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

ArtyC · 24-10-2018 3:29pm

TheShow wrote: »

get your full approval, then you can relax a little.

I wouldn't relax until your name is on the property.

I was sale agreed long over a year and they asked for proof of
My continued saving - even though I'd full approval .

Keep things exactly as you've been doing until drawdown

Diemos · 24-10-2018 3:30pm

fanvil3000 wrote: »

Hi all,

A quick question for people based on their experiences with the banks. Hopeful of been able to buy a place with my partner in late 2019/ early 2020. Our salaries are currently 44k and 21k. Would we get a multiple of 3.5x on the total (65k * 3.5 = 227.5k). Is there any chance of getting more than 3.5x earnings? we are bth late 20s

Have 20k in savings for a deposit and hopeful of having around 30k by the time of the mortgage. Our budget is 250k-270k. Is this realistic given those numbers? Would hope to have an increase in earnings by then of another 6k

Cheers for any advice

How confident are you on the 6k increase, because at 3.5, with a 30k deposit would put you over your budget without the need for an exception.

Try not to count on an exemption, nearly everyone asks for one and only 1 in 5 can get it.
In the mean time, keep saving consistently, speak to your bank, or any bank, and ask them what they need from you for mortgage approval.

We were kicked for having inconsistent saving, we were over zealous saving and some months we saved loads and that left us thin the next month and as a result we saved very little that month. This cost us, when I asked I was told that we could have saved less over all and we would have been fine, the issue was our consistency, and it delayed us by 6 months. Learn from our mistakes.

Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.
Good luck.

TheShow · 24-10-2018 4:17pm

ArtyC wrote: »

I wouldn't relax until your name is on the property.

I was sale agreed long over a year and they asked for proof of
My continued saving - even though I'd full approval .

Keep things exactly as you've been doing until drawdown

Its all relative, if your approval lasts for 6 months and you will drawdown within that time frame then they cant ask you for additional information before drawdown, the only things you will need to provide are those items listed in the conditions of drawdown.

If your approval expires and needs to be refreshed then they will ask for up to date information etc.

In what you describe above, sounds like your approval had expired so needed to be refreshed, hence the additional requirement.

TheShow · 24-10-2018 4:21pm

Diemos wrote: »

Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.
Good luck.

This is a common myth and it is untrue. It is perfectly acceptable to have loans and/or credit cards, they are not frowned upon. it does however impact on your ability to borrow as it reduces your repayment capacity.

The best advise is to use one of the many mortgage calculators on the banks websites and it should give you a rough idea of how much you can get approved for. Run calculations with loan repayments and run calculation without loan repayments, see how much the difference is and then look at clearing loans if you need to.

aloooof · 24-10-2018 4:28pm

TheShow wrote: »

This is a common myth and it is untrue. It is perfectly acceptable to have loans and/or credit cards, they are not frowned upon. it does however impact on your ability to borrow as it reduces your repayment capacity.

To be fair, he/she didn't suggest it was absolutely necessary. Just that it was favourable.

TheShow · 24-10-2018 4:49pm

aloooof wrote: »

To be fair, he/she didn't suggest it was absolutely necessary. Just that it was favourable.

Very true, alot of people do misinterpret that though, so I was just setting the record straight.

myshirt · 24-10-2018 7:49pm

TheShow wrote: »

Very true, alot of people do misinterpret that though, so I was just setting the record straight.

And I think fair play to you. Too many people googling and googling and parroting back advice that's better suited to Americans, thinking it applies here.

24-10-2018 10:01pm

As long as you still can show affordability for your mortgage then having other loans is fine.

Glen_Quagmire · 24-10-2018 10:10pm

I signed contracts with bank and solicitors about 2 weeks ago for a new build and am currently waiting for the builders solicitor to send back the counter signed contract so I can upload this along with the signed mortgage offer into Revenue so the builder can claim the 5% HTB grant towards the overall 10% deposit.

So far he will have only received the 5% I paid. I think the contract said the full 10% needs to be paid 14 days after putting down the initial booking deposit which was about 5 or 6 weeks ago.

I emailed my solicitor and asked was there any update on the signed contract back from the builders solicitor and explained that I need it for the HTB claim and they said they haven't received it back yet but will contact me as soon as they have it.

Should I be concerned that the builder cannot claim the remaining 5% from the HTB yet or is that normal for things to take this length of time?

