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

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Comments

  • #362
    [Deleted User]
    Posts: 0 ✭[Deleted User]


    Rothmans wrote: »
    Quick question, and it may be silly, but I'm slightly confused from seeing contradictory posts. The 3.5 times income rule. Say if you had an income of €40k. Would this entitle you to a loan of 3.5 x 40k, i.e. €140k, which would entitle you to buy a house worth a max of €154k provided you have a €15,400 deposit? Or, does it mean that an income of 40k only allows you to buy a house with a max value of 140k i.e. a loan of 126k and a 14k deposit?

    3.5 times the salary refers to how much you can borrow. So if you earn 40k you can borrow up to 140k and with the minimum deposit of 10% you can buy a house of 154k.

    Of course if your deposit is more you can spend more on the house but the amount of the mortgage stays at 140k (unless you get an exception).


  • #363
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Rothmans wrote: »
    Quick question, and it may be silly, but I'm slightly confused from seeing contradictory posts. The 3.5 times income rule. Say if you had an income of €40k. Would this entitle you to a loan of 3.5 x 40k, i.e. €140k, which would entitle you to buy a house worth a max of €154k provided you have a €15,400 deposit? Or, does it mean that an income of 40k only allows you to buy a house with a max value of 140k i.e. a loan of 126k and a 14k deposit?
    From my understanding it's the max you can borrow, my oh and myself have a combined income of around 44k and she has a small car loan 135k was the max we could borrow well that's what the online calculator said and the advisor so we've applied for that, we could potentially afford a house worth 150k


  • #364
    Rothmans
    Registered Users Posts: 1,805 ✭✭✭Rothmans


    Many thanks. I suspected as much. I saw one or two posts which seemed to suggest otherwise so I was just getting a bit worried there:p Should have the deposit ready in 6 years or so, but I'm starting relatively young :D


  • #365
    turniphead
    Registered Users Posts: 279 ✭✭turniphead


    Credit Unions will be able to offer mortgages under new legislation that came into effect on 1st January this year.

    One such union are currently offering:

    - Up to €300,000 for family homes
    - Terms of up to 25 years
    - Variable rate of 3.75% (APR 3.82%)
    - Free life cover for duration of loan
    - Available for first time buyers, moving house, extensions/renovations or for people wanting to move their mortgage from a bank to a credit union.

    It's early days yet but I think it's good to see credit unions getting involved and hopefully offer some genuine competition to the banks.


  • #366
    matrim
    Registered Users Posts: 7,515 ✭✭✭matrim


    turniphead wrote: »
    Credit Unions will be able to offer mortgages under new legislation that came into effect on 1st January this year.

    One such union are currently offering:

    - Up to €300,000 for family homes
    - Terms of up to 25 years
    - Variable rate of 3.75% (APR 3.82%)
    - Free life cover for duration of loan
    - Available for first time buyers, moving house, extensions/renovations or for people wanting to move their mortgage from a bank to a credit union.

    It's early days yet but I think it's good to see credit unions getting involved and hopefully offer some genuine competition to the banks.

    Didn't many credit unions also get into trouble during the boom by trying to get into property speculation / morgages?


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  • #367
    turniphead
    Registered Users Posts: 279 ✭✭turniphead


    matrim wrote: »
    Didn't many credit unions also get into trouble during the boom by trying to get into property speculation / morgages?

    I wouldn't say many got into trouble but there were certainly some examples alright. The main point is that extra competition in the market should benefit the consumer.


  • #368
    angeldelight
    Registered Users Posts: 5,175 ✭✭✭angeldelight


    We met the mortgage broker yesterday and he reckons we should be ok - have two more docs to email over to him at the weekend and then it will be 10 working days to hear back


  • #369
    hardCopy
    Registered Users Posts: 5,969 ✭✭✭hardCopy


    matrim wrote: »
    Didn't many credit unions also get into trouble during the boom by trying to get into property speculation / morgages?

    I think Bishopstown were the only ones to actually offer mortgages but several got burned by lending to local developers and Newbridge CU built their own building which subsequently devalued.


