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

LirW · 14-02-2018 9:44pm

Michellenman wrote: »

Anyone do a house inspection before closing? We are getting the keys on Monday (*dances*) but I want to make sure the place is clear and empty and hasn't been trashed in the last 8 months. Is there anything in particular to look out for?

Do one, make sure all the contents that are staying subject to contract are in. Take pictures of every room. If there is anything in the house that isn't in the contract make sure it gets removed.

You don't want the vendors to dump their rubbish a day before closing in the house and you have to foot the bill for a skip, unfortunately that's not uncommon.

fg1406 · 15-02-2018 12:02pm

LirW wrote: »

Do one, make sure all the contents that are staying subject to contract are in. Take pictures of every room. If there is anything in the house that isn't in the contract make sure it gets removed.

You don't want the vendors to dump their rubbish a day before closing in the house and you have to foot the bill for a skip, unfortunately that's not uncommon.

This!!! Although we wouldn’t have gotten a chance to see what rubbish they were leaving as they were packing for a week or so before they left and still loading up the moving van right up until 10 mins before handing over keys. They left the house in a godawful state. Filth over over every surface and a rotten smell throughout.

bush · 15-02-2018 12:04pm

b.o.d. wrote: »

Do you much is it for a single person with children ?

long time lurker but trying to get things together to start the process now so need to ask a few questions

AIB its 1400 per single person. Ulster bank is 1300. Add 250 per child then I suppose.

bush · 16-02-2018 11:03pm

I know you have to have life insurance before you can u can draw down but can you just cancel it once you have the house?

Juwwi · 16-02-2018 11:10pm

bush wrote: »

I know you have to have life insurance before you can u can draw down but can you just cancel it once you have the house?

Good question

TheShow · 16-02-2018 11:30pm

bush wrote: »

I know you have to have life insurance before you can u can draw down but can you just cancel it once you have the house?

No, the bank normally takes an assignment over the policy, so if you cancel the policy the bank will be advised. Under CCA legislation you are legally required to have mortgage protection, it will work in your benefit if you or your partner unexpectedly passes away during your mortgage.

chases0102 · 17-02-2018 9:37am

Hi folks,

In the midst of buying here....just wondering, what is the perceived wisdom about % of monthly net income to go on housing/mortgage? No more than 30%?

stargazer 68 · 17-02-2018 9:46am

Went sale agreed in December and got our keys yesterday! Spent the day there so floors are up, wallpaper off walls and ceilings painted:) we have 3 weeks before we need to move in so getting as much as we can done before we live in the house.

wetlandsboy · 17-02-2018 9:53am

chases0102 wrote: »

Hi folks,

In the midst of buying here....just wondering, what is the perceived wisdom about % of monthly net income to go on housing/mortgage? No more than 30%?

I would have thought somewhere between 20 and 30%. Unless you are the fella in the Woodies ad that casually says 75%!
https://youtu.be/zPlck49OAkU

benjamin d · 17-02-2018 12:05pm

wetlandsboy wrote: »

I would have thought somewhere between 20 and 30%. Unless you are the fella in the Woodies ad that casually says 75%!
https://youtu.be/zPlck49OAkU

Phew, I'm glad someone else picked up on that! The boom is well and truly back. A friend of mine went into the bank the other day to buy currency and got asked if they'd like a mortgage!

TheShow · 17-02-2018 12:59pm

chases0102 wrote: »

Hi folks,

In the midst of buying here....just wondering, what is the perceived wisdom about % of monthly net income to go on housing/mortgage? No more than 30%?

Depends on gross income levels. Bigger gross income, means you get a bigger % allowance on the basis that your net disposable income would be sufficient for you and your dependants to live in. Starts at 40% afaik, can go up to 50%or 60% depending on the bank and income levels.

chases0102 · 17-02-2018 1:24pm

Cheers for replies folk. Just thinking on a practical level, what is an acceptable % of monthly money going to housing, or rather what % does it start making living difficult. Mindful of practices 10 years ago, and eager not to overextend

Glen_Quagmire · 17-02-2018 3:10pm

Do banks consider applicants who are in their probation period in a new job?

