Saving/Applying for a mortgage 2020-22 Edition

three putt · 17-10-2020 10:11pm

Bananaleaf wrote: »

Is this legal? It seems too good to be legal

Yes fully legal. Read the related threads on askaboutmoney - plenty of case studies there. Also links to solicitors with experience of doing it.
I'm amazed more people haven't done this.
Some of the cashback offers are expiring in Dec 2020 (I think BOI), so would be tight on time if starting the process now. But still banks there with the offer.

Bananaleaf · 17-10-2020 11:16pm

three putt wrote: »

Yes fully legal. Read the related threads on askaboutmoney - plenty of case studies there. Also links to solicitors with experience of doing it.
I'm amazed more people haven't done this.
Some of the cashback offers are expiring in Dec 2020 (I think BOI), so would be tight on time if starting the process now. But still banks there with the offer.

I did read the askaboutmoney link, that's why I was asking. It just seems crazy! Someone even saying to the bank that they were doing it! :eek:

I don't even know what the process involves when switching a mortgage - is it like reapplying all over again? It'll be the week after next before I get near a bank, so should I be off getting payslips, salary certs, pounds of our flesh (:pac:) etc in the meantime

poker--addict · 17-10-2020 11:29pm

its like electricity or insurance i guess, most people never change providers, and changing mortgage provider means doing some donkey work- while electricity provider can be changed in 10 min online.

Renjit · 18-10-2020 1:10am

Meandyou999 wrote: »

Looking at a 4 bed semi D in Munster, second hand new build home 4 years old. Price is 329k.
Take home pay after tax is 3,200k per month. Have been mortage approved (joint application) have 50k deposit saved and few grand for solicitors fees outside of the deposit.
My questions are:
1. Is the house worth it? Same house sold for 269k 4years ago when it was built.
2. Would i be able to afford to pay the mortgage back over 25 years on my pay.
3. Am i making a big mistake are house prices going to crash?. I have a refundable deposit paid.

Thanks.

Do you plan to sub let? Could be easier to pay off emis. Your pay will also appreciate your time. Getting a house late will be more difficult.

three putt · 18-10-2020 8:21am

Bananaleaf wrote: »

I did read the askaboutmoney link, that's why I was asking. It just seems crazy! Someone even saying to the bank that they were doing it! :eek:

I don't even know what the process involves when switching a mortgage - is it like reapplying all over again? It'll be the week after next before I get near a bank, so should I be off getting payslips, salary certs, pounds of our flesh (:pac:) etc in the meantime

Yes, basically it's like applying for a mortgage all over again, so lots of paperwork required. I would imagine you wouldn't even need to visit a bank to start the process - all can be done remotely.
There is a some time and effort involved, but the potential payoff is huge (depending on the size of your mortgage).
People shop around for the best mobile phone plans, e.g. switching from GoMo to 48.ie to save €2 a month, but are not interested in potentially saving/making thousands doing this because there is a bit of time involved.
If you are going to switch anyway, you already need to get all the paperwork. Each bank will require the same paperwork, so switching with more than one bank is no extra work, just additional time

tommyombomb · 18-10-2020 8:46am

Mortgage saver accounts,

I am currently saving for my mortgage through depositing money by bank transfer in credit union. I am wondering if i should be using a mort saving account to benefit for cashback, favourable interest rate and potential bigger mortgage. Need ideally 4-4.5x if i end up buying in Dublin to get the apt in the area i want.

Currently with AIB and hoping to be starting the mortgage process in about 12-16 months as waiting on job permanence.

Also due to covid and moving home, i can setup a few saving accounts if required as fortunately have very low monthly expenses

Meandyou999 · 18-10-2020 12:00pm

bdmc5 wrote: »

We did just that this summer. Moved from BOi after our fixed term to TSB to avail of another 2% cashback. In addition to a lower rate and 2% back on every monthly payment. Shop around 100 percent

Do you have to get the house revalued when switching. What happens if the revalue is lower to the initial valuation.
Thanks.

Bluefoam · 18-10-2020 5:27pm

Meandyou999 wrote: »

Do you have to get the house revalued when switching. What happens if the revalue is lower to the initial valuation.
Thanks.

Switching is similar to applying for a new mortgage... The bank need to have confidence that the property has value against the loan.

Meandyou999 · 18-10-2020 6:22pm

If when switching mortgages, if it is a joint original mortgage can you make an application as one person when switching say if your other half is out of work due to childbirth.