  • #370
    retalivity
    Registered Users Posts: 13,976 ✭✭✭✭retalivity


    (Possibly stupid) question, we have mortgage approval in principle, have a solicitor, but what is the actual bidding process? Is it as simple as us calling the estate agent with an offer or is it more formal through the solicitor? What would an estate agent require from us to formally accept/acknowledge a bid?


  • #371
    zarker
    Registered Users Posts: 48 ✭zarker


    retalivity wrote: »
    (Possibly stupid) question, we have mortgage approval in principle, have a solicitor, but what is the actual bidding process? Is it as simple as us calling the estate agent with an offer or is it more formal through the solicitor? What would an estate agent require from us to formally accept/acknowledge a bid?

    Yes that's my experience of the bidding process.
    After you're happy with the house, you call the agent and make an offer. What follows after that may vary. e.g. some EAs may ask to see your approval in principle letter.


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  • #372
    zarker
    Registered Users Posts: 48 ✭zarker


    retalivity wrote: »
    (Possibly stupid) question, we have mortgage approval in principle, have a solicitor, but what is the actual bidding process? Is it as simple as us calling the estate agent with an offer or is it more formal through the solicitor? What would an estate agent require from us to formally accept/acknowledge a bid?

    My past experience is that it's as simple as calling the EA and making an offer. The EA may or may not request to see your approval in principle letter.


  • #373
    whiskeyman
    Registered Users Posts: 12,564 ✭✭✭✭whiskeyman


    zarker wrote: »
    My past experience is that it's as simple as calling the EA and making an offer. The EA may or may not request to see your approval in principle letter.

    I'd rather them not see the approval in principal letter.
    What if the approval is for a good bit above the bid?
    They'd know you may / could go higher, and could inform the seller?
    Could this be the case?
    How would you go around this?


  • #374
    El_Dangeroso
    Users Awaiting Email Confirmation Posts: 5,620 ✭✭✭El_Dangeroso


    whiskeyman wrote: »
    I'd rather them not see the approval in principal letter.
    What if the approval is for a good bit above the bid?
    They'd know you may / could go higher, and could inform the seller?
    Could this be the case?
    How would you go around this?

    Black out the figure and scan the letter. They just need to know you're approved, not for how much.


  • #375
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    It's 16 days since we applied and got nothing back and finding it hard to get onto the advisor that dealt with us, I rang the bank direct to see if they had any info for me and they couldn't tell me? They said they'd contact the branch and get them to contact me. I find this strange


  • #376
    loveisdivine
    Registered Users Posts: 2,463 ✭✭✭loveisdivine


    I've a quick question too please, do you usually have the survey done before or after you make a bid?

    I think I'd be a bit frustrated if I'd pay x amount for a survey, only to be outbid, move on to a different house and then pay for a survey on that one too.


  • #377
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    you dont get the survey done till near the end of the whole process but before you sign contracts obviously


  • #378
    loveisdivine
    Registered Users Posts: 2,463 ✭✭✭loveisdivine


    Ah ok, that seems more reasonable.


  • #379
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    Bank advisor got back to me. He said that our application was waiting to be pre submitted before going for full approval? Is this normal?


  • #380
    shamrock55
    Registered Users Posts: 7,208 ✭✭✭shamrock55


    I know most people on here are first time buyers, but is it easier or harder to get a mortgage if i wanted to upgrade my current house, i could have my current mortgage payed off in 5yrs,that would stand to me right?, or should i just sell now,pay off the mortgage and start saving for a deposit then, if i could pay off my mortgage early i could keep the property and maybe rent it out,would i even be able to pay off my mortgage early?


  • #381
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    I think you would be mad to sell it and then start saving for a deposit! Is there a reason why you want to leave the house? Other wise just save away and dont sell the house untill you can make a few bob to put off the deposit on your next house...remember you are now going to need 20%


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  • #382
    [Deleted User]
    Posts: 0 ✭[Deleted User]


    shamrock55 wrote: »
    I know most people on here are first time buyers, but is it easier or harder to get a mortgage if i wanted to upgrade my current house, i could have my current mortgage payed off in 5yrs,that would stand to me right?, or should i just sell now,pay off the mortgage and start saving for a deposit then, if i could pay off my mortgage early i could keep the property and maybe rent it out,would i even be able to pay off my mortgage early?

