Saving/Applying for a mortgage 2020-22 Edition

Creamy Goodness · 27-02-2021 12:51am

Green Mile wrote: »

Do you think negative interest rates on deposits would mean banks want to lend out their money more competitively than they currently do? I’m thinking mortgage interest rates could be reduced over the next 2 or 3 years on that basis.

I don’t think they’ll go much lower than they already are. They’ll wait and see how well avantcard mortgages do. It’s desperately difficult for banks to get their money back if someone decides to stop paying their mortgage and default. That’s the reason for the percentage difference between mainland European mortgages vs Irish ones.

earlyapex · 27-02-2021 12:14pm

I have AIP with KBC with an expiry date in April, the usual 6 months is up then but my broker is telling me I don't need to extend it as the real expiry is 6 months + 5 months and that I'm good until October.
I fear I will miss out on a house by the estate agents not believing this and just going by the date on the AIP letter I'll send them.

What are your experiences with KBC AIP expiry dates?
Once past the 6 months, did you have to apply again or was it really 11 months?
Thanks.

Creamy Goodness · 27-02-2021 12:32pm

earlyapex wrote: »

I have AIP with KBC with an expiry date in April, the usual 6 months is up then but my broker is telling me I don't need to extend it as the real expiry is 6 months + 5 months and that I'm good until October.
I fear I will miss out on a house by the estate agents not believing this and just going by the date on the AIP letter I'll send them.

What are your experiences with KBC AIP expiry dates?
Once past the 6 months, did you have to apply again or was it really 11 months?
Thanks.

Can’t speak for KBC specifically but as long as your circumstances around salary and savings don’t change renewing the AIP is giving some recent pay slips.

DopeTech · 27-02-2021 12:41pm

Has anyone here applied for a mortgage while the main earner is on contract work in a solid industry (i.e IT). How did you get on?

Renjit · 27-02-2021 12:55pm

Creamy Goodness wrote: »

Can’t speak for KBC specifically but as long as your circumstances around salary and savings don’t change renewing the AIP is giving some recent pay slips.

Right now they are also asking salary cert with covid clause and bank statements.

Zebrag · 27-02-2021 1:03pm

Hi everyone

I was just wondering from mortage brokers to personal views what they think of this...

Myself and boyfriend live with his father in a rented house, it's privetly rented. We pay his father our rent in cash every month as he point blank refuses to let us transfer money to him even though he then ends up lodging the money into his account and transfers it to the landlord anyways. It doesn't make sense to us and we've tried to reason with him. I spoke to a mortage advisor a few months back to get the gist of what we should be doing to be mortage ready he said that ideally the banks will want to see a set amount transfer as it let's them know exactly what it's for to the landlord himself but again, the father is really difficult and refuses to budge. I have a rent book that I ended up buying when we started renting here to have some form of proof but now I'm wondering, is this wasting my time and should I be telling him that we have to transfer to his bank? I wouldn't even mind but he has his banking app and checks it so he knows full well how it works. He's over 70 so it's nothing to do with bank charges as the elderly don't get any fees. Has anyone paid rent in cash with no cause for concern?

We aren't 100% mortage ready yet but I would like to start off on the right direction and try to avoid as much complications as I can

Edit: I'm sure I've asked this before but I've lost the post in this thread and I've no idea how far back it was when I posted

brianc27 · 27-02-2021 1:12pm

earlyapex wrote: »

I have AIP with KBC with an expiry date in April, the usual 6 months is up then but my broker is telling me I don't need to extend it as the real expiry is 6 months + 5 months and that I'm good until October.
I fear I will miss out on a house by the estate agents not believing this and just going by the date on the AIP letter I'll send them.

What are your experiences with KBC AIP expiry dates?
Once past the 6 months, did you have to apply again or was it really 11 months?
Thanks.

I have AIP with kbc expiring mid March, I contacted my broker on extending and was told I would need to submit a brand new application around the time the current expires, basically start the whole process again, nothing about an extra 5 months, that's seems odd, AIP is generally 6 months

earlyapex · 27-02-2021 6:10pm

Yes mine is 6 months also, I was asking my broker to start the extension process so I am ready with a fresh AIP when I reach current expiry date but he is saying I don't need to and provided me with a letter to give to estate agents stating it runs for another 5 months after that date!

I don't know if its correct.
If it was, wouldn't all brokers say the same thing.

He says it broken down like this, 6 months to find a property and another 5 months to close.
My point was that it will be expired before I can action it because of the lockdown. I'm worried about it.

brianc27 · 27-02-2021 6:25pm

earlyapex wrote: »

Yes mine is 6 months also, I was asking my broker to start the extension process so I am ready with a fresh AIP when I reach current expiry date but he is saying I don't need to and provided me with a letter to give to estate agents stating it runs for another 5 months after that date!

