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

BertyytreB · 11-10-2015 10:25pm

Del007 wrote: »

Will any bank give a mortgage to someone working on a contract?

Yes I got one, but I'm on a rolling contract and 4years in the job

April 73 · 12-10-2015 6:47am

Bananaleaf wrote: »

I haven't factored in extra costs as I don't know what they would be

April - I was wondering if you can explain the costs in your post above. Do we also have to pay these?

40k would be all the savings we will have by next Sep so would we really need an extra 10k on top of that?

Furniture etc will be fine, we will get second hand/cheap/hand me downs and do up one room at a time.

Thank you

Hi Bananaleaf, you will have to pay stamp duty of 1% of the purchase price to Revenue. On a house priced at €160,000 this will be €1600. The other big expense is the legal cost. I would factor in around €2000 to €2500 to cover the solicitor's professional fee, searches & land registry - that's what those costs outlined in my previous post cover. Don't forget the survey cost which could be around €300 to €500. You may also have to pay a valuation fee to the bank - usually around €100-€150.
And yes, you'll have similiar costs involved in the purchase.

With savings of €40,000 for a house costing €160,000 you should be fine. Deposit of €32,000 is 20% and mortgage of €128,000 should be fine. That would leave €8000 to cover stamp duty, solicitor, any other costs.

NyOmnishambles · 12-10-2015 9:36am

Del007 wrote: »

Will any bank give a mortgage to someone working on a contract?

Azalea Screeching Padding wrote: »

It would depend on many factors I'd imagine but I would think that they will in certain circumstances.

BertyytreB wrote: »

Yes I got one, but I'm on a rolling contract and 4years in the job

They will but you might have to provide more information than normal, also depends on what industry you are in I would guess

I work in IT so they accepted that it is pretty normal to move around every 12-18 months and be on 6 month contracts

I had to provide a copy of my current contract and P60's from the previous 3 years and a copy of my CV (everything on it was factual but have no idea what use it could be to them) once they saw a consistent level of income of that time period there were no issues

12-10-2015 11:00am

April 73 wrote: »

Hi Bananaleaf, you will have to pay stamp duty of 1% of the purchase price to Revenue.

Also just to add if you go with BOI you will get your stamp duty refunded (up to certain limits).

El_Dangeroso · 12-10-2015 11:05am

Azalea Screeching Padding wrote: »

Also just to add if you go with BOI you will get your stamp duty refunded (up to certain limits).

Which you'll pay back and then some with their higher variable rates.

12-10-2015 11:08am

El_Dangeroso wrote: »

Which you'll pay back and then some with their higher variable rates.

I'm only mentioning the offer. A friend of mine just went with BOI for a mortgage and he is no fool so I would say they must be much of a muchness between the banks.

Flatzie_poo · 12-10-2015 11:41am

Azalea Screeching Padding wrote: »

I'm only mentioning the offer. A friend of mine just went with BOI for a mortgage and he is no fool so I would say they must be much of a muchness between the banks.

I think it's competitive until 7/8 years in - if you're going to sell before this time then it's a prudent deal.

El_Dangeroso · 12-10-2015 11:43am

Azalea Screeching Padding wrote: »

I'm only mentioning the offer. A friend of mine just went with BOI for a mortgage and he is no fool so I would say they must be much of a muchness between the banks.

I think it becomes attractive at much lower LTV rates so maybe that was the case with your friend.

Flatzie_poo wrote: »

I think it's competitive until 7/8 years in - if you're going to sell before this time then it's a prudent deal.

I believe they have a clawback clause, not sure when it kicks in though.

Flatzie_poo · 12-10-2015 11:46am

El_Dangeroso wrote: »

I believe they have a clawback clause, not sure when it kicks in though.

I haven't read the small print by any means, just did a quick calc to see, so I'll err on the side of caution with you on this!

lainey316 · 12-10-2015 12:03pm

Clawback is 5 years for the cashback with BoI

Cost of credit as per my offer letters from BoI vs EBS had a 96k difference - EBS much cheaper on SVR. BoI fixed rates are competitive with ESB variable. Their variable rates are outrageous (60-80% LTV)

El_Dangeroso · 12-10-2015 12:04pm

Askaboutmoney has done the calcs for us:

http://www.askaboutmoney.com/threads/evaluating-the-bank-of-ireland-2-cash-back.194719/

So it's five years before you can switch.

