Saving/Applying for a mortgage 2020-22 Edition

IvoryTower · 04-08-2020 7:58pm

Yes , once you can show 6 months savings and can show you could pay back the mortgage (like if the saving amount would cover the mortgage amount you would be fine).

CBear1993 · 05-08-2020 11:37am

Hi , I'm sure it's been covered a thousand times over on here!

I was a first time buyer last year with an apartment in Dublin. My other half still has first time buyer status.

Do any banks take us on as first time buyers when we go for a house next year as a joint application? I have read that very few might consider it.. the 10% deposit would be massive versus the 20% for non-first time buyers... (not sure if that's correct?)

If they don't I'm guessing our only option is to go for the mortgage for a house in her name solely, as she is first time buyer?

The problem there is that her salary would not allow us to purchase the house we want if they only looked at hers, our combined salaries I account for 70-75% of it.

Can we go for it in her name, but still get a joint application i.e. our combined salary by 3.5/4?

Failing that, I guess for a house between 300-400K we will just have to save for another few years until we get a 20% deposit gathered, which could be some time. Is it always 10% for FTB and 20% for anyone else? Do you ever see 15% etc

Thanks in advance.

I don't want to sell the apartment as its in an upcoming area with future development planned and great transport. I could get about €2000 per month at least for it if I could hold onto it. However, if push comes to shove and we don't have the funds in the next 18 months for a house I may be forced to. I would get about €15K above what I paid for it, which isn't a whole lot. (but is to us as a couple in our 20s!)

Noah G · 05-08-2020 12:01pm

Noah G wrote: »

Hi thinking about doing an apprenticeship in my late 20s
And have been saving for a mortgage with partner. But If i get one now I will be stuck in my job and wont be able to do an apprenticeship.

I'm still young no kids yet and want something I will like and have a better salary in the future with more opportunities.

Money will be bad for first year or 2 but once in 3rd year of it will be getting over 500 a week is if possible to apply for a mortgage when I'm In my 3rd year ? I also get rent from a granny flat I have rented out ,

We both will be getting a gift from parents when we do go for a mortgage that would pretty much cover the deposit.

Thanks, so it wouldn't matter if I was an apprenticeship as I would be in a full time job getting decent money on my 3rd year , my job would be safe as I will be staying with it company for a good while at least they are one if the biggest companys in my trade.

Would the bank only care once I am good to pay the mortgage back?

Also will be getting around 30k from parents and my partner will be getting 20k that would be plenty to get a mortgage as I will have savings in my account over the 3 years aswell and all we need is 10% of the mortgage.

IvoryTower · 05-08-2020 12:06pm

Yes you will be fine once you can show that between saving and rent you can pay the mortgage back. So having a large deposit is great but you still have to be able to show that you can pay the mortgage. So for example, lets assume living at home and not paying rent. You are saving 500e per month, this shows that you can repay a mortgage of 500e per month. Play around with the online calculators to get a feel for what you will need.

G_R · 05-08-2020 12:15pm

CBear1993 wrote: »

Hi , I'm sure it's been covered a thousand times over on here!
I was a first time buyer last year with an apartment in Dublin. My other half still has first time buyer status.

Do any banks take us on as first time buyers when we go for a house next year as a joint application? I have read that very few might consider it.. the 10% deposit would be massive versus the 20% for non-first time buyers... (not sure if that's correct?)

It's not a bank choice, its a Central Bank rule. 20% is the deposit required. You could, however apply for an LTV exception (not at the moment, no banks are offering them due to C-19) but they may well be back on the table come Jan.

If they don't I'm guessing our only option is to go for the mortgage for a house in her name solely, as she is first time buyer?

This is an option.

The problem there is that her salary would not allow us to purchase the house we want if they only looked at hers, our combined salaries I account for 70-75% of it.
Can we go for it in her name, but still get a joint application i.e. our combined salary by 3.5/4?

This is not, im afraid

Failing that, I guess for a house between 300-400K we will just have to save for another few years until we get a 20% deposit gathered, which could be some time. Is it always 10% for FTB and 20% for anyone else? Do you ever see 15% etc

Thanks in advance.

