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

29-01-2018 10:10pm

Say I'm approved for a mortgage of €X00,000, and I find a house selling for €X00,000 - €50k.

Will the banks ever allow extra borrowing on the mortgage above the value of the house say for home improvements or has that all stopped?

skeogh82 · 30-01-2018 10:40am

Does anyone know from recent experience if any of the banks will give a one bed apartment mortgage at 90% ltv to a ftb?

Thanks!!

Cuddlesworth · 30-01-2018 10:43am

Ayan Prickly Road wrote: »

Say I'm approved for a mortgage of €X00,000, and I find a house selling for €X00,000 - €50k.

Will the banks ever allow extra borrowing on the mortgage above the value of the house say for home improvements or has that all stopped?

Most home improvements don't add back equivalent costs so the final value versus deposit would need to be still within the LTI limits.

GingerLily · 30-01-2018 11:06am

skeogh82 wrote: »

Does anyone know from recent experience if any of the banks will give a one bed apartment mortgage at 90% ltv to a ftb?

Thanks!!

I don't think any of the banks are giving 90% LTV for one beds, none of the main banks will AFAIK

CoconutSky · 30-01-2018 1:07pm

skeogh82 wrote: »

Does anyone know from recent experience if any of the banks will give a one bed apartment mortgage at 90% ltv to a ftb?

Thanks!!

I got a 86.5% ltv and I am a ftb of a 1bed apartment. BOI was the bank. Good luck. It can be a challenge getting banks to play ball but if apartment is in Dublin you will have a better chance of getting 90% ltv. Also PTSB are good - they offered 90% ltv - granted mine is in Dublin.

skeogh82 · 30-01-2018 2:37pm

CoconutSky wrote: »

I got a 86.5% ltv and I am a ftb of a 1bed apartment. BOI was the bank. Good luck. It can be a challenge getting banks to play ball but if apartment is in Dublin you will have a better chance of getting 90% ltv. Also PTSB are good - they offered 90% ltv - granted mine is in Dublin.

That’s useful info - thanks!! I’m currently going through the application process with BOI - but the first thing the lad on the phone said was that they only offer 80%

ELM327 · 30-01-2018 2:58pm

CoconutSky wrote: »

I got a 86.5% ltv and I am a ftb of a 1bed apartment. BOI was the bank. Good luck. It can be a challenge getting banks to play ball but if apartment is in Dublin you will have a better chance of getting 90% ltv. Also PTSB are good - they offered 90% ltv - granted mine is in Dublin.

One would argue that 86.5%LTV on a one bed apartment was not the most prudent decision by the bank. We're coming back to 2006 people!

conf101 · 30-01-2018 5:24pm

ELM327 wrote: »

One would argue that 86.5%LTV on a one bed apartment was not the most prudent decision by the bank. We're coming back to 2006 people!

Out of interest, why don't banks generally ovver 90% ltv on one-bed apartments? Is it to do with resale value?

ELM327 · 30-01-2018 5:29pm

conf101 wrote: »

Out of interest, why don't banks generally ovver 90% ltv on one-bed apartments? Is it to do with resale value?

Because they all plummet in value before anything else in the event of a crash.

conf101 · 30-01-2018 5:36pm

Makes sense then, I guess

izzyflusky · 31-01-2018 3:41am

Finally got a AIP yesterday. They had some queries and I was worried about the outcome but I just emailed back once and it got sorted. Managed to get an exception too but I HOPE it won't come to that.
But as a great relief as it was for about a min, I know it's only the beginning.

The Sparrow · 31-01-2018 12:36pm

izzyflusky wrote: »

Finally got a AIP yesterday. They had some queries and I was worried about the outcome but I just emailed back once and it got sorted. Managed to get an exception too but I HOPE it won't come to that.
But as a great relief as it was for about a min, I know it's only the beginning.

Congrats. Can I ask when you applied for the exception? Was it this year or last?

AIB have told me that there are not many exceptions this year as they are working through a backlog from last year.

