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Saving/Applying for a mortgage 2020-22 Edition

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Comments

  • #932
    Darren 83
    Registered Users Posts: 1,684 ✭✭✭Darren 83


    Spent this year so far clearing loans and cutting down bills, credit Union was the big one. I’m currently paying €750 rent what should I realistically save each month could. I could save a min of €500 a month or should I try to save more.


  • #933
    Danger781
    Registered Users Posts: 5,686 ✭✭✭Danger781


    Darren 83 wrote: »
    Spent this year so far clearing loans and cutting down bills, credit Union was the big one. I’m currently paying €750 rent what should I realistically save each month could. I could save a min of €500 a month or should I try to save more.

    You should be demonstrating for 6 months or more that you can cover the costs of the mortgage repayments. That will include rent and savings. So if €750 rent + €500 (€1250) will cover the mortgage repayments you should be OK.


  • #934
    Ikozma
    Registered Users Posts: 1,041 ✭✭✭Ikozma


    If applying for a mortgage can you just ask the bank what's the most you can give me,
    or do you have to have a specific figure


  • #935
    IvoryTower
    Registered Users Posts: 3,825 ✭✭✭IvoryTower


    Ikozma wrote: »
    If applying for a mortgage can you just ask the bank what's the most you can give me,
    or do you have to have a specific figure

    The online calculators are accurate, if you fill them in honestly they will tell you what you can borrow. Otherwise just ring them and ask, you don't need to be applying for a mortgage to find out where you stand


  • #936
    Darren 83
    Registered Users Posts: 1,684 ✭✭✭Darren 83


    How do banks treat commission? I get this monthly plus bonus (variable) usually and do 24 hours over time a month this is guaranteed and could do more if I wanted.


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  • #937
    Duke of Url
    Closed Accounts Posts: 1,662 ✭✭✭Duke of Url


    Darren 83 wrote: »
    How do banks treat commission? I get this monthly plus bonus (variable) usually and do 24 hours over time a month this is guaranteed and could do more if I wanted.

    Commission is taken into account on the BOI Salary Cert form. But it will be based on the last 3 years and not projected future commission as it need to be filled out by your employer.

    Commission and Bonus will be filled out separately.


  • #938
    zweton
    Registered Users Posts: 2,683 ✭✭✭zweton


    greengrass88 wrote: »
    Spoke with a broker recently who reckoned we would not be able to drawdown while I was on the wage subsidy scheme. That was a few weeks ago when we thought the scheme would end sooner....i'm not sure if banks will change their stance on this as the scheme is now extended to April. I've read articles recently about people on the wage subsidy scheme being able to draw down, not sure what bank they are with but there seems to be some hope anyway.

    Can you link to the articles? Very doubtful anyone can draw down while on wage subsidy scheme.


  • #939
    greengrass88
    Registered Users Posts: 87 ✭✭greengrass88


    https://www.rte.ie/amp/1153013/


  • #940
    thewheel2.0
    Registered Users Posts: 1,065 ✭✭✭thewheel2.0


    Is the Help to Buy system updated yet to offer the new cap of 30K?

    When I login my application is only approved for 20K. (Have not progressed to claim stage). I'm guessing I have to cancel the application and start again to get 30K?

    (Surely have to cancel and reapply considering you had to fund the balance by selecting which tax years to include?).


  • #941
    Aron722
    Banned (with Prison Access) Posts: 50 ✭✭Aron722


    Hi so I'm just qualified in my trade and have 20k saved as only started to save in my last two years of apprenticeship looking to apply for a mortgage with my parnter.

    My parents want to give me 30k as a gift , will I be able to put that into my savings and then apply for a mortgage?


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  • #942
    C575
    Registered Users Posts: 18 ✭C575


    Aron722 wrote: »
    Hi so I'm just qualified in my trade and have 20k saved as only started to save in my last two years of apprenticeship looking to apply for a mortgage with my parnter.

    My parents want to give me 30k as a gift , will I be able to put that into my savings and then apply for a mortgage?

    You need to make up 10% of your deposit, the remaining can be gifted, or so our broker told us.
    You'll just be asked to account for where the money came from and you'll probably need a letter from your parents to state they gifted it to you.


  • #943
    Jasna1982
    Registered Users Posts: 277 ✭✭Jasna1982


    C575 wrote: »
    You need to make up 10% of your deposit, the remaining can be gifted, or so our broker told us.
    You'll just be asked to account for where the money came from and you'll probably need a letter from your parents to state they gifted it to you.

    I think that depends what bank you're with.
    PTSB told me they accept 5% saved by yourself and 5% as a gift.

    Use my Tesla referral link for free charging credits: https://www.tesla.com/referral/jasna121868



  • #944
    C575
    Registered Users Posts: 18 ✭C575


    Jasna1982 wrote: »
    I think that depends what bank you're with.
    PTSB told me they accept 5% saved by yourself and 5% as a gift.

