Saving/Applying for a mortgage 2020-22 Edition

jimmy86 · 01-12-2020 7:47pm

clayfarm1234 wrote: »

based on the other people's experience here - how soon have KBC responded with the Letter of Offer after property valuation? They had promised us 2 weeks - but it is already past 2 weeks now.....They promised 3 weeks for AIP, but took 7 weeks!!! I need to sign my contracts within 28 days, and I just have 1 week left now

Our broker told us it was talking at least 10 working days, we applied for the letter of offer last week. We got the AIP in September, took 3 weeks to the day. Hopefully you hear something soon. Did they request any further information or is it fairly straightforward once you have AIP with them I wonder?

clayfarm1234 · 01-12-2020 9:13pm

jimmy86 wrote: »

Our broker told us it was talking at least 10 working days, we applied for the letter of offer last week. We got the AIP in September, took 3 weeks to the day. Hopefully you hear something soon. Did they request any further information or is it fairly straightforward once you have AIP with them I wonder?

With which lending institution have you taken? is it directly with the bank or through a broker ? Yes - they havent asked any documents yet - hopefully everything is in order - i just do not want them to come after 1 week asking for more documents

jimmy86 · 01-12-2020 11:27pm

clayfarm1234 wrote: »

With which lending institution have you taken? is it directly with the bank or through a broker ? Yes - they havent asked any documents yet - hopefully everything is in order - i just do not want them to come after 1 week asking for more documents

Went with KBC as well but through a broker, not sure if that has any impact on the speed of the application or not

FaberX · 01-12-2020 11:35pm

nerrad01 wrote: »

Im almost finally over the line too, got approved for an exemption in mid november but was quite stressful as i have to close before the end of the year or the exemption is gone. Thankfully everything has gone smoothly and my solicitor has been excellent so looks like i will close on dec 11th all going well.

All going well it will be such a weight off the shoulders to escape the dysfunctional irish rental/ sales market

Who did you get the exemption with?

nerrad01 · 02-12-2020 10:51pm

FaberX wrote: »

Who did you get the exemption with?

Bank of Ireland, i know UB and AIB have also started giving them out again too

Renjit · 02-12-2020 11:10pm

nerrad01 wrote: »

Bank of Ireland, i know UB and AIB have also started giving them out again too

What is the requirement for exemption?

recyclebin · 03-12-2020 12:35am

Renjit wrote: »

What is the requirement for exemption?

For AIB, I was told you need the following net disposable income after mortgage, loans and childcare are paid for:

First Time Buyer
Single - €2,400 NDI
Joint - €3,650 NDI

Second Time Buyer
Single - €2,200 NDI
Joint - €3,500 NDI

TaDa · 03-12-2020 12:58am

recyclebin wrote: »

For AIB, I was told you need the following net disposable income after mortgage, loans and childcare are paid for:

First Time Buyer
Single - €2,400 NDI
Joint - €3,650 NDI

Second Time Buyer
Single - €2,200 NDI
Joint - €3,500 NDI

What is this exemption in relation to if you mind me asking? Apologies if already explained but I couldn’t see it

fin12 · 03-12-2020 2:38am

recyclebin wrote: »

For AIB, I was told you need the following net disposable income after mortgage, loans and childcare are paid for:

First Time Buyer
Single - €2,400 NDI
Joint - €3,650 NDI

Second Time Buyer
Single - €2,200 NDI
Joint - €3,500 NDI

Is 2,400 a month?

What’s the disposable income for the stress test?

nerrad01 · 03-12-2020 10:03am

TaDa wrote: »

What is this exemption in relation to if you mind me asking? Apologies if already explained but I couldn’t see it

In terms of getting more than 3.5x your salary, BOI seemed the most flexible in terms assessing an application.

Its such a pain though, as you can be verbal approval for it, but they will only give you final approval AFTER you have gone sale agreed on a property.

So leaves the buyer in a difficult position as most estate agents wont accept a bid until you show proof of mortgage/ funds. a real catch 22

narodvale · 03-12-2020 12:17pm

Quick one for someone who might be in the know. We are awaiting loan offer with a view to signing contracts before Christmas. We're also due to be married on Dec 23rd (Though I've said that twice before this year and Covid has proven me wrong).

