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

Santy2015 · 29-09-2015 5:21pm #1

Hi, me and my fiancée are currently saving up to buy our first home. I would like a few ideas as to what we should have saved to cover all costs with buying a house deposit, stamp duty etc.. I understand that we can get a mortgage of €130000/€140000 as herself has a car loan at present. We are saving €250 a week at the moment. We have about €7000 saved so far. Any help would be greatly appreciated.
Thanks

El_Dangeroso · 29-09-2015 6:48pm

How soon are you planning to buy? If you can wait 15 months the best savings account is the nationwide uk Ireland one:

http://www.nationwideuk.ie/savings/regularsaveraccount.asp

You can claim back any dirt on it once you're ready to buy as well.

Santy2015 · 29-09-2015 6:56pm

Hoping to buy in the summer of next year. We already have money in bank savings and credit union. Hoping to have around 16k by end of May 15

alastair · 29-09-2015 7:03pm

Santy2015 wrote: »

Hoping to buy in the summer of next year. We already have money in bank savings and credit union. Hoping to have around 16k by end of May 15

You've missed that boat, but good luck saving for Spring '16!

Santy2015 · 29-09-2015 7:05pm

Yeah should've looked earlier but should be okay

valovalo · 29-09-2015 7:56pm

Hi, we are in same boat about 8k saved, and hope to reach 15k by mid next year and then have that to back up mortgage application, but alas not much in galway City to even match that so it will be out the country a bit, ie athenry , headfirst ect,
Paying 895 per month here in city and saving 150 per week and 50 towards loan, (loan needed to move in here!!)
Wages between us is not great but we survive , is there any one in same boat in regards saving, deposits , galway region or any one know of any thing house wise coming up in next year to keep eye out for,
Thanks guys

Santy2015 · 29-09-2015 8:26pm

We are looking in the north cork region mallow Kanturk, there's plenty of properties in the region we can afford but it's the furnishing of the house after all the other expenses are taken into account is the problem, we already talked to the ebs as they seem the best to deal with so far

April 73 · 29-09-2015 10:20pm

Let's say you borrow €130,000. As first time buyers you can borrow 90% of the value of the property. So you could purchase a property costing €144,000 needing a deposit of €14,400.
Add to that a survey at €300 to €500, solicitor of approx €2000 to €2500 including land registration, and stamp duty at €1,440.
Somewhere in the region of €18,000 to €19,000 to buy & complete the purchase.

Saving that kind of money is quite a task. Best of luck with it.

Santy2015 · 29-09-2015 10:36pm

Would the solicitor cost Ã¢Â‚Â¬2k plus? Always taught it would be similar to the stamp duty? We are saving Ã¢Â‚Â¬250 a week and hope to save more after Xmas. My goal is to have at least Ã¢Â‚Â¬15k by start of May 16 and go for mortgage approval then

April 73 · 29-09-2015 11:09pm

I based that on the quote I got from a solicitor as below:
The bit you might be able to negotiate on is the professional fee. I don't think they can do anything about the registration & search fees.

Purchase:
Land Registry fee to lodge Transfer €800.00
Land Registry fee to lodge Deed of Mortgage €175.00
Copy Folio €6.00 €981.00

Stamp Duty @ 1%

Search fees as required by the Lending Institution and against the vendor €125.00
V.A.T @ 23% €28.75 €153.75

Professional fee €1,250.00
V.A.T @ 23% €287.50 €1,537.50

April 73 · 29-09-2015 11:11pm

If you had €15000 you'd be in a good position to look for a mortgage for the kind of money you're talking about.
Don't forget that you'll need some decorating/furniture cash too though.

Santy2015 · 30-09-2015 10:14am

Yeah getting the money for getting the house is fine, saving for furnishings and so on is what I need to get sorted. We've bits and pieces gathered already

Black_Knight · 30-09-2015 10:42am

Expect stupidly long wait times on furniture. Beds, kitchen tables, coffee tables, couches etc can all take months. I've seen/heard anything from 3-7 months for furniture to arrive.