TheShow · 31-01-2018 3:33pm

after c 2 weeks, finally got full approval today, with a LTV exception via EBS.
No hassle getting the exception either.

now just the wait to go through the legal work and get the keys!

izzyflusky · 31-01-2018 4:18pm

The Sparrow wrote: »

izzyflusky wrote: »

Finally got a AIP yesterday. They had some queries and I was worried about the outcome but I just emailed back once and it got sorted. Managed to get an exception too but I HOPE it won't come to that.
But as a great relief as it was for about a min, I know it's only the beginning.

Congrats. Can I ask when you applied for the exception? Was it this year or last?

AIB have told me that there are not many exceptions this year as they are working through a backlog from last year.

I applied 2 weeks ago, it was from KBC (through a broker). They weren't too fussy either. I was afraid after reading this post because I had bought a car 3 months ago, my deposit wasn't all in my savings account (some of the money is coming from an investment that we haven't cashed out yet), and my rent looked irregular in the statements as I had to pay parts of it in cash at times, etc.

They enquired about the rent and about some expenses but gave me AIP the next day after I emailed back explaining. They gave me 4 times our salaries. The broker said that's the max KBC gives, but I'm not sure if its just the max he thought he would give us.

JDD · 31-01-2018 4:22pm

Just last week I got approval from KBC and BOI with an exception. I'd get in quick if I were you as they go quickly.

cruizer101 · 31-01-2018 4:39pm

JDD wrote: »

Just last week I got approval from KBC and BOI with an exception. I'd get in quick if I were you as they go quickly.

With KBC we were told we would need a property in mind to get exception, can I ask was it the same for you or was it just general exception.

31-01-2018 4:42pm

cruizer101 wrote: »

With KBC we were told we would need a property in mind to get exception, can I ask was it the same for you or was it just general exception.

I was told this the other day with BOI, it seems a bit awkward as you could be looking at many properties and negotiations.

JDD · 31-01-2018 5:07pm

Yep same for me. The BOI mortgage advisor said that ultimately it didn't matter as once you got mortgage approval you could use it to bid on any house. We're 70% sure we're going to try and buy one of the new Clay Farm houses, so that's what I put down on both the KBC and BOI forms, but again, you could pick any house from Myhome.ie within your budget and put that down on the form.

izzyflusky · 31-01-2018 5:13pm

We had to send the Broker a daft ad for a random property. He said it didnt matter if we weren't even considering it, it's just that because of the limited number of exceptions they have, they don't want to give it randomly to people that probably won't use it.

The broker didnt use the value of the property when we applied though, and he filled it out as though we were looking at new houses... So a bit weird.

aloooof · 31-01-2018 5:17pm

JDD wrote: »

Yep same for me. The BOI mortgage advisor said that ultimately it didn't matter as once you got mortgage approval you could use it to bid on any house. We're 70% sure we're going to try and buy one of the new Clay Farm houses, so that's what I put down on both the KBC and BOI forms, but again, you could pick any house from Myhome.ie within your budget and put that down on the form.

Curious how the "specifying a house within your budget" works in practice, especially as the majority of houses seem to be going over asking price? Would the Asking Price have to be the same as the mortgage amount? Or the mortgage + deposit amount, for example? Any advice on this appreciated.

GingerLily · 31-01-2018 5:47pm

aloooof wrote: »

JDD wrote: »

Yep same for me. The BOI mortgage advisor said that ultimately it didn't matter as once you got mortgage approval you could use it to bid on any house. We're 70% sure we're going to try and buy one of the new Clay Farm houses, so that's what I put down on both the KBC and BOI forms, but again, you could pick any house from Myhome.ie within your budget and put that down on the form.

Curious how the "specifying a house within your budget" works in practice, especially as the majority of houses seem to be going over asking price? Would the Asking Price have to be the same as the mortgage amount? Or the mortgage + deposit amount, for example? Any advice on this appreciated.

Put down a new build for the application, they are fixed prices

JDD · 31-01-2018 5:49pm

I guess I'd suggest nominating a new build that's selling very close to what you would like your budget to be. No worrying about asking price increases or anything like that then. And I believe that - despite the pyrite issues in new homes over the bust period - banks look more favourably on new builds as there's not likely to be as many issues that might crop up with second hand homes; e.g. title issues, flood risks, historical planning issues etc.