My question is, are we better to wait and sign the contracts after we're married on Dec 23rd/24th, or does it make any difference? The mortgage will be in both our names.

Thanks

misstyc · 03-12-2020 2:38pm

narodvale wrote: »

Quick one for someone who might be in the know. We are awaiting loan offer with a view to signing contracts before Christmas. We're also due to be married on Dec 23rd (Though I've said that twice before this year and Covid has proven me wrong).

My question is, are we better to wait and sign the contracts after we're married on Dec 23rd/24th, or does it make any difference? The mortgage will be in both our names.

Thanks

i think this might be better to ask your solicitor tbh given the potential ramifications...

narodvale · 03-12-2020 5:25pm

Fair point, and I have asked them as well, just awaiting a response so thought I would raise it here in the interim.

brendanjkeegan · 03-12-2020 8:20pm

Kalico92 wrote: »

Myself and herself are back from living in the UK and I've secured a permanent role here.

My better half has agreed a remote arrangement with some back and forth travel with her company so will still be paid a UK salary. When we're applying would we still be able to submit a joint application with my Irish and her UK salary combined to be considered for the borrowing amount? Or would only my Irish salary be eligible?

Thanks for adding this post - I will find myself in the same position in the new year, except I'm the one doing the commute and herself is the one resident and employed in Ireland.
Can you let me know how you got on? Any tips or advice would be helpful.

recyclebin · 05-12-2020 1:22pm

recyclebin wrote: »

For AIB, I was told you need the following net disposable income after mortgage, loans and childcare are paid for:

First Time Buyer
Single - €2,400 NDI
Joint - €3,650 NDI

Second Time Buyer
Single - €2,200 NDI
Joint - €3,500 NDI

Sorry should have been clearer, this is on a Loan to Income exemption of 3.5.
Figures are per month.

jimmy86 · 08-12-2020 1:16pm

clayfarm1234 wrote: »

based on the other people's experience here - how soon have KBC responded with the Letter of Offer after property valuation? They had promised us 2 weeks - but it is already past 2 weeks now.....They promised 3 weeks for AIP, but took 7 weeks!!! I need to sign my contracts within 28 days, and I just have 1 week left now

Did KBC issue you with a letter of offer yet?

clayfarm1234 · 08-12-2020 2:31pm

jimmy86 wrote: »

Did KBC issue you with a letter of offer yet?

They did..had to do lot of pushing...did you get?

Milena009 · 08-12-2020 2:58pm

Hey guys,
General question
Partner and I are looking at housing estate that has next phase launching Early 2021

Now, for mortgage
How are banks looking at 1) if bonus is paid each year yet not guaranteed? - him
2) mine is a 5% of salary annually however 2021 would be my first year receiving it

Otherwise might need to a small exception on LTI

Thank you

mimimcmc · 08-12-2020 3:05pm

Milena009 wrote: »

Hey guys,
General question
Partner and I are looking at housing estate that has next phase launching Early 2021

Now, for mortgage
How are banks looking at 1) if bonus is paid each year yet not guaranteed? - him
2) mine is a 5% of salary annually however 2021 would be my first year receiving it

Otherwise might need to a small exception on LTI

Thank you

I'm in the same boat as your mister, get it every year but it is not guaranteed. Pretty sure it wasn't included (AIB) but i think each bank differs...

jimmy86 · 08-12-2020 3:12pm

clayfarm1234 wrote: »

They did..had to do lot of pushing...did you get?

Nice one! Nope, but still within the two weeks so not getting impatient just yet!

Starlord_01 · 08-12-2020 3:18pm

Milena009 wrote: »

Hey guys,
General question
Partner and I are looking at housing estate that has next phase launching Early 2021

Now, for mortgage
How are banks looking at 1) if bonus is paid each year yet not guaranteed? - him
2) mine is a 5% of salary annually however 2021 would be my first year receiving it

Otherwise might need to a small exception on LTI

Thank you

We were told they look at the last 3 years and between 20-50% of the bonus is considered.

