Saving/Applying for a mortgage 2020-22 Edition

fin12 · 17-01-2021 10:59pm

GarIT wrote: »

I know a German guy who says he got a mortgate for his house from a bank in Germany.

Ya but is that because he is a German citizen? The house is in Ireland?

GimmeAHouse · 18-01-2021 5:55am

Hi all,

I'm thinking of buying a house soon. I know almost nothing about the process.

Stats:

First-time buyer

29 y/o, single and no dependents - so applying alone.

No loans currently.

€110k available for a deposit.

Guaranteed gross annual income: €57k.

Also, up to 10% bonus on top of that, but that's performance-based and I don't think fall under "guaranteed income".

I'm currently living in Dublin, but I wouldn't mind moving outside the county. My job seems to be getting on board with the whole work-from-home arrangement and said that they might permit it as a permanent arrangement after the pandemic. So I don't mind looking at a country house (internet quality permitting).

Mortgage calculators online say that with the x3.5 rule I could possibly be approved for a mortgage of ~€199k, so with my deposit of €110k, I could possible get a house in the ~€300k-€309k range. Though of course, I'd want to set €10k aside for legal fees, stamp duty and whatnot, so €289k-€299k I think might be more realistic.

My biggest nightmare is putting down a big deposit of €100k and then losing it all at once because of some mishap. So, does anyone know if the following scenario is possible if I wanted to say buy a house worth €300k:

Put down a deposit of say €60k (20% of the property value), then get a €199k mortgage and use the remaining €40k-€50k in savings also to finance buying the property after the mortgage is drawn down?

Please tell me if any of the above sounds unrealistic.

Thanks.

Creamy Goodness · 18-01-2021 10:55am

GimmeAHouse wrote: »

Put down a deposit of say €60k (20% of the property value), then get a €199k mortgage and use the remaining €40k-€50k in savings also to finance buying the property after the mortgage is drawn down?

Please tell me if any of the above sounds unrealistic.

Thanks.

A mortgage is tied to the house, if the figures don't add up before drawdown they will not proceed.

You give the money to your solicitor deposit first, then before drawdown you give the balance, the bank transfer your mortgage amount to your solicitor and they proceed with the sale.

DubLad69 · 18-01-2021 11:39am

GimmeAHouse wrote: »

Hi all,

I'm thinking of buying a house soon. I know almost nothing about the process.

Stats:

First-time buyer

29 y/o, single and no dependents - so applying alone.

No loans currently.

€110k available for a deposit.

Guaranteed gross annual income: €57k.

Also, up to 10% bonus on top of that, but that's performance-based and I don't think fall under "guaranteed income".

I'm currently living in Dublin, but I wouldn't mind moving outside the county. My job seems to be getting on board with the whole work-from-home arrangement and said that they might permit it as a permanent arrangement after the pandemic. So I don't mind looking at a country house (internet quality permitting).

Mortgage calculators online say that with the x3.5 rule I could possibly be approved for a mortgage of ~€199k, so with my deposit of €110k, I could possible get a house in the ~€300k-€309k range. Though of course, I'd want to set €10k aside for legal fees, stamp duty and whatnot, so €289k-€299k I think might be more realistic.

My biggest nightmare is putting down a big deposit of €100k and then losing it all at once because of some mishap. So, does anyone know if the following scenario is possible if I wanted to say buy a house worth €300k:

Put down a deposit of say €60k (20% of the property value), then get a €199k mortgage and use the remaining €40k-€50k in savings also to finance buying the property after the mortgage is drawn down?

Please tell me if any of the above sounds unrealistic.

Thanks.

You will only pay a 10% deposit. And the remainder is paid when you get the house.

Would you consider moving to somewhere like kilkock? You could get a new build in that price range if you applied for the Help to Buy.

ms vieria · 18-01-2021 11:40am

Does anyone have the calculations for Bank of Ireland exemptions?

According to AIB last week their criteria for LTI are

net monthly income for a couple
-3650 living expenses
-250 per dependent
-outgoings (loan / childcare etc)

Balance left over = mortgage payment x maximum mortgage period is the amount you can borrow.