I didn't think so but a mate of mine told me he got his mortgage while in probation. He used a broker so not sure if the broker done something to help or what.

GingerLily · 17-02-2018 4:09pm

Glen_Quagmire wrote: »

Do banks consider applicants who are in their probation period in a new job?

I didn't think so but a mate of mine told me he got his mortgage while in probation. He used a broker so not sure if the broker done something to help or what.

Yes banks will consider most things, but that doesn't mean you will be as likely to be successful in your application!

dev_ire · 18-02-2018 12:17pm

If anyone contacted BOI and was talking to people who said they would not get a mortgage because they paid cash rent or they wouldn't qualify for an exception or other reasons I would advise applying several times as I just got AIP from them after being told no essentially from two different people.

Also really look into the different rates and weigh up everything (can you overpay, what are the fixed options, can you defer payments, cash back options) as the best one may not look the best.

18-02-2018 1:11pm

I met recently with Bank of Ireland and was surprised at how accomadating they seemed. Maybe I’m just incredibly naive. I’ve an overdraft (600) and credit card (800 limit) and they told me they don’t take them into account.
They told me they would calculate my 3.5 my salary on my p60. I just assumed it was my basic salary.I get a annual bonus of between 10 and 12 percent every year, I told them this wasn’t gaurenteed every year but as my last four p60s would show this bonus they would take it into account and use that to calculate the max

Long time lurker of this thread and only starting to get the ball roll on things for myself finally so appreciate every single post here.

izzyflusky · 18-02-2018 3:12pm

No credit card here or anything but my husband's bonus was taken into account in full when we got AIP. We weren't really expecting it.

Creamy Goodness · 18-02-2018 4:15pm

Banks have told me they will only take half of my bonus into consideration as it’s not guaranteed and only if I’ve gotten it in the last 3 years (only in the company for 2 so far 2/2). Bloody pity as I’ve a sizeable one at 20%.

Banks only care about overdrafts and credit cards if you can’t afford them. It’s ok to dip into an overdraft every now and again but if you’re living in it, it’s a red flag. Same with a credit card. If you’re carry a balance it’s a red flag (to me if I pay a 1c interest you should not have a credit card).

Remember when looking for a mortgage you’re trying to do one thing, show you can afford it, they don’t necessarily care how your money is spent (within reason, eg if half your take home is squandered at a bookies it’s a different story).

ELM327 · 18-02-2018 4:20pm

BOI took 50% of my bonus into consideration.
I earned over half my base salary in bonus/OT so it was needed.

They based it off P60 and the average over last 3 years multiplied by 0.5.

toby2111 · 18-02-2018 4:26pm

dev_ire wrote: »

If anyone contacted BOI and was talking to people who said they would not get a mortgage because they paid cash rent or they wouldn't qualify for an exception or other reasons I would advise applying several times as I just got AIP from them after being told no essentially from two different people.

Did you get refused twice? We actually got exception of 89.4% from BOI..... Then, a week later, we got turned down for a mortgage (too much risk, as my wife has neg equity on a property she bought with her brother years ago!). Girl we were dealing with fought it all the way, went to head of credit but still got refused.
We've gone to a broker but he's not hopeful because BOI turned us down......Would it be pointless applying again next month?

ELM327 · 18-02-2018 4:45pm

Creamy Goodness wrote: »

Banks have told me they will only take half of my bonus into consideration as it’s not guaranteed and only if I’ve gotten it in the last 3 years (only in the company for 2 so far 2/2). Bloody pity as I’ve a sizeable one at 20%.

Banks only care about overdrafts and credit cards if you can’t afford them. It’s ok to dip into an overdraft every now and again but if you’re living in it, it’s a red flag. Same with a credit card. If you’re carry a balance it’s a red flag (to me if I pay a 1c interest you should not have a credit card).