Pete123456 · 08-12-2020 4:01pm

Starlord_01 wrote: »

We were told they look at the last 3 years and between 20-50% of the bonus is considered.

We were the same. AIB will generally consider 25% if it’s guaranteed on a salary cert, but if you have several years they may consider up to 50%, however this seems to take a lot of convincing. We have been told KBC are more likely to consider 50% however we haven’t applied with them.

I wouldn’t bank on any more than 50% being considered and I’d almost suggest doing your figures based on max 25% - even if it’s contractually guaranteed and on a salary cert. it’s a pain, but it is what it is, they call the shots!

Markitron · 08-12-2020 4:05pm

Anyone gotten AIP from BOI lately? Just curious as to how long they took.

Renjit · 08-12-2020 8:38pm

Milena009 wrote: »

Hey guys,
General question
Partner and I are looking at housing estate that has next phase launching Early 2021

Now, for mortgage
How are banks looking at 1) if bonus is paid each year yet not guaranteed? - him
2) mine is a 5% of salary annually however 2021 would be my first year receiving it

Otherwise might need to a small exception on LTI

Thank you

BOI takes average of bonus over past years. But not sure how yours will be calculated. Perhaps they will be bit more conservative here.

misstyc · 08-12-2020 11:18pm

Markitron wrote: »

Anyone gotten AIP from BOI lately? Just curious as to how long they took.

Took 7 working days for me recently, very efficient.

Markitron · 09-12-2020 10:12am

misstyc wrote: »

Took 7 working days for me recently, very efficient.

That's good to hear, thanks. Going through a broker so not sure what effect that might have.

td2008 · 09-12-2020 10:55am

Markitron wrote: »

Anyone gotten AIP from BOI lately? Just curious as to how long they took.

Not the quickest process for us - this was via a broker

September 15th - Application
October 2nd - AIP
November 24th - Loan Offer

Markitron · 09-12-2020 11:04am

td2008 wrote: »

Not the quickest process for us - this was via a broker

September 15th - Application
October 2nd - AIP
November 24th - Loan Offer

Also going through a broker, I assume the loan offer was after you had found a place? I am not likely to find somewhere suitable for a while.

Masala · 09-12-2020 11:04am

Coming late to this thread... so apologies if this answer is buried in the previous 128 pages

Are any of the lending institutions offering any first time buyer incentives???

Asking for s friend...when I got my mortgage 25 yrs ago I got a €1500 kick back from the bank towards solicitors cost. Any thing line that going around etc..

td2008 · 09-12-2020 11:07am

Markitron wrote: »

Also going through a broker, I assume the loan offer was after you had found a place? I am not likely to find somewhere suitable for a while.

Yes, through a broker and the loan offer was after we had put a booking deposit down and had a valuation done. (new build)

bulmersgal · 09-12-2020 11:11am

td2008 wrote: »

Not the quickest process for us - this was via a broker

September 15th - Application
October 2nd - AIP
November 24th - Loan Offer

Did you have place selected when you applied. I applied on 21st of November but looking for a exception and it's a new build. Have loan offer from other bank but broker said BOI would give me 8k more and then I would have the cash back. I've seen other people on Facebook groups saying application only took few days but I know my application will go straight to loan offer so hoping to hear word soon.

Markitron · 09-12-2020 11:11am

td2008 wrote: »

Yes, through a broker and the loan offer was after we had put a booking deposit down and had a valuation done. (new build)

Ah right, that makes sense. Did you get any cashback or anything from them or is that just for people that apply directly?

td2008 · 09-12-2020 11:18am

@bulmersgal - no, we didn't have a place selected when we applied but had a few ideas. Broker had got AIP from BOI and Ulster Bank, BOI was better due to the cashback - they also have 0.2% off the rates for A rated houses.

@Markitron - yes, still eligible for the cashback but that's after draw down which hasn't happened yet. 2% then another 1% after 5 years if you have a BOI current account

Starlord_01 · 09-12-2020 12:59pm

Masala wrote: »

Coming late to this thread... so apologies if this answer is buried in the previous 128 pages

Are any of the lending institutions offering any first time buyer incentives???