    Could be! Probably best off asking broker or bank directly


  • #945
    Aron722
    Banned (with Prison Access) Posts: 50 ✭✭Aron722


    C575 wrote: »
    You need to make up 10% of your deposit, the remaining can be gifted, or so our broker told us.
    You'll just be asked to account for where the money came from and you'll probably need a letter from your parents to state they gifted it to you.


    Thanks for the help, that's grand were looking for around 250k - 280k and will build what we can for that , I have land already


  • #946
    C575
    Registered Users Posts: 18 ✭C575


    combat14 wrote: »
    just curious how u got them to 2.45 on website seem to be showing 3.15%

    any help appreciated!

    Public sector workers can get as low as 2.40% with ICS.
    icsmortgages.ie/public-sector-mortgages


  • #947
    C575
    Registered Users Posts: 18 ✭C575


    greengrass88 wrote: »
    Spoke with a broker recently who reckoned we would not be able to drawdown while I was on the wage subsidy scheme. That was a few weeks ago when we thought the scheme would end sooner....i'm not sure if banks will change their stance on this as the scheme is now extended to April. I've read articles recently about people on the wage subsidy scheme being able to draw down, not sure what bank they are with but there seems to be some hope anyway.

    Our broker told us that the new Wage Subsidy Scheme could potentially be paid differently to how it is now, so it won't show up on your payslip. Basically the employer gets the payment, and they just pay you as normal. It may be a case that banks will ask for proof (a letter) from your employer to say they're not on the Subsidy Scheme because it won't show on your payslip, but it's all a guessing game at the moment. May just be a wait and see until September when it goes live.


  • #948
    wassie
    Registered Users Posts: 3,262 ✭✭✭wassie


    C575 wrote: »
    Public sector workers can get as low as 2.40% with ICS.
    icsmortgages.ie/public-sector-mortgages

    Those ICS rates do not appear to be exclusive to public sector employees. The link goes to ICS's Owner Occupier mortgage rates page that applies to all.


  • #949
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    lcarrol3 wrote: »
    We had an exemption with PTSB and had it pulled at the start of the pandemic. Our advisor has told us it will be a case of going back for further approval. I really, really hope that's the case!

    I was also advised by a broker to make it abundantly clear to the bank that you will not be drawing down on a mortgage without an exemption - gives the impression they could lose you as a customer.
    Also gives the impression you will not be buying a house anytime soon


  • #950
    brisan
    Registered Users Posts: 2,242 ✭✭✭brisan


    greengrass88 wrote: »
    https://www.rte.ie/amp/1153013/

    I noticed he never mentioned the lenders by name
    Glorified advert to me .


  • #951
    Noah G
    Banned (with Prison Access) Posts: 35 ✭Noah G


    Hi thinking about doing an apprenticeship in my late 20s
    And have been saving for a mortgage with partner. But If i get one now I will be stuck in my job and wont be able to do an apprenticeship.

    I'm still young no kids yet and want something I will like and have a better salary in the future with more opportunities.

    Money will be bad for first year or 2 but once in 3rd year of it will be getting over 500 a week is if possible to apply for a mortgage when I'm In my 3rd year ? I also get rent from a granny flat I have rented out ,

    We both will be getting a gift from parents when we do go for a mortgage that would pretty much cover the deposit.


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  • #952
    IvoryTower
    Registered Users Posts: 3,825 ✭✭✭IvoryTower


    Yes , once you can show 6 months savings and can show you could pay back the mortgage (like if the saving amount would cover the mortgage amount you would be fine).


  • #953
    CBear1993
    Banned (with Prison Access) Posts: 1,397 ✭✭✭CBear1993


    Hi , I'm sure it's been covered a thousand times over on here!
    • I was a first time buyer last year with an apartment in Dublin. My other half still has first time buyer status.
    • Do any banks take us on as first time buyers when we go for a house next year as a joint application? I have read that very few might consider it.. the 10% deposit would be massive versus the 20% for non-first time buyers... (not sure if that's correct?)
    • If they don't I'm guessing our only option is to go for the mortgage for a house in her name solely, as she is first time buyer?

    The problem there is that her salary would not allow us to purchase the house we want if they only looked at hers, our combined salaries I account for 70-75% of it.
    • Can we go for it in her name, but still get a joint application i.e. our combined salary by 3.5/4?

    Failing that, I guess for a house between 300-400K we will just have to save for another few years until we get a 20% deposit gathered, which could be some time. Is it always 10% for FTB and 20% for anyone else? Do you ever see 15% etc

    Thanks in advance.
    • I don't want to sell the apartment as its in an upcoming area with future development planned and great transport. I could get about €2000 per month at least for it if I could hold onto it. However, if push comes to shove and we don't have the funds in the next 18 months for a house I may be forced to. I would get about €15K above what I paid for it, which isn't a whole lot. (but is to us as a couple in our 20s!)