ArtyC · 24-10-2018 10:16pm

TheShow wrote: »

Its all relative, if your approval lasts for 6 months and you will drawdown within that time frame then they cant ask you for additional information before drawdown, the only things you will need to provide are those items listed in the conditions of drawdown.

If your approval expires and needs to be refreshed then they will ask for up to date information etc.

In what you describe above, sounds like your approval had expired so needed to be refreshed, hence the additional requirement.

Getting that far in just to fail because of being relaxed ?? Madness!!
Yes it expired , unfortunately many sales in Ireland hit problems
and approvals expire- they are rarely expected

My advice was good --- just keep saving until it's done

Specialun · 25-10-2018 12:11am

fanvil3000 wrote: »

Hi all,

A quick question for people based on their experiences with the banks. Hopeful of been able to buy a place with my partner in late 2019/ early 2020. Our salaries are currently 44k and 21k. Would we get a multiple of 3.5x on the total (65k * 3.5 = 227.5k). Is there any chance of getting more than 3.5x earnings? we are bth late 20s

Have 20k in savings for a deposit and hopeful of having around 30k by the time of the mortgage. Our budget is 250k-270k. Is this realistic given those numbers? Would hope to have an increase in earnings by then of another 6k

Cheers for any advice

if you are going to look for an exception then make sure you’re smart with yout timing. banks have a certain number of exceptions which they can use, from jan to jan. if you ask for an exception late in the calendar year the banks exceptions might be used up.

this info came from my bank

Diemos · 25-10-2018 9:07am

Diemos wrote: »

Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.
Good luck.

TheShow wrote: »

This is a common myth and it is untrue. It is perfectly acceptable to have loans and/or credit cards, they are not frowned upon. it does however impact on your ability to borrow as it reduces your repayment capacity.

What is a common myth and untrue?

GaGa21 · 25-10-2018 1:36pm

So, just been told this morning that our third application with 3rd bank has been approved but house we want to buy rejected....again....based on location.
So 3 banks are happy to give us the mortgage but we have to live where they want us to live.
I am absolutely raging and fed up now. The whole excitement and joy of buying our first home has been wiped out and replaced with frustration and disappointment.
We can not buy where we grew up, where we have family and friends. No, we have to buy where some underwriters have deemed suitable for us to live our lives. And where we cannot afford on our budget.
I am done with it all now.

Kingp35 · 25-10-2018 2:48pm

Which banks turned you down? Did they give a reason why they think the location doesn't suit, are the houses overvalued or something?

Specialun · 25-10-2018 2:50pm

GaGa21 wrote: »

So, just been told this morning that our third application with 3rd bank has been approved but house we want to buy rejected....again....based on location.
So 3 banks are happy to give us the mortgage but we have to live where they want us to live.
I am absolutely raging and fed up now. The whole excitement and joy of buying our first home has been wiped out and replaced with frustration and disappointment.
We can not buy where we grew up, where we have family and friends. No, we have to buy where some underwriters have deemed suitable for us to live our lives. And where we cannot afford on our budget.
I am done with it all now.

Why so? What are the reasons?

GaGa21 · 25-10-2018 3:04pm

Deemed the commute unsustainable. The house we want to buy is fine. Our finances are fine. Its purely based on the location of the house and a 1 and half hour commute to our work in Dublin.
We are prepared to do it, people do that and longer! But what can we do?
KBC, HAVEN, AIB...all the same.
We thought going to our local bank instead of through our broker this time would work, but no.

autumnbelle · 25-10-2018 3:30pm

How long is the commute?

nim1bdeh38l2cw · 25-10-2018 3:30pm

GaGa21 wrote: »

Deemed the commute unsustainable. The house we want to buy is fine. Our finances are fine. Its purely based on the location of the house and a 1 and half hour commute to our work in Dublin.
We are prepared to do it, people do that and longer! But what can we do?
KBC, HAVEN, AIB...all the same.
We thought going to our local bank instead of through our broker this time would work, but no.

You'd go insane within a year with a 3 hour round trip commute, personally I think the banks are right!

Kingp35 · 25-10-2018 3:38pm

Natalia Narrow Scrooge wrote: »

You'd go insane within a year with a 3 hour round trip commute, personally I think the banks are right!

This is clearly their reasoning, they think you won't be able to stick the commute. Maybe you can but I understand why they won't take that risk.

autumnbelle · 25-10-2018 3:42pm

Surely 1.5 hours isnt way above what alot of people outside Dublin are already doing?