10% FTB
20% SSB (Second & Subsequent)

As above, banks do have scope to go out side these rules in a small number of cases, but these are the Central Bank limits.

I don't want to sell the apartment as its in an upcoming area with future development planned and great transport. I could get about €2000 per month at least for it if I could hold onto it. However, if push comes to shove and we don't have the funds in the next 18 months for a house I may be forced to. I would get about €15K above what I paid for it, which isn't a whole lot. (but is to us as a couple in our 20s!)

CBear1993 · 05-08-2020 12:20pm

Ok, maybe see what happens in 2021 and hope for an exception being made..

Otherwise it looks like just plough on and save save save

Thank you G_R

dalex15 · 05-08-2020 12:46pm

Does anyone know, once we reapply for new HTB for the increase. This needs to be updated with the bank? Should the bank offer be updated before we go ahead and developer can claim the incentive?

BEdS_83 · 05-08-2020 12:56pm

dalex15 wrote: »

Does anyone know, once we reapply for new HTB for the increase. This needs to be updated with the bank? Should the bank offer be updated before we go ahead and developer can claim the incentive?

I asked that they told me to come back after August 10th.. so I guess it would be ready by then..

dalex15 · 05-08-2020 1:08pm

BEdS_83 wrote: »

I asked that they told me to come back after August 10th.. so I guess it would be ready by then..

So the Bank asked you to come back after the 10th, or Revenue?
This means they don't know how is all going to work out.

kvr1727 · 05-08-2020 1:30pm

It depends on your total Base salary up to. When it comes to additional income, Banks take ALL Guaranteed Income in to account. Then all the commissions, additional shift payments will be considered based on previous years consistency.
Also bank will request you for previous P60s so check your total Income for Tax Year.

Other Central bank Rule is you can get mortgage amount max of 3.5 times of your base salary or (Total Guaranteed income).

Time · 05-08-2020 1:35pm

Are any lenders offering exemptions at the moment, i have a good deposit so the LTV should be about 80% and my salary is high well over what would usually be needed for one but UB are saying it'll be next year before they'd look at offering one again.

Jasna1982 · 05-08-2020 1:53pm

Time wrote: »

Are any lenders offering exemptions at the moment, i have a good deposit so the LTV should be about 80% and my salary is high well over what would usually be needed for one but UB are saying it'll be next year before they'd look at offering one again.

Spoke to PTSB and EBS, they said no.
Spoke to a broker, she said none are doing them at the moment.
Both she and EBS told me maybe September. But it'll highly depend on the development of Covid I think

Time · 05-08-2020 2:39pm

Jasna1982 wrote: »

Spoke to PTSB and EBS, they said no.
Spoke to a broker, she said none are doing them at the moment.
Both she and EBS told me maybe September. But it'll highly depend on the development of Covid I think

Thanks, it's annoying because my salary is secure so there's no issue there at all.

Conrad83 · 05-08-2020 3:08pm

Time wrote: »

Are any lenders offering exemptions at the moment, i have a good deposit so the LTV should be about 80% and my salary is high well over what would usually be needed for one but UB are saying it'll be next year before they'd look at offering one again.

Not sure if it's still the case but we got an exception from AIB about a month ago. Both in secure jobs. At that time no other bank were offering them and AIB said they still had a small number left. Might be worth giving them a call.

Aron722 · 05-08-2020 3:14pm

Hi asking for a friend who is not on here .

Himself and his girlfriend are having there first child .
He lives in an apartment in city centre will be moving into his girlfriends parents house in south dublin while they build a house on her parents side garden.

Is it better to keep the apartment and rent it out ?
Or sell and use the money to pay back the mortgage and start on new build ?

Also would he need 20% deposit now as it will be his second property.

Jasna1982 · 05-08-2020 3:55pm

Time wrote: »

Thanks, it's annoying because my salary is secure so there's no issue there at all.