That said, i'd take a different approach to this - Get your essentials (bed, couch, table) in first (IKEA/second hand/friends etc) and plan on not having them for a long time. Let them tie you over for a year or whatever, and when delivery times aren't a factor in purchasing, buy what you really want. Sell the other stuff second hand, or move your temp couch into a kids toy room, and bed into the 2nd bed room.

30-09-2015 11:27am

Black_Knight wrote: »

Expect stupidly long wait times on furniture. Beds, kitchen tables, coffee tables, couches etc can all take months. I've seen/heard anything from 3-7 months for furniture to arrive.

I would say it's rare to wait so long, I haven't seen people I know furnishing houses wait more than a few weeks for stuff they bought.

Black_Knight · 30-09-2015 11:34am

Just going on what ive heard and seen.

ghostdancer · 30-09-2015 12:18pm

unless you're ordering special custom made pieces, it shouldn't take any more than a few weeks for items to arrive.
many of the larger places will have popular items on stock and can be delivered within a number of days.

Santy2015 · 30-09-2015 2:26pm

Yeah we have a few things got already, well we own them already, we've a bed, TVs coffee table, pc, ps4,(essential) and all of the other bits and bobs, knives glasses cups etc... Have a few vouchers to help us get kettle toaster etc too, it's the big purchases like ye said, the couch, kitchen appliances that will catch us. You don't realise how hard it is once you start the saving. I suppose it's lucky that we can both live at home and save still in our mid twenties

April 73 · 30-09-2015 7:02pm

It's worth it though.

I can still remember clearly the thrill of getting the keys to our first house. We moved in with a bed, kitchen table & chairs & a second-hand sofa. We ate takeaway chips outside on the back step that first night & all was right in the world.

Santy2015 · 30-09-2015 8:44pm

That'll be perfect, we can't wait hence why we are saving so hard, once we get the house we can think about our wedding, saying that though herself has half it planned already haha

Alkers · 30-09-2015 9:27pm

Saving 1k a month at the moment and have about 16k saved so far. Problem is we're still n Dublin so to get anything decent we're looking at 250-300k. Very difficult with the lending limits as we only make 65k between us. Also we do not want to buy an apartment or a 'starter home' with the difficulty in trading up under the new rules. We're both under 30 though so we can hang on a year or two.

Santy2015 · 30-09-2015 9:49pm

Yeah we're saving 1k a month too but on about Ã¢Â‚Â¬44k between us. Obviously down here in the sticks you'd get a 3 bed semi for less then Ã¢Â‚Â¬150000. Ye will get there no problem. We only started saving so once we hit Ã¢Â‚Â¬15k we'll go for mortgage approval

Alkers · 01-10-2015 9:10am

valovalo wrote: »

Paying 895 per month here in city and saving 150 per week and 50 towards loan, (loan needed to move in here!!)

Would you not be better off using whatever savings you have to repay the loan and putting all your available extra income into paying off the loan before you start building up your savings?

valovalo · 01-10-2015 9:49am

Simona1986 wrote: »

Would you not be better off using whatever savings you have to repay the loan and putting all your available extra income into paying off the loan before you start building up your savings?

Yes. Exactly what we now plan to do,

lima · 01-10-2015 9:55am

Simona1986 wrote: »

Saving 1k a month at the moment and have about 16k saved so far. Problem is we're still n Dublin so to get anything decent we're looking at 250-300k. Very difficult with the lending limits as we only make 65k between us. Also we do not want to buy an apartment or a 'starter home' with the difficulty in trading up under the new rules. We're both under 30 though so we can hang on a year or two.

I wouldn't knock apartments - they only have a negative connotation because in Ireland for some reason (perhaps peoples parents who are not familiar with them gossiping down their neck over a barrys). You'd almost get a bigger apt for that amount than a house. Certainly in a nicer area.

I found it interesting when I bought an apt this year and noticed many foreign families with one/two kids living happily in apartments. These would be people involved in tech, doctors, pilots etc. so not rent allowance

Seems to be an Irish thing

BobBobBobBob · 01-10-2015 4:01pm

Santy2015 wrote: »

We are looking in the north cork region mallow Kanturk, there's plenty of properties in the region we can afford but it's the furnishing of the house after all the other expenses are taken into account is the problem, we already talked to the ebs as they seem the best to deal with so far

We are buying in the Kanturk area (deposit paid), plenty of houses for sale and prices are very good too. Best of luck!