I don't know if its correct.
If it was, wouldn't all brokers say the same thing.

He says it broken down like this, 6 months to find a property and another 5 months to close.
My point was that it will be expired before I can action it because of the lockdown. I'm worried about it.

Actually my broker said something similar to me when I queried the expiry date, I asked if I go sale agreed the day before expiry date, were do I stand, was told it would be fine because once sale agreed the process moves on from AIP to valuation, but I would have to reapply once its expires if I haven't found a place

I've pretty much stopped looking anyway until viewings are back on so will be reapplying once the 6 months is up

dropping_bombs · 28-02-2021 12:50am

Hi folks,

Does anyone know the situation with getting a mortgage to build in Ireland if you're working in the UK? Is it possible to get a mortgage from an Irish bank when you're currently abroad, with the intention to return to Ireland? Thanks!

DopeTech · 28-02-2021 5:12pm

DopeTech wrote: »

Do the banks have a way of checking what other bank accounts you have? i.e if you sign up for a swirl or paysafe card and top it up with cash at a payzone agent would they have any way of knowing you have that card. Obviously if you were withdrawing large amounts of cash they would ask where it was going but I'm talking maybe €20 a month. Nothing big.

Anyone?

G_R · 28-02-2021 5:31pm

DopeTech wrote: »

Anyone?

No, current accounts don't show up on the CCR unless they have an overdraft facility of €500 or higher

Yella · 28-02-2021 8:09pm

We booked Parklands in Citywest. The EA is promising June to Aug delivery but other buyers are indicating it may go longer than they promised. The thing my spouse has her contract till 31 Jan 2022. The contract may extend or may not. What if we drawdown close to her contract date? Will banks object to that once the full offer is given? Thank you.

Renjit · 28-02-2021 11:26pm

Yella wrote: »

We booked Parklands in Citywest. The EA is promising June to Aug delivery but other buyers are indicating it may go longer than they promised. The thing my spouse has her contract till 31 Jan 2022. The contract may extend or may not. What if we drawdown close to her contract date? Will banks object to that once the full offer is given? Thank you.

Which phase did you book? The current phase still has outstanding work. And I think you should take their word with a pinch of salt. Delays are often in this build.

Yella · 01-03-2021 10:34am

Renjit wrote: »

Which phase did you book? The current phase still has outstanding work. And I think you should take their word with a pinch of salt. Delays are often in this build.

Phase 2. I don't think foundations are laid. It is in the same street as 8 Parklands Place according to the plan. Which one is yours?

Renjit · 01-03-2021 11:22am

Yella wrote: »

Phase 2. I don't think foundations are laid. It is in the same street as 8 Parklands Place according to the plan. Which one is yours?

Ours is in green. I would suggest go for the house which is already completed.

01-03-2021 11:25am

And got approval from BOI today. So got two approvals. Had no problems getting 3.5 times my salary. Now just to keep saving while I wait.

brianc27 · 01-03-2021 11:35am

Deleted User wrote: »

And got approval from BOI today. So got two approvals. Had no problems getting 3.5 times my salary. Now just to keep saving while I wait.

how long did it take through BOI, i applied online last sat and go a reply last Wednesday looking for extra documents, uploaded those pretty much straight away but haven't heard anything since.

Cows Go µ · 01-03-2021 11:47am

Does anyone know how long full approval is taking with AIB at the moment? We are looking to apply near the end of March for a remortgage in order to do an extension and renovation. We are asking for a good 40,000 under the 3.5 limit and we have both continued to work uninterrupted during all of covid so I'm hoping we won't have any issues.

ms vieria · 01-03-2021 11:51am

brianc27 wrote: »

how long did it take through BOI, i applied online last sat and go a reply last Wednesday looking for extra documents, uploaded those pretty much straight away but haven't heard anything since.

They are very quick to ask for extra docs then it was 2 weeks from there for us.

01-03-2021 11:54am

brianc27 wrote: »

how long did it take through BOI, i applied online last sat and go a reply last Wednesday looking for extra documents, uploaded those pretty much straight away but haven't heard anything since.

I got asked for additional documents so was another week after that. So overall about 2 weeks. I do have a savings account with them which might factor in.

brianc27 · 01-03-2021 12:19pm

Deleted User wrote: »

I got asked for additional documents so was another week after that. So overall about 2 weeks. I do have a savings account with them which might factor in.

cheers, ill take the fact i havent heard from them since last wednesday when i updated the extra docs means they are happy with what ive submitted so far

AD07 · 01-03-2021 3:39pm

Does anyone know how it works using a site as your deposit for your mortgage?