Super annoying! I'm in the same boat. Secure income. Very obvious repayment ability and unable to get an exception

Duke of Url · 05-08-2020 6:53pm

Not so good news

Bank of Ireland set to cut 1,400 jobs after devastating €669 million losses

Hopefully it doesn’t have a knock on effect for mortgage applications

Dolbhad · 05-08-2020 10:25pm

Jasna1982 wrote: »

Spoke to PTSB and EBS, they said no.
Spoke to a broker, she said none are doing them at the moment.
Both she and EBS told me maybe September. But it'll highly depend on the development of Covid I think

I spoke to BOI, Ulster Bank and PTSB and they said no. Would be New Year before they expect any movement in this. Not sure about KBC. Didn’t check with AIB as I wasn’t eligible for an exemption there anyway. We had an exemption with UB but that’s now paused. Was worth around 47-50k, depending on property, so a real kick to us to lose.

RedXIV · 05-08-2020 10:32pm

Hey folks,

Hoping someone can help me with an annoying part of our mortgage application. We're in pretty good shape for most of it but our broker is looking for one more piece we're having trouble with.

We pay rent to the council via the post office using a card issued by the council. My wife normally does this while picking up the child allowance and for the last while to simplify the process, she simply picks up the child benefit, tops it up to the required amount for rent and pays it all off in the same visit.

Brokers issue is that he wants to see proof of payments being made to my wife for child benefit from the post office/state. He's adamant that there needs to be an account for this that can see X for child benefit per month being allocated to my wife. When my wife asked, the post office said they don't offer this functionality. I found this site offered by welfare.ie which allows you to get a statement but when it arrived, it just showed the entitlements for the year, not a breakdown of transactions by date which the broker says is not sufficient.

Any one come across this before or any tips on who or where to look next would be very much appreciated!

soc · 05-08-2020 10:41pm

RedXIV wrote: »

Hey folks,

Hoping someone can help me with an annoying part of our mortgage application. We're in pretty good shape for most of it but our broker is looking for one more piece we're having trouble with.

We pay rent to the council via the post office using a card issued by the council. My wife normally does this while picking up the child allowance and for the last while to simplify the process, she simply picks up the child benefit, tops it up to the required amount for rent and pays it all off in the same visit.

Brokers issue is that he wants to see proof of payments being made to my wife for child benefit from the post office/state. He's adamant that there needs to be an account for this that can see X for child benefit per month being allocated to my wife. When my wife asked, the post office said they don't offer this functionality. I found this site offered by welfare.ie which allows you to get a statement but when it arrived, it just showed the entitlements for the year, not a breakdown of transactions by date which the broker says is not sufficient.

Any one come across this before or any tips on who or where to look next would be very much appreciated!

Get your wife to log into https://services.mywelfare.ie and she can get statement of all welfare payments from there

Jog501 · 06-08-2020 4:04pm

Is anybody else finding it very difficult to get a response through the AIB mortgage app lately? I've tried calling also but they seem to have stopped answering calls also since last week. Very frustrating considering this is the only thing holding up the sale at this stage.

ELM327 · 06-08-2020 4:41pm

Duke of Url wrote: »

Not so good news

Hopefully it doesn’t have a knock on effect for mortgage applications

FYI The losses are false, due to increased bad debt provision, not actual

losses.

" Bank of Ireland reported a loss of €669 million before tax for the first six months of the year, after putting aside €937m, mainly to cover losses related to Covid-19 loan repayment breaks."

https://www.rte.ie/news/business/2020/0805/1157391-boi-sets-aside-937m-for-potential-loan-losses/

errlloyd · 06-08-2020 4:57pm

AIB just denied a friend of mine a mortgage at the last hurdle this week. After giving AIP and him getting an offer accepted etc.

They'd given him AIP back in Feb, not sure if they didn't look hard enough then or they've just moved the goal posts.

Jog501 · 06-08-2020 5:01pm

errlloyd wrote: »

AIB just denied a friend of mine a mortgage at the last hurdle this week. After giving AIP and him getting an offer accepted etc.

They'd given him AIP back in Feb, not sure if they didn't look hard enough then or they've just moved the goal posts.

Was it due to Covid payment being on his salary?

brisan · 06-08-2020 5:02pm

errlloyd wrote: »

AIB just denied a friend of mine a mortgage at the last hurdle this week. After giving AIP and him getting an offer accepted etc.

They'd given him AIP back in Feb, not sure if they didn't look hard enough then or they've just moved the goal posts.