Flatzie_poo · 01-10-2015 4:16pm

lima wrote: »

I wouldn't knock apartments - they only have a negative connotation because in Ireland for some reason (perhaps peoples parents who are not familiar with them gossiping down their neck over a barrys). You'd almost get a bigger apt for that amount than a house. Certainly in a nicer area.

I found it interesting when I bought an apt this year and noticed many foreign families with one/two kids living happily in apartments. These would be people involved in tech, doctors, pilots etc. so not rent allowance

Seems to be an Irish thing

You'd be doing well to get an apartment in a desirable location that's bigger and cheaper than a house.

Take into account most houses being 2 stories, It's sq feet x2.

Having lived in both, I'd never go back to apartment living.

I don't know what you mean by "an Irish thing" but with a family, a back garden is an invaluable space.

draiochtanois · 01-10-2015 4:25pm

This post has been deleted.

lima · 01-10-2015 4:43pm

Flatzie_poo wrote: »

You'd be doing well to get an apartment in a desirable location that's bigger and cheaper than a house.

Take into account most houses being 2 stories, It's sq feet x2.

Having lived in both, I'd never go back to apartment living.

I don't know what you mean by "an Irish thing" but with a family, a back garden is an invaluable space.

Take into account apartments are wider

For 250-300k you'd get an apt in a nice area for a lot cheaper than a house in the same area.

I bought a 2br 72sqm apt in a desirable area and there's no way I'd get a house of the same size.

I pay a management company to take care of a lot of stuff for a fee but it's still worth it.

A garden is always a bonus (I lived in London, I learned to do without one!), but personally I'd rather to be more central with less of a commute than to be further out. I get a buzz from living close to everything, I see my place as an urban pad within the city that I can pop into whenever I want a sanctuary away from the city

I'm not ready for the suburban grey grind

Each to their own but apt living still needs to be considered as some people like it (like me).

TallGlass · 01-10-2015 4:52pm

What type of mortgage could one expect to get if on 24k a year and with say 16k savings?

Flatzie_poo · 01-10-2015 4:54pm

lima wrote: »

Take into account apartments are wider

What? It's total sq feet/meters you go off...

lima wrote: »

For 250-300k you'd get an apt in a nice area for a lot cheaper than a house in the same area.

You lose out on floor space & private garden front & back in most cases. Add on annual mgt fee & car parking fees.

lima wrote: »

I pay a management company to take care of a lot of stuff for a fee but it's still worth it.

You also lose out on freedom. Your mgt co. may not allow satellite dishes for Sky for example... and you may have to clear renovations are ok with them...

lima wrote: »

A garden is always a bonus

Agreed

lima wrote: »

I see my place as an urban pad within the city that I can pop into whenever I want a sanctuary away from the city I'm not ready for the suburban grey grind

There's affordable houses close to the city.

On top of all this, take into account issues that may arise - such as what's happening in Dublin in Longboat Quay apartments. Residents are stuck with at least a €2,000,000 bill at present.

Flatzie_poo · 01-10-2015 4:56pm

TallGlass wrote: »

What type of mortgage could one expect to get if on 24k a year and with say 16k savings?

You're restricted maximum borrow amount of 3.5x your annual salary at present. (84k)

If you want more, best going in at the start of next year and trying to be one bank's electives to be exempted from the Central Bank rules.

dutopia · 01-10-2015 5:01pm

Black_Knight wrote: »

Expect stupidly long wait times on furniture. Beds, kitchen tables, coffee tables, couches etc can all take months. I've seen/heard anything from 3-7 months for furniture to arrive..

It's s tricky balance, you can't order early as you'd have nowhere to put it and also your ideas may change when you move in. Luckily we timed our stuff pretty well and got it all within about 2 weeks of moving in, except for our sofas which took 3 weeks - but DFS gave us loan sofas.