Damo 2k9 · 08-03-2021 1:26pm

Hi all, starting to get serious with the saving now. Currently have a Hire Purchase finance on my car, approx 1.5 yrs left (€3.5k roughly). Recently came into some money, should I look to:

- Pay the outstanding, meaning more money to save each month going forward
- Keep the money that I have come into, and use this as a big jump in savings

Would appreciate anyones thoughts!

awec · 08-03-2021 1:30pm

Depends what you'd save on interest by paying it off early.

topmanamillion · 08-03-2021 1:34pm

Damo 2k9 wrote: »

Hi all, starting to get serious with the saving now. Currently have a Hire Purchase finance on my car, approx 1.5 yrs left (€3.5k roughly). Recently came into some money, should I look to:

- Pay the outstanding, meaning more money to save each month going forward
- Keep the money that I have come into, and use this as a big jump in savings

Would appreciate anyones thoughts!

It would make sense to clear the loan, it's a relatively small amount but banks will look more favourably on someone without loans. It would also reduce the amount you'd be able to borrow if it was still there at application time.

JohnK · 08-03-2021 2:02pm

topmanamillion wrote: »

It would also reduce the amount you'd be able to borrow if it was still there at application time.

Depends on the bank - PTSB told me I'd have to pay it off before a drawdown or they'd reduce what they'd give me but EBS had no problem and said as long as it doesnt impact my repayment ability its fine to have the PCP.

DubLad69 · 08-03-2021 2:17pm

Does anyone know how the banks view credit card use? I got AIP from AIB and EBS for the amount I need. In the months leading up to the application I only needed to use the credit card once or twice.

We had to make a large purchase this month that has put us very tight for money if we continue to save the same amount each month.

Is it okay to occasionally use the credit card, as long as its paid off in full before we receive a statement?

It would be extremely helpful to use it a little, bit we also don't want to mess up our application.

Creamy Goodness · 08-03-2021 2:28pm

DubLad69 wrote: »

Does anyone know how the banks view credit card use? I got AIP from AIB and EBS for the amount I need. In the months leading up to the application I only needed to use the credit card once or twice.

We had to make a large purchase this month that has put us very tight for money if we continue to save the same amount each month.

Is it okay to occasionally use the credit card, as long as its paid off in full before we receive a statement?

It would be extremely helpful to use it a little, bit we also don't want to mess up our application.

Credit card use is completely fine. As you said, as long as it’s cleared every month they won’t care.

Used correctly a credit card is a positive tool.

Milena009 · 08-03-2021 2:48pm

JohnK wrote: »

Depends on the bank - PTSB told me I'd have to pay it off before a drawdown or they'd reduce what they'd give me but EBS had no problem and said as long as it doesnt impact my repayment ability its fine to have the PCP.

I just wanted to second that.
We have been engaged with KBC and they have no problem whatsoever with our 5k car loan nor has it affected our AIP.

So it is really case by case and best to discuss with actual mortgage advisor / broker.

Craig_David · 08-03-2021 8:46pm

Can anyone recommend a solicitor in Dublin north city centre for a mortgage switch. please pm. thanks

Busi_Girl08 · 10-03-2021 1:40pm

Our broker is just sending off our application to KBC. Anyone here with KBC recently? How long were ye waiting for your AIP?

jimmy86 · 10-03-2021 3:56pm

Busi_Girl08 wrote: »

Our broker is just sending off our application to KBC. Anyone here with KBC recently? How long were ye waiting for your AIP?

It's a while ago now but went back through my emails. We sent off documentation on September 30th and got AIP on October 23rd.

voldejoie · 11-03-2021 5:36pm

Application in with Bank of Ireland for AIP today. My broker said their AIP lasts for 12 months which would be ideal! Given the constraint on the supply at the moment, and the expected crush once restrictions are lifted, I'm starting to think the second half of the year is more realistic so would be good to have approval in hand without having to worry about it after the summer. Also good to have a chance to save up a bit more!

Anyone have any insights in terms of how long BOI take to get back?

ms vieria · 11-03-2021 5:41pm

voldejoie wrote: »

Application in with Bank of Ireland for AIP today. My broker said their AIP lasts for 12 months which would be ideal! Given the constraint on the supply at the moment, and the expected crush once restrictions are lifted, I'm starting to think the second half of the year is more realistic so would be good to have approval in hand without having to worry about it after the summer. Also good to have a chance to save up a bit more!

Anyone have any insights in terms of how long BOI take to get back?

Ours given last month is for 12 months.

They will be quick to ask for any extra docs - once they are supplied it was 10 working days for us.

Jasna1982 · 11-03-2021 11:09pm

I read somewhere on here that banks can decline you a mortgage if you want to buy a house far from where you work. Is that a hard and fast rule?
I work from home but not officially, meaning it’s not in my contract. Would it be a problem if I want to buy a house in a different county?

