the case of an emergency. Don't think you would need to show statements in this scenario.

I'd put a buffer of €2500 aside into a local credit union, separate from your deposit incase you need for an emergency.

I had 1500 on my credit and paid it off in full a week before handing up the statement, I don't think having a credit card clean for 6 months is necessary, aslong as your not missing monthly repayments and get it paid off before you apply then what it was like the previous six months shouldn't be an issue, that was my experience anyway (with kbc and boi)

G_R · 22-04-2021 11:56pm

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.

I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

The CCR will show the balance on the card each month as well as any excesses, so closing the card isn't going to help you here I'm afraid.

That said, just clear it off and you should be fine. You're application won't be declined on the basis that you were at/slightly over your limit (assuming you have no missed payments like you say) unless the overall case is borderline, then it might tip it over the edge. If everything else is in order you'll be fine.

Manofthewest · 23-04-2021 12:23am

Deleted User wrote: »

So potentially have a property that I'm gonna bid on. There's a strong likelihood I'll need to request an exemption but not for a lot. I'm earning just under 80k, high saver so what are the odds of getting it atm? Have noticed a fair few seem to have them falling through atm so wondering if it's a lost cause atm.

I am also wondering the same thing. I have got AIP which is the standard 3.5 time my salary with KBC and BOI. They both were open to looking at an exception. As its only for a specific property, do I need to put a deposit down and go sale agreed on the property before they will look at granting the exception?

GingerLily · 23-04-2021 6:39am

Manofthewest wrote: »

I am also wondering the same thing. I have got AIP which is the standard 3.5 time my salary with KBC and BOI. They both were open to looking at an exception. As its only for a specific property, do I need to put a deposit down and go sale agreed on the property before they will look at granting the exception?

No, talk to your bank before you put the deposit down, after your initial bid I suggest.

ec18 · 23-04-2021 8:39am

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.

I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

The bank will count that as a loan and they don't like CC's not being fully cleared every month. Pay it off and cancel it.

You can always get a new one if you need after you have moved in

ec18 · 23-04-2021 8:42am

Manofthewest wrote: »

I am also wondering the same thing. I have got AIP which is the standard 3.5 time my salary with KBC and BOI. They both were open to looking at an exception. As its only for a specific property, do I need to put a deposit down and go sale agreed on the property before they will look at granting the exception?

They won't confirm an exemption until you are sale agreed. You need to be sale agreed and have paid the refundable booking deposit before you can be sure that the exemption will be granted.

IamTheWalrus95 · 23-04-2021 10:01am

Just starting our mortgage application, gathering documents etc. We have deposit saved, and also have en existing mortgage on house we hope to sell. 6 months ago changed bank current accounts to a joint account. I kept the old account as there were still some direct debits etc coming out of it and a car loan from credit union. i usually transfer money in every week for car loan. There's an overdraft that's been dipped into over the last couple of months on this account 100 here and there. Overdraft was approved. Will this effect me in application? it's paid off now.

random_banter · 23-04-2021 10:11am

arleitiss wrote: »

Just wondering about best way to go about my scenario.

If I combine my savings + HTB approved amount (Already approved): I have over 30% of deposit available.

I know saving history is important when applying though.
I am also required to show statements of my credit cards.

I've had credit card for past 3 years (Limited to 2500 Euro) and to be honest - I've been in -2500 (maxed out) on this credit card for 95% of the 3 years I had it.

I always paid interest/minimum amount required monthly (Which is generally about 60 euro).
Few times I went into the likes of -2570 Euro (exceeding my credit card limit) but I repaid it almost right away.

I assume this will have impact on my application?

The two options I am considering are:

1) Pay off full 2500 Euro and keep credit card (I assume I would still be required to show statements since I have it and I just decided to pay it off right before applying for mortgage, which probably doesn't look good)
or
2) Pay off full 2500 euro and close the credit card (I am guessing I don't have to show statements for something I no-longer have?)

I had a similar habit of letting debt sit on my credit card. Last year when I was starting to look at buying I knew I needed to get my act together, so I looked at my deposit savings and used some of that to clear it off.

I then changed my habits to paying off the card right after using it. And when I get paid each month I ensure it's clear as well.

Credit cards can still be useful to have for an emergency or when you are buying online, traveling etc because you get a certain amount of extra protection from fraud etc. The one I have also accrues Avios for me.

If it's clear and not costing you anything, just ensure you keep the good habits up and don't let purchases rack up.

The bank will not care as long as you've cleared off your card and in the next couple of months show that you're being responsible with it. As long as you haven't missed a payment, that is. If you miss minimum payments that's a different story.

Antares35 · 23-04-2021 10:33am

Can anyone advise. My understanding is that credit card debt is included on CCR as and from 2017. Does this mean that only credit card debt accrued from 2017 is included in report, or if there was o/s debt before 2017 that this would also be included? Thanks

ec18 · 23-04-2021 10:34am

Antares35 wrote: »

Can anyone advise. My understanding is that credit card debt is included on CCR as and from 2017. Does this mean that only credit card debt accrued from 2017 is included in report, or if there was o/s debt before 2017 that this would also be included? Thanks

you can request your own ccr to see what it has for 6e or something like that

Hatman16 · 23-04-2021 1:34pm

Hi all,

If you're approved in principle with both AIB and BOI is there any downside to trying to get a letter of offer from both once you've gone sale agreed? Is this frowned upon or anything? Cheers

23-04-2021 3:24pm

Currently experiencing longest day ever to see how much house goes up by...

Renjit · 23-04-2021 6:51pm

random_banter wrote: »

I had a similar habit of letting debt sit on my credit card. Last year when I was starting to look at buying I knew I needed to get my act together, so I looked at my deposit savings and used some of that to clear it off.

You do know that your credit rating gets affected by this. And credit ratings are checked by various institutions before providing services. Always good to maintain a good credit rating.

Marshall987 · 24-04-2021 11:54am

Have I just ruined my chance of our family getting a mortgage in next 5 years.?
Just received my CCR yesterday, stupidly didn’t check it earlier, I used the ICB check in 2019 getting a hire purchase loan from aib, which was all clear.

The CCR, is showing a credit union loan from 2007 that I took out for my parents, and looks like there is just short of 2k owed on it. I haven’t got any correspondence in years for this and I knew it was being paid off by them so assumed it was cleared at this stage but obviously not.

Me and my partner have 45 k in savings combined.

Combined income of approx 60k

We have a hire purchase Loan for a car from Aib- 15 k left over 3 years. (Never missed a payment etc),
Well able to pay it and save combined 2k a month minimum. No other missed payment etc on any other previous finance I had.

I am in the position to cover the credit union loan and pay it off in full now once and for all, but is it to late for us, has the damage been done?

24-04-2021 12:06pm

I would say pay it off and explain situation to bank. It's pretty small in scheme of things so hopefully it's okay.

Saving/Applying for a mortgage 2020-22 Edition

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