TallGlass · 01-10-2015 5:03pm

Flatzie_poo wrote: »

You're restricted maximum borrow amount of 3.5x your annual salary at present. (84k)

If you want more, best going in at the start of next year and trying to be one bank's electives to be exempted from the Central Bank rules.

84k + 20k is 104k. Theres nothing even on daft for property at that price? I don't expect a pay rise either that would boost my figures. And I can't afford to move out and rent. In Dublin, would relocate to Meath but again nothing around 84k. And these prices are not dropping as anticipated as there are alot of cash buyers.

angeldelight · 01-10-2015 5:03pm

Feels like we're never going to get there - we've 12k saved, got gift of 5k, paying 1100 per month rent and saving 1000 per month (500 to house account). But we're looking in Maynooth, will need a lot more!

Flatzie_poo · 01-10-2015 5:07pm

TallGlass wrote: »

84k + 20k is 104k. Theres nothing even on daft for property at that price? I don't expect a pay rise either that would boost my figures. And I can't afford to move out and rent. In Dublin, would relocate to Meath but again nothing around 84k. And these prices are not dropping as anticipated as there are alot of cash buyers.

Rent for the time being. Wherever you can afford.

Deposit your savings in an account getting a good interest rate, maybe you'll meet someone in time you can venture with in an application.

It's a huge decision, best not to rush!

They may lax the CB's restriction, but it's pure speculation at the min!

Best of luck whatever you do.

lima · 01-10-2015 5:15pm

Flatzie_poo wrote: »

What? It's total sq feet/meters you go off...

Huh?? Yes, and you said houses are twice as big as apartments as they have two floors. I'm being sarcastic (but it's true) when I say that apartments can be wider than houses. Why can't you have the same area in a wide, single floor apartment compared to a duplex house? Or have I missed the point?

Flatzie_poo wrote: »

You lose out on floor space & private garden front & back in most cases. Add on annual mgt fee & car parking fees.

Perhaps, but you may have paid 150-200k less than a house

Flatzie_poo wrote: »

You also lose out on freedom. Your mgt co. may not allow satellite dishes for Sky for example... and you may have to clear renovations are ok with them...

I have Sky and UPC cabled in by the management company, and I don't have to give notice to renovate unless I am knocking down walls (Which I wouldn't need to)

Flatzie_poo wrote: »

Agreed

A bonus, but not a requirement

Flatzie_poo wrote: »

There's affordable houses close to the city.

Not in desirable areas

Flatzie_poo wrote: »

On top of all this, take into account issues that may arise - such as what's happening in Dublin in Longboat Quay apartments. Residents are stuck with at least a €2,000,000 bill at present.

With a good solicitor and Surveyor, you'd have to be really unlucky to be caught up in an issue such as this

draiochtanois · 01-10-2015 5:32pm

This post has been deleted.

lima · 01-10-2015 5:40pm

draiochtanois wrote: »

This post has been deleted.

They can make relevant assessments and judgements and it would be up to you to proceed, taking into account your risk level. If something warrants investigation, then run

TallGlass · 01-10-2015 6:30pm

Flatzie_poo wrote: »

Rent for the time being. Wherever you can afford.

Deposit your savings in an account getting a good interest rate, maybe you'll meet someone in time you can venture with in an application.

It's a huge decision, best not to rush!

They may lax the CB's restriction, but it's pure speculation at the min!

Best of luck whatever you do.

I'll be honest. I am 25 and my old rush is my alcoholic father at home. I can't stand to be in the house and my wages won't support 1k rent and living expensis and I couldn't hand over 700/800 for a 'studio'. I'm looking at out around the Meath Dublin border. I have 5k saved already. GF wants to rent first and move to somewhere in Dublin but with the rules I can't see us getting anywhere in Dublin. I don't blame then for bringing it in. But they said house prices would drop, which I don't think they have.

I don't want to push my GF to move out cause of my circumstances so I rather go it alone on a place for say 80/90k over 10years and use it as an investment and when the time comes try come back to Dublin. But seems impossible. Both renting and mortgage wise. 24k full time job, might as well be minimum wage, useless. Going thru college at the moment in the hope of after 4 years landing a 35/40k job. All while I am doing this my father's drinking is getting worse.