GaGa21 · 25-10-2018 3:43pm

Natalia Narrow Scrooge wrote:

You'd go insane within a year with a 3 hour round trip commute, personally I think they banks are right!

That's your opinion. I know people who have been doing it over 10 years. We're happy to do it and if not we can always look at changing our jobs down the line. No job comes with a lifetime guarantee?
Yes they can tell us to buy in Dublin but can't give us the finances to do so. So what do we do? Rent forever?
Or let us buy in a "commutable" location, thats 45mins to 1hr, but where we know no one?
We should be able to decide where we want to live.

Honestfrank01 · 25-10-2018 4:22pm

GaGa21 wrote:

So, just been told this morning that our third application with 3rd bank has been approved but house we want to buy rejected....again....based on location. So 3 banks are happy to give us the mortgage but we have to live where they want us to live. I am absolutely raging and fed up now. The whole excitement and joy of buying our first home has been wiped out and replaced with frustration and disappointment. We can not buy where we grew up, where we have family and friends. No, we have to buy where some underwriters have deemed suitable for us to live our lives. And where we cannot afford on our budget. I am done with it all now.

That's such a weird and horrible situation to be in feel for you but keep the head high and keep fighting for it

AppleBottle · 25-10-2018 7:01pm

GaGa21 wrote: »

That's your opinion. I know people who have been doing it over 10 years. We're happy to do it and if not we can always look at changing our jobs down the line. No job comes with a lifetime guarantee?
Yes they can tell us to buy in Dublin but can't give us the finances to do so. So what do we do? Rent forever?
Or let us buy in a "commutable" location, thats 45mins to 1hr, but where we know no one?
We should be able to decide where we want to live.

What a ****ty situation to be in. The commuter towns which are considered a better commute are very expensive to buy in also as you noted!

awec · 25-10-2018 10:12pm

GaGa21 wrote: »

That's your opinion. I know people who have been doing it over 10 years. We're happy to do it and if not we can always look at changing our jobs down the line. No job comes with a lifetime guarantee?
Yes they can tell us to buy in Dublin but can't give us the finances to do so. So what do we do? Rent forever?
Or let us buy in a "commutable" location, thats 45mins to 1hr, but where we know no one?
We should be able to decide where we want to live.

You can, if you are paying for it yourself.

If the bank is paying for it you have to play by their rules.

The banks don't just imagine these policies up out of thin air and randomly decide one day it's a new rule. Clearly they have had problems with people with long commutes. Presumably people eventually get fed up with it and want to move to a job closer to home, end up taking lower paid jobs and struggling with repayments. I would guess they also factor in the cost of the commute.

GaGa21 · 25-10-2018 10:13pm

Oh I didn't realise they were giving money that I didn't have to repay? With interest. That explains it then, Thanks!

The bank factored in the cost of our commute before progressing the application obviously so there was no problem there. And because banks may have had issues with some commuters(which I would link Dubliners moving to the country was an issue due to house prices) that means we can't buy in our home county? That we're being punished for banks past mistakes?

awec · 25-10-2018 10:18pm

GaGa21 wrote: »

Oh I didn't realise they were giving money that I didn't have to repay? That explains it then, Thanks!

They're the ones paying for it initially. You'll pay it all back eventually.

They will take all necessary precautions to make sure you'll be able to pay them back. They learnt the hard way what happens when they don't do this.

awec · 25-10-2018 10:27pm

GaGa21 wrote: »

Oh I didn't realise they were giving money that I didn't have to repay? With interest. That explains it then, Thanks!

The bank factored in the cost of our commute before progressing the application obviously so there was no problem there. And because banks may have had issues with some commuters(which I would link Dubliners moving to the country is the issue) that means we can't buy in our home county? That we're being punished for banks past mistakes?

You mean when you filled the forms etc in in the bank with their mortgage person?

That is irrelevant really, that person has no power to make any decisions. They are just there to inform you of their different mortgage options, give you rough guidance and make sure your paperwork is in order. They are basically sales people.

Banks have obviously deemed very long commutes to be too risky.

GaGa21 · 25-10-2018 10:30pm

awec wrote:

That is irrelevant really, that person has no power to make any decisions. They are just there to inform you of their different mortgage options, give you rough guidance and make sure your paperwork is in order. They are basically sales people.

No because we have not been refused a mortgage based on finance or figures. We are mortgage approved. We are just not allowed to buy where we want to buy.

