Saving/Applying for a mortgage 2015/16/17/18/19

68 lost souls · 04-11-2016 7:28pm

ThisRegard wrote: »

When getting approval we gave a max amount of what we'd want to borrow but at loan pack time the amount we want to draw down is 20% less than what we were approved for. We just told them what we wanted to borrow at the time. It shouldn't be an issue but run it by the bank or broker for your own peace of mind.

Pretty sure they see the point we are at as loan pack time. Not going to be drawing it down until April and hoping to save more between now and then to have to borrow less and make repayments more manageable.

ThisRegard · 04-11-2016 7:31pm

If you're not drawing down until April you might be better holding off the loan pack. The pack doesn't come into play until you're sale agreed, which I presume you are, but ready to go and it has a term for which it will expire afterwards.

This is my experience anyway so can't be sure it's how others went.

Villa05 · 04-11-2016 8:26pm

68 lost souls wrote:

Can we get full approval now and then change the amount say from 300,000 to 280,000 at draw down? What is involved if we do?

Yes, notify bank of reduced amount required

68 lost souls · 04-11-2016 9:23pm

Villa05 wrote: »

Yes, notify bank of reduced amount required

Thanks villa
Will it need to go through a new approval process or anything?

jjdonegal · 05-11-2016 1:11am

Apologies if asked already but hoping someone has experience of this. Planning to meet banks/brokers in next few weeks and will ask them but will throw it up here to see if anyone knows. Joint application; both FTBs with joint salary around the €121,000 mark and will be looking for €380,000 / 400,000 approximately to buy. Partner owns site previously valued at €110,000.
Do banks accept such things as collateral?

Paying rent at moment of €2250 so repayment capacity evident over last 3 years etc but actual savings only at €23000.

Michael D Not Higgins · 05-11-2016 8:49am

You're going to need an actual cash deposit to meet the central bank rules. Even with an exception you'd still need at least 10% (38-40k). If it's a new build, you might qualify for the 20k rebate from the government.

elainep13 · 05-11-2016 9:17am

68 lost souls wrote: »

Thanks villa
Will it need to go through a new approval process or anything?

No you won't as the drawdown is lower.

Lycoge · 05-11-2016 10:33am

68 lost souls wrote:

Thanks villa Will it need to go through a new approval process or anything?

We had loan offer with BOI house hunter approval. House we found was lower price than we had been approved for. It did have to be sent to the underwriters again for approval.

This was the banks explanation for that:
"As it is a change in proposal, it is procedure that we have to get approval from Underwriting to issue the new offer with the new figures".

The lower figure was approved for us. But just wanted to let you know to expect that as it gave us a few days of panic at the time due to not expecting it ourselves.

Mink · 07-11-2016 2:54pm

boris1234 wrote: »

We just went for our first consultation with our bank today (AIB) and based on the conversation we had we are in a good position to apply for a mortgage now.

Just wondering about shopping around, is there much better value to be had from other lenders? I see all the various lenders seem to have some offers to lure in new customers, such as contributions to legal fees (KBC), 2% cashback on your mortgage (BOI).

Since our current accounts are both with AIB and having a mortgage with them eliminates current account fees then I'm thinking is it just best to stick with them. Or is that view too simplistic given the enormity of the purchase.

If you're a FTB and property around or under 250 then I'm fairly certain AIB have the best deal currently in terms of rates, that's who we went with. They've been a dream to deal with so far and our current account is with another bank.

The guy off Askaboutmoney - Brendan Burgess seems to constantly review it and update the thread giving what is the best deal. Generally the advice seems to be don't be lured in by the cash back offers, better to go with best rates over all.

jjdonegal wrote: »

Apologies if asked already but hoping someone has experience of this. Planning to meet banks/brokers in next few weeks and will ask them but will throw it up here to see if anyone knows. Joint application; both FTBs with joint salary around the €121,000 mark and will be looking for €380,000 / 400,000 approximately to buy. Partner owns site previously valued at €110,000.
Do banks accept such things as collateral?

Paying rent at moment of €2250 so repayment capacity evident over last 3 years etc but actual savings only at €23000.