Remember when looking for a mortgage you’re trying to do one thing, show you can afford it, they don’t necessarily care how your money is spent (within reason, eg if half your take home is squandered at a bookies it’s a different story).

Got approved with 6k credit card (12k limit) and 7k car loan (was 15k to begin with) outstanding, with BOI. No missed payments, perhaps that was the issue.

dev_ire · 18-02-2018 4:57pm

toby2111 wrote: »

Did you get refused twice? We actually got exception of 89.4% from BOI..... Then, a week later, we got turned down for a mortgage (too much risk, as my wife has neg equity on a property she bought with her brother years ago!). Girl we were dealing with fought it all the way, went to head of credit but still got refused.
We've gone to a broker but he's not hopeful because BOI turned us down......Would it be pointless applying again next month?

This was over the phone but yes was told I would not get anything except the 3.5 times mortgage. But 3rd time was much better answered eveything but I had AIB approval at that stage so maybe that swayed them but I showed no proof of that.

CIP4 · 18-02-2018 4:59pm

ELM327 wrote: »

Got approved with 6k credit card (12k limit) and 7k car loan (was 15k to begin with) outstanding, with BOI. No missed payments, perhaps that was the issue.

Could you still get the full 3.5 times salary amount for the mortgage or do they cap it at less because of the car loan ?

ELM327 · 18-02-2018 5:16pm

CIP4 wrote: »

Could you still get the full 3.5 times salary amount for the mortgage or do they cap it at less because of the car loan ?

You can get 3.5 times your salary (including the pro rate bonus figures as outlined) and subtracted the net debt of carloan + credt card outstanding.

chases0102 · 18-02-2018 10:05pm

About to pull the trigger on a New Build for my partner and our daughter....Needless to say, I'm a mess of excitement and outright nerves.

Our mortgage repayments will be 32% of our net income. I'm terrified that we'll be under so much pressure - but then again, maybe I'm overthinking things! Would appreciate any advice/opinion.

It's such a huge investment, has me very distracted.

18-02-2018 10:13pm

ELM327 wrote: »

You can get 3.5 times your salary (including the pro rate bonus figures as outlined) and subtracted the net debt of carloan + credt card outstanding.

I've spoken to a couple of banks and have gotten AIP from one of them and none of them ever said anything like this. You just need to demonstrate your capacity to repay all your monthly debts. I have a car loan and a personal loan but myself and my partner still got 4.2 times our combined salary.

Villa05 · 18-02-2018 10:58pm

chases0102 wrote:

Our mortgage repayments will be 32% of our net income. I'm terrified that we'll be under so much pressure - but then again, maybe I'm overthinking things! Would appreciate any advice/opinion.

I would recommend fixing your mortgage interest rate for the maximum length of time. Go for 10 years. It looks like the interest rate cycle is about to change. I reckon the best ever fixed rates are available now but not for much longer

chases0102 · 18-02-2018 11:46pm

Had thought about going for ten alright. The 32% of our net was based on 5 year fixed. The perceived wisdom is rates are only going one way - up.

ELM327 · 19-02-2018 9:51am

Ayan Prickly Road wrote: »

I've spoken to a couple of banks and have gotten AIP from one of them and none of them ever said anything like this. You just need to demonstrate your capacity to repay all your monthly debts. I have a car loan and a personal loan but myself and my partner still got 4.2 times our combined salary.

They didnt say it to me until the underwriters came back. AIP is easy to get, actual approval from the underwriters is another story.
Capacity to repay was never an issue - clean ICB going back years, perfect credit report never missed a repayment etc.

I do get the feeling that with mortgages not only does it depend on which bank you speak to, but then which advisor too, and which underwriter.

izzyflusky · 19-02-2018 10:16am

ELM327 wrote: »

They didnt say it to me until the underwriters came back. AIP is easy to get, actual approval from the underwriters is another story.
Capacity to repay was never an issue - clean ICB going back years, perfect credit report never missed a repayment etc.

