Saving/Applying for a mortgage 2020-22 Edition

Pete123456 · 23-09-2021 1:14pm

https://www.boards.ie/discussion/comment/117928657#Comment_117928657

it is of course possible, probably not advised by most but if you’re confident you’ll get the loan then go ahead - but make sure there is a “subject to loan” clause included just in case for whatever reason you didn’t get the loan offer or it had crazy conditions etc

Blaa.boy · 23-09-2021 1:18pm

https://www.boards.ie/discussion/comment/117928698#Comment_117928698

Thanks very much for reply. Yes Bank are confident just a matter of time was problem on their end. Hopefully it will be in by then.

sillysocks · 23-09-2021 3:44pm

Our contracts were issued with subject to loan offer as a clause so I’d say once that’s included you’d be fine.

CalisGirl · 23-09-2021 9:27pm

Just to note if it's a Nama/Receiver type sale, they won't agree to a subject to loan clause as a rule but other sellers should be fine.

rob316 · 28-09-2021 5:52pm

After applying to individual banks myself and not getting what I needed, I went to a broker last week and he got me exactly what I needed today. I'm wondering now why the **** I didn't go to him 12 months ago. He got wife's carers income, my secondary income, bonus, domicillary care, every penny that comes in he got it accounted for.

Anyone with complex circumstances, get in touch with one.

iHungry · 29-09-2021 5:11pm

Hi, could anybody tell me how much I need to start saving every month to be eligible for a mortgage. €800 or €1000 each month? I'd like save the minimum that is acceptable. Thanks

random_banter · 29-09-2021 5:44pm

https://www.boards.ie/discussion/comment/117955161#Comment_117955161

This really depends on how much you are planning to spend on a property and borrow from the bank. If you were only borrowing a small amount, then the savings could be smaller, if you were buying a more expensive house and you need a bigger mortgage, the savings would need to be bigger. It's all about what you will be expected to pay back to the bank every month.

For example, if you took out a mortgage which had repayments of 1000 euro a month, you would need to prove that you have the repayment capacity of 1000 euro per month + some wiggle room, generally the guideline is about 30%. So if your planned mortgage was to be 1000 a month, try to demonstrate that you have a repayment capacity of 1300 euro a month. Generally they will look to see you demonstrate this over a long period of time, and a minumum of 6 months. The best way to do this is to send those savings to a different account dedicated to saving every month, and try not to touch the account at all - they won't like it if you keep dipping in to it.

Of course, you will also need to be able to show that you have your deposit - if a FTB, that would be 10% of the purchase price. Some people use their repayment capacity proof to also save towards that deposit, so you just let that build up in a bank account.

The bank will sometimes take the rent you pay into account for your repayment capacity. In my case they have taken my rent, plus the amount that I am saving per month to prove my capacity to make those repayments. The mortgage advisor in the bank will help you with questions like this too.

iHungry · 29-09-2021 5:57pm

https://www.boards.ie/discussion/comment/117955338#Comment_117955338

Hi thanks for your great reply. So I should save 30% of my take home pay not my gross? Reason I'm asking is I like to invest my money so thats why I asked the minimum to save because I invest some of my disposable income every month. Would the bank take that into account on top of my monthly 30% of savings? Thanks

G_R · 29-09-2021 9:15pm

https://www.boards.ie/discussion/comment/117955411#Comment_117955411

A monthly amount into an investment account is also fine (once it not something link Bitcoin etc) but money into a managed fund or something is absolutely fine. The like of degiro etc can be ok, but it's very difficult to work out exactly how much you are putting in with the statements they produce, so try and avoid it if you can.

And it's not any set percentage of your income. The bank need to see that you can afford the mortgage at a stressed rate (+2% (so they know you can still afford it if interest rates rise)).

Google an online mortgage calculator, stick in what you want to borrow and over what term and stick in 5% (3+2) and whatever that equals is what you should be showing you can afford each month.

This amount can be made up of rent you are currently paying, savings, money to investments, ESPP scheme in work. You can even use an AVC if you're desperate, but I personally wouldn't be a huge fan of using that, as it's bad financial advice to stop contributing extra to your pension.

Basically, it doesn't all have to be into a savings account. It's anything you will no longer have to pay or can stop paying if you need to, once you have drawn down the mortgage.

COLMCS · 30-09-2021 12:50pm

First time single buyer here 43 (I know age is not on my side), managed to save a deposit all the while renting, have no loans, no credit card debt, have an 18 year old, but I guess on paper he would not be considered a dependent. Would i be best to go to a broker or directly to a bank itself? If I go the mortgage broker route based in Louth can I get any recommendations'? I earn 42K, at 3.5 i wont have much choice, how ease is it to get an exception to 4.5 and would i need to wait till next Jan for that?

rob316 · 01-10-2021 3:13pm

https://www.boards.ie/discussion/comment/117955161#Comment_117955161

You need to show payment capacity. So if your living at home and plan on repaying €1000 a month on a mortgage you'd need to show you can save that monthly. If your paying €600 rent, they'd like you to save additional 500/600 a month.

rob316 · 01-10-2021 3:19pm

https://www.boards.ie/discussion/comment/117958647#Comment_117958647

Exceptions are not easy to get and are generally for higher earners (north of 50k) and lower LTV. Rebuilding home ireland is your best bet, you'll get 5 times and they have revised the APR and included MPI in it now so its much better value.