The asset would have to be sold to free up the cash for deposit. There are no bridging loans anymore.

Would the fact that your partner owns that site not make him a 2nd time buyer?

Michael D Not Higgins · 07-11-2016 2:59pm

Mink wrote: »

The asset would have to be sold to free up the cash for deposit. There are no bridging loans anymore.

Would the fact that your partner owns that site not make him a 2nd time buyer?

For the purposes of the Central Bank rules, you are a first time buyer if you haven't had a mortgage before.

Cyrus · 07-11-2016 3:31pm

Mink wrote: »

The guy off Askaboutmoney - Brendan Burgess seems to constantly review it and update the thread giving what is the best deal. Generally the advice seems to be don't be lured in by the cash back offers, better to go with best rates over all.

not so, he said to avoid BOI and PTSB, but he has EBS as his recommendation

intheclouds · 07-11-2016 3:52pm

Mink wrote: »

The guy off Askaboutmoney - Brendan Burgess seems to constantly review it and update the thread giving what is the best deal. Generally the advice seems to be don't be lured in by the cash back offers, better to go with best rates over all.

Id do my own research rather than rely on Brendan Burgess tbh.

Cyrus · 07-11-2016 4:26pm

intheclouds wrote: »

Id do my own research rather than rely on Brendan Burgess tbh.

its not that difficult see what the best mortgage deals are at the moment to be fair

UB for a combo of rate (and not being KBC) and EBS for the 2% cash back and a reasonable variable rate,

also, you can switch from EBS if you want to avail of a better rate a little down the line with no claw back

intheclouds · 07-11-2016 4:31pm

Cyrus wrote: »

its not that difficult see what the best mortgage deals are at the moment to be fair

UB for a combo of rate (and not being KBC) and EBS for the 2% cash back and a reasonable variable rate,

also, you can switch from EBS if you want to avail of a better rate a little down the line with no claw back

Exactly - its better to do your own research on it.

whiskeyman · 07-11-2016 4:46pm

intheclouds wrote: »

Id do my own research rather than rely on Brendan Burgess tbh.

This is useful:
http://www.bonkers.ie/compare-mortgages/

Different factors may see different banks work better for different people

Mink · 07-11-2016 4:52pm

I don't know whether to believe that this will happen within the time frame or not. We went Sale agreed last Tuesday, paid booking deposit etc. We got copy of Sales Advice note from EA saying vendor wants quick sale - closing within 4 weeks.

I don't think I've ever heard of a house sale going through so fast. We've still to drawdown, survey, exchange contracts etc.

Zzippy · 07-11-2016 4:56pm

Definitely worth doing your own research.

Handy calculator here: https://www.drcalculator.com/mortgage/ie/

Taking, for example, a mortgage of €200,000 on a house of €250,000 over 20 years, with EBS the rate is 3.5%. Over 20 years the cost of credit is €78,380. Take the 2% cashback and if you use it to pay down the loan straightaway, you end up paying €74,425 interest. Monthly payment = €,1159.

If you go with Ulster Bank, you pay 3.1% interest, no cashback although they offer €1,500 legal fees contribution, so same thing. Cost of credit is €68,616, if you put the €1,500 back in you pay €67,342. Monthly payment = €1,119. That's a saving of over €7,000 over the course of the mortgage, plus a tenner a week extra in your pocket.

Calculator is also handy for seeing how regular overpayments could reduce the term and interest paid.

whiskeyman · 07-11-2016 5:10pm

Mink wrote: »

I don't know whether to believe that this will happen within the time frame or not. We went Sale agreed last Tuesday, paid booking deposit etc. We got copy of Sales Advice note from EA saying vendor wants quick sale - closing within 4 weeks.

I don't think I've ever heard of a house sale going through so fast. We've still to drawdown, survey, exchange contracts etc.

Closing date can always be pushed out. Either solicitor will be back and forth with queries, but best to have some date to work with anyway.
Are your vendors moved out?
That should help with quick move.
Survey should happen within a week - arrange this to be booked asap.
Have you organised life and home insurance? Get on to the life insurance as this could potentially hold things up if any more detail required.