2050 is the living expenses for a non-exemption mortgage

ms vieria · 18-01-2021 11:43am

fin12 wrote: »

I think it’s unfair, we are in the EU, what can’t u get a loan from Eu banks to buy a house in Ireland?

You can get a mortgage from a bank in another country in the EU - people in other EU countries do it. Banks in EU just have little interest in lending in Ireland as the Risk outweighs the rewards for them. Only way that will change is if the rules change regarding eviction and I don't think most people in Ireland actually want them to change.

Paddy GT · 18-01-2021 12:05pm

Does anyone know if AIB have been offering exceptions recently ?

DubLad69 · 18-01-2021 12:17pm

Paddy GT wrote: »

Does anyone know if AIB have been offering exceptions recently ?

All of the banks are offering exceptions now. I've recently been in contact with them all to see what I could qualify for.

cb123 · 18-01-2021 12:23pm

Does anyone have a vague idea of criteria needed as a single applicant to get a LTI exemption? I know the banks are different, but is there a general stress test figure?

GimmeAHouse · 18-01-2021 12:25pm

DubLad69 wrote: »

You will only pay a 10% deposit. And the remainder is paid when you get the house.

Would you consider moving to somewhere like kilkock? You could get a new build in that price range if you applied for the Help to Buy.

Yes, I have considered Kilcock/Maynooth, that general area. Honestly, I wouldn't have a problem even going out as far as say Newbridge.

Black_Knight · 18-01-2021 12:37pm

GimmeAHouse wrote: »

Hi all,

I'm thinking of buying a house soon. I know almost nothing about the process.

Stats:

First-time buyer

29 y/o, single and no dependents - so applying alone.

No loans currently.

€110k available for a deposit.

Guaranteed gross annual income: €57k.

Also, up to 10% bonus on top of that, but that's performance-based and I don't think fall under "guaranteed income".

I'm currently living in Dublin, but I wouldn't mind moving outside the county. My job seems to be getting on board with the whole work-from-home arrangement and said that they might permit it as a permanent arrangement after the pandemic. So I don't mind looking at a country house (internet quality permitting).

Mortgage calculators online say that with the x3.5 rule I could possibly be approved for a mortgage of ~€199k, so with my deposit of €110k, I could possible get a house in the ~€300k-€309k range. Though of course, I'd want to set €10k aside for legal fees, stamp duty and whatnot, so €289k-€299k I think might be more realistic.

My biggest nightmare is putting down a big deposit of €100k and then losing it all at once because of some mishap. So, does anyone know if the following scenario is possible if I wanted to say buy a house worth €300k:

Put down a deposit of say €60k (20% of the property value), then get a €199k mortgage and use the remaining €40k-€50k in savings also to finance buying the property after the mortgage is drawn down?

Please tell me if any of the above sounds unrealistic.

Thanks.

To address your main point (the deposit), there are 2 deposits you pay. One is paid to the estate agent when you go sale agreed (this it not the minimum deposit required by the banks). It's a few thousand from what I remember... I think ours was €10k, and it's fully refundable, no strings. Then there's the minimum deposit the bank want. That's your 10% or whatever it is these days. It's not an issue in your case, since you'll be putting down well over 10% at drawdown.

Prior to viewing houses, you'll need to get your AIP (approval in principle) from a bank (or many), and this will be 3.5 times your salary (assuming no curve balls in your financial history, which it sounds like there isn't) - ~€200k.
So, you view a house (somewhere around ~€300k if that's your fancy), like it, put in an offer, it gets accepted and you give the estate agent ~€10k or whatever they're looking for to hold the property.
You go through all the checks (engineers report, waste, electrics, plumbing, maps etc.) and when it comes time to get the full approval from the bank they'll be looking for €100k deposit to make up the cost of the property. Same as someone buying a €220k house with €200k from the bank. All funds will go through your solicitor at this point, so there's no risk (unless your solicitor is a cowboy and disappears of the face of the earth with your, and others, deposits :eek: ).