Is either him or his partner on a PUP or TWSS payment
This could affect their payment.

errlloyd · 07-08-2020 9:13am

Jog501 wrote: »

Was it due to Covid payment being on his salary?

brisan wrote: »

Is either him or his partner on a PUP or TWSS payment
This could affect their payment.

Nope, it was due to circumstances that haven't changed at all. He's employed in a start-up that is very well capitalised and in a secure industry, but the company itself is quite young so AIB backed out.

It is frustrating. The company was even younger when they gave him AIP.

Renjit · 07-08-2020 4:44pm

Quick question here. Do I need to submit a valuation report for new development to the bank before getting approval for mortgage? Bank is Bank of Ireland.

Some of my colleagues have received approval without asking for valuation report by BOI.

greengrass88 · 09-08-2020 11:48am

https://www.thejournal.ie/mortgage-wage-subsidy-5170246-Aug2020/

Graham · 09-08-2020 11:50am

Mod Note

greengrass88 if you're going to post a link, a bit of context/commentary/opinion would be appreciated please.

Thanks

Duke of Url · 09-08-2020 12:16pm

Renjit wrote: »

Quick question here. Do I need to submit a valuation report for new development to the bank before getting approval for mortgage? Bank is Bank of Ireland.

Some of my colleagues have received approval without asking for valuation report by BOI.

For New Builds with BOI yes. They provided me with a list valuers I could use and I choose one

DianeMc2018 · 09-08-2020 7:30pm

Ok so I'm looking for some input from anyone here who is also struggling to get a mortgage. A bit of background to our situation: Both my husband and I are self-employed. We also earn some PAYE income (contract-for-services work, not employees). Neither of our businesses were too badly affected by COVID but we were in receipt of the PUP for about 8 weeks from March as we were not sure how it would all play out. Both since off the PUP about 2/3 months. Pre-COVID we had met with a broker who was happy to try to make an application to KBC on our behalf as he said KBC look more favourably on the self-employed. Everything went on pause as we all know in March when lockdown happened. Broker then asked us to submit more statements so he could proceed with our application in June. We have since heard nothing back from him (not returning our calls or emails). We have decided now to approach the banks ourselves to see if we have any hope. I'm not sure with any evidence of PUP payment in the accounts - alongside us both being self-employed -that we will get anywhere tbh but the complete lack of response from our broker is driving us up the walls. Would anyone have any idea why the broker has gone AWOL on us? Does this happen? Does it mean he thinks we're a lost cause?
And are the banks completely against giving mortgages to people who were temporarily on the PUP?
We have a 20% deposit saved, both First time buyers, paying monthly rent of €1300 for years and have also been saving €1300 per month for the last 12 months (€800 per month before that). No loans. 2 dependents. No childcare costs etc. In other wordss, we tick the box for affordability no problem but I think the sustainability factor of our work might be questioned as the banks seem to view the self-employed in such a negative light.
Any views?

Dolbhad · 09-08-2020 7:57pm

DianeMc2018 wrote: »

And are the banks completely against giving mortgages to people who were temporarily on the PUP?

In a nutshell if you are in receipt of any covid payment, banks won’t touch you. If you had a loan offer issued before you were on payments, there appears to be a slight more lee way on a case by case basis but both applicants generally need a payslip or two off the payment.

Any new applications for loan offers need to be off the payments. The banks don’t seem to be willing to issue a loan offer with a condition you are off it for drawdown. Since payments will be around in some from until April, it’s a wait and see if banks change policy but I wouldn’t hold by breathe.

I was told I had to be off the subsidy payment to get to a loan offer stage and we were lucky our companies came off it.

DianeMc2018 · 09-08-2020 8:04pm

Dolbhad wrote: »

In a nutshell if you are in receipt of any covid payment, banks won’t touch you. If you had a loan offer issued before you were on payments, there appears to be a slight more lee way on a case by case basis but both applicants generally need a payslip or two off the payment.

Any new applications for loan offers need to be off the payments. The banks don’t seem to be willing to issue a loan offer with a condition you are off it for drawdown. Since payments will be around in some from until April, it’s a wait and see if banks change policy but I wouldn’t hold by breathe.