Mink · 07-11-2016 5:17pm

Yes tenant has moved out, seller already in her own house & eager for sale so she can complete building work on that.

Yes will sort out surveyor and life insurance stuff this week as don't want either to hang us up.

whiskeyman · 07-11-2016 5:21pm

Mink wrote: »

Yes tenant has moved out, seller already in her own house & eager for sale so she can complete building work on that.

Yes will sort out surveyor and life insurance stuff this week as don't want either to hang us up.

Sounds good Mink.
hopefully all should be smooth sailing and I guess that you'll be in well before Christmas.
That's probably the aim for many people in that boat at the moment!

Cyrus · 07-11-2016 5:23pm

Zzippy wrote: »

Definitely worth doing your own research.

Handy calculator here: https://www.drcalculator.com/mortgage/ie/

Taking, for example, a mortgage of €200,000 on a house of €250,000 over 20 years, with EBS the rate is 3.5%. Over 20 years the cost of credit is €78,380. Take the 2% cashback and if you use it to pay down the loan straightaway, you end up paying €74,425 interest. Monthly payment = €,1159.

If you go with Ulster Bank, you pay 3.1% interest, no cashback although they offer €1,500 legal fees contribution, so same thing. Cost of credit is €68,616, if you put the €1,500 back in you pay €67,342. Monthly payment = €1,119. That's a saving of over €7,000 over the course of the mortgage, plus a tenner a week extra in your pocket.

Calculator is also handy for seeing how regular overpayments could reduce the term and interest paid.

or get the mortgage with EBS, and switch the UB a few months later

zedhead · 07-11-2016 6:19pm

zedhead wrote: »

So got some sort of update from the EA last night but she is waiting to talk to the vendors solicitor today to give us more information. Basically the house the vendors are buying is in receivership which mean it is not a straightforward purchase. The EA is going to try and find out what the details of the hold up are, but from doing some research on here they may not get that info and who knows how long it will take to sort out...

Feeling a little deflated now and just waiting on the EA to call with any more info.

Not getting any contact now with the EA since last Thursday and our solicitor has no luck with getting in touch with their solicitor.

Has anyone else been in this situation, where they are buying a house in a chain but the vendors are buying a house in receivership? Or any advice on what we can do?

lillycakes2 · 08-11-2016 5:31pm

when looking for a mortgage , roughly how much "savings" (deposit) would i need ,if my mortgage was going to be 200,000?

thanks

(am new to this - starting to plan for building a house/getting a mortgage)

Greyian · 08-11-2016 6:21pm

lillycakes2 wrote: »

when looking for a mortgage , roughly how much "savings" (deposit) would i need ,if my mortgage was going to be 200,000?

thanks

(am new to this - starting to plan for building a house/getting a mortgage)

You'd need a deposit of €22,500 if you're a first time buyer (€22,000 to qualify for the first €198,000, then €500 for the last €2,000) - so a total of €222,500 to spend (€22,500 deposit, €200,000 mortgage)
If you're not a first time buyer, you'd need €50,000 to get a €200,000 mortgage, giving you a total of €250,000 to spend.

If you just need €200,000 in total, you'd need €20,000 deposit to get €180,000 mortgage as a first time buyer, or €40,000 to get €160,000 mortgage as a non-first time buyer.

Edit: This is then also subject to sufficient income to meet the loan to income requirement (max mortgage, without exemption, of 3.5*income).

Utah · 08-11-2016 6:21pm

lillycakes2 wrote: »

when looking for a mortgage , roughly how much "savings" (deposit) would i need ,if my mortgage was going to be 200,000?

thanks

(am new to this - starting to plan for building a house/getting a mortgage)

If the house value is 200k, you'd need 20k minimum deposit + around 3.5/4k for legal fees + possible survey report fees or similar.

Call it 25k all in

Azza89 · 08-11-2016 10:11pm

Cyrus wrote: »

or get the mortgage with EBS, and switch the UB a few months later

If you were to take this approach and refinance after a few months, what would be the average for solicitors fee's if you were to do this does anyone know?

cnlbel · 09-11-2016 9:32am

we are due to close today. Oh my nerves!!!!