Asking for s friend...when I got my mortgage 25 yrs ago I got a €1500 kick back from the bank towards solicitors cost. Any thing line that going around etc..

https://www.moneyguideireland.com/mortgages

Mortgage Incentives :
BOI offer 2% cashback to all new customers and 3% to those who stay with them for 5 years. (no maximum cashback)
PTSB also offers 2% cashback lump sum for new customers and 2% off the monthly repayments back until 2027
EBS also give 2% cashback to all new mortgage customers – plus another 1% if you stay with them for 5 years.
Ulster Bank offers €1500 towards legal fees for all new customers.
KBC will give €3000 to mortgage switchers only and €1500 towards legal fees for all new customers.
AIB give €2000 cashback for switchers.

https://mortgage123.ie/mortgage-rates/

Not entirely sure if all are still valid.

Malmedicine · 10-12-2020 2:20pm

Just wondering regarding Mortgage AIP and a change in situation. Wife is on pregnancy related sick leave and her salary has temorarily decreased as a result of this . She is due to go back to full pay and maternnity leave in early 2021. We have an AIP but am now wondering do I need to go through that process again?

Steb87 · 11-12-2020 11:23pm

Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

Any other tips at all is welcome!

Renjit · 12-12-2020 9:57am

Malmedicine wrote: »

Just wondering regarding Mortgage AIP and a change in situation. Wife is on pregnancy related sick leave and her salary has temorarily decreased as a result of this . She is due to go back to full pay and maternnity leave in early 2021. We have an AIP but am now wondering do I need to go through that process again?

Bank will ask for latest salary slips just before drawdown or final mortgage letter.

The_Fitz · 14-12-2020 7:25pm

Hi folks, just looking to see if anyone knows about applying for a mortgage when you have set up your own company. I know some banks (AIB) ask for 3 years of audited account but some other look for 2 (UB).

Scenario:

Company incorporated July 2020.
First years final accounts will be ready say Feb 2021, second years account ready Feb 2022.

Ulster Bank's requirements for self employed (https://digital.ulsterbank.ie/personal/mortgages/mortgage-documents.html#):

2 years audited accounts certified by an accountant and signed by you
Self certified accounts if no accountant with revenue balancing statement
6 months business bank statements on all business accounts held
Revenue forms – Form 11 & Chapter 4 for last 2 years
Tax clearance cert or letter from accountant confirming tax affairs up to date

The section that says Revenue forms - Form 11 & Chapter 4 for last 2 years. The person who set up the company, and is a director pays their tax via PAYE each month. Does this director need to fill out a Form 11, even if they are paying their tax monthly, similar to an employed person (rather than self employed)?

Also, does anyone know if the final accounts which will take into account the date the company started (July 2020) until year end (Dec 2020) will be accepted as a full year?

Thanks for the advice

L1011 · 15-12-2020 11:19am

KBC cashback date has been kicked out again; so I don't need to try torture my solicitors to get everything done in the few working days left. Offer letter only being sent today.

Cian59 · 16-12-2020 11:06pm

Trying to get an answer to what I hope is a simple question but failing. Any idea what date the house insurance should start? I have a closing date but do I need it active before that for drawdown?

Renjit · 17-12-2020 3:15am

Cian59 wrote: »

Trying to get an answer to what I hope is a simple question but failing. Any idea what date the house insurance should start? I have a closing date but do I need it active before that for drawdown?

You need it before drawdown. Ask your bank.

Graham · 17-12-2020 3:23am

Ask your solicitor.

It might be wise to have insurance in place from the point you're committed to buying as that's arguably the time at which you have a risk.

brisan · 17-12-2020 11:07am

Steb87 wrote: »

Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

Any other tips at all is welcome!

Apply to all the banks
Your own bank will have access to your accounts going back to when the gambling accounts were there
Most banks just want to see 6 months clean accounts with regular savings and
net income that will cover the mortgage repayments
You do not need an account with a bank to get a mortgage from them
Clear any loans you have if possible
If either of your employers are on a government Covid subsidy that may be an issue

nerrad01 · 17-12-2020 11:17am

Steb87 wrote: »

Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

Any other tips at all is welcome!

