Saving/Applying for a mortgage 2020-22 Edition

Tar.Aldarion · 01-04-2022 2:22am

https://www.boards.ie/discussion/comment/118863265#Comment_118863265

You can get AIP on their site though, I did it in five minutes. You can then give that to the broker you go with.

teaandsnooker · 01-04-2022 7:55am

https://www.boards.ie/discussion/comment/118864065#Comment_118864065

Thanks Tar - it's the official aip I'm waiting on - rather than that initial approval - it seems to be taking ages at the moment! But I'm just wondering if others are waiting around the same time for the official confirmation

Cork2021 · 03-04-2022 9:42am

Hi, has anyone done this.

once we’ve the 6 months plus of regular savings done when I apply for AIP I was thinking of starting to pay the crèche is cash, ie, it’s €250 a week but take out cash at different intervals and say they’re being looked after by a relative now? But still in crèche? Has anyone done this?

03-04-2022 7:43pm

What sort of criteria do the banks take into consideration when granting the exemption for the 3.5 times borrowing limit?

I have close to 80k saved and would hope to have around 95k by the time I apply in Q1 2023. Would this be looked upon favorably?

GoldFour4 · 03-04-2022 7:56pm

https://www.boards.ie/discussion/comment/118875603#Comment_118875603

Size of your deposit wouldn’t matter for the 3.5 exception unless the deposit was for a huge % of the property I’d guess.

Requirements for each bank vary. I’d go the broker route if you feel you need the exception as they’ll be able to advise which banks you’ll qualify with.

03-04-2022 8:02pm

https://www.boards.ie/discussion/comment/118875672#Comment_118875672

Great thanks.

Was more so wondering would the fact that I am a regular saver of around € 1,500 a month make me a good case.

GoldFour4 · 03-04-2022 8:10pm

https://www.boards.ie/discussion/comment/118875701#Comment_118875701

Are you paying rent at the moment? For us, we were paying 1,300 in rent and saving about 2,000 on top of that each month along with living expenses. I think what they truly look at is what the mortgage payment would be each month and then stress that based on increases in interest rates. They likely have additional criteria on top of that like minimum income levels.

03-04-2022 8:20pm

Yup I am paying rent but fortunately not much, € 500 pm to live just off Griffith Avenue my land lord is gent and some what of a philanthropist.

Tar.Aldarion · 04-04-2022 2:32am

Things that matter are disposable income left over, stress testing a higher percentage mortgage, credit history, your job history, and the more you save each month the better yes.

Ciara26 · 04-04-2022 7:38am

Has anyone bought in the last phase of elder heath? Just wondering as the date keeps being put back. I’d love to know if anyone else is going through it.

miamee · 04-04-2022 10:37am

https://www.boards.ie/discussion/comment/118873171#Comment_118873171

I'm not sure how wise that is, now it will look like you are spending €250 a week more than before with the creche fees being taken care of by 'a relative' and you still spending €250 a week on 'something else'. Relying on a relative to pay creche fees may not be seen as dependable long term by the bank and they may still want to take into consideration that you can pay them on top of what you are spending now (including the €250pw you are actually spending on creche fees).

I haven't done it, no expert at all, that is just my own personal opinion on it :)

Cork2021 · 04-04-2022 10:52am

https://www.boards.ie/discussion/comment/118877652#Comment_118877652

It’s just going by the calculator online, creche fees feck you over! I’ve no doubt we’d be well able to pay the increased mortgage.

it’s a tough one! Probably won’t go down that route.

have you had experience with the bank including some social welfare and child benefit as part of our total income? Kids are only 1 and 3. Herself works for 44 weeks of the year the other 8 are jobseekers as she’s a term time childcare worker

Dodge · 04-04-2022 11:10am

My advice is to have a chat with a couple of brokers and be honest with them about your finances (including your outlay). If you can afford a mortgage (and you have the deposit), you’ll get a mortgage.

hiding stuff won’t help (IMO)

miamee · 04-04-2022 11:40am

https://www.boards.ie/discussion/comment/118877717#Comment_118877717

I haven't I'm afraid. I do undersand the frustration of the summer on the dole, a good friend of mine has done it for many years. I'd echo what Dodge has said above to speak to a broker and see what they say. They'll be able to tell you which banks/institutions are likely to take the 8 weeks of social welfare into account if any.

Cork2021 · 04-04-2022 12:00pm

https://www.boards.ie/discussion/comment/118877796#Comment_118877796

Thanks Dodge.

Cork2021 · 04-04-2022 12:00pm

https://www.boards.ie/discussion/comment/118877919#Comment_118877919

Thanks Miamee

iColdFusion · 06-04-2022 6:56pm

https://www.boards.ie/discussion/comment/118873171#Comment_118873171

I wouldn't go down that route, it's alot of money to be disappearing from your bank account each month, they will probably assume you have a gambling problem, mistress or spending it on drugs, better to be up front with them, as long as yere combined income justifies the creche fees they should factor in ye will only be paying that until the kids start school which is a short period in the lifetime of the mortgage and shows ye are both committed to working.