TLDR: you can't draw down without sufficient funds paid for the property. You pay the solicitor (100k), solicitor pays the bank (100k). Bank tops it up with your mortgage (200k) and bank pays the house owners bank account/mortgage provider (300k).

Don't forget furnishings. 10k is decent for fees (3k stamp duty, 2k solicitors fees, 500 for an engineer, 200 for valuation, more hundreds for additional inspections depending on what engineer finds). You'll need a bed, chair, curtains if not included, some white appliances (fridge, washer, dryer).

Creamy Goodness · 18-01-2021 12:42pm

cb123 wrote: »

Does anyone have a vague idea of criteria needed as a single applicant to get a LTI exemption? I know the banks are different, but is there a general stress test figure?

They change bank to bank, month to month really. for me (and now this was two years ago so probably very much out of date), earn > 60k, stress test the mortgage at standard variable rate + 3% and have 1,500 discretionary income left after mortgage and credit card/loans are paid (if applicable). Near the end of 2019 I tried to get another exemption (just to reduce the amount of deposit I needed to pay to free up some cashflow for moving in) due to my salary changing and I was told the ruled had changed and that they were now looking at 2,500 discretionary left.

The only real way to get a list of them is to ring around or hope the ever helpful members of the forum here post their experiences.

GimmeAHouse · 18-01-2021 12:54pm

Black_Knight wrote: »

To address your main point (the deposit), there are 2 deposits you pay. One is paid to the estate agent when you go sale agreed (this it not the minimum deposit required by the banks). It's a few thousand from what I remember... I think ours was €10k, and it's fully refundable, no strings. Then there's the minimum deposit the bank want. That's your 10% or whatever it is these days. It's not an issue in your case, since you'll be putting down well over 10% at drawdown.

Prior to viewing houses, you'll need to get your AIP (approval in principle) from a bank (or many), and this will be 3.5 times your salary (assuming no curve balls in your financial history, which it sounds like there isn't) - ~€200k.
So, you view a house (somewhere around ~€300k if that's your fancy), like it, put in an offer, it gets accepted and you give the estate agent ~€10k or whatever they're looking for to hold the property.
You go through all the checks (engineers report, waste, electrics, plumbing, maps etc.) and when it comes time to get the full approval from the bank they'll be looking for €100k deposit to make up the cost of the property. Same as someone buying a €220k house with €200k from the bank. All funds will go through your solicitor at this point, so there's no risk (unless your solicitor is a cowboy and disappears of the face of the earth with your, and others, deposits :eek: ).

TLDR: you can't draw down without sufficient funds paid for the property. You pay the solicitor (100k), solicitor pays the bank (100k). Bank tops it up with your mortgage (200k) and bank pays the house owners bank account/mortgage provider (300k).

Don't forget furnishings. 10k is decent for fees (3k stamp duty, 2k solicitors fees, 500 for an engineer, 200 for valuation, more hundreds for additional inspections depending on what engineer finds). You'll need a bed, chair, curtains if not included, some white appliances (fridge, washer, dryer).

This is very useful advice. Thanks very much!

whatever76 · 18-01-2021 1:03pm

Black_Knight wrote: »

To address your main point (the deposit), there are 2 deposits you pay. One is paid to the estate agent when you go sale agreed (this it not the minimum deposit required by the banks). It's a few thousand from what I remember... I think ours was €10k, and it's fully refundable, no strings. Then there's the minimum deposit the bank want. That's your 10% or whatever it is these days. It's not an issue in your case, since you'll be putting down well over 10% at drawdown.

Prior to viewing houses, you'll need to get your AIP (approval in principle) from a bank (or many), and this will be 3.5 times your salary (assuming no curve balls in your financial history, which it sounds like there isn't) - ~€200k.
So, you view a house (somewhere around ~€300k if that's your fancy), like it, put in an offer, it gets accepted and you give the estate agent ~€10k or whatever they're looking for to hold the property.
You go through all the checks (engineers report, waste, electrics, plumbing, maps etc.) and when it comes time to get the full approval from the bank they'll be looking for €100k deposit to make up the cost of the property. Same as someone buying a €220k house with €200k from the bank. All funds will go through your solicitor at this point, so there's no risk (unless your solicitor is a cowboy and disappears of the face of the earth with your, and others, deposits :eek: ).