I do get the feeling that with mortgages not only does it depend on which bank you speak to, but then which advisor too, and which underwriter.

I would have thought all forms go to the underwriters for AIP. Mine certainly did, they don't look for all of the info for formal approval, mostly the house's details.

ELM327 · 19-02-2018 10:19am

izzyflusky wrote: »

I would have thought all forms go to the underwriters for AIP. Mine certainly did, they don't look for all of the info for formal approval, mostly the house's details.

No, I was sent AIP with a cursory review not - afaik anyway - done by the underwriters. It was a 30 minute phone call and once the documents were provided I was posted AIP.

The actual approval was different, I had to explain every transaction on my account, why did I withdraw money, buy things, move between savings accounts, sell/buy shares etc.

19-02-2018 10:28am

ELM327 wrote: »

They didnt say it to me until the underwriters came back. AIP is easy to get, actual approval from the underwriters is another story.
Capacity to repay was never an issue - clean ICB going back years, perfect credit report never missed a repayment etc.

I do get the feeling that with mortgages not only does it depend on which bank you speak to, but then which advisor too, and which underwriter.

I appreciate AIP is different to final draw down but you get AIP via an underwriter. I had to provide up to date statements for all my loans etc so the bank is well aware of them, and as I said there was never a suggestion of what you've said above. Think about all the extra work it would cause for everyone involved if they give you AIP for a certain amount, you go look for houses and go sale agreed based on that, only for them to come back to you and say "oh wait, that was too much, we have to do everything again", would be crazy. Maybe it does depend on who you talk to.

Edit - what you've described above, a 30 min phone call followed by a letter is nothing like the process we followed. I've already been quizzed on a lot of my transactions, deposits, withdrawals etc. I have emails from our point of contact in the bank saying our application is with the underwriter.

ELM327 · 19-02-2018 10:31am

Ayan Prickly Road wrote: »

I appreciate AIP is different to final draw down but you get AIP via an underwriter. I had to provide up to date statements for all my loans etc so the bank is well aware of them, and as I said there was never a suggestion of what you've said above. Think about all the extra work it would cause for everyone involved if they give you AIP for a certain amount, you go look for houses and go sale agreed based on that, only for them to come back to you and say "oh wait, that was too much, we have to do everything again", would be crazy. Maybe it does depend on who you talk to.

It is crazy. I agree. And very frustrating.
But that was what I was enduring and why this process took so long for me.

bush · 19-02-2018 11:07am

Got approved for 3.5 my salary from PTSB today. Delighted. It pays to go to all the banks cos I basically got turned down by ulster bank and got offered a good bit less than 3.5 from AIB. Im booked into BOI tomorrow but I cant see them offering me anything better.
This thread and forum has been very helpful over the last year of saving and researching.

JDD · 19-02-2018 11:14am

When we met with our BOI advisor she said that some people go through the cursory process i.e. the 30 min phone call and then you submit current, savings and loan (if any) statements. Again, I think that just goes to an advisor, not underwriting. To me, that's not an AIP - that's the equivalent of doing an online calculator. For us, because we weren't straightforward, the advisor said that our application had to go through the full rigour of underwriting before any AIP could issue. I was happy enough with that, because I didn't want to bid on any properties without knowing for sure that we could get the approval. I don't think we need to provide anything else to BOI now, unless we go over our 6 month approval limit (and they'll only allow a month or two) in which case we need to submit updated current account statements and 3 recent payslips.

izzyflusky · 19-02-2018 1:10pm

My AIP definitely went to an underwriter (i enquired half way through the process with my broker and was told and underwriter had been assigned at that stage) , I sent in all my documentation, had to explain transactions, etc. It took 10 working days and all we had to do afterwards is send the house details once sale agreed and get valuation done to obtain formal offer.

19-02-2018 1:21pm

I've looked up the email we received, "full assessment with an underwriter" is the exact phrasing used, in relation to our application which we have now received AIP for.