Meandyou999 · 18-10-2020 6:22pm

If when switching mortgages, if it is a joint original mortgage can you make an application as one person when switching say if your other half is out of work due to childbirth.

CarMc · 18-10-2020 8:04pm

Meandyou999 wrote: »

If when switching mortgages, if it is a joint original mortgage can you make an application as one person when switching say if your other half is out of work due to childbirth.

I doubt it, you'd have to apply in both names and be assessed on the one income, if original house/mortgage is in joint names you can't transfer to your single name when switching. Would be very unfair on the other half.

Meandyou999 · 18-10-2020 8:10pm

CarMc wrote: »

I doubt it, you'd have to apply in both names and be assessed on the one income, if original house/mortgage is in joint names you can't transfer to your single name when switching. Would be very unfair on the other half.

Mortage will be be in both names on initial application, house deeds in her name in full but my income is 1/3 more than hers per month. There will/may be a situation where she will/may be out of work when will/may have a baby. Can i still switch in that scenario. Also to add to that, what do working couples do when they have a baby, how do we arrange childcare if we both have to still work. We both work the same days more or less. Surley im not the first to have this issue. Please help

L1011 · 18-10-2020 8:11pm

three putt wrote: »

Yes fully legal. Read the related threads on askaboutmoney - plenty of case studies there. Also links to solicitors with experience of doing it.
I'm amazed more people haven't done this.
Some of the cashback offers are expiring in Dec 2020 (I think BOI), so would be tight on time if starting the process now. But still banks there with the offer.

The work involved and needing a solicitor that doesn't hang around are the two main reasons more people wouldn't do it.

If I get my KBC switch done in time - expires 31/12/2020 there too - the 3k is likely more than the profit they will ever make from me; its equivalent two years interest on the entire 9 year loan!

Got a copy bank statement for the closed current account so only waiting on payroll to do a salary cert up now. If they take til Friday to do it I'll have a second payslip without TWSS (company is not on EWSS) which would be handy as KBC only ask for two; though the artificially low YTD amount would still make it clear it was TWSS at some point.

wally79 · 18-10-2020 8:15pm

Meandyou999 wrote: »

Mortage will be be in both names on initial application, house deeds in her name in full but my income is 1/3 more than hers per month. There will/may be a situation where she will/may be out of work when will/may have a baby. Can i still switch in that scenario. Also to add to that, what do working couples do when they have a baby, how do we arrange childcare if we both have to still work. We both work the same days more or less. Surley im not the first to have this issue. Please help

I don’t know if you will get a mortgage if your name isn’t on the house deeds. What security does the bank have?

On the second question people use a creche, childminder or family.

Meandyou999 · 18-10-2020 9:28pm

wally79 wrote: »

I don’t know if you will get a mortgage if your name isn’t on the house deeds. What security does the bank have?

On the second question people use a creche, childminder or family.

How much to add name to deeds?
Most creche will be closed. And we are working 12 hrs shifts all creches dont work 12 hr shifts.

SteelyDanJalapeno · 19-10-2020 9:04am

Is the cashback a taxable event?

whatever76 · 19-10-2020 9:21am

SteelyDanJalapeno wrote: »

Is the cashback a taxable event?

No but the cash you receive on BOI Mortgage Saver account is subject to DIRT.

Shoden · 19-10-2020 11:28am

So, I have read online that BOI are currently giving exemptions. Is there any other mortgage providers that are at the moment also?

Markitron · 19-10-2020 12:46pm

Shoden wrote: »

So, I have read online that BOI are currently giving exemptions. Is there any other mortgage providers that are at the moment also?

Apparently (according to this thread) AIB are too.

Do you mind if I ask where you read this?

Shoden · 19-10-2020 1:04pm

Markitron wrote: »

Apparently (according to this thread) AIB are too.

Do you mind if I ask where you read this?

People on the first time buyers group on Facebook were saying they got exemptions from boi recently.

klose · 19-10-2020 1:56pm

I wonder how the upcoming lockdown will effect mortgages and people currently in the process of buying if they're going to be out of work for a couple of weeks, will the banks throw a blanket of any apications with any people who will be forced out of work for a few weeks due to lock down?

