Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

mortgage information

Options
  • 06-05-2018 3:16pm
    #1
    lucast2007us
    Registered Users Posts: 801 ✭✭✭


    Hi guys my wife and I are going to be applying for a mortgage soon.
    How does it work for the 10% ?

    We have about 8,000 euro in all our savings accounts but with our current accounts combined and added to that we would have 20,000 euro.

    Can we therefore apply for a house with a valuation of 180,000?

    Hopefully someone can clear this up for me
    Thanks


Comments

  • Options
    #2
    gmisk
    Registered Users Posts: 32,198 ✭✭✭✭gmisk


    lucast2007us wrote: »
    Hi guys my wife and I are going to be applying for a mortgage soon.
    How does it work for the 10% ?

    We have about 8,000 euro in all our savings accounts but with our current accounts combined and added to that we would have 18,000 euro.

    Can we therefore apply for a house with a valuation of 180,000?

    Hopefully someone can clear this up for me
    Thanks
    You will also need solicitors fees etc.
    The bank would likely want to see a bit more than 10 percent


  • Options
    #3
    mel.b
    Registered Users Posts: 3,130 ✭✭✭mel.b


    You can get a mortgage that is 3.5 x your combined salaries, so if the 180,000 falls under that then that's ok (some exceptions given up to 4.5 x salary).

    Then you'll need a 10% deposit, so yes, if the house is 180,000 you'll need 18,000 plus enough to cover stamp duty (1%) and legal fees etc - allow around 2-3000 for these. Then don't forget moving costs etc.


  • Options
    #4
    lucast2007us
    Registered Users Posts: 801 ✭✭✭lucast2007us


    Thanks for the help but for 10% would they accept the fact that we have the 10 % in all our accounts combined ? ( Not just savings)

    My bad the house is valued at 175,000


  • Options
    #5
    mel.b
    Registered Users Posts: 3,130 ✭✭✭mel.b


    It doesn't matter where the 10% is in terms of accounts but you will need closer to 15% once stamp duty etc are included


  • Options
    #6
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    lucast2007us wrote: »
    Thanks for the help but for 10% would they accept the fact that we have the 10 % in all our accounts combined ? ( Not just savings)

    Makes no difference what account the money is in.

    But, why not just move the money into a savings account?


  • Advertisement
  • Options
    #7
    lucast2007us
    Registered Users Posts: 801 ✭✭✭lucast2007us


    amcalester wrote:
    Makes no difference what account the money is in.

    amcalester wrote:
    But, why not just move the money into a savings account?

    Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs


  • Options
    #8
    Blazedup
    Registered Users Posts: 72 ✭✭Blazedup


    What's the average for taking out a mortgage?


  • Options
    #9
    Blazedup
    Registered Users Posts: 72 ✭✭Blazedup


    What's the average for taking out a mortgage?


  • Options
    #10
    testicles
    Closed Accounts Posts: 1,198 ✭✭✭testicles


    This post has been deleted.


  • Options
    #11
    mel.b
    Registered Users Posts: 3,130 ✭✭✭mel.b


    lucast2007us wrote: »
    Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

    They normally don't give it back until 30 - 45 days after the mortgage is drawn down so you still need to pay those costs yourself. Also check that the cash back isn't just for people switching their mortgage (which I think it might be)


  • Advertisement
  • Options
    #12
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    lucast2007us wrote: »
    Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

    I’m in the process of applying and had to show funds to cover the 10% deposit plus €5k for the legals.

    This is despite Ulster Bank offering €1500 towards legal fees.


  • Options
    #13
    lucast2007us
    Registered Users Posts: 801 ✭✭✭lucast2007us


    mel.b wrote:
    They normally don't give it back until 30 - 45 days after the mortgage is drawn down so you still need to pay those costs yourself. Also check that the cash back isn't just for people switching their mortgage (which I think it might be)


    It says that if I have 5,000 in the mortgage saver account when applying then it would give back 2,000 when drawing down


  • Options
    #14
    Sarn
    Registered Users Posts: 3,061 ✭✭✭Sarn


    lucast2007us wrote: »
    Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

    That would cover the stamp duty, but you’d need another 2-3k for the legal fees.


  • Options
    #15
    lucast2007us
    Registered Users Posts: 801 ✭✭✭lucast2007us


    Sarn wrote:
    That would cover the stamp duty, but you’d need another 2-3k for the legal fees.

    What do legal fees cover?? The solicitor does what exactly??


  • Options
    #16
    mel.b
    Registered Users Posts: 3,130 ✭✭✭mel.b


    That's a handy little bonus alright. You'll still need those fees upfront though and then there are things such as valuation fees, structural survey etc that all need to be paid before hand. The solicitor will need paying on the day you draw down and you won't have the 2000 bonus until after the mortgage is drawn down (even if the bank is super efficient and pay it the day after drawing down).


  • Options
    #17
    mel.b
    Registered Users Posts: 3,130 ✭✭✭mel.b


    lucast2007us wrote: »
    What do legal fees cover?? The solicitor does what exactly??

    This basically covers it...
    https://www.lawyer.ie/property/buying-a-house/


  • Options
    #18
    lucast2007us
    Registered Users Posts: 801 ✭✭✭lucast2007us


    mel.b wrote:
    This basically covers it...


    Thanks for all your help Mel :)


  • Options
    #19
    Sarn
    Registered Users Posts: 3,061 ✭✭✭Sarn


    lucast2007us wrote: »
    It says that if I have 5,000 in the mortgage saver account when applying then it would give back 2,000 when drawing down

    Sorry to say, but you have to take DIRT off the €2k. That means you end up getting €1,260 into your hand.

    You’ll need €300-400 for a structural survey (if 2nd hand) as well as €150 for the bank valuation.


  • Options
    #20
    dudara
    Registered Users Posts: 33,519 ✭✭✭✭dudara


    lucast2007us wrote: »
    Ye thinking about that as the bank would give 2,000 back when the mortgage is agreed so that would cover stamp and most legal costs

    Cashback from the bank can be tempting, but it may not be the best mortgage in terms of rates etc. You could end up paying more in the long term. Check out all the options.


  • Options
    #21
    lucast2007us
    Registered Users Posts: 801 ✭✭✭lucast2007us


    Thanks guys it's a new build so would I have some of those fees still?


  • Advertisement
  • Options
    #22
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Yep you'll still have all the fees, however there may be a recommended solicitor.


  • Options
    #23
    lucast2007us
    Registered Users Posts: 801 ✭✭✭lucast2007us


    Samuel T. Cogley wrote:
    Yep you'll still have all the fees, however there may be a recommended solicitor.


    Does the bank appoint a solicitor or can I use my own ??


  • Options
    #24
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    lucast2007us wrote: »
    Does the bank appoint a solicitor or can I use my own ??

    Use your own.

    The solicitor works for you not the bank.


  • Options
    #25
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    lucast2007us wrote: »
    Does the bank appoint a solicitor or can I use my own ??

    You use your own, don't go for the cheapest.


  • Options
    #26
    Specialun
    Registered Users Posts: 3,068 ✭✭✭Specialun


    dont forget about the help to buy scheme op, that if its of use to you and your OH

    banks want to see alot more than the 10% in savings. dont forgot about legal fees of 2k-2.5k, stamp duty of 1% plus costs of furnishings. when i was doing mine a few months ago they wanted to see min 10k outside of the deposit plus a little bit of a rainy day fund


Advertisement