Considering that with an exemption application you want to put the most attractive application together possible, and there are no actual consequences to putting down a random house on your application, you might as well pick the least contentious house.

VonLuck · 01-02-2018 8:32pm

Sorry if this has been asked before, but does paying an additional voluntary contribution into a pension fund have any effect on applying for a mortgage?

For instance, if I pay an additional 10% into my pension fund, will this reduce my gross salary in the banks 3.5 x salary calculations?

Does it also affect the mortgage repayment capacity i.e. if they see a chunk of my income going into a pension, is this considered an "expense" as such, or is it seen as a capacity for saving? I am concerned that if the banks see that I have a large outgoing into a pension fund that they consider this as an inability to afford a mortgage when they do a stress test, when in reality I can easily cancel this voluntary contribution at any time.

goofy141 · 01-02-2018 8:51pm

Has anyone got a negative equity mortgage of late and what LTV did you get? Many thanks

GingerLily · 01-02-2018 8:56pm

I'm getting my keys tomorrow, I am so excited!!! I've been living as a newly wed with my inlaws, I'm finally going to live alone with my husband

I'm so excited!!!!!!

goofy141 · 01-02-2018 8:58pm

GingerLily wrote: »

I'm getting my keys tomorrow, I am so excited!!! I've been living as a newly wed with my inlaws, I'm finally going to live alone with my husband

I'm so excited!!!!!!

Congratulations x

Mickiemcfist · 01-02-2018 9:07pm

goofy141 wrote: »

Has anyone got a negative equity mortgage of late and what LTV did you get? Many thanks

What's a negative equity mortgage? I know how a normal mortgage can become one, but I didn't know they could be offered?!?

goofy141 · 01-02-2018 9:12pm

Mickiemcfist wrote: »

What's a negative equity mortgage? I know how a normal mortgage can become one, but I didn't know they could be offered?!?

Thanks for your input, I think it is generally referred to as a negative equity mortgage when seeking a new mortgage whilst in negative equity. Regardless I think it was obvious to what I was referring

Mickiemcfist · 01-02-2018 9:23pm

goofy141 wrote: »

Thanks for your input, I think it is generally referred to as a negative equity mortgage when seeking a new mortgage whilst in negative equity. Regardless I think it was obvious to what I was referring

Maybe it was obvious, but I figured it was something along the lines of a mortgage for a house for restoration

goofy141 · 01-02-2018 9:25pm

Mickiemcfist wrote: »

Maybe it was obvious, but I figured it was something along the lines of a mortgage for a house for restoration

Apologies sorry I must be touchy tonight ðŸ˜‚

teaontap · 01-02-2018 10:15pm

Has anyone had any issues getting mortgage protection? My other half has been refused from multiple providers and now ebs are saying they won't approve final offer without it despite telling us all along that they would allow us to sign a waiver. So frustrating as we thought we were over the line with it and had placed an offer on a house based on their advice

It'd be great to hear if anyone has any ideas for insurance companies that will consider an otherwise healthy person with a medical history that has made everyone else run a mile!

CoconutSky · 01-02-2018 11:12pm

teaontap wrote: »

Has anyone had any issues getting mortgage protection? My other half has been refused from multiple providers and now ebs are saying they won't approve final offer without it despite telling us all along that they would allow us to sign a waiver. So frustrating as we thought we were over the line with it and had placed an offer on a house based on their advice
It'd be great to hear if anyone has any ideas for insurance companies that will consider an otherwise healthy person with a medical history that has made everyone else run a mile!

I couldn’t access mortgage protection assurance. I had three refusals letters which I presented to the bank as a requirement to be considered for a waiver. My case was strengthened when I informed them that I had death in service benefit from my employers. They asked me to either reduce my mortgage term or pay a higher deposit to avail of the waiver. I chose reducing mortgage term. They finally issued full loan offer conditional to what I stated above.