I was told I had to be off the subsidy payment to get to a loan offer stage and we were lucky our companies came off it.

Thanks Dolbhad. We're both off the COVID payments for the last few months but they obviously show up in our past bank statements. But I do think as you said that the banks are taking a very strict approach to lending to anyone who availed of it - past or present. I just wonder why they bother asking people to submit all the documentation etc. I approached AIB last week, being honest about any COVID payments, and they still asked me to submit all my documentation. Bit of a farce?

soc · 09-08-2020 11:36pm

My OH is self employed and I an employee of his company. We were recently grant AIP but the hoops we had to jump because we were self employed was insane. One thing in particular they wanted was that the business had in no way been affected by covid and that we had to get letter from accountants signing off on this too. So unfortunately I would doubt you would have much luck with getting approval as its hard enough when self employed but if you have been covid affected (even if you are no longer receive the payment) they will be even harder on you because you are self employed. Unfortunately self employed are put through more stringent stress checks etc than paye

Ktefitz · 11-08-2020 4:31pm

Hi, currently trying to get AIP. We found the house, new build and won't be built until at the earliest Feb. One of us is on the TWSS and other is not. Applied over 2 weeks ago and nothing back yet. Meant to be signing contract next Tuesday, need to get sorted asap. Panicking! Has anyone got approval recently in this suitation? And if so, what bank? TIA

Ikozma · 11-08-2020 5:02pm

Would buying a site be classed as the same as a 20% deposit by the bank or would you have to have the site AND your 20%,for self build obviously

RedXIV · 11-08-2020 5:23pm

Ikozma wrote: »

Would buying a site be classed as the same as a 20% deposit by the bank or would you have to have the site AND your 20%,for self build obviously

Depends who you talk to, ulster bank told us this was the case but our broker said that we'll get site costs included in mortgage amount

Noah G · 11-08-2020 5:48pm

Hi just wondering a friend wants to get a mortgage but doesnt have a savings account, they just get there weekly pay from there job. I said you need to save for 6 months with money going into a savings account.

But they seem to think that a gift from parents is enough to get a mortgage with them just getting weekly pay but not having a savings account.

There in there early 20s and just cant get them to understand.

Ikozma · 11-08-2020 5:54pm

RedXIV wrote: »

Depends who you talk to, ulster bank told us this was the case but our broker said that we'll get site costs included in mortgage amount

I was thinking of buying a site with cash instead of using it as a depisit for a mortgage and then apply for a mortgage to build

Bubbaclaus · 11-08-2020 5:56pm

Does anyone know whether there is any downsides to applying for AIP and then potentially not using it? Would banks see it as a negative if I reapplied at a later point again and saw the unused approval?

DubLad69 · 11-08-2020 6:59pm

Bubbaclaus wrote: »

Does anyone know whether there is any downsides to applying for AIP and then potentially not using it? Would banks see it as a negative if I reapplied at a later point again and saw the unused approval?

I was advised by a brooker that if I apply for AIP now when exemptions are not avaliable then it would complicate matters when I am applying for an exemption.

The same might apply to your case?

RedXIV · 11-08-2020 7:38pm

Noah G wrote: »

Hi just wondering a friend wants to get a mortgage but doesnt have a savings account, they just get there weekly pay from there job. I said you need to save for 6 months with money going into a savings account.

But they seem to think that a gift from parents is enough to get a mortgage with them just getting weekly pay but not having a savings account.

There in there early 20s and just cant get them to understand.

Very high level, but checklist for a mortgage is:

10% of mortgage required as deposit
mortgage shouldn't exceed 3.5 times salary (exemptions exist)
You need to have evidence of repayability, either rent payments or savings in bank statements

Easiest thing to do if they don't listen is get them to go talk to someone and get shot down

Ikozma wrote: »

I was thinking of buying a site with cash instead of using it as a depisit for a mortgage and then apply for a mortgage to build

I think from a practicality point of view, you're better off keeping the cash, as you don't know yet if you'd get planning permission? Also, you may need the cash buffer for some lenders?