  • #954
    Noah G
    Banned (with Prison Access) Posts: 35 ✭Noah G


    Noah G wrote: »
    Hi thinking about doing an apprenticeship in my late 20s
    And have been saving for a mortgage with partner. But If i get one now I will be stuck in my job and wont be able to do an apprenticeship.

    I'm still young no kids yet and want something I will like and have a better salary in the future with more opportunities.

    Money will be bad for first year or 2 but once in 3rd year of it will be getting over 500 a week is if possible to apply for a mortgage when I'm In my 3rd year ? I also get rent from a granny flat I have rented out ,

    We both will be getting a gift from parents when we do go for a mortgage that would pretty much cover the deposit.



    Thanks, so it wouldn't matter if I was an apprenticeship as I would be in a full time job getting decent money on my 3rd year , my job would be safe as I will be staying with it company for a good while at least they are one if the biggest companys in my trade.

    Would the bank only care once I am good to pay the mortgage back?

    Also will be getting around 30k from parents and my partner will be getting 20k that would be plenty to get a mortgage as I will have savings in my account over the 3 years aswell and all we need is 10% of the mortgage.


  • #955
    IvoryTower
    Registered Users Posts: 3,825 ✭✭✭IvoryTower


    Yes you will be fine once you can show that between saving and rent you can pay the mortgage back. So having a large deposit is great but you still have to be able to show that you can pay the mortgage. So for example, lets assume living at home and not paying rent. You are saving 500e per month, this shows that you can repay a mortgage of 500e per month. Play around with the online calculators to get a feel for what you will need.


  • #956
    G_R
    Moderators, Education Moderators Posts: 5,022 Mod ✭✭✭✭G_R


    CBear1993 wrote: »
    Hi , I'm sure it's been covered a thousand times over on here!
    • I was a first time buyer last year with an apartment in Dublin. My other half still has first time buyer status.
    • Do any banks take us on as first time buyers when we go for a house next year as a joint application? I have read that very few might consider it.. the 10% deposit would be massive versus the 20% for non-first time buyers... (not sure if that's correct?)
    It's not a bank choice, its a Central Bank rule. 20% is the deposit required. You could, however apply for an LTV exception (not at the moment, no banks are offering them due to C-19) but they may well be back on the table come Jan.
    • If they don't I'm guessing our only option is to go for the mortgage for a house in her name solely, as she is first time buyer?

    This is an option.

    The problem there is that her salary would not allow us to purchase the house we want if they only looked at hers, our combined salaries I account for 70-75% of it.
    • Can we go for it in her name, but still get a joint application i.e. our combined salary by 3.5/4?

    This is not, im afraid

    Failing that, I guess for a house between 300-400K we will just have to save for another few years until we get a 20% deposit gathered, which could be some time. Is it always 10% for FTB and 20% for anyone else? Do you ever see 15% etc

    Thanks in advance.

    10% FTB
    20% SSB (Second & Subsequent)

    As above, banks do have scope to go out side these rules in a small number of cases, but these are the Central Bank limits.
    • I don't want to sell the apartment as its in an upcoming area with future development planned and great transport. I could get about €2000 per month at least for it if I could hold onto it. However, if push comes to shove and we don't have the funds in the next 18 months for a house I may be forced to. I would get about €15K above what I paid for it, which isn't a whole lot. (but is to us as a couple in our 20s!)


  • #957
    CBear1993
    Banned (with Prison Access) Posts: 1,397 ✭✭✭CBear1993


    Ok, maybe see what happens in 2021 and hope for an exception being made..

    Otherwise it looks like just plough on and save save save :D

    Thank you G_R


  • #958
    dalex15
    Registered Users Posts: 23 ✭dalex15


    Does anyone know, once we reapply for new HTB for the increase. This needs to be updated with the bank? Should the bank offer be updated before we go ahead and developer can claim the incentive?


  • #959
    BEdS_83
    Registered Users Posts: 58 ✭✭BEdS_83


    dalex15 wrote: »
    Does anyone know, once we reapply for new HTB for the increase. This needs to be updated with the bank? Should the bank offer be updated before we go ahead and developer can claim the incentive?


    I asked that they told me to come back after August 10th.. so I guess it would be ready by then..


  • #960
    dalex15
    Registered Users Posts: 23 ✭dalex15


    BEdS_83 wrote: »
    I asked that they told me to come back after August 10th.. so I guess it would be ready by then..

    So the Bank asked you to come back after the 10th, or Revenue?
    This means they don't know how is all going to work out.


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  • #961
    kvr1727
    Registered Users Posts: 18 ✭kvr1727


    It depends on your total Base salary up to. When it comes to additional income, Banks take ALL Guaranteed Income in to account. Then all the commissions, additional shift payments will be considered based on previous years consistency.
    Also bank will request you for previous P60s so check your total Income for Tax Year.

    Other Central bank Rule is you can get mortgage amount max of 3.5 times of your base salary or (Total Guaranteed income).


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