Get a good broker, i got approved for 4.1x salary and just had funds released yesterday. My broker was worth her weight in gold as whatever she earned from the bank it wasnt enough, as she has been dealing with me for over 2 years with god knows how many iterations of applications to banks. I had a different broker before her who wasnt great, but thankfully got recommended my latest place and they were exceptional.

It literally would have been impossible to do it myself. Its a long and painful process, just keep plugging away consistently with the savings and maximising amount of disposable income every month as its all the banks care about

ELM327 · 17-12-2020 11:22am

Steb87 wrote: »

Me and my fiance are about to jump into it all too, about 6 months or so away from hitting our savings target. Currently saving just under 2g a month!

Not much outgoings we both have a credit union loans/savings. Stopped gambling so my accounts are clean. We both have a child each. No childcare costs as herself is working from home and I send my maintenance money to my parents under the guise of rent money as we're living in a home that is under the care of my dad.

Between us we're pulling in around 85,000ish in my line of work overtime is plentiful so I can up the figure a bit more, so a bank that takes my shift allowance and overtime into account is what I'm looking for!

Also has anyone any idea of how the exemption thing works? Where you can get x4.5 of your combined income instead of x3.5

Any other tips at all is welcome!

BOI are good for including shift allowances, bonuses and OT.
Once it's showing on your P60 for 3 years.

When I bought my apartment, I only needed a 2X salary multiple (and got easy approval) because the salary amount they decided upon was my base salary plus and the average of my overtime and bonus amount over that past 3 years.

Generally for a 4.5X exemption you'd need to be on a combined minimum of 80k base before they even consider you. Note, this is not a CBI rule, but a banks one.

BrentMused · 17-12-2020 11:29am

Markitron wrote: »

Anyone gotten AIP from BOI lately? Just curious as to how long they took.

They were the slowest of all the banks we applied with, despite us starting with them a week earlier than any of the others.

Probably about 3 weeks all in from the day we submitted all of the documentation to us getting AIP.

Markitron · 17-12-2020 11:34am

BrentMused wrote: »

They were the slowest of all the banks we applied with, despite us starting with them a week earlier than any of the others.

Probably about 3 weeks all in from the day we submitted all of the documentation to us getting AIP.

Thanks, it will be two weeks tomorrow since I applied. Haven't heard anything so was assuming the worst. Going through a broker though so maybe that adds some time.

brisan · 17-12-2020 11:37am

Markitron wrote: »

Thanks, it will be two weeks tomorrow since I applied. Haven't heard anything so was assuming the worst. Going through a broker though so maybe that adds some time.

This near to Christmas most banks will be on a bit of a wind down
Hopefully you will get in before Christmas
The broker will have had everything ready thus minimising the need for further documentation

Markitron · 17-12-2020 11:50am

brisan wrote: »

This near to Christmas most banks will be on a bit of a wind down
Hopefully you will get in before Christmas
The broker will have had everything ready thus minimising the need for further documentation

Yea I had been going back and forth with him for weeks putting everything together, they should have everything they need. I'm kinda hoping its the kind of scenario where the broker wouldn't bother applying unless they knew I had a reasonable chance of being approved. I assume they don't just apply and hope for the best.

17-12-2020 12:04pm

Myself an my partner got our AIP from BOI last week, it took about 2 weeks to get all the documentation in order, with BOIs systems being very legacy it's all paper applications, scans and emailing attachments to the mortgage advisor.

It took a week once she sent it to the underwriters to come back approved. Getting the regular 3.5x AIP is straightforward enough but to get an exemption you need a specific property in mind and then they do it based off that property so it's sort off guessing game if you'll get it. In our case we tick every box except that my partner changed jobs two months ago so she still under probation for 4 months.

That bar is higher for the exception, the mortgage advisor said even for the regular 3.5x it was 50/50 with one of us being under the probationary period.

Saving/Applying for a mortgage 2020-22 Edition

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