Cyrus · 09-11-2016 9:55am

Azza89 wrote: »

If you were to take this approach and refinance after a few months, what would be the average for solicitors fee's if you were to do this does anyone know?

the solicitors fees would be covered largely, for example ulster bank offer €1.5k towards them if you switch

Black_Knight · 09-11-2016 10:14am

We've found a house we could see ourselves living in, so we've put in a bid. The waiting game is painful - evenings are spent running through all the hypothetical scenarios of the EA getting back to us with varying news.

I did a little bit of searching before we bid, and noticed the property details aren't on landdirect.ie - it says "The area selected is not registered with the Land Registry. Information about this property may be available from the Registry of Deeds."

What's this actual mean?

cnlbel · 09-11-2016 11:35am

Black_Knight wrote: »

We've found a house we could see ourselves living in, so we've put in a bid. The waiting game is painful - evenings are spent running through all the hypothetical scenarios of the EA getting back to us with varying news.

I did a little bit of searching before we bid, and noticed the property details aren't on landdirect.ie - it says "The area selected is not registered with the Land Registry. Information about this property may be available from the Registry of Deeds."

What's this actual mean?

Its a property that is unregistered. it has no folio number. It also means that it is subject to first registration when you purchase which converts it to registered property.

Bored Accountant · 09-11-2016 5:37pm

We signed contracts on Monday. our Solicitor is happy now that all certification that house complies with the original planning 20 years ago is in place - they hadn't bothered getting everthing certified when house was originally built.

Surveyor raised a concern that garage extension that was built 10 years ago is being used as bedroom rather than store room as defined on planning, but solicitor said she would declare it to the bank, but they shouldn't care.

Mortgage Protection & Serious Illness Cover in process of being sorted. There was few queries and additional questionaires, but hopefully all good now.

Home Insurance sorted today. Got quote from AIB. Told our broker the quote and he just said he wouldn't even bother searching for us cause he wouldn't get anywhere near it!!

So closing date has been set as 25th November...so 2 & half weeks to wait.
Can't Wait

Give us time to get settled in before Christmas.

Laghan · 09-11-2016 11:28pm

Got keys last Tuesday! We were due to close on the Friday of the long weekend but my solicitor said it would be a tight squeeze and to expect Tuesday instead! Got an email from the mortgage advisor at 4pm on the Friday to say congratulations as the money had been transferred. Tried to call my solicitor immediately but she was gone home! I had loads of stuff to do at the weekend so it was probably for the best as the house would have been a distraction, but it was still a bit annoying!!
So I took the week off and spent the whole time cleaning and we knocked down a wall! We got some friends over on Friday evening to help us to paint over a few beers and some food! Lots of painting got done, some accidental! Went to ikea on Saturday and literally spent 8 hours in there before officially moving in on Sunday! Everything is great so far, the place is freezing and very rough around the edges. But all this is temporary as next year we will be stripping the place back to a shell and literally rebuilding it which I am super excited about! We will need to move out for a couple of months which I am dreading but the end result will be worth it.

Mortgage approved mid July, sale agreed end of July on the first bid I ever put on a house and moved in on the 2nd November. Went with AIB for the mortgage and also got a super cheap quote from them on home insurance through AXA. We don't have to pay a mortgage repayment until May which is great as it gives us a head start on the savings for renovations. Overall, we couldn't be happier! Best of luck to all going on this journey, I realise it's a bumpier path for many but the destination makes it all worthwhile!

intheclouds · 14-11-2016 3:14pm

Finally signed contracts this morning (sale agreed since end of August) and now it looks like we need to do the valuation again to satisfy the bank because more than 2 months will have passed from valuation to close. Close date set for 2 weeks time but who knows.

Always thought it'd be fun and exciting to buy a house but it's just stressful and tiring!

whiskeyman · 14-11-2016 3:40pm

intheclouds wrote: »

now it looks like we need to do the valuation again to satisfy the bank because more than 2 months will have passed from valuation to close.