Santy2015 · 12-10-2015 6:08pm

Just in relation to going for mortgage approval, BOI are giving you 12 months and EBS 6 months. Come January we should have Ã¢Â‚Â¬10k in CU accounts and Ã¢Â‚Â¬1k in BOI savings as we are using our CU savings for our deposit and stamp duty and bank savings for a car loan for myself when hopefully we'll have a house. They are both offering similar mortgage packages except BOI who have longer approval and will probably extend that cash back offer. Should we go for approval in January or hold out? We will have Ã¢Â‚Â¬15k by the start of May too

Santy2015 · 13-10-2015 6:59pm

Nothing in the budget for FTB or incentivise people to buy. Still keep the head down and keep on saving our euros

bleary · 13-10-2015 9:02pm

I don't think the market needs more people incentivised to buy at the moment. The issue is a lack of supply. Perhaps Nama may provide some additional housing but not for a bit down the line

Santy2015 · 13-10-2015 10:34pm

Nama won't be much good too people outside of Dublin. I think they said 90% will be in the Dublin area. Private housing is a major problem everywhere but saying that supply in my area isn't too bad and is affordable if you save hard enough

HiGlo · 14-10-2015 3:02pm

MrStuffins wrote: »

You might be fine.

Just request a credit report from the ICB website. Costs €6. I got one a while ago as i wasn't sure about a loan I had before. It was all clear. €6 well spent

I did this and got it in the post yesterday.
The only indication on it is that I have revoked credit card. The card was issued in 2007 but I haven't had an actual physical credit card since 2010/11 when no card was sent to me when the original expired. I have fully paid this card off since August 2014.
According to the ICB report the Scheduled Removal Date is September 2018. Does this mean that this card will sit on my record till then?? Or does it just mean that's the current expiry date on the card (even though I don't have a physical card?). Does anyone know can I contact the bank and ask them to close that credit card account? Would that make any difference?

I'm getting my ass in gear to start some serious saving now.

Santy2015 · 14-10-2015 5:48pm

Got my arse into gear as soon as I popped the question haha. Had different plans but down here in cork the rental market is a joke and you're better off to buy here.

youcancallmeal · 19-10-2015 10:51am

Me and the wife are looking at buying our first (And hopefully only) house next year. We've been advised by a few people to start talking to mortgage brokers now? This thread is great for getting an idea of where we need to be. We are looking at south Dublin so aiming for house value around 400k and mortgage of 350k. Hoping to have close to 50k saved by next August/Sept. From what I can tell 350k mortgage with 50k may not be enough after factoring in around 10k for stamp duty, legal fees etc? Anyone any recommendations for a good broker in south Dublin?

iainBB · 19-10-2015 11:44am

youcancallmeal wrote: »

Hoping to have close to 50k saved by next August/Sept. From what I can tell 350k mortgage with 50k may not be enough ?

With the new rules you will need 58 k deposit for a house of 400k
It's 10 % deposit on 220 and 20% on rest.

so that is 22k on first bit and 36k for the rest

That is excluding fees etc.
Your going to have to save a hell of a lot more or change house price. You may if lucky to get waver for only10% deposit.

youcancallmeal · 19-10-2015 12:01pm

iainBB wrote: »

With the new rules you will need 58 k deposit for a house of 400k
It's 10 % deposit on 220 and 20% on rest.

so that is 22k on first bit and 36k for the rest

That is excluding fees etc.
Your going to have to save a hell of a lot more or change house price. You may if lucky to get waver for only10% deposit.

I don't know why but I had it my head the restrictions only apply to the amount you want to draw down(i.e. 350k) as opposed to total value of the house. Yeah I suppose we'll just have to save for longer or change house price range. Still very early days for us so end goal is a bit of a moving target. Might even wait until 2017 if we have to but that would not be ideal.

Butters1979 · 19-10-2015 12:24pm

The restrictions are indeed based on the amount you want to draw down, not the total house price.

Black_Knight · 19-10-2015 12:34pm

Butters1979 wrote: »

The restrictions are indeed based on the amount you want to draw down, not the total house price.

Deposit required is on the cost of the property I thought.
Max amount of borrowings is based off of salary.