Withdrawing cash like that could easily cause you massive headaches if the bank query it when you are sale agreed.

Cork2021 · 06-04-2022 7:33pm

https://www.boards.ie/discussion/comment/118890511#Comment_118890511

Thanks for that. Yeah was just a thought, I’m backing away from it now. Like you said it’s for another few years and it’s reduced significantly.

misterreginald96 · 07-04-2022 11:36pm

Hi All, just wondering does anyone know what the situation is if your salary increases after you got your Approval in Principal? Does it matter? Is that max mortgage on the AIP set in stone or when it came to getting an actual mortgage offer, after going sale agreed, would they factor in your new salary and give a higher mortgage value? ...If that makes sense!

Any advice helpful! Thanks all !

Ciara26 · 08-04-2022 8:50am

https://www.boards.ie/discussion/comment/118896426#Comment_118896426

Happened me, so once I got salary increase I asked the broker to increase it. 2 things to remember. One- you need the payslip with higher increase. ( a letter confirming will help but won’t get you it and 2- factor in where u are with buying the house. If u are about to close there may not be time. But I’d advise to talk to the broker

Tar.Aldarion · 08-04-2022 3:46pm

This happened to me in March month, salary went up and I had to apply for new AIP. However I had a choice, get full AIP again (2-3 weeks) or get an email in a few days from them with the new amount. I had to sign some forms again, declarations. And as above, had to get the new payslip (and salary cert) so had to wait a few weeks before starting to apply for it.

misterreginald96 · 08-04-2022 3:55pm

Thanks All, would waiting on revised AIP impact your ability to bid on a property do you know? Or does it matter

Tar.Aldarion · 08-04-2022 10:11pm

https://www.boards.ie/discussion/comment/118899095#Comment_118899095

Doesn't matter, they dont get to see how much you are approved for anyway.

Tij da feen · 11-04-2022 11:39pm

Quick question. I'm looking at getting mortgage approval to move to another house. I don't have a deposit saved up (I have enough to clear legal fees and other related fees + stamp duty) but I do have a lot of equity in my current house that I'd like to use for the 20% deposit. Is it an issue with not having a lot saved up at the moment or is this a fairly typical situation for mover mortgages?

WoolyJumper · 19-04-2022 4:43pm

Not sure if I should be asking this here but anyone know the best/quickest banks to get a mortgage rejection? Basically I want to apply to the local authority but I need two rejection letters. I applied online through AIB and to my surprise they approved in principle. I am single and earn 35000k a year so the amount they offered is not enough to buy anything in and around Cork City. I am assuming as I upload documents etc I will eventually get rejected, I just don't want to go through the hassle of. So anyone recommend me the easiest way to get rejected?

Dodge · 19-04-2022 6:02pm

https://www.boards.ie/discussion/comment/118913909#Comment_118913909

its tricky. You’ll need to pay a booking deposit (likely to be 5-10k) if you find a new house

When the remainder of your 20% is due, you’ll need the agreement of the sellers for them to effectively waive this until the mortgage is transferred/paid if you can’t pay in cash.

We definitely didn’t have the 20% saved up when we moved (January) but had enough to pay booking deposit (was 8k for us) and a bit extra. Rather than further complicate what was already a long drawn out procedure, my sister lent me the balance of our deposit and we paid her back immediately when the mortgage/sale of our house cleared. I know this isn’t available for all but it worked out for us. Like I said, the other option was contacting the sellers to ask them for a favour

We had no problem getting a mortgage based on using the equity as a deposit. We used a broker

houseyhouse · 19-04-2022 7:25pm

https://www.boards.ie/discussion/comment/118947116#Comment_118947116

I think two insufficient offers will do it. You don’t need rejections. A rejection would usually be because of bad credit history etc. For lower earners with no credit problems the banks just approve for a low amount.

see here: https://localauthorityhomeloan.ie/eligibility/

akelly02 · 20-04-2022 4:51pm

https://www.boards.ie/discussion/comment/118947116#Comment_118947116

what they approved you for is usually good enough.

ie a low offer .

Cork2021 · 21-04-2022 7:06pm

has anyone an idea as to what an architect or engineer might charge for preliminary Drawings for an extension?

23-04-2022 10:32pm

Is there any place where you can see what a house actually sold for versus the advertised price?

Tar.Aldarion · 23-04-2022 10:51pm

https://www.boards.ie/discussion/comment/118967757#Comment_118967757

Yes there is a property register online, google the address.

Cork2021 · 24-04-2022 8:19am

https://www.boards.ie/discussion/comment/118967891#Comment_118967891

Does the PPR only put the price up excluding vat??

SummerK · 24-04-2022 7:41pm

https://www.boards.ie/discussion/comment/118968544#Comment_118968544

I recall it lists both - Total as well as excl VAT price.