The very best of luck with it. I know only too well how incredibly stressful it is.

teaontap · 01-02-2018 11:26pm

CoconutSky wrote: »

I couldn’t access mortgage protection assurance. I had three refusals letters which I presented to the bank as a requirement to be considered for a waiver. My case was strengthened when I informed them that I had death in service benefit from my employers. They asked me to either reduce my mortgage term or pay a higher deposit to avail of the waiver. I chose reducing mortgage term. They finally issued full loan offer conditional to what I stated above.

The very best of luck with it. I know only too well how incredibly stressful it is.

Thanks I may go back to them and see will they consider one of those options perhaps or I may try approaching some other lenders with that in mind. Hopefully they will consider it! We are borrowing quite a small sum so repayments are well within what I know I could afford i the event anything was to happen but they obviously use their own figures of what people should be spending!

Mickiemcfist · 01-02-2018 11:45pm

CoconutSky wrote: »

I couldn’t access mortgage protection assurance. I had three refusals letters which I presented to the bank as a requirement to be considered for a waiver. My case was strengthened when I informed them that I had death in service benefit from my employers. They asked me to either reduce my mortgage term or pay a higher deposit to avail of the waiver. I chose reducing mortgage term. They finally issued full loan offer conditional to what I stated above.

The very best of luck with it. I know only too well how incredibly stressful it is.

Thank god you got it eventually, which bank was that?

CoconutSky · 02-02-2018 8:57am

Mickiemcfist wrote: »

Thank god you got it eventually, which bank was that?

Bank of Ireland

shamrock55 · 02-02-2018 11:38am

For self build is the site included in the mortgage?

Bargain_Hound · 02-02-2018 12:18pm

For those who got exceptions, did you have to ask or was it offered out right without asking? we have AiP with 3 banks and none will offer any exception.

Cuddlesworth · 02-02-2018 12:47pm

Bargain_Hound wrote: »

For those who got exceptions, did you have to ask or was it offered out right without asking? we have AiP with 3 banks and none will offer any exception.

We were offered without asking but we had a really high deposit, high additional income to base and no dependants.

JDD · 02-02-2018 12:51pm

We had to ask. There was a separate section of the application form we had to fill out for BOI as well. I don't think we would have got it with any of the banks had we not asked for it.

Vim Fuego · 02-02-2018 2:22pm

teaontap wrote: »

Has anyone had any issues getting mortgage protection? My other half has been refused from multiple providers and now ebs are saying they won't approve final offer without it despite telling us all along that they would allow us to sign a waiver. So frustrating as we thought we were over the line with it and had placed an offer on a house based on their advice
It'd be great to hear if anyone has any ideas for insurance companies that will consider an otherwise healthy person with a medical history that has made everyone else run a mile!

Close acquaintance - cancer free for 12 months - managed to get approved by Friends First via Low.ie brokers. Had previously been turned away by Irish Lift, Zurich, Aviva etc. Good luck with either getting approved, or getting the waiver.

GingerLily · 02-02-2018 2:41pm

Bargain_Hound wrote: »

For those who got exceptions, did you have to ask or was it offered out right without asking? we have AiP with 3 banks and none will offer any exception.

We asked for a sum above our limit but never used the word exemption. It was close to our current rent in repayments and we had a good deposit

Michellenman · 02-02-2018 8:05pm

Did you get your keys ginger lily?!

Anyone else drawing with ulsterbank? We are having an absolutely nightmare. We had to officially reapply in 2018 to get an exemption and resubmitted all our paperwork on January 2nd, ulsterbank told us they would get loan offer out ASAP and we would be in a position to drawdown on January 11th which is what the vendors wanted and what we wanted too. It's taken until today (Feb 2nd) just to get the loan offer and will probably be another week before we can draw down. There's been goalposts moved multiple times, despite everything being sent in together in one envelope things have gotten 'lost' in the post, told us we didn't need to set up an UB current account and then changed their mind the day before we were supposed to drawdown. The current account team won't speak to the mortgage team or vice versa so it took more than a week to get a bic and Iban to give to the underwriter. Every time I call I get someone else who tells me X whereas the person before told me y. They kept telling us to expect loan offer on a Monday, then Wednesday, then following Monday and then eventually got it on Thursday only for it to be the wrong amount. The vendors are getting fed up with us, understandably, so the estate agent is constantly calling me for an update. Vendors solicitor is threatening to serve a 28day completion notice on us now which just adds more stress to an already unbelievably stressful time. Incredibly frustrating. We are so close but feel so far away.