TLDR: you can't draw down without sufficient funds paid for the property. You pay the solicitor (100k), solicitor pays the bank (100k). Bank tops it up with your mortgage (200k) and bank pays the house owners bank account/mortgage provider (300k).

Don't forget furnishings. 10k is decent for fees (3k stamp duty, 2k solicitors fees, 500 for an engineer, 200 for valuation, more hundreds for additional inspections depending on what engineer finds). You'll need a bed, chair, curtains if not included, some white appliances (fridge, washer, dryer).

I was in similar situation having 120k + for deposit but 12 years older - you have youth on side so that is a plus so you can get longer mortgage if you want and over time all going well salary will grow . I set myself a max budget of 200k mortgage ( even though I was approved for a 300k mortgage but at my age I was not going to over stretch myself and aimed for 20 yr mortgage ) and I worked from that then and that guided me to looking at houses in 270-320 bracket - pending on the house then you can make a call on how much % of deposit you want to put down . Advice will be put as much deposit you can down but if you need cash to do it up and have savings for rainy day then you can make that call . Get AIP and confirmation and just take from there and search for houses within the price range of your mortgage + good deposit and see how things go - there will be compromises so you make that call on the property that you want to purchase and what feels right - you in a very good position so that all good !! I am not sure if what I did in end was the right thing ( am sure other people would have done it differently) as I kept money back to do it up over time and got the 200k mortgage but I just made the decision ( the house ticked all my main boxes of Location,budget & parking as its my forever home ) and went with it and just hope it was the right one ! Its working out great so far but long term you just never know !

Xoo2 · 18-01-2021 1:58pm

I have a question about the 20% deposit for non first time buyers if anyone could help.
We have a 2 bed apartment valued last year at 350k with 150k outstanding on mortgage. Not the best purchase in hindsight with 2 children later, ran out of space very quickly so we're looking to upgrade to a 4-bed with budget around 500k.
My question is, can we use the 200k equity towards the 20% deposit for our next purchase? Which is obviously dependent on our apartment selling, or would we need the 100k (20% of 500k) before our own place is sold? Thanks in advance.

Black_Knight · 18-01-2021 2:46pm

Xoo2 wrote: »

I have a question about the 20% deposit for non first time buyers if anyone could help.
We have a 2 bed apartment valued last year at 350k with 150k outstanding on mortgage. Not the best purchase in hindsight with 2 children later, ran out of space very quickly so we're looking to upgrade to a 4-bed with budget around 500k.
My question is, can we use the 200k equity towards the 20% deposit for our next purchase? Which is obviously dependent on our apartment selling, or would we need the 100k (20% of 500k) before our own place is sold? Thanks in advance.

Technically both, no?

You'll need 100k at drawdown, so you'd need to sell your apartment. It can be done, but you'll have a domino affect of house sales to contest with.

You'd need to find a house and sell your house at the same time. Your house is sold the day you drawdown on the new house. Sell your house, buyers bank pays your solicitor, solicitor then is in a position to pay your new mortgage provider who release your new mortgage funds and pay the 500k house sellers solicitor. You sell and buy on the same day.

errlloyd · 18-01-2021 5:34pm

I've put an offer on a home via an agencies portal. They seem to have some automated bidding deal. (would love your thoughts and prayers ðŸ˜Š)

How does this work. Does the bidding stay open at the sellers discretion? We're already at asking price but there haven't been too many bids.

lindtee · 18-01-2021 9:39pm

Is it Auctioneera? I was bidding on a property from them last year. Once the property hits asking, which it did immediately then there is 2 weeks til the “auction” is over and the highest bid wins.Bidding was very slow to begin but in the last few hours before it was over there were about 4 active bidders. It went for 42,000 over asking in the end.