Renjit · 12-03-2021 12:46am

Jasna1982 wrote: »

I read somewhere on here that banks can decline you a mortgage if you want to buy a house far from where you work. Is that a hard and fast rule?
I work from home but not officially, meaning it’s not in my contract. Would it be a problem if I want to buy a house in a different county?

They do consider this. But try asking the bank. If its not 100s of kms away and doesnt cost a bank, you should be good.

Graham · 12-03-2021 1:13am

Jasna1982 wrote: »

I read somewhere on here that banks can decline you a mortgage if you want to buy a house far from where you work. Is that a hard and fast rule?
I work from home but not officially, meaning it’s not in my contract. Would it be a problem if I want to buy a house in a different county?

Historically anything within reasonable commuting distance would be ok. No idea if that's changed recently.

A mortgage broker might be able to give you better guidance based on their recent experience.

IHateNewShoes · 12-03-2021 1:51am

Can anyone tell me the logic behind estate agents putting POA on their online ads?

I find it extremely frustrating!!

Graham · 12-03-2021 2:16am

IHateNewShoes wrote: »

Can anyone tell me the logic behind estate agents putting POA on their online ads?

I find it extremely frustrating!!

My guess, vendor doesn't want to pin themselves down to a specific price publicly.

I'd agree with you though, incredibly annoying.

Renjit · 12-03-2021 1:08pm

IHateNewShoes wrote: »

Can anyone tell me the logic behind estate agents putting POA on their online ads?

I find it extremely frustrating!!

Looks like they are transporting the home from across the border on a trailer to the nearest neighborhood :pac:

Lemonee_ · 14-03-2021 8:33pm

Hi all, quick question on savings for a mortgage. We save the same amount each month and transfer it to a joint savings account on payday. Is it better for this to be set up as standing order/direct debit or is consistently transferring it on pay day okay? Thanks in advance!

Snipp · 14-03-2021 8:35pm

Lemonee_ wrote: »

Hi all, quick question on savings for a mortgage. We save the same amount each month and transfer it to a joint savings account on payday. Is it better for this to be set up as standing order/direct debit or is consistently transferring it on pay day okay? Thanks in advance!

Yes, set up a SO.

G_R · 14-03-2021 8:41pm

Lemonee_ wrote: »

Hi all, quick question on savings for a mortgage. We save the same amount each month and transfer it to a joint savings account on payday. Is it better for this to be set up as standing order/direct debit or is consistently transferring it on pay day okay? Thanks in advance!

Makes absolutely no difference

brianc27 · 14-03-2021 8:43pm

Lemonee_ wrote: »

Hi all, quick question on savings for a mortgage. We save the same amount each month and transfer it to a joint savings account on payday. Is it better for this to be set up as standing order/direct debit or is consistently transferring it on pay day okay? Thanks in advance!

My savings were all just transfers from current account to savings account, no issues at all, once there's log of it leaving current account and going into savings account it doesn't matter whether its a standing order or online transfer

Lemonee_ · 14-03-2021 8:58pm

Thank you all for the replies, had heard different opinions on it so wanted to see if it made a difference for anyone going for a mortgage. Thanks again!

Creamy Goodness · 14-03-2021 9:56pm

As said they don’t care as long as it’s consistent. However it’s a bit weird why you wouldn’t set up a SO the day after you get paid. Can never forget and you let them do it for you rather than constantly having to transfer it manually.

Snipp · 14-03-2021 10:19pm

Lemonee_ wrote: »

Thank you all for the replies, had heard different opinions on it so wanted to see if it made a difference for anyone going for a mortgage. Thanks again!

There is no advantage to not setting up a SO when the goal is to demonstrate consistent saving. Anyone saying it doesn't make a difference is being pedantic for the sake of it.

14-03-2021 10:20pm

Creamy Goodness wrote: »

As said they don’t care as long as it’s consistent. However it’s a bit weird why you wouldn’t set up a SO the day after you get paid. Can never forget and you let them do it for you rather than constantly having to transfer it manually.

Incase something goes wrong, I presume.

I am like them with my money - everything is done manually. I hate automated payments as I am wholly tied to them and if something goes awry for me, I'm in trouble. I'd rather make no payment than have a flagged missed payment (also, I think, with direct debits, if you miss a payment, you get hit with a fee?).

Creamy Goodness · 14-03-2021 10:54pm

What could go wrong? I mean you need to show them consistently saving the mortgage amount + stress test amount for 6 months + anyways, whilst also having enough discretionary income left over. I’m a big fan of saving via SO the moment I get paid so I’m not tempted, to spend it. I also save another amount to cover those unusual spends e.g. car break down, appliance failing etc. Much easier to form a habit by having it done automatically.

Saving/Applying for a mortgage 2020-22 Edition

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