2up2down · 11-08-2020 9:57pm

Hi all, great thread, new to this Also.
I have 2 questions if anyone can help I'd be delighted.
Ftb, don't have much of a deposit saved as we were paying back a loan and monthly rent.paid loan off 18 months early. We have over enough for the fees stamp duty etc but will qualify for the full htb for deposit.
We have just fully paid off a very big loan and have no other loans. Will the proof/ability to repay the loan we have just finished and our monthly rent payments be enough for the banks with just the legal fees and htb for deposit? Thanks for any help.

lcarrol3 · 11-08-2020 10:16pm

2up2down wrote: »

Hi all, great thread, new to this Also.
I have 2 questions if anyone can help I'd be delighted.
Ftb, don't have much of a deposit saved as we were paying back a loan and monthly rent.paid loan off 18 months early. We have over enough for the fees stamp duty etc but will qualify for the full htb for deposit.
We have just fully paid off a very big loan and have no other loans. Will the proof/ability to repay the loan we have just finished and our monthly rent payments be enough for the banks with just the legal fees and htb for deposit? Thanks for any help.

Think it would depend on the bank. I'd chat to a broker who'd be better able to advocate for you.

random_banter · 12-08-2020 9:45am

Bubbaclaus wrote: »

Does anyone know whether there is any downsides to applying for AIP and then potentially not using it? Would banks see it as a negative if I reapplied at a later point again and saw the unused approval?

Our mortgage advisor in a bank told us to go ahead and get approved for a loan amount and to come back and talk when exemptions come back on stream (probably January at this stage). So we did that. 12 month approval. She seemed to think that it was worth having the leg work done and getting approval early on, so that we could at least browse and bid even if we're not going to buy in the next while.

Re: the exemption part, on the next phone call she said that when we have a particular property in mind, then come and apply for the exemption. I've never bid on houses before but surely if you were to seek exemption every time you bid then that would put loads of questions marks over the whole thing.

We were hoping for a LTV exemption, as we have a 15% deposit for the homes we're looking at currently and need the 20%. Damn Covid.

yourdeadwright · 12-08-2020 10:14am

Quick question
What do banks prefer these days,savings in an actually "savings account" or money you have saved in your actually account ,
Lets say you have 40 grand in a saving account or 40 grand in your current account which would be more appealing to them ?

SteelyDanJalapeno · 12-08-2020 10:26am

yourdeadwright wrote: »

Quick question
What do banks prefer these days,savings in an actually "savings account" or money you have saved in your actually account ,
Lets say you have 40 grand in a saving account or 40 grand in your current account which would be more appealing to them ?

From a mortgage perspective, transferring 1-2k per month to a savings account and not dipping into it looks good and is more structured.

In general, having that much in a current account is never a good idea

yourdeadwright · 12-08-2020 10:41am

SteelyDanJalapeno wrote: »

From a mortgage perspective, transferring 1-2k per month to a savings account and not dipping into it looks good and is more structured.

In general, having that much in a current account is never a good idea

Out of interest why would you say its not a good idea to have in a current account ?

Lots of people would have far greater sums in there current account

Creamy Goodness · 12-08-2020 10:46am

yourdeadwright wrote: »

Out of interest why would you say its not a good idea to have in a current account ?

Lots of people would have far greater sums in there current account

banks see your current account as your "safe to spend money", there's no real intent there with saving your money there, you doing a standing order from your salary account to your savings account shows intent, I can live with this money disappearing over night if needs be.

from a safety and security point of view, having a huge balance in your current account that's tied to your debit card is a risk. All it would take is for someone to clone your card, or grab your card at knifepoint etc and empty your account. Now you'll get this money back but will take time and I'd rather give them 200-300 euro rather than my lovely deposit for my house. I rarely have more than €1000 in my current account and transfer bits in if I'm having a bad month.

Bubbaclaus · 12-08-2020 11:03am

yourdeadwright wrote: »

Out of interest why would you say its not a good idea to have in a current account ?

Lots of people would have far greater sums in there current account

Current account could get cleared out pretty easily if you got scammed or fraud occurred. Couldn't happen to a savings account given the funds normally cant be transferred externally from a savings account.

I normally keep no more than 100 or so in the current account for that reason. Everything else is kept secure.

Saving/Applying for a mortgage 2020-22 Edition

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