In this case, youcancallmeal needs a combined salary of €100k to get a loan of €350k, and as mentioned 58k of a deposit. Plus about 5-6k in other fees. So a 400k house wont need the full €350k mortgage since the deposit is 58k.

Thats my understanding of it.

Butters1979 · 19-10-2015 12:45pm

Black_Knight wrote: »

Deposit required is on the cost of the property I thought.
Max amount of borrowings is based off of salary.

In this case, youcancallmeal needs a combined salary of €100k to get a loan of €350k, and as mentioned 58k of a deposit. Plus about 5-6k in other fees. So a 400k house wont need the full €350k mortgage since the deposit is 58k.

Thats my understanding of it.

Sorry, I think I got myself confused. What you're saying is correct. The deposit needed is indeed based on the full cost of the house. 10% of the first 220K, then 20% after that. For a 400K house you would need to borrow 342K and have 58K deposit. You would actually need about 63K or 64K saving however as the bank will require you to have stamp duty etc.

It's the restrictions of 3.5 times your annual salary that is based on the mortgage rather than the overall cost of the house.

Santy2015 · 19-10-2015 1:02pm

The restrictions are a good thing in some sense but can really put off the likes of yourself with the 350k/400k as the deposit is so high. I'm kinda lucky that I can only go as far as 150k and would probably get a 3/4 bed semi for less then that amount in my area. My plan is to buy a house worth around 100/130k and then hopefully after a few years I'll try and build as I only see this house hopefully as a starter and then move up but you never know I suppose

youcancallmeal · 19-10-2015 1:26pm

Santy2015 wrote: »

The restrictions are a good thing in some sense but can really put off the likes of yourself with the 350k/400k as the deposit is so high. I'm kinda lucky that I can only go as far as 150k and would probably get a 3/4 bed semi for less then that amount in my area. My plan is to buy a house worth around 100/130k and then hopefully after a few years I'll try and build as I only see this house hopefully as a starter and then move up but you never know I suppose

I would be looking to buy a house and live there for at least the next 30 years. In Dublin it certainly seems like a bad idea to buy a house with the intention of trading up in future. I've seen so many people get stung like this and now stuck in 2 bed house/apartments with 2/3 children.

Santy2015 · 20-10-2015 3:32pm

Just looking for a few tips, it seems that we will probably go for approval in January/February next year, there's a house within our budget that I think will be picked up quickly in the new year. Do you pay the estate agent a payment that'll go towards your deposit? We know we'll have enough to secure a house but will take a bit to get the keys as I know a couple who had to wait nearly 8 months to get the keys off the developers

Flatzie_poo · 20-10-2015 3:41pm

Santy2015 wrote: »

Do you pay the estate agent a payment that'll go towards your deposit?

Yeah - usually 5k

Santy2015 wrote: »

We know we'll have enough to secure a house but will take a bit to get the keys as I know a couple who had to wait nearly 8 months to get the keys off the developers

Just remember a valuation is only valid for 2 months now - leave this until you know the exact date or you could pay twice. Will be around €130.

Santy2015 · 20-10-2015 3:43pm

Flatzie_poo wrote:

Yeah - usually 5k

Thanks, I knew there was a payment, yeah that couple had a problem, they were told the owner wanted 10k extra after agreeing a deal which I find strange to be honest

Butters1979 · 20-10-2015 3:57pm

Flatzie_poo wrote: »

Yeah - usually 5k

It depends on the estate agent and sometimes the value of the house. We had to give 10K.

Santy2015 · 20-10-2015 8:49pm

Perfect thanks. We're both excited and scared about the buying process. Just trying to get all the facts and tips possible before we go for approval

Bananaleaf · 21-10-2015 11:13pm

Santy2015 wrote: »

Perfect thanks. We're both excited and scared about the buying process. Just trying to get all the facts and tips possible before we go for approval

So scared by it too. I don't know where to start. What should we do first? Look for a propertyo r talk to a bank?