Meandyou999 · 19-10-2020 7:45pm

Hey people, Reaching out here. We have a deposit paid on a house.
House is sale agreed. Signing contacts in december. House price albeit is more expensive than it was 4 years ago. 4 years ago was a new build costing 270k, now second hand costing 335k, went sale agreed at 330k. Working in secure pharma industry, well secure for now. Take home pay is 3.2k per month. Im looking for advice on the mortgage term. 270/280k mortgage over 25years or 270/280k mortgage over 27-30 years. In my job i will get about 1200 euro pay year increase on basic salary. So in 10 years time my basic pay will be about 10k more than it is now.
So a longer term means higher interest but lower monthly repayments and shorter term means less interest but higher monthly repayments.
Any you have or are in a similar situation.
Im under the impression that i would like to pay the most while i can while i am young. 33 yrs old now. Feedback welcome. Thanks

awec · 19-10-2020 7:54pm

I would go for the longer term and then overpay. Gives you a safety net.

You'd need to clarify your banks policy around overpayments if you plan on fixing.

Meandyou999 · 19-10-2020 8:15pm

awec wrote: »

I would go for the longer term and then overpay. Gives you a safety net.

You'd need to clarify your banks policy around overpayments if you plan on fixing.

Thank you.
Will be with ptsb for 3 or 5 years initially due to the cashback., after that will be switching to a lower rate.
Not sure whether to throw all my savings at the deposit to reduce the amount of mortgage i draw down or say keep 10k back and get a 10k bigger mortgage.
House is finished and we have most of everything we need, we just going get a new couch and new bed. And touch up painting.

awec · 19-10-2020 8:18pm

Meandyou999 wrote: »

Thank you.
Will be with ptsb for 3 or 5 years initially due to the cashback., after that will be switching to a lower rate.
Not sure whether to throw all my savings at the deposit to reduce the amount of mortgage i draw down or say keep 10k back and get a 10k bigger mortgage.
House is finished and we have most of everything we need, we just going get a new couch and new bed. And touch up painting.

Again, it's your call, but personally I would keep the 10k as a rainy day fund.

You can always make lump sum overpayments down the line if you want to save more on interest.

There will always be unexpected costs when you move into a new house. Something will be more expensive than you think, there'll be something you forgot to budget for etc, so whatever you decide you definitely shouldn't put every cent you have into the deposit.

Meandyou999 · 19-10-2020 8:20pm

awec wrote: »

Again, it's your call, but personally I would keep the 10k as a rainy day fund.

You can always make lump sum overpayments down the line if you want to save more on interest.

Thank you.
Do you have a mortgage at the moment?.
Cheers

awec · 19-10-2020 8:20pm

Meandyou999 wrote: »

Thank you.
Do you have a mortgage at the moment?.
Cheers

Yes.

Meandyou999 · 19-10-2020 8:26pm

awec wrote: »

Yes.

Are you in a similar situation witj repayments as i will be. Cheers

awec · 19-10-2020 8:26pm

Meandyou999 wrote: »

Are you in a similar situation witj repayments as i will be. Cheers

Yes, I didn't put everything into the deposit, kept some back.

Meandyou999 · 19-10-2020 8:28pm

awec wrote: »

Yes, I didn't put everything into the deposit, kept some back.

Cheers.
Thanks for the reply in the property section on the house insurance. Ok if i continue that here.
Why do i need it when taking out the mortage if its not there to pay off the mortgage and shouldn't the cover amount cover the mortgage amount.

Danzy · 19-10-2020 9:06pm

I'd keep the 10k as a rainy day fund, have kept 20 for that reason.

Are bank back offices still open with level 5? Waiting on a loan offer, everything needed in 2 weeks ago, their valuer out etc, all boxes.

Hoping that things aren't stalled. I don't work in an office environment now so bit sure what is going on in such spheres.

Meandyou999 · 19-10-2020 9:24pm

Danzy wrote: »

I'd keep the 10k as a rainy day fund, have kept 20 for that reason.

Are bank back offices still open with level 5? Waiting on a loan offer, everything needed in 2 weeks ago, their valuer out etc, all boxes.

Hoping that things aren't stalled. I don't work in an office environment now so bit sure what is going on in such spheres.

Thanks, one would be foolish to think it will never rain.

Kop On · 19-10-2020 11:45pm

klose wrote: »

I wonder how the upcoming lockdown will effect mortgages and people currently in the process of buying if they're going to be out of work for a couple of weeks, will the banks throw a blanket of any apications with any people who will be forced out of work for a few weeks due to lock down?