    Surely if you could have the mortgage paid off in 5 years you must have a lot of equity in the current house?


  • #383
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    Santy2015 wrote: »
    Bank advisor got back to me. He said that our application was waiting to be pre submitted before going for full approval? Is this normal?

    Full approval only happenes when its linked to a specific address, so basically when you go sale agreed the update your approval with the details of the property itself and will then go back through any outstanding information, ie maybe a more recent payslip, P60's etc. They will also need an official valuation of the property itself in order to allow you to draw down the funds.


  • #384
    Santy2015
    Registered Users Posts: 1,065 ✭✭✭Santy2015


    SarahMollie wrote: »
    Full approval only happenes when its linked to a specific address, so basically when you go sale agreed the update your approval with the details of the property itself and will then go back through any outstanding information, ie maybe a more recent payslip, P60's etc. They will also need an official valuation of the property itself in order to allow you to draw down the funds.
    Ah okay was wondering that alright. Thanks


  • #385
    loveisdivine
    Registered Users Posts: 2,463 ✭✭✭loveisdivine


    What's people opinions on mortgage brokers? Are most people using them these days, is it a good idea for first time buyers to use a broker?


  • #386
    Jen44
    Registered Users Posts: 455 ✭✭Jen44


    yea so long as its a good broker they can do a lot of the ground work for you. Make sure and get recommendations some of them are time wasters!


  • #387
    Cathmandooo
    Registered Users Posts: 17,324 ✭✭✭✭Cathmandooo


    Just got my mortgage through a mortgage broker, genuinely would never have gotten the house without him. The house hit a lot of bumps in the road which dragged the process far too long, the guts of a year sale agreed, nightmare. He was a godsend to be honest, took a lot of pressure off us handling the bank side of it. I can pm you his details if you want them.


  • #388
    jennyhayes123
    Registered Users Posts: 471 ✭✭jennyhayes123


    When we were trying to get mortgage last year this joker broker (pardon the pun) was looking €200 off us non refundable just to apply then if he got us a mortgage we would have to give him about €1000. Can't remember exact figure. Anyways I read a thread on here about a guy who is a mortgage broker and there was I think over 70 comments on him. I thought no one can have that many friends... anyways turns out he is an absolute angel. He is amazing at his job and so so helpful and nice. We are living the dream now in our new house. Without Killian we would have never done it.

    P.s we never paid him a cent. Bank done all that. I hope he was well paid cause he deserves it


  • #389
    mirrorwall14
    Closed Accounts Posts: 6,751 ✭✭✭mirrorwall14


    jennyhayes123 wrote: »
    When we were trying to get mortgage last year this joker broker (pardon the pun) was looking €200 off us non refundable just to apply then if he got us a mortgage we would have to give him about €1000. Can't remember exact figure. Anyways I read a thread on here about a guy who is a mortgage broker and there was I think over 70 comments on him. I thought no one can have that many friends... anyways turns out he is an absolute angel. He is amazing at his job and so so helpful and nice. We are living the dream now in our new house. Without Killian we would have never done it.

    P.s we never paid him a cent. Bank done all that. I hope he was well paid cause he deserves it

    Any chance you could PM me his info? I'd like to speak to a broker


  • #390
    [Deleted User]
    Posts: 0 ✭[Deleted User]


    I'd personally prefer to be dealing directly with the bank rather than messing around with a broker who is there to make money. Its just a middle man between you and the bank.


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  • #391
    cupcake queen
    Registered Users Posts: 122 ✭✭cupcake queen


    jennyhayes123 wrote: »
    When we were trying to get mortgage last year this joker broker (pardon the pun) was looking €200 off us non refundable just to apply then if he got us a mortgage we would have to give him about €1000. Can't remember exact figure. Anyways I read a thread on here about a guy who is a mortgage broker and there was I think over 70 comments on him. I thought no one can have that many friends... anyways turns out he is an absolute angel. He is amazing at his job and so so helpful and nice. We are living the dream now in our new house. Without Killian we would have never done it.

    P.s we never paid him a cent. Bank done all that. I hope he was well paid cause he deserves it

    If you could PM me his details too I would be very grateful!!


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