Anyone who's with ulsterbank, do they do the actual drawdown part quickly now or are they just as slow?? Please tell me the next part is fast!

teaontap · 02-02-2018 10:12pm

Vim Fuego wrote: »

Close acquaintance - cancer free for 12 months - managed to get approved by Friends First via Low.ie brokers. Had previously been turned away by Irish Lift, Zurich, Aviva etc. Good luck with either getting approved, or getting the waiver.

Been refused by all of the above and more already. Heart attack at 20 meant most others wouldn't even entertain an application.

Actually got some advice from the Irish Heart Foundation this morning regarding Pulse Insurance so we are chasing that up now and hopefully it'll give us a good outcome!

GingerLily · 03-02-2018 2:16am

Michellenman wrote: »

Did you get your keys ginger lily?!

We did! We payed our deposit in October so it's felt like forever - but that is what happens with new builds.

Fingers crossed it gets sorted for you, I know for us we have several issues and EVERYTHING seemed to be delayed, until its all sorted and then it all happens almost too quickly.

I hope it gets sorted on your end, definitely the one of the most stressful things I'll ever do

keane2097 · 03-02-2018 1:31pm

VonLuck wrote: »

Sorry if this has been asked before, but does paying an additional voluntary contribution into a pension fund have any effect on applying for a mortgage?

For instance, if I pay an additional 10% into my pension fund, will this reduce my gross salary in the banks 3.5 x salary calculations?

Does it also affect the mortgage repayment capacity i.e. if they see a chunk of my income going into a pension, is this considered an "expense" as such, or is it seen as a capacity for saving? I am concerned that if the banks see that I have a large outgoing into a pension fund that they consider this as an inability to afford a mortgage when they do a stress test, when in reality I can easily cancel this voluntary contribution at any time.

I don't think you got an answer to this.

Your AVC is not deducted from your gross wage for the 3.5X calculation. It will also not lessen your repayment capacity in the eyes of the bank. As it is a voluntary contribution, should you get into difficulties repaying the mortgage your AVC actually shows additional repayment capacity.

This was the case with AIB anyway, I can't imagine any bank being dumb enough to see it as a negative that you are comfortable and prudent enough to be making AVCs.

goofy141 · 03-02-2018 7:18pm

Has anyone applied as a sole applicant even though married and spouse also has an income?

vmb · 03-02-2018 8:34pm

goofy141 wrote: »

Has anyone applied as a sole applicant even though married and spouse also has an income?

We did, as I was in probation period.

No problem at all, but the loan was based on her income x 3.5. My salary was 100% ignored.

We didn't try to get a different offer, as the loan offer was enough

goofy141 · 03-02-2018 10:27pm

vmb wrote: »

We did, as I was in probation period.

No problem at all, but the loan was based on her income x 3.5. My salary was 100% ignored.

We didn't try to get a different offer, as the loan offer was enough

Thanks so much, I bought a house previously so hoping my husband will qualify as a first time buyer as he never bought before

kippy · 03-02-2018 10:36pm

goofy141 wrote: »

Thanks so much, I bought a house previously so hoping my husband will qualify as a first time buyer as he never bought before

Don't think ye will manage that to be honest.
https://www.google.ie/amp/s/www.irishtimes.com/business/personal-finance/do-couples-lose-first-time-buyer-status-if-one-partner-bought-in-the-past-1.2876465%3fmode=amp

goofy141 · 03-02-2018 10:43pm

kippy wrote: »

Don't think ye will manage that to be honest.
https://www.google.ie/amp/s/www.irishtimes.com/business/personal-finance/do-couples-lose-first-time-buyer-status-if-one-partner-bought-in-the-past-1.2876465%3fmode=amp

The bank seems to think he will qualify as my income is not being taken into account and deeds will be solely in his name

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

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