Santy2015 · 21-10-2015 11:24pm

Bananaleaf wrote:

So scared by it too. I don't know where to start. What should we do first? Look for a propertyo r talk to a bank

Once we got engaged I started ringing banks to get a jist as to what we could borrow, I was getting vague answers so I rang the Ebs to set up a mortgage meeting and to open a joint savings account with herself, they told us not bother and to keep saving in the credit union which o found strange but they were very helpful with giving us an idea of what we could afford and the bank of Ireland were too. Go to the bank first and see what you afford. What's getting us is the amount we need to save for furnishings and solicitors, I'm hoping to have enough saved for deposit, solicitor stamp duty and surveyor. We want to buy asap but obviously get the house we both want and can afford

DM addict · 22-10-2015 1:11am

youcancallmeal wrote: »

I would be looking to buy a house and live there for at least the next 30 years. In Dublin it certainly seems like a bad idea to buy a house with the intention of trading up in future. I've seen so many people get stung like this and now stuck in 2 bed house/apartments with 2/3 children.

That's what we're hoping to do too. Trouble is that means saving a sizeable deposit

April 73 · 22-10-2015 7:42am

With the new lending rules buying a €400k house requires a deposit of €58k for a first time buyer. If you try to trade up to a €500k house later on you'll need €100k deposit as a second time buyer.

Even if house prices don't rise, over ten years you could pay down a reasonable amount of capital. Combine that with the initial deposit & you'd have the deposit to trade up. Peoples salaries tend to move upwards during their career.

It's very difficult to plan your whole life to fit in with the first house purchase. Lives & needs change over time.

Trading up will still be possible even if the lending rules stay in place forever. And that's s big if.

I've purchased four houses over twenty years & feel I am in the house that I will stay in. I wouldn't call each house before this a stepping stone to get here because that makes it sound like those weren't good houses or happy years. I was happy to live in each of those houses & they were right for our budget and stage of life at the time.

Butters1979 · 22-10-2015 9:41am

Bananaleaf wrote: »

So scared by it too. I don't know where to start. What should we do first? Look for a propertyo r talk to a bank?

There's no reason to do one first then the other. Do them at the same time.
Kick off the mortgage application, the bank will be able to tell you very quickly roughly how much you should qualify for very quickly and always go for a max approval, it is no problem asking for lower afterwards. Then start looking straight away.

You should already have mortgage approval by the time you get to offer stage. During bidding it is a big advantage if you are ready to draw down compared to those waiting for approval or need to sell their house first, this could be the difference between you and another bidder.

I find the below guide quite straight forward and easy to follow.

http://www.consumerhelp.ie/buying-a-home
http://www.consumerhelp.ie/buying-a-home-step-by-step-guide

ChippingSodbury · 22-10-2015 10:23am

Santy2015 wrote: »

Perfect thanks. We're both excited and scared about the buying process. Just trying to get all the facts and tips possible before we go for approval

You'll be grand! Just think of the post a while back in the thread about the first night in the house, eating a takeaway on the back step!!

And "christening" all of the rooms :pac:

April 73 · 22-10-2015 10:35am

ChippingSodbury wrote: »

You'll be grand! Just think of the post a while back in the thread about the first night in the house, eating a takeaway on the back step!!

And "christening" all of the rooms :pac:

Lol :-) That was my post about the chips on the back step on the first night. I don't think I shared anything about christening all the rooms though. That's obviously Chipping Sodbury's plan ;-)

nasty_crash · 22-10-2015 10:48am

just a couple of things after reading the post - we only bought our house 3 weeks ago and have moved in etc.

Stamp Duty 1%
Valuation - €150
Solicitors Fees - we were advised by the bank that it would be circa 1500 but our Solicitor was 2000 and i said that i was advised 1500 and he said he couldnt see that because of registery costs etc.
ESB & Gas can charge to reconnect if the property has been empty... if empty for longer than 6 months or a year it can be expensive

If you were going for a house @ 120,000 - i would recommend that you have 16k at least - remember tho... its a slow drawn out process so we were saving 1000 a month and when we had the 10% and stamp duty we applied and continued to save which meant that we had about 4k for all the other expenses.

We also got a new suite of furniture - from DFS - it took 6 weeks to make and deliver and they delivered on the day we got the keys - same with Harvey Norman - we had everything ordered and paid in advance. I rang them to send it to the address on our closing day which was no problem

Best of luck with saving - its brutal when your renting but its worth it when you get the keys

ChippingSodbury · 22-10-2015 10:51am

April 73 wrote: »

Lol :-) That was my post about the chips on the back step on the first night. I don't think I shared anything about christening all the rooms though. That's obviously Chipping Sodbury's plan ;-)

Some guy mentioned all of the "essentials" like 2 TVs, dishwasher etc.