Will you need to pay for it again??

intheclouds wrote: »

Always thought it'd be fun and exciting to buy a house but it's just stressful and tiring!.

This so so much!
The first viewing was fun and exciting...
but it quickly became a race of attrition.

Congrats on signing and hopefully you get the keys soon!

intheclouds · 14-11-2016 3:53pm

whiskeyman wrote: »

Will you need to pay for it again??

This so so much!
The first viewing was fun and exciting...
but it quickly became a race of attrition.

Congrats on signing and hopefully you get the keys soon!

Yeah I'm sure we will.

I've asked the bank if it's really needed because it's 2 months and 1 week. Dunno how strict they are about it.

Ugh I know. From feeling conned by the estate agent to feeling worn out chasing things up....... It better be worth it!

Naid23 · 14-11-2016 3:59pm

intheclouds wrote: »

Yeah I'm sure we will.

I've asked the bank if it's really needed because it's 2 months and 1 week. Dunno how strict they are about it.

Ugh I know. From feeling conned by the estate agent to feeling worn out chasing things up....... It better be worth it!

I know with EBS that you have to pay half the price for a second valuation - not sure bout other banks. it is really annoying that they do that - 2 months is not a realistic timeline.

zedhead · 14-11-2016 4:01pm

intheclouds wrote: »

Yeah I'm sure we will.

I've asked the bank if it's really needed because it's 2 months and 1 week. Dunno how strict they are about it.

Ugh I know. From feeling conned by the estate agent to feeling worn out chasing things up....... It better be worth it!

We're now looking at closing in mid feb after sale agreed end of august and valuation done in September. When we got the loan pack from the bank it said that if there was more than 3 months between valuation and closing we would have to get another one done but the price was listed and it'll only be half the price of the original.

Def feels like a money making ploy and hopefully since you are only a week out they wont charge you.

intheclouds · 14-11-2016 4:03pm

Naid23 wrote: »

I know with EBS that you have to pay half the price for a second valuation - not sure bout other banks. it is really annoying that they do that - 2 months is not a realistic timeline.

The thing is, the bank were pushing to get the valuation out of the way ASAP so as to have as many conditions of mortgage met as possible as early as possible.

And the estate agent had us led to believe it'd all wrap up in a matter of weeks.

2 months is ridiculous given how long it seems to take for people to get their finger out.

Parchment · 14-11-2016 5:19pm

Bored Accountant wrote: »

We signed contracts on Monday. our Solicitor is happy now that all certification that house complies with the original planning 20 years ago is in place - they hadn't bothered getting everthing certified when house was originally built.

Surveyor raised a concern that garage extension that was built 10 years ago is being used as bedroom rather than store room as defined on planning, but solicitor said she would declare it to the bank, but they shouldn't care.

Mortgage Protection & Serious Illness Cover in process of being sorted. There was few queries and additional questionaires, but hopefully all good now.

Home Insurance sorted today. Got quote from AIB. Told our broker the quote and he just said he wouldn't even bother searching for us cause he wouldn't get anywhere near it!!

So closing date has been set as 25th November...so 2 & half weeks to wait.
Can't Wait
Give us time to get settled in before Christmas.

May I ask if you spoke to AIB about life assurance? we are getting a mortgage with them and they seem to push their own life assurance advisor quite a bit.

whiskeyman · 14-11-2016 6:17pm

Parchment wrote: »

May I ask if you spoke to AIB about life assurance? we are getting a mortgage with them and they seem to push their own life assurance advisor quite a bit.

All banks will do this.
Some will nearly make out that they are the only one's who do it!
It will literally takes minutes to shop around, and you could save a huge whack.

Browney7 · 15-11-2016 12:31am

Anyone know if banks have problems when it comes to accepting a rent book as proof of paying a monthly rent. Our landlord insists on cash and we've been in the property four months and not registered with the PRTB so easy to deduce what he's up to.