G_R · 02-10-2021 12:13am

https://www.boards.ie/discussion/comment/117958647#Comment_117958647

Being honest, a sole applicant at your salary level is going to struggle to get approval for an LTI exception I'm afraid.

theboringfox · 04-10-2021 10:54pm

Might be wrong forum so apologies if case. Just wondering if anyone applied for mortgage with likes of avant or finance ireland where you need mortgage to buy and will be looking to borrow again to do up and extend house? I will go through broker but interested if anyone did it. Just worried they might have no interest in top up mortgages for extensions.

Interested Observer · 05-10-2021 4:48pm

Question for anyone who has switched and broken a fixed rate - we will owe the bank the breakage fee, which is fine but just wondering is that paid through our solicitor or do I have to pay the bank directly?

Basically, do I need to contact the bank about this or will they tell the solicitor and we transfer it via them?

G_R · 05-10-2021 6:31pm

https://www.boards.ie/discussion/comment/117980260#Comment_117980260

If you're breaking out prior to redemption, then you can pay yourself.

If you're doing it as part of the redemption of the loan, then it will be part of the redemption figure and can pay through the Sole.

bleaks · 05-10-2021 8:51pm

Hey folks. My salary increment is due at the end of next month. It'll make a significant enough difference to the amount we can borrow.

Would a bank / broker take this into consideration if I put that (next month's) salary down on my forms, even though my current payslips state my current salary?

Could be difference of losing a house we really like the look of - though not going to get our hopes up too high - so very keen to get it sorted and have a bit extra for the bidding wars.

G_R · 05-10-2021 8:58pm

https://www.boards.ie/discussion/comment/117981103#Comment_117981103

Once you explain what's happening, it should be fine.

Ask your employer to fill in a salary cert with your new salary details.

They will require you to provide updated payslips confirming the new salary, that will be a condition of your approval.

Interested Observer · 05-10-2021 8:59pm

https://www.boards.ie/discussion/comment/117981103#Comment_117981103

If it's on your salary cert. You could possibly get conditional approval.

DubLad69 · 05-10-2021 9:30pm

Hi guys,

We had a very stressful time applying for our mortgage. It is nearly 6 months now since we got our letter of offer and our house still isn't ready. We are going to have to reapply. Has anyone had to do this? Is it as difficult as the original application?

We are earning about €10k more now than when we initially applied. Can they take that into account now for a bigger mortgage as we are currently giving a 25% deposit.

G_R · 05-10-2021 9:37pm

https://www.boards.ie/discussion/comment/117981244#Comment_117981244

Depending on your bank you may be able to extend the loan offer by a couple of months with less documentation (payslips and a bank statement usually).

If you need it longer than that, it's a full reapplication. I don't know what issues you had the first time, but presumably if you have gotten the LO already, it will be straight forward.

And yes, the additional salary can be taken into account. That doesn't nessescarily mean they will increase your loan amount, but it it had been capped at 3.5x your old salary, then there's a good chance they will increase your loan amount.

DubLad69 · 05-10-2021 10:35pm

https://www.boards.ie/discussion/comment/117981276#Comment_117981276

Thank you. House won't be ready for a whole longer so it looks like I will have to do a full reapplication.

I am a bit worried now. When we originally got the letter of offer I withdrew €5k from my mortgage savings to start purchasing furniture and sort out a few things that I've been meaning to get around to. Even if we deduct that from our repayment capacity we still average out at way more than the mortgage will be.

Is this Likley to be an issue?

G_R · 05-10-2021 11:32pm

https://www.boards.ie/discussion/comment/117981520#Comment_117981520

Once it was used for once off expenditure and not for day to day expenses, you'll be fine - just call it out, and point out the transactions on your statements.

kneejerk · 06-10-2021 5:08pm

I'm always just left my savings in my current account. Stupid (I know).

Where is the best place to put savings for a deposit. Have 20k now and will be adding to it every month

G_R · 06-10-2021 9:47pm

https://www.boards.ie/discussion/comment/117984755#Comment_117984755

Once you have the discipline not to touch it, and it's buidling monthly, it's fine. They will just take the balance now and take away the balalge 6 months ago.

If you want to set up a separate account, then any deposit account offered by your bank or credit union. The interest rates on all of them are minimal and not worth thinking about.

If you are planning on getting a mortgage with Bank of Ireland they have a mortgage saver product which pays a bonus 2k interest (subject to DIRT) if you draw down a mortgage with them, so that may be an option for you.

bleaks · 07-10-2021 8:54pm

Is there anyone who has applied for an ICS mortgage recently able to tell me what the rough turnaround for approval is like?

coolbeans21 · 08-10-2021 4:17am

Hi guys we have a loan offer from PTSB, however last month in the final week before payday my account went into 10 euro unauthorised overdraft. It was due to a bill that I wasn’t expecting and I didn’t notice for a few days. We are going to have to request to extend our offer because our new build won’t be ready within the 6 months just wondering if this is going to effect the extension? Thanks for your help,

bleaks · 09-10-2021 5:03pm

Anyone much experience of hopping between mortgage providers every few years? Had a chat with a broker and he was selling going for the cashback offers (we're FTB) even though the interest rates are high, and then re-mortgaging in 3 or so years once we're LTV 80% and getting a better offer...

Just seems a bit risky to me as the way inflation is looking it doesn't seem like interest rates are coming down. Any thoughts? We're technically eligible for a Rebuilding Ireland loan which would be a fixed interest rate for 25/30 years so we're torn on what to choose.

CalisGirl · 09-10-2021 7:35pm

Anyone know how long it takes Haven to release funds from time of drawdown request?

Pete123456 · 09-10-2021 9:03pm

https://www.boards.ie/discussion/comment/117998510#Comment_117998510

No but I’m very interested in any response also…

Saving/Applying for a mortgage 2020-22 Edition

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