Blinds or curtains on one or two of the rooms are "essentials" :P

It's a great journey to be starting on as long as you don't overstretch on the financials: it's better to be happy in a small house than stressed in one that you can't really afford. I, like you, can still remember the feeling of opening the front door for the first time as the owners even though it's 14 years ago. We didn't have the chips on the back step: we were posh and bought a house with blinds!!!

Santy2015 · 22-10-2015 2:10pm

nasty_crash wrote:

Solicitors Fees - we were advised by the bank that it would be circa 1500 but our Solicitor was 2000 and i said that i was advised 1500 and he said he couldnt

Yeah they told me between 1000/1500 for a solicitor, I'm not too worried about the surveyor as one of my friends is in that line of work and will sort me out. The killer for us is the furnishing of a house, I know that we'll have 15/16k come May next year and that would cover all deposit, etc..

ChippingSodbury · 22-10-2015 4:26pm

Don't worry too much about furniture: you only need the essentials.
Bed (Ikea ~€300) + bedclothes/ duvet €100
Kitchen table/ chairs (Donedeal)
Kitchenware: pots/ pans/ cutlery/ plates etc Ikea ~€100
Cooker: plenty less than €100 on donedeal
Washing Machine: plenty around €100 on donedeal

I'm no expert on shopping but that's just the result of a quick poke around online. Don't forget, hopefully you'll get housewarming pressies from your family/ friends too.

Don't go stressing out, you don't have to buy everything new and now. You've got your whole life in front of you for gathering "stuff"!

Butters1979 · 22-10-2015 4:41pm

ChippingSodbury wrote: »

Don't worry too much about furniture: you only need the essentials.
Bed (Ikea ~€300) + bedclothes/ duvet €100
Kitchen table/ chairs (Donedeal)
Kitchenware: pots/ pans/ cutlery/ plates etc Ikea ~€100
Cooker: plenty less than €100 on donedeal
Washing Machine: plenty around €100 on donedeal

I'm no expert on shopping but that's just the result of a quick poke around online. Don't forget, hopefully you'll get housewarming pressies from your family/ friends too.

Don't go stressing out, you don't have to buy everything new and now. You've got your whole life in front of you for gathering "stuff"!

Completely agree. Get the basic essentials. Second hand will do. Build up the furniture and stuff over the years and enjoy it. I'm moving into my new house soon and i'll be on a beanbag for the first moth or two.

Santy2015 · 22-10-2015 6:06pm

Thanks, we're both itching to move out since we got engaged, want to get the house sorted first though. All your answers help. I think ikea and done deal will be used plenty

ChippingSodbury · 22-10-2015 6:16pm

Going to Ikea as as good as any pre-marriage course: it tests the relationship!!

Santy2015 · 22-10-2015 7:06pm

Very true words, it'll be on us before we know it

Bananaleaf · 22-10-2015 8:05pm

We will be looking for about 160k. We already have 25k but not ready to start thinking about anything for another year probably. Maybe less. It's very overwhelming and we both have little time after work to even sit down and think about it all. We aim to have at least 40k by this time next year so will be a very decent amount to start with.

Santy2015 · 22-10-2015 8:31pm

Bananaleaf wrote:

We will be looking for about 160k. We already have 25k but not ready to start thinking about anything for another year probably. Maybe less. It's very overwhelming and we both have little time after work to even sit down and think about it all. We aim to have at least 40k by this time next year so will be a very decent amount to start with.

that's brilliant, ye are well on yer way. I'd love to be able to save more and to save for longer but we both think we need to get out of our parents houses and move on, I've been in full time work since I was 19 and I know myself it's time I used my money for a house.

Santy2015 · 23-10-2015 5:33pm

<mod snip>

Mod note Please do not post identical posts on two threads on the same forum. I've left the post in the property market thread.

Santy2015 · 27-10-2015 8:19pm

Question, myself and my fiancÃ႒Â©e are both with bank of Ireland but different branches. Does it matter which branch we go to for a mortgage? I'm sure it doesn't matter

Ursus Horribilis · 27-10-2015 9:08pm

Not at all. You don't even have to be a customer of the bank you get the mortgage from.

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

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