When it comes to applying for a mortgage will this be included in our repayment capacity? Has anyone else been in this situation recently. Tried our best to get him to accept bank transfer but he wouldn't budge and with the market the way it is, he'd have got someone else.

q85dw7osi4lebg · 15-11-2016 12:44am

Browney7 wrote: »

Anyone know if banks have problems when it comes to accepting a rent book as proof of paying a monthly rent. Our landlord insists on cash and we've been in the property four months and not registered with the PRTB so easy to deduce what he's up to.

When it comes to applying for a mortgage will this be included in our repayment capacity? Has anyone else been in this situation recently. Tried our best to get him to accept bank transfer but he wouldn't budge and with the market the way it is, he'd have got someone else.

They factor in rental payments for purchasers who pay their parents (cash) to stay living at home while saving, so can't see it being a problem. Just withdraw the same amount on the same day of each month. Obviously best to confirm with a broker!

Utah · 15-11-2016 9:00am

We snagged the house yesterday - the engineer was happy and said all changes were minor. Bit of relief.

Also got our mortgage protection issued.

Nothing left to do now just wait for the snag list items to be fixed and draw down!

intheclouds · 15-11-2016 2:44pm

So we DO have to pay for revaluation, and according to AIB it's central bank rules and not just a money spin on their part. Reduced rate as its a revaluation but just makes me thing original valuation was overpriced!

Utah · 15-11-2016 3:00pm

intheclouds wrote: »

So we DO have to pay for revaluation, and according to AIB it's central bank rules and not just a money spin on their part. Reduced rate as its a revaluation but just makes me thing original valuation was overpriced!

I meant to reply to you intheclouds. That we had to get the house revaluation done again as the 2 months had lapsed. It was cheaper but sounds like a gimmick to me!
Makes sense on a new build maybe?

In other news, we found out the estate agent has been showing people around our house. I know I can't do anything because we don't technically own it yet but it annoys me!! Even left brochures and price lists around the place!!

Bored Accountant · 15-11-2016 3:51pm

Parchment wrote: »

May I ask if you spoke to AIB about life assurance? we are getting a mortgage with them and they seem to push their own life assurance advisor quite a bit.

We got our mortgage with Haven
We opened a joint account in AIB to be able to use for paying mortgage and the person we were dealing with mentioned to talk to an advisor. My girlfriend was in their one day and didn't fully understand what she was to ask about, and just got home insurance quote. They never mentioned Life Assurance to her when she was in.

I got seriously good quote from Low.ie, before my broker rememebered he hadnt applied the 10% discount to quote he had given us...worked out 20 cent cheaper

Parchment · 15-11-2016 3:54pm

Bored Accountant wrote: »

We got our mortgage with Haven
We opened a joint account in AIB to be able to use for paying mortgage and the person we were dealing with mentioned to talk to an advisor. My girlfriend was in their one day and didn't fully understand what she was to ask about, and just got home insurance quote. They never mentioned Life Assurance to her when she was in.

I got seriously good quote from Low.ie, before my broker rememebered he hadnt applied the 10% discount to quote he had given us...worked out 20 cent cheaper

Thanks for the reply - sorry i thought you got your mortgage with AIB.

Cyrus · 15-11-2016 4:10pm

Parchment wrote: »

Thanks for the reply - sorry i thought you got your mortgage with AIB.

haven is aib effectively i think

Bored Accountant · 15-11-2016 4:20pm

Cyrus wrote: »

haven is aib effectively i think

Yea I believe AIB don't deal with brokers. Brokers deal with Haven instead and vice versa. You can only deal with Haven through a broker.

Our broker said, there was no point even submitting requests to AIB or EBS, as all 3 would end up on the desk of the same person to review.

Cyrus · 15-11-2016 4:25pm

Bored Accountant wrote: »

Yea I believe AIB don't deal with brokers. Brokers deal with Haven instead and vice versa. You can only deal with Haven through a broker.

Our broker said, there was no point even submitting requests to AIB or EBS, as all 3 would end up on the desk of the same person to review.

youd think that, however i found EBS way easier and quicker to deal with, even though i have always banked with AIB.

Saving/Applying for a mortgage 2015/16/17/18/19

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