Alkers · 01-10-2015 8:37pm

If you want to save while renting you pretty much will have to look at a house share. Have you any other friends or colleagues looking to move out? Otherwise look to rent a room in a house but its a bit more difficult as a couple. If you're looking in Dublin you will NEED to have two people contributing to the mortgage to get anywhere, especially if you're at the beginning of your careers.

Santy2015 · 01-10-2015 9:26pm

TallGlass wrote:

get if on 24k

TallGlass wrote:

What type of mortgage could one expect to get if on 24k a year and with say 16k savings?

It's 3.5 times your gross wage you'd be looking at Ã¢Â‚Â¬84000 I think you'd def get approval for anything under Ã¢Â‚Â¬100000.

Santy2015 · 01-10-2015 9:27pm

BobBobBobBob wrote:

houses

BobBobBobBob wrote:

We are buying in the Kanturk area (deposit paid), plenty of houses for sale and prices are very good too. Best of luck

thanks yeah some nice houses there too. Mallow has some good houses too. Best of luck with the new house

Flatzie_poo · 02-10-2015 8:29am

lima wrote: »

Huh?? Yes, and you said houses are twice as big as apartments as they have two floors. I'm being sarcastic (but it's true) when I say that apartments can be wider than houses. Why can't you have the same area in a wide, single floor apartment compared to a duplex house? Or have I missed the point?

You missed the point. Apartments can be wider. Yes. But when you're judging the size of a property you go off total sq feet/meters.

lima wrote: »

Perhaps, but you may have paid 150-200k less than a house

That's just incorrect. Unless you're apartment is a complete dive.

lima wrote: »

I have Sky and UPC cabled in by the management company, and I don't have to give notice to renovate unless I am knocking down walls (Which I wouldn't need to)

Just because that's applicable in your complex, does not mean it's applicable in all other apartment complexes. A lot of complexes don;t allow satellites. Hence my point.

lima wrote: »

A bonus, but not a requirement

A huge bonus.

lima wrote: »

Not in desirable areas

How desirable and area is is subjective. Giving you a little leeway on this, Stoneybatter & Fairview are quite desirable to most people. Most prices there are not extortionate.

lima wrote: »

With a good solicitor and Surveyor, you'd have to be really unlucky to be caught up in an issue such as this

Even the best sometimes miss the obvious.

Jen44 · 02-10-2015 9:04am

Sounds like your doing well. Just try not take anything from your savings between now and then. Keep the amount your saving around what you expect your monthly mortgage payments to be. They generally expect to see at least six months evidence that you will be able to make the payments. In fact they usually calculate a stressed payment in case mortgage interest rates were to go up so make sure your savings match that. The quote someone else gave you regarding the solicitor is about right you usually end up paying around 2000-2500 plus stamp duty. Make sure you dont change job between now and then permanent employment is essential, they are not interested in contract work usually. And my only other advise would be to go into the banks and talk to them, dont rely on online calculators etc. Some banks are willing to work with you in relation to some aspects of your application. Now is the hard part just keep your head down and save as much as you can.

syklops · 02-10-2015 9:14am

Azalea Screeching Padding wrote: »

I would say it's rare to wait so long, I haven't seen people I know furnishing houses wait more than a few weeks for stuff they bought.

Yeah, all bought on the credit card, which is why we have such high levels of credit card debt in this country.

You've got 20 years to get the house fully kitted out. Whats the hurry. As another poster said, get your basics in, bed, kitchen table etc. and add to it when you can afford to.

lima · 02-10-2015 10:35am

Flatzie_poo wrote: »

You missed the point. Apartments can be wider. Yes. But when you're judging the size of a property you go off total sq feet/meters.

The total measurements of the floorspace, yes? Or have I missed something? Are you counting something other than usable floorspace to measure the size of a property?
Please explain this, and how the total (usable) floorspace of a two story house differs with the total floorspace of an apartment that contains as much floor as the floor in a two story house.