I don't believe at all that the amount we can borrow will now be reduced based on my outstanding loans.

dellas1979 · 19-02-2018 1:27pm

bush wrote: »

Got approved for 3.5 my salary from PTSB today. Delighted. It pays to go to all the banks cos I basically got turned down by ulster bank and got offered a good bit less than 3.5 from AIB. Im booked into BOI tomorrow but I cant see them offering me anything better.
This thread and forum has been very helpful over the last year of saving and researching.

Well, AIB would only offer me a 25 year mortgage. BOI offered me 30.

It really does depend on needs etc.

Cuddlesworth · 19-02-2018 1:58pm

Ayan Prickly Road wrote: »

I've looked up the email we received, "full assessment with an underwriter" is the exact phrasing used, in relation to our application which we have now received AIP for.

I don't believe at all that the amount we can borrow will now be reduced based on my outstanding loans.

When dealing with exemptions I would not be so certain. Its not a loan offer and they don't have to honour it.

19-02-2018 2:34pm

Cuddlesworth wrote: »

When dealing with exemptions I would not be so certain. Its not a loan offer and they don't have to honour it.

I know that yes. All the letters they've sent us are pretty clear on that.

goofy141 · 19-02-2018 5:32pm

Hi All, anyone get full approval from EBS lately, just wondering how long the process took?

The_Sally_Gap · 19-02-2018 9:49pm

I think it depends on the bank. We went to a few and PTSB just gave us AIP without it having been assessed by an underwriter. It was the same with AIB. EBS fully assessed our application at AIP stage so when we were going to get our official loan offer we only had to provide the valuation and whatever other documents they had put as a condition of the loan.

goofy141 · 19-02-2018 10:37pm

The_Sally_Gap wrote: »

I think it depends on the bank. We went to a few and PTSB just gave us AIP without it having been assessed by an underwriter. It was the same with AIB. EBS fully assessed our application at AIP stage so when we were going to get our official loan offer we only had to provide the valuation and whatever other documents they had put as a condition of the loan.

How long did EBS take for full assessment?

The_Sally_Gap · 19-02-2018 10:42pm

goofy141 wrote: »

How long did EBS take for full assessment?

We submitted ours back in April and it took about 5 working days to get AIP and then when we went for full loan offer in September it took about the same amount of time. We were told that they weren’t particularly busy then but after Christmas and into the new year would be busy so I wouldn’t worry if you have been waiting for a few days.

goofy141 · 19-02-2018 10:45pm

The_Sally_Gap wrote: »

We submitted ours back in April and it took about 5 working days to get AIP and then when we went for full loan offer in September it took about the same amount of time. We were told that they weren’t particularly busy then but after Christmas and into the new year would be busy so I wouldn’t worry if you have been waiting for a few days.

Thanks just putting forms in this week going straight for full approval and not AIP! Went sale agreed today

The_Sally_Gap · 19-02-2018 10:46pm

goofy141 wrote: »

Thanks just putting forms in this week going straight for full approval and not AIP! Went sale agreed today

Exciting times ahead! Good luck with it

dev_ire · 20-02-2018 9:20am

Is there anyway to find out if houses are council owned?

myshirt · 20-02-2018 9:29am

dev_ire wrote: »

Is there anyway to find out if houses are council owned?

Yes, go t landdirect.ie and view by map.

dev_ire · 20-02-2018 9:38am

myshirt wrote: »

Yes, go t landdirect.ie and view by map.

Ok, would it say on the property if it is council? Can't see much except it is freehold or do you need to pay to check?

Michellenman · 20-02-2018 11:27am

dev_ire wrote: »

Ok, would it say on the property if it is council? Can't see much except it is freehold or do you need to pay to check?

I think freehold means someone has bought the council out of the leasehold at some point. That's not to say that leasehold are still council owned though, we bought an ex council house and it's still on a leasehold. We have option of buying lease out though.

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

Comments