[Deleted User] · 18-01-2021 9:44pm

lindtee wrote: »

Is it Auctioneera? I was bidding on a property from them last year. Once the property hits asking, which it did immediately then there is 2 weeks til the “auction” is over and the highest bid wins.Bidding was very slow to begin but in the last few hours before it was over there were about 4 active bidders. It went for 42,000 over asking in the end.

That seems a long time. What happens if you want to retract your bid?

At least with the likes of BidX1 it's all done and dusted in a single day and you know where you stand.

lindtee · 18-01-2021 9:48pm

Deleted User wrote: »

That seems a long time. What happens if you want to retract your bid?

At least with the likes of BidX1 it's all done and dusted in a single day and you know where you stand.

With Auctioneera, although the bidding in an auction style way, it’s still a private treaty sale. Even if you bid the highest the vendors could go with the under bidder as they might be in a position to close faster. It’s all a bit silly really.

stampydmonkey · 18-01-2021 9:57pm

lindtee wrote: »

With Auctioneera, although the bidding in an auction style way, it’s still a private treaty sale. Even if you bid the highest the vendors could go with the under bidder as they might be in a position to close faster. It’s all a bit silly really.

It's the same on sherry Fitz site although not to the same extent as Auctioneera. See houses blast up in price on the deadline day. I always wonder are, or, could you be bidding against someone acting on behalf of the owner to drive up the price.

ownsbows · 19-01-2021 10:53am

We have put a booking deposit of 5000 on a new build.Does anyone know if the 5000 booking deposit paid to the auctioneer can go towards the deposit for the mortgage that the bank will be looking for.

errlloyd · 19-01-2021 10:55am

It is with Owen Reilly. But there doesn't seem to be a closing day as far as I can tell.

PinkSpark · 19-01-2021 11:02am

ownsbows wrote: »

We have put a booking deposit of 5000 on a new build.Does anyone know if the 5000 booking deposit paid to the auctioneer can go towards the deposit for the mortgage that the bank will be looking for.

Yes, the booking deposit can be part of your overall deposit. We just paid our 10% deposit last week and deducted the €5000 from the amount

[Deleted User] · 19-01-2021 1:01pm

Submitted the last of my info to broker. Saving about 2k a month on top of rent so say I look fine on paper.

The_Fitz · 19-01-2021 1:41pm

Anyone know what the criteria is for an LTI exemption from Ulster Bank?

The_Conductor · 19-01-2021 2:58pm

The_Fitz wrote: »

Anyone know what the criteria is for an LTI exemption from Ulster Bank?

Generally, public sector with a defined payscale- aka, rocksolid employment that you're not going to loose in a downturn- and they can see what your future earning capacity is.

The_Fitz · 19-01-2021 5:47pm

The_Conductor wrote: »

Generally, public sector with a defined payscale- aka, rocksolid employment that you're not going to loose in a downturn- and they can see what your future earning capacity is.

Grand. That's me out

Renjit · 19-01-2021 6:00pm

ownsbows wrote: »

We have put a booking deposit of 5000 on a new build.Does anyone know if the 5000 booking deposit paid to the auctioneer can go towards the deposit for the mortgage that the bank will be looking for.

Yes, scan the confirmation receipt and include it during your mortgage application.

Zebrag · 19-01-2021 8:43pm

How's the house savings going? What are your plans? Do you want to buy this year or have these plans been put on hold?
I am saving but this third lockdown has honestly made me wonder if its all possible to buy this year as it'll be another year of Covid Payments in the payslip. I know you can have 6 months savings and statements without this Covid Payment but there's nothing worst when you're trying your hardest and then it's more twist and turns in your way. I also pay rent so I have this hatred knowing that banks just won't accept rent payments AND savings as a means to prove to them that I can pay a mortage (correct me if I am wrong on that statement!)
I've been saving for a long time and last year was my "this is it I am going to apply for a mortage" year until the first lockdown hit and my wages took a nosedive then the second lockdown and now this one.
Is anyone else on the same boat? Is anyone else saving and finding it hard to keep themselves motivated?

Saving/Applying for a mortgage 2020-22 Edition

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