I know someone approximately a week away from signing, surveyor, valuation everything done and today BOI pulled the rug from under his feet. It’s all due to the company he works for receiving government support. The company had to complete an additional form last week and that’s the outcome today.

Really **** situation. Any banks currently accepting applicants whose company are receiving financial support?

Springy Turf · 20-10-2020 12:14am

Hi Folks,

I am wondering if any folks here have recent experience of banks giving approval in principal for a mortgage in relatively short order? I am currently sale agreed on the house but there is a risk the bank won't get the valuation done before the current mortgage approval expires. I would like to have a backup application going so that the sale doesn't fall through. Ideally with a small (3.8) exemption!

I'd be particularly interested to hear if Avant money can be dealt with quickly.

Thanks

Bluefoam · 20-10-2020 6:11am

Springy Turf wrote: »

Hi Folks,

I am wondering if any folks here have recent experience of banks giving approval in principal for a mortgage in relatively short order? I am currently sale agreed on the house but there is a risk the bank won't get the valuation done before the current mortgage approval expires. I would like to have a backup application going so that the sale doesn't fall through. Ideally with a small (3.8) exemption!

I'd be particularly interested to hear if Avant money can be dealt with quickly.

Thanks

Can you get two exemptions at once? This is a central bank undertaking, and I'm sure they would see that you had two applications for exemptions at one time... Exemptions are limited in quantity, so they'd probably reject it on the basis that someone else could use it...

1. You can send in the valuer early... Have everything prepared
2. All banks have a different approach... But have you asked for an extension on your loan offer. During the TWSS they were allowing 30 day extensions, but that has passed for some banks. But a good broker might help you with that.

However, I'm no expert.

mtoutlemonde · 20-10-2020 11:32am

Silly question ... can you have two mortgages for a self build? If the bank won't give you enough, would it be possible to take what they offer and get a credit union mortgage for the remainder?

awec · 20-10-2020 11:41am

mtoutlemonde wrote: »

Silly question ... can you have two mortgages for a self build? If the bank won't give you enough, would it be possible to take what they offer and get a credit union mortgage for the remainder?

Not really, no. Presumably the bank aren't giving you enough due to affordability, so if you took out another loan, then this would again reduce your affordability, and the bank would reduce the amount they'd lend you.

BEdS_83 · 20-10-2020 3:31pm

Bluefoam wrote: »

Can you get two exemptions at once? This is a central bank undertaking, and I'm sure they would see that you had two applications for exemptions at one time... Exemptions are limited in quantity, so they'd probably reject it on the basis that someone else could use it...

1. You can send in the valuer early... Have everything prepared
2. All banks have a different approach... But have you asked for an extension on your loan offer. During the TWSS they were allowing 30 day extensions, but that has passed for some banks. But a good broker might help you with that.

However, I'm no expert.

my bank told me that my offer ends at the end of this year, and I must say she emphasised that a lot.. builder said the house is ready for snagging at the end of November, and middle of December (if everything goes ok)
I have to say, but every time that I pass never to the state it doesn't seem they will be ready by end of November, EA keeps saying that they will all good from their end, but I guess that is just seller talking.

I was in the first time buyer's group on Facebook, saw some people saying about doing the drawdown before the house is ready, that sounded super strange to me, and I'm pretty sure the banks will have something to block such thing..

so my question is, have you folks ever seen someone securing an extension from their mortgage offer in such case?

from what I understood pretty much all money is refundable, but the solicitor, but even that sounds a lot since we are at the end of October already and new lockdown upon us..

Meandyou999 · 22-10-2020 12:56pm

According to the official Central Bank of Ireland definition, a first-time buyer (FTB) is an individual who has never before, either by themselves or with others, purchased a house, apartment, or a site to build a home, in Ireland or abroad. When it comes to applying this definition to the sale and purchase of mortgages, a FTB is, “a borrower to whom no housing loan has ever before been advanced”.
My parents sold there house and bought a house and put it in my name.
As im my case i have never been advanced a loan to purchase a house. When it comes to applying this definition to the sale and purchase of mortgages, a FTB is, “a borrower to whom no housing loan has ever before been advanced”.
Am i still a first to buyer when appling for a mortage. 10% deposit rather than 20% deposit.

dev_ire · 22-10-2020 6:16pm

Anyone have any knowledge of when bank of ireland announced last time the extension of the cashback offer and/or if they are likely to extend it this time? I am sale agreed but looking tight to drawdown before it runs out and bank is saying it is not extended so far.