Flatzie_poo wrote: »

That's just incorrect. Unless you're apartment is a complete dive.

Lol is it so, I bought a high-quality apartment in a decent north side area recently and it is significantly cheaper than an equivalent house. I will go back to it after work and enjoy it knowing that a house would have cost me significantly more

Flatzie_poo wrote: »

Just because that's applicable in your complex, does not mean it's applicable in all other apartment complexes. A lot of complexes don;t allow satellites. Hence my point.

Well I have given you an example, so it is applicable in my apartment. You have not given an example, therefore as of right now I have proven that it is applicable in 100% of apartment complexes. How do you measure 'a lot'? If it's applicable in my apartment complex, it doesn't mean it's not applicable in other apartment complexes.

Flatzie_poo wrote: »

A huge bonus.

I don't miss a garden.

Flatzie_poo wrote: »

How desirable and area is is subjective. Giving you a little leeway on this, Stoneybatter & Fairview are quite desirable to most people. Most prices there are not extortionate.

Lol, leeway. Well done.
How do you know they are desirable to most people? Pretty subjective isn't it?
I grew up neat Fairview and it's a sh*thole. Stoneybatter is close to bad areas and is only desirable to some because it's relatively cheap.

Nonetheless, houses in these areas are significantly more expensive than my apartment:
http://myhome.ie/residential/dublin-3/house-for-sale-in-fairview?minbeds=2&maxbeds=3
http://myhome.ie/residential/dublin-7/house-for-sale-in-stoneybatter?minbeds=2&maxbeds=3

Flatzie_poo wrote: »

Even the best sometimes miss the obvious.

That is equally the same for houses. There's risk there too.

Flatzie_poo · 02-10-2015 10:42am

lima wrote: »

Nonetheless, houses in these areas are significantly more expensive than my apartment:
http://myhome.ie/residential/dublin-3/house-for-sale-in-fairview?minbeds=2&maxbeds=3
http://myhome.ie/residential/dublin-7/house-for-sale-in-stoneybatter?minbeds=2&maxbeds=3.

€195k is a lot more expensive than your apartment?

I'm banging my head against a brick wall with you.

The total floor space is what I said you measure the size or a house or apartment with. You then come back saying along the lines of "take into account an apartment is wider."

do you not understand that that's already taken into account in total floor space?

Black_Knight · 02-10-2015 10:49am

Id suggest taking it to PMs. Apartment vs House has nothing to do with the OP.

Paulw · 02-10-2015 10:49am

Mod Note: Please stick to the topic, and enough of the back and forth about the rest.

02-10-2015 11:38am

syklops wrote: »

Yeah, all bought on the credit card, which is why we have such high levels of credit card debt in this country.

You've got 20 years to get the house fully kitted out. Whats the hurry. As another poster said, get your basics in, bed, kitchen table etc. and add to it when you can afford to.

No the friends of mine I'm referring to are building their houses rather than buying so part of the mortgage is set aside for fully furnishing the main rooms in the houses, no maxing out credit cards.

Santy2015 · 02-10-2015 1:51pm

Jen44 wrote:

Sounds like your doing well. Just try not take anything from your savings between now and then. Keep the amount your saving around what you expect your monthly mortgage payments to be. They generally expect to see at least six months evidence that you will be able to make the payments. In fact they usually calculate a stressed payment in case mortgage interest rates were to go up so make sure your savings match that. The quote someone else gave you regarding the solicitor is about right you usually end up paying around 2000-2500 plus stamp duty. Make sure you dont change job between now and then permanent employment is essential, they are not interested in contract work usually. And my only other advise would be to go into the banks and talk to them, dont rely on online calculators etc. Some banks are willing to work with you in relation to some aspects of your application. Now is the hard part just keep your head down and save as much as you can.

yeah we won't be touching any of he savings. We are saving Ã¢Â‚Â¬1000 a month so out mortgage repayments would be less as we are constrained by the new rules. Got a stress test and said we'd be able to afford between Ã¢Â‚Â¬130000 to Ã¢Â‚Â¬140000 mortgage even with herself a car loan

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

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