KERSPLAT! · 25-10-2018 10:40pm

Their money their rules unfortunately. Or maybe fortunately?

I'm a bit off buying, saving as much as possible while trying to figure out if it's possible for me to buy on my own. Hopefully. Anyway, this thread is a fantastic source of information.

GaGa21 · 25-10-2018 10:47pm

KERSPLAT! wrote:

I'm a bit off buying, saving as much as possible while trying to figure out if it's possible for me to buy on my own. Hopefully. Anyway, this thread is a fantastic source of information.

We are starting to think the same. Might have been a lucky escape for us.
But the main reason I'm sharing here is to let people know it's a reason for refusal. So I would check banks criteria first before paying out for house survey and solicitors because they don't let you know till the last hurdle and you're out of pocket.

SO F***KING ANNOYING!!!!

Rant over :-)

awec · 25-10-2018 11:07pm

GaGa21 wrote: »

No because we have not been refused a mortgage based on finance or figures. We are mortgage approved. We are just not allowed to buy where we want to buy.

You're approved in principal for a certain value, but full mortgage approval is done against a specific property and the bank are unwilling to approve your mortgage against the property you want (because they deem the risk of something going wrong that affects your ability to pay them back their money is too great).

GaGa21 · 25-10-2018 11:20pm

awec wrote:

You're approved in principal for a certain value, but full mortgage approval is done against a specific property and the bank are unwilling to approve your mortgage against the property you want (because they deem the risk of something going wrong that affects your ability to pay them back their money is too great).

Oh my god....I know all this!

Still doesn't mean they are right in doing so. I could still buy in Dublin and have a change in circumstances where I was unable to pay my mortgage in the future. Or I could buy the house I want, commute and pay my mortgage in full and live happily ever after.
But their decision is based on past history, not individually so we'll never know will we.

loriexxx · 26-10-2018 8:49am

We went to sale agreed on a house however it is 19000 more than we were originally approved for. It is a new build house and we have been approved for 12000 HTB. Before we placed the offer we spoke to our mortgage broker who spoke to the bank and he confirmed there will be no issue with us going for this house. The house won’t be ready until early summer so we will have more time to save.
However reading this thread I am starting to get worried as it seems mortgages can fall through at the last minute. Does anyone think we will face an issue

ILikeBoats · 26-10-2018 8:54am

loriexxx wrote: »

We went to sale agreed on a house however it is 19000 more than we were originally approved for.

Is the approval amount + 19k over 3.5 times your income?

loriexxx · 26-10-2018 9:05am

ILikeBoats wrote: »

Is the approval amount + 19k over 3.5 times your income?

The value of the house is over our 3.5 limit however the value of the mortgage we are looking for is under the 3.5 limit as we can make up the difference with savings and HTB

nim1bdeh38l2cw · 26-10-2018 9:30am

loriexxx wrote: »

The value of the house is over our 3.5 limit however the value of the mortgage we are looking for is under the 3.5 limit as we can make up the difference with savings and HTB

You're ok so. The 3.5 limit refers to the amount you want to borrow, not the value of the house.

wersal gummage · 26-10-2018 9:44am

Sorry to hear your trouble GaGGa.

Mind me asking where the house is? From my own limited experience, when people tell me they are only an hour or whatever commute when buying, I think they are talking about a Sunday night at 11pm rather than a Tuesday morning in December for example. It takes me an hour and a half some mornings from a popular Dublin Suburb which is within 10kms of Dublin City Centre, but that's on a poor bus route.

So a 90 min commute doesn't sound off the wall to me. Is your commute really 90 mins? Or only 90 mins if you leave at 6am sort of stuff?

Honestfrank01 · 26-10-2018 10:14am

So our solicitor has recieved signed contracts for seller and is requesting our mortgage funds from bank early next week (Tuesday) when should I receive keys? Considering I was told by the bank it could be processed in 24 to 48 hours via bank transfer.

kippy · 26-10-2018 11:01am

Honestfrank01 wrote: »

So our solicitor has recieved signed contracts for seller and is requesting our mortgage funds from bank early next week (Tuesday) when should I receive keys? Considering I was told by the bank it could be processed in 24 to 48 hours via bank transfer.

The bank holiday Monday may push things out a bit but assuming all else is in order Thursday or Friday of next week but it would be more beneficial to ask your solicitor for their opinion.