Jasna1982 · 22-10-2020 6:24pm

Meandyou999 wrote: »

According to the official Central Bank of Ireland definition, a first-time buyer (FTB) is an individual who has never before, either by themselves or with others, purchased a house, apartment, or a site to build a home, in Ireland or abroad. When it comes to applying this definition to the sale and purchase of mortgages, a FTB is, “a borrower to whom no housing loan has ever before been advanced”.
My parents sold there house and bought a house and put it in my name.
As im my case i have never been advanced a loan to purchase a house. When it comes to applying this definition to the sale and purchase of mortgages, a FTB is, “a borrower to whom no housing loan has ever before been advanced”.
Am i still a first to buyer when appling for a mortage. 10% deposit rather than 20% deposit.

Why don’t you just call one bank at and ask? It seems no one here has been able to answer the question

Meandyou999 · 22-10-2020 6:35pm

Jasna1982 wrote: »

Why don’t you just call one bank at and ask? It seems no one here has been able to answer the question

Me being silly asking a question on a forum where people ask questions. What was i thinkingðŸ™„

CarMc · 22-10-2020 8:10pm

Meandyou999 wrote: »

Cheers.
Thanks for the reply in the property section on the house insurance. Ok if i continue that here.
Why do i need it when taking out the mortage if its not there to pay off the mortgage and shouldn't the cover amount cover the mortgage amount.

Buildings insurance is in place to replace the building if it burns down etc. It only covers the rebuilding cost as the land is still there etc.

You also need to take out mortgage protection / life insurance to cover the full mortgage value in the case of your death (or serious illness if you opt for that as an extra).

The bank will want both of these in place before drawdown to protect themselves.

Jasna1982 · 23-10-2020 1:18am

Meandyou999 wrote: »

Me being silly asking a question on a forum where people ask questions. What was i thinkingðŸ™„

I wasn’t trying to be mean.
Just saying you’ve asked the same question in multiple threads and no one seems to have a straight answer. If you call just one bank for advice would save you a lot of time

mimimcmc · 23-10-2020 10:38am

Meandyou999 wrote: »

Me being silly asking a question on a forum where people ask questions. What was i thinking��

no need to get narky.. it's a complicated question and nobody here is an expert in that field.
Call a bank.

Gael23 · 23-10-2020 11:01am

I’m currently paying €800 a month in rent which I can afford ok. Would the bank take rent payments as an indicator of affordability of a mortgage or am I better to move home and save that money?

Pete123456 · 23-10-2020 11:08am

Gael23 wrote: »

I’m currently paying €800 a month in rent which I can afford ok. Would the bank take rent payments as an indicator of affordability of a mortgage or am I better to move home and save that money?

they will consider the rent as part of the affordability, assuming its visible on a bank account going out regularly etc.

Billythekid19 · 23-10-2020 12:56pm

dev_ire wrote: »

Anyone have any knowledge of when bank of ireland announced last time the extension of the cashback offer and/or if they are likely to extend it this time? I am sale agreed but looking tight to drawdown before it runs out and bank is saying it is not extended so far.

I hounded them for a few months last year asking the same question.
They usually announce and extension around a month before the next one is up.
There is a lot of competition, you only have to see the amount of tv ads daily with the likes of EBS also offering 3% so expect BOI to announce an extension in early December.

dev_ire · 23-10-2020 6:08pm

Billythekid19 wrote: »

I hounded them for a few months last year asking the same question.
They usually announce and extension around a month before the next one is up.
There is a lot of competition, you only have to see the amount of tv ads daily with the likes of EBS also offering 3% so expect BOI to announce an extension in early December.

Hopefully, cheers. I think they have to extend it as it is their only competitive advantage as they are one of the higher fixed rates but the cashback helps if fixing for short term.

Shoden · 25-10-2020 8:41am

Anyone know how long it takes for ICS to go from AIP to letter of offer?

I've been sale agreed for a few weeks now but couldn't move forward to offer stage with ICS because of reasons outside my control (a grant had to be confirmed with council) until a few days ago. Now the vendor wants contract signed in next two weeks.

It should be straightforward, very little has changed since I got my AIP. Just nervous about timelines. Thanks.

Saving/Applying for a mortgage 2020-22 Edition

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