ClaudeVercetti · 28-04-2022 9:50am

Saving at the moment and had my deposit sorted a long time ago, however I lent a family member money (2 months of what I was saving) to help with a personal emergency and am now being paid back regularly. Would this impact the assessment?

Dodge · 28-04-2022 10:41am

Not really. The most important thing is that your income is enough to cover your mortgage comfortably. If they ask about the other money, just be honest with them

ClaudeVercetti · 28-04-2022 10:50am

https://www.boards.ie/discussion/comment/118987405#Comment_118987405

Perfect thanks a million! Should be grand there so as the properties I'm seeking are asking at around 20% less than the AIP I was given. So with deposit mortgage would be even less than that.

Plasandrunt · 29-04-2022 8:31am

Currently living in an apartment but want to make a small upgrade to a cottage or bungalow. I own the apartment outright so the mortgage wouldn't be too excessive. I got a 20k loan out from the bank a few months ago that I'm currently paying off. When applying for the mortgage will the bank allow me to use the proceeds from the apartment sale to clear the loan?

Or will I have to have the loan cleared before applying for the mortgage? If that's the case I'll need to sell first and then buy.

miamee · 29-04-2022 9:51am

So long as you can comfortably make the mortgage repayments along with the loan repayments it should be fine. We did the same recently, we have a car loan that we are still paying off but it doesn't affect our ability to pay the new mortgage so no hassle about it.

I don't know anything about using the money from the sale to clear the loan though, someone else may know about that.

Dodge · 29-04-2022 1:33pm

https://www.boards.ie/discussion/comment/118991602#Comment_118991602

As the previous reply said, you can have a loan out and get a mortgage. Everything boils down to how comfortable are you paying your mortgage (stress tested against future rate increases).

It sounds like your mortgage would be way, way less than others so you should be fine.

Creamy Goodness · 29-04-2022 5:54pm

https://www.boards.ie/discussion/comment/118971014#Comment_118971014

It's a little more nuance than that. If the property is a new build and hasn't been sold since, it'll be the purchase price - 13.5% VAT.

If it's a second hand property it'll be the full purchase price.

BAABAA96 · 30-04-2022 8:25am

Does anyone know how the Early repayment charge with AIB works? I’m looking to trade up to a bigger house but I’ve got 8 years left on a fixed rate. If I take out a new mortgage with them do I still have to pay the ERC?

yer man! · 30-04-2022 5:18pm

Trying to find information on the drawdown process with regards a new build. The house will be ready for snagging in a matter of week but my loan offer expires at the end of the month. Bank said they will be able to extend by a max of 1 month. Now I presume some stuff will come up with the snagging so it will be a few weeks for them to get sorted. Can my solicitor just drawdown the mortgage before the loan offer expires and hold on to the money until all the snagging stuff as been sorted?

Cork2021 · 30-04-2022 7:07pm

Has anyone ever got a mobile home to live in whilst building a house on a site you own and how much did it cost?

houseyhouse · 30-04-2022 11:11pm

https://www.boards.ie/discussion/comment/118998796#Comment_118998796

They did that in great house revival last week. Think they said it was 5k?

Cork2021 · 30-04-2022 11:27pm

https://www.boards.ie/discussion/comment/118999721#Comment_118999721

Ah okay, must watch that thanks

Cork2021 · 01-05-2022 9:34pm

Had anyone here taken out a loan to buy a site?

Paul_Mc1988 · 02-05-2022 7:22am

https://www.boards.ie/discussion/comment/119003602#Comment_119003602

You can out a loan to by a site no problem. If you then apply for a morgage with a large outstanding loan they may not give it to you. Is that what your asking?

Cork2021 · 02-05-2022 9:57am

https://www.boards.ie/discussion/comment/119004462#Comment_119004462

I wouldn’t be applying for a mortgage immediately it’s to get the site now as it’s exactly what we’re looking for. We dont mind waiting to build especially with this kind of loan. We could save for it no bother but that site will be gone by the time we get to paying for it out our own savings. It’s 30k with outline planning.

BeanHero · 03-05-2022 7:42pm

Unreg'ed as some people from work know me here.

Apologies if this has been asked before, the search function is awful these days.

I have been offered a new job with a huge pay rise. The new company doesn't have an office in Ireland though so I would be employed as a contractor for an "indefinite" period. In all other aspects it would be a normal permanent position, with the usual leave, bank holidays etc. It would be up to me to pay tax, health insurance and pension.

Would banks view this type of arrangement unfavourably as opposed to normal, permanent employment?

My research has shown me that as long as I wait around 6 months and show them the payslips then it shouldn't be a problem but it would just be nice to hear if someone here in a similar situation could confirm?

houseyhouse · 03-05-2022 8:40pm

Would you not be self employed in that situation? I think you need two years of accounts in that scenario

Saving/Applying for a mortgage 2020-22 Edition

Comments