Frank Castle · 30-10-2018 10:53am

Diemos wrote: »

Make sure you have no loans, no car loan, no outstanding credit card balance. These things all stack the cards in your favour.

TBH I wouldn't agree with this. It comes down to affordability. You can have as much debt as you want and the bank will be fine with it provided you can afford it.

I personally just got a mortgage, even though I currently have a personal loan, new car pcp and credit card debt, All taken out within the last 10 months.
None of this was an issue as I can afford it.

Key is to keep your finances in order and not get in over your head on debt. Keep it affordable and show the bank you can pay the debt plus save/meet rent payments.

podgemonster · 30-10-2018 11:30am

Our mortgage drawdown date is getting very close to the expiry date on our letter of offer (5 weeks away) and our property is 99% complete (6 minor snags). Has this been an issue for anyone before or does the lender usually just extend the Letter of Offer to accommodate?

purpleisafruit · 31-10-2018 8:16am

podgemonster wrote: »

Our mortgage drawdown date is getting very close to the expiry date on our letter of offer (5 weeks away) and our property is 99% complete (6 minor snags). Has this been an issue for anyone before or does the lender usually just extend the Letter of Offer to accommodate?

It might be no harm to flag it with the bank but as a first step, speak to the builder and confirm the date that they expect to handover. This will give you a better idea of the need to extend the timelines with bank.

wally79 · 31-10-2018 4:56pm

Picked up keys this morning after 3 months sale agreed and a few hiccups

Thanks to all for the guidance.

limnam · 31-10-2018 10:40pm

Frank Castle wrote: »

TBH I wouldn't agree with this.

I think the point is as a general rule the less debt you have going in the better you're chances are of getting what you require.

If your wages are border line for what you want and you go in with PCP/CC/OD etc it's going to have "a" impact.

So the best situation going in is to have none of it.

You might get "punished" for having it.

You won't for not having it.

So as a general rule for _most_ people it's sound advice.

Lolle06 · 01-11-2018 8:57am

limnam wrote: »

I think the point is as a general rule the less debt you have going in the better you're chances are of getting what you require.

If your wages are border line for what you want and you go in with PCP/CC/OD etc it's going to have "a" impact.

So the best situation going in is to have none of it.

You might get "punished" for having it.

You won't for not having it.

So as a general rule for _most_ people it's sound advice.

I agree.

The banks generally like to see „prudent“ borrowers! The less debt you take on, the better!
Especially if you have/ or plan children in the near future, you will have to take childcare costs into account and an reduced household income.

Whatever ppl say about the loose lending habits of banks during the Celtic Tiger years - they have certainly learned to tread more carefully now.

ELM327 · 01-11-2018 10:13am

Lolle06 wrote: »

I agree.

The banks generally like to see „prudent“ borrowers! The less debt you take on, the better!
Especially if you have/ or plan children in the near future, you will have to take childcare costs into account and an reduced household income.

Whatever ppl say about the loose lending habits of banks during the Celtic Tiger years - they have certainly learned to tread more carefully now.

This is not good advice.
In the bank's eyes, the best candidate has had much debt and cleared it with no issues.
A candidate with no history of debt is viewed as risky.

limnam · 01-11-2018 10:15am

ELM327 wrote: »

This is not good advice.
In the bank's eyes, the best candidate has had much debt and cleared it with no issues.
A candidate with no history of debt is viewed as risky.

Clearing previous debt while might aid in a credit rating it will have no baring on affordability.

Having _current_ debt will.

02-11-2018 9:54am

Got our AIP this week. Thought we were going to need an LTI exception but our broker convinced the bank to take some overtime into account so don't need one now. We'd run into a brick wall with this when dealing with banks ourselves, it was salary only. My wife makes nearly a third of her total pay in overtime so it was a huge chunk of our income.

wersal gummage · 02-11-2018 10:14am

Slightly off the point, but what does it mean to be able to afford credit card debt?? The interest rate is generally high (apart from maybe some introductory switch deal), and higher than almost any other form of credit. It would make no sense to have credit card debt to me, if you can "afford it" surely you'd discharge it and not be carrying it? Can anyone explain what I'm missing?

wersal gummage · 02-11-2018 10:14am

Slightly off the point, but what does it mean to be able to afford credit card debt?? The interest rate is generally high (apart from maybe some introductory switch deal), and higher than almost any other form of credit. It would make no sense to have credit card debt to me, if you can "afford it" surely you'd discharge it and not be carrying it? Can